Election Promises – What You Need to Know

With the election looming large, both sides have been making big promises to try and win voters.  We have summarised the key measures impacting tax, finance and the economy so you can easily compare what each party is offering. Note there are still a few more days until the election so there could be more promises announced at the lastminute.

Tax Policies

Labor

• Individual Tax Relief: Cuts to the lowest tax bracket—from 16% to 15% from July 1, 2025, and further reduced to 14% from July 1, 2026.
• Medicare Levy Thresholds: Slight increase to the thresholds for Medicare Levy.
• Simplified Deductions: A $1,000 automatic tax deduction for all workers, eliminating the need to claim multiple smaller deductions.
• Small Business Support: Extension of the $20,000 instant asset write-off for another 12 months beyond July 1, 2025.

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Coalition

• Tax Relief Approach: Will repeal Labor's tax cuts to the lowest tax bracket but offers a one-off $1,000 cost of living tax offset for taxpayers earning up to     $144,000 in the next financial year.
• Small Business Incentives:
   
  • Increasing the instant asset write-off to $30,000.
   
  • $2,000 tax deduction for two years for small businesses investing $4,000+ in technology.
   
  • $20,000 business-related meals and entertainment deduction (excluding alcohol).
 
• New Business Support: Tax offset for newly incorporated businesses for the first three years of operation—75% of the first $100,000 of taxable income and 50% of the second $100,000 in the first year.

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Employment, Education & Training

Labor

• Apprenticeship Support: Doubling Key Apprentices Program payments from $5,000 to $10,000 from July 1, 2025, extended to include residential construction trades.
• Education Relief:
   
  • Forgiving up to $16 billion in student debt on June 1.
   
  • 20% reduction on existing student loans.
   
  • Increasing student debt repayment threshold to $67,000 (from $54,435).
 
• Worker Protections:
   
  • Ban on non-compete clauses for workers earning less than $175,000.
   
  • Legislated penalty rates in awards.
 
• Skills Development: 100,000 permanent free TAFE positions offered annually from 2027.
• Infrastructure Investment:
   
  • $54 million for prefabricated and modular home construction.
   
  • $3 billion for higher-speed NBN to 622,000 premises by end of 2029.

Coalition

• Apprenticeship Targets: 400,000 apprentice and trainee positions with wage subsidies up to $12,000 per year for first two years.
• Education Stance:
   
  • Opposition to 20% cuts to existing student loans.
   
  • Reducing foreign student numbers and increasing visa fees.
   
  • Will not support 100,000 free TAFE positions.
 
• Public Service: Plans to remove 41,000 government and public service positions through a four-year hiring freeze.
• Infrastructure: Will match Labor's $3 billion NBN spend.

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Cost of Living & Health

Labor

• Energy Relief: Extending the $150 energy rebate for six months, automatically applied in two instalments.
• Family Support:
   
  • Increasing paid parental leave to 25 weeks from July 1, 2025, and 26 weeks from July 1, 2026.
   
  • $1 billion to build and upgrade 160 childcare centres over four years.
   
  • Three days of guaranteed subsidised childcare for families with combined income up to $533,280.
   
  • From 2026, removal of work/study requirements for Child Care Subsidy.
 
• Healthcare Investments:
   
  • $8.5 billion boost to Medicare to increase bulk billing.
   
  • Reducing PBS medicine costs from $31.60 to $25.00.
   
  • $644 million for 50 new Medicare Urgent Care Clinics.
   
  • $1 billion for mental health facilities and 1,200 new health workers.

Coalition

• Cost Reduction Measures:
   
  • Matching the six-month extension for the $150 energy rebate.
   
  • Halving fuel excise for 12 months from July 2025 (estimated 25¢/liter savings).
   
  • Scrapping the New Vehicle Efficiency Standards (NVES).
 
• Healthcare Commitments:
   
  • Matching the $8.5 billion Medicare funding boost.
   
  • Supporting PBS medicine cost reduction to $25.00.
   
  • Increasing subsidised mental health visits from 10 to 20.
   
  • $400 million for youth mental health.
 
• Regional Investment: $20 billion Regional Australia Future Fund for infrastructure, roads, healthcare, and childcare.

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Housing

Labor

• First  Home Buyers: Continued support for 5% deposits with Commonwealth guarantee (no LMI required).
• Housing Targets: National Housing Accord to build 1.2 million homes by 2029.
• Direct Investment:
   
  • $10 billion to build 100,000 properties for first home buyers by 2027.
   
  • $800 million Help to Buy Scheme offering government equity stakes up to 40% for low-income buyers.
   
  • $10 billion Housing Australia Future Fund with guaranteed $500 million annual housing expenditure.

Coalition

• First Home Buyer Incentives: Tax deduction on mortgage interest for the first $650,000 of newly built homes for five years (approximately $12,000 annual deduction).
• Superannuation Access: Allowing withdrawals of up to $50,000 from superannuation for home deposits.
• Market Interventions:
   
  • Maintaining the Home Guarantee Scheme program.
   
  • Two-year ban on temporary residents and foreign investors purchasing existing homes.
   
  • Reducing immigration intake from 185,000 to 140,000 for two years.
   
  • Freezing the National Construction Code for 10 years to reduce costs.

Implications for Financial Management

These policies have significant implications for personal and business financial planning:

1. Tax Planning: Different approaches to tax relief and deductions will affect how individuals and businesses structure their finances.
2. Education Finances: Student loan changes could dramatically impact education debt management strategies.
3. Property Investment: Housing policies could dramatically property market conditions and investment strategies.
4. Small Business Operations: Various tax incentives and deductions require strategic planning to maximise benefits.
5. Retirement Planning: Changes to superannuation access for housing could affect long-term retirement strategies.

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So there you have it.  Significant promises from both sides some of which could have major impacts to markets. We hope that helps you on polling day andonce the results are in we will summarise what that likely means.

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