Federal Election 2025

Key proposals and how they might impact you.

During the Federal Election campaign, the Government made a number of election promises, which may impact finances. There were also a number of support measures proposed in the recent Federal Budget. Below, we have outlined the main promises and proposals for you.

1. Taxation:

• $1,000 Instant Tax Deduction for Work-Related Expenses (from 1 July 2026): Taxpayers with eligible work-related expenses can claim up to $1,000 without keeping individual receipts. Beneficiaries: Individuals with 'labour income.'

• $20,000 Small Business Instant Asset Write-Off Extension (from 1 July 2025 to 30 June 2026): Small businesses can claim an immediate tax deduction for assets costing less than $20,000. Beneficiaries: Small businesses with an annual turnover below $10 million.

2. Help for Home Buyers:

• Expanded ‘Help to Buy’ Scheme: Increases property price caps and income thresholds, allowing more people to participate with a smaller deposit. Beneficiaries: Home buyers with incomes up to $100,000 (singles) or $160,000 (joint applicants).

3. Cost of Living Support:

• Energy Bill Relief (from July 2025): Additional energy rebates applied automatically to electricity bills. Beneficiaries: All Australian households and eligible small businesses.

• Lower Cap for PBS Medicines (from January 2026): Reduces the maximum cost of PBS medicines to $25 per script. Beneficiaries: Non-concession cardholders.

4. Education:

• Student Loans Reduction (from 1 June 2025): Student loans will be reduced by 20% before annual indexation. Beneficiaries: Individuals with various student loans.

• Reduced Student Loan Repayment Obligations (from 1 July 2025): Increases the minimum income threshold for repayments and changes the calculation method. Beneficiaries: Individuals with student debts earning less than $180,000.

5. Superannuation:

• Higher Taxes for Balances Over $3 Million (from 1 July 2025): Additional 15% tax on investment earnings for super balances exceeding $3 million. Beneficiaries: Individuals with super balances below $3 million.

Where to from here?

It’s important to remember these changes need to be legislated to become law. The information above is based on the announcements made to date, and there may be changes to the start dates or other details if the policies are formalised. You should speak to a financial adviser to understand more about what has been announced and how these changes could apply to you.

The information in this communication is factual in nature. It reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue, and may be subject to change. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Whilst care has been taken in preparing the content, no liability is accepted for any errors or omissions in this communication, and/or losses or liabilities arising from any reliance on this communication.

References: IOOF Federal Election 2025 Client Article