Cash Boost Coming for Millions of Australians After Anthony Albanese Wins the Election
Cash coming for Aussies after Anthony Albanese won the election.
Australians will receive a financial windfall as a result of Labor’s overwhelming election victory.
With a promise to let all first-time homebuyers, regardless of income, to enter the real estate market with a 5% mortgage deposit, Labor has secured a second term in parliament and increased its majority.
Anthony Albanese’s pledge to reduce student loan debt by 20% helped him win the youth vote as well.
Additionally, the government ran a campaign to allow professionals to claim up to $1,000 in work-related expenses without a receipt.
Under defeated leader Peter Dutton, the Coalition opposed Labor’s proposal for $268 annually in income tax relief, which Labor also presented to voters.
Voters won’t be able to enjoy any hip-pocket perks until July 2026 if the Labor Party is re-elected.
Photo: Daily Mail Online
After Labor’s overwhelming election victory, Australia is about to see significant tax changes, but the caveat is that people won’t see the benefits for more than a year.
What Benefits Albanese’s Leadership Will Bring
Following the Albanese government’s overwhelming election victory, this is what you will receive.
Tax Savings of up to $2,030 for the Typical Worker Making $72,000
As part of a $17 billion plan, the Albanese government is providing income tax relief to Australians.
The 16% tax rate for employees making $18,201 to $45,000 will be lowered to 15 percent on July 1, 2026, resulting in $268 in tax reduction.
Additionally, the tax rate will drop to 14% on July 1, 2027, providing $536 in relief over two years. This means that every Australian taxpayer who makes more than $45,000 will receive an additional tax cut of $268 in 2026–2027 and $536 in 2027–2028. This will include people earning the average full-time income of $102,742 and those earning the minimum wage of $47,627.
In addition to the stage three tax cuts that were implemented last year, a worker earning $72,592 per year will receive a total tax cut of $1,762 in 2026–2027 and $2,030 in 2027–2028.
First-time Home Buyers: Starting January 2026, any first-time homebuyer can buy with just a 5% down payment–no income cap
No matter their income, all first-time homebuyers will be eligible for a mortgage with a 5% down payment starting in January 2026.
With a five percent down payment, they will be able to purchase a normal home in the city of their choice rather than a tiny apartment or property in a far, outlying suburb.
Under the current cap, a novice to the real estate market might purchase a home in Sydney for $1.5 million, which is the median price in the city, rather than $900,000.
In Brisbane, the cap has been raised from $700,000 to $1 million.
Although it’s lower in Melbourne at $950,000, which reflects the drop in home values in Victoria over the past year, it’s still better than the prior $800,000.
Adelaide’s ceiling was $900,000, up from $600,000. Perth’s limit is $850,000, up from $600,000.
In Canberra, the cap will be $1 million, up from $750,000, while in Hobart, it will be $700,000, up from $600,000. The $600,000 Northern Territory cap remains the same.
In order to avoid having to pay expensive lenders’ mortgage insurance, taxpayers would guarantee the remaining 20% of the deposit.
Labor will cut all Australians’ HELP or student loan debt by 20%, saving the typical college graduate almost $5,500.
Labor’s proposal to reduce student loan debt by 20% aided the government in bolstering the youth vote.
In order to lower student debt by 20%, or an average of $5,520, from their Higher Education Contribution Scheme responsibilities, Mr. Albanese presented a $16 billion plan before the election.
Labor also ran a campaign to raise the payback threshold from $54,000 to $67,000, estimating that it would result in an annual repayment savings of roughly $1,300 for an individual earning $70,000.
This was in addition to a $3 billion plan to lower student loan debt by tying interest rates to either the consumer price index or the wage price index, whichever is lower.
If the Coalition wins the election on Saturday, Mr. Dutton has promised to revoke Labor’s student debt relief, claiming it is unjust to those who did not attend college.
Due to the fact that just 100,000 individuals had finished the courses, the Coalition also lost the election despite their promise to abolish fee-free TAFE, a Labor program that was introduced in January 2023.
Extended power bill assistance: Two additional $75 savings are on the horizon
In the latter two quarters of the year, Labor will provide two further $75 power bill reductions.
More households can afford childcare
Labor has previously passed legislation requiring at least three days of reduced childcare per week for any family making up to $533,280 annually.
Increases in wages for minimum wage workers and elderly care providers
In addition to asking the Fair Work Commission to recommend a real wage raise for three million minimum wage and award workers, Labor is allocating $2.6 billion to provide 60,000 aged care nurses with pay increases.
