From tax cuts to power bill rebates, reduced fuel bills to increased asset write-off limits, the major parties are going all out to get your vote.
Here’s a summary of what Labor and Coalition promise to do if elected on May 3rd.
Labor
- A rebate on household and small business power bills of $150, which will be automatically applied from July this year and paid over two instalments.
- A small tax cut over two stages — the first on July 1 next year and the second on July 1, 2027. That will save every taxpayer about $5 a week in year one and $10 a week from year two onwards.
- Slash students’ debts by 20 per cent in a one-off move , which it expects to wipe about $5,520 from the average HELP debt.
- The party will also allow people to instantly claim a $1,000 deduction on their taxes for work expenses from 2026-2027, without the need for receipts or professional tax advice.
- Labor will extend the instant asset write-off limit of $20,000 for small businesses for another 12 months, allowing them to instantly deduct the full cost of assets used or installed by 30 Junes 2026.
Coalition
- 25 cent reduction on the cost of a litre of fuel, by temporarily halving the fuel excise for 12 months.
- A one-off tax offset of up to $1,200 will also be delivered to taxpayers earning less than $144,000, starting at the maximum amount for low income earners and tapering down for higher income earners.
- The party also won’t stand in the way of Labor’s $150 rebate on power bills to be applied from July over two instalments.
- Small businesses would also be able to claim a $2,000 deduction for tech upgrades of $4,000 or more, under a ‘tech booster’ program.
- The Coalition would make the instant asset write-off permanent and raise the deduction limit from $20,000 to $30,000.
- Tax deductions up to $20,000 for business-related meal expenses for small businesses. The Coalition says it expects that policy to cost less than $250 million and to run for an initial two years.
- The party will set a target to lift the number of small businesses by at least 350,000 over four years.
With election day approaching, these economic promises will likely play a significant role in voters’ decisions. While these measures may provide welcome short-term relief, business owners and individuals should carefully consider how each party’s policies align with their long-term financial goals. At Collective Financial Partners, we’re committed to helping our clients navigate these potential changes regardless of the election outcome.
We recommend scheduling a consultation with our team to discuss how these proposals could impact your specific financial situation and to develop strategies that maximise potential benefits while maintaining focus on your long-term objectives.