In order to at least keep up with inflation, Mr. Albanese requested that the Fair Work Commission raise the minimum wage prior to the election.
“That is not the party I belong to, and that is not the party I lead,” Albanese stated at the time, “the idea that a Labor government would ever advocate for a below-inflation increase, that people on the minimum wage should go backwards.”
However, he declined to provide a specific monetary amount, in contrast to the previous election when he backed a 5.1% increase to reflect inflation.
As a gauge of headline inflation, the consumer price index is at 2.4%.
At $24.10 per hour, the national minimum wage is equivalent to $915.90 each 38-hour workweek, or $47,626.80 annually.
An additional 25% loading is applied to casual employees, increasing their hourly wage to almost $30.13.
The new hourly rate would be $24.68—or $21.98 a week if the Fair Work Commission were to approve a 2.4% increase in the minimum wage, which would add $0.58 per hour.
Every year, from March to June, the Fair Work Commission performs the Annual Wage Review.
Any modifications brought about by this review usually go into effect on July 1.
An increase in the minimum wage will benefit 2.6 million workers across 121 awards that will also be changed, in addition to the estimated 180,000 workers presently receiving the minimum wage.
Cash for Tradies
The government has set aside enough money for just over 60,000 apprentices, and those who work in home construction will receive a $10,000 cash incentive. Under the Priority Hiring program, employers who hire in priority trades may be eligible for a $5,000 reward.
Rebate for Solar Power
Under a Labor program that is available to all households, regardless of income, households can receive rebates of up to $4,000 for installing solar batteries.
You won’t need to keep receipts in order to claim up to $1,000 in work-related expenses on your tax return.
Australians will be able to claim $1,000 annually on their tax return without a receipt starting on July 1, 2026. According to the government, this will help 5.7 million workers, or 39% of taxpayers.
Australians can claim up to $300 in work-related expenses under current regulations without requiring receipts; however, when yearly returns are filed with the Australian Taxation Office for the 2026–2027 fiscal year, that amount increases to $1,000.
Labor claims that the average Australian would save $205 annually on their tax payment if the immediate tax deduction was increased from $300 to $1,000. However, this reform will cost the budget $2.4 billion over three years.
Jenny Wong, CPA Australia’s tax leader, who represents Certified Practising Accountants, is concerned that the proposal may deny Australians tax deductions.
“Some employees may save some time by choosing to claim a $1,000 instant tax deduction rather than individual work-related expenses, but they may lose out on the full refund they are entitled to,” she said.
However, Mark Chapman, director of tax communications at H&R Block, stated that Australians who took larger tax deductions would be subject to extra scrutiny due to the new $1,000 threshold for filing tax claims without a receipt.
“Taxpayers who claim the standard deduction will not require audits by the ATO,” he stated.
The pressure on taxpayers to ensure they have the required documentation to back up their claim will undoubtedly increase as a result of this, as it will allow them to concentrate on larger tax claims, such as work-related deductions exceeding $1,000.
Electric Vehicle Buyers Will be Given Major Tax Incentives
Drivers of electric vehicles who purchase a vehicle on a novated lease will still be eligible to deduct all operating expenses and repayments from their taxable income.
Employers were exempt from paying the fringe benefits tax under this regulation, which was implemented in 2022, if an employee purchased an EV through a salary-sacrificing package and the vehicle fell below the $91,387 luxury automobile tax threshold.
According to official estimates, an employer would save $9,000 on a $50,000 Tesla Model 3 manufactured in China thanks to Labor’s fringe benefit tax exemption on EVs, while an employee would save $4,700 through wage sacrifice.
Together with Labor’s New Vehicle Efficiency Standard, which aimed to cut emissions by 59% over four years, the Liberal Party had rejected this idea.
According to modeling by the Federal Chamber of Automotive Industries, automakers who sold an excessive number of gasoline or diesel vehicles would face penalties, which might result in a $6,150 increase in the price of a Ford Ranger truck.
However, it also estimated that a Tesla Model Y might cost $15,390 less since businesses that sold more EVs received credits.
About Lan Nguyen
Lan is the Founder and Chief Strategist at Success Accounting Group, Melbourne based CA firm. In a matter of short 8 years she has built up a reputable Chartered accounting firm with 3 offices and a team of 6 professional accountants and support team members. Her mission is to provide Innovative and Strategic Financial advice to help her customers make smarter financial decisions today for a brighter future.
Success Accounting Group is for established business owners who would like help to grow a sustained business. As a business owner you understand what drives your business success with our accounting team taking care of the rest.
Success and Wealth
Success Accounting Group Pty Ltd
Oakleigh, VIC, 3166
