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On the eve of the 2025 federal election<\/span>, with polling day on 3 May 2025, the respective parties have spent months, and more particularly the last five weeks, setting out their campaign policies should they be elected to form government. While a number of tax and superannuation measures have been announced during the run-up to the election, tax reform has been conspicuously absent throughout the major parties\u2019 campaigns, with little commitment to either progress or abandon the long list of announced but unenacted measures (<\/span>ABUMs<\/span>)<\/span>.\u00a0<\/span>
\n<\/p>\n This article provides the key facts about the tax and superannuation measures announced<\/span> <\/span>by the Australian Labor Party (<\/span>ALP<\/span>) and the Liberal Party of Australia (<\/span>Coalition<\/span>) during their campaigns. Measures not related to the tax and superannuation laws are not considered here.<\/span>
\n<\/p>\n At this stage, it is unclear whether any of these measures will become law, as they are subject to the outcome of the election and passage of enabling legislation through the Parliament.<\/span>
\n<\/p>\n The author and The Tax Institute do not express a view on the merits of these policies at this time.<\/span>
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<\/p>\n Prime Minister Anthony Albanese announced in a <\/span>media release<\/span><\/a> on 3 November 2024 that a re-elected Albanese government would reduce all student loans by 20 per cent by 1 June 2025.<\/span>
\n<\/p>\n Around 3 million Australians with HELP, VET Student Loans, Australian Apprenticeship Support Loans and other income-contingent student support loan accounts that exist on 1 June 2025 would see their loans reduced by approximately $16 billion. For example, an average HELP debt of $27,600 would be reduced by around $5,520 from 1 July 2025.<\/span>
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<\/p>\n The Prime Minister announced in a <\/span>media release<\/span><\/a> on 13 April 2025 that a re-elected Albanese government would introduce a $1,000 instant tax deduction for individual work-related expenses (<\/span>WRE<\/span>) from the 2026\u201327 income year.\u00a0<\/span>
\n<\/p>\n Under the measure, individuals would:<\/span>
\n<\/p>\n not need to keep receipts to substantiate their deductions for WREs totalling less than $1,000;<\/span>
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<\/p>\n be able to choose to claim the $1,000 deduction instead of claiming individual WREs;<\/span>
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<\/p>\n have to earn labour income to be eligible for the instant tax deduction \u2014 taxpayers who earn only business or investment income and no labour income would continue to claim their deductions under the normal rules;<\/span>
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<\/p>\n still be able to claim WREs of more than $1,000 in the usual way; and<\/span>
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<\/p>\n continue to be able to claim charitable donations and other deductions that are not work-related, on top of the instant tax deduction.<\/span>
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<\/p>\n This measure has similar features to the standard deduction measure <\/span>announced<\/span><\/a> by the former Treasurer, the Hon Wayne Swan, on 11 May 2010 as part of the <\/span>federal budget 2010\u201311<\/span><\/a>. It was proposed that individual taxpayers would be able to claim a standard deduction of $500 for WREs and the cost of managing tax affairs from 1 July 2012, increasing to $1,000 from 1 July 2013. However, that measure was never legislated.<\/span>
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<\/p>\n The Prime Minister announced in a <\/span>media release<\/span><\/a> on 4 April 2025 that a re-elected Albanese Government would extend the $20,000 small business instant asset write-off (<\/span>IAWO<\/span>) threshold for a further 12 months to 30 June 2026.<\/span>
\n<\/p>\n This would allow small businesses (aggregated annual turnover of less than $10 million) to continue to be able to deduct the full cost of eligible depreciating assets costing less than $20,000 that are first used or installed ready for use for a taxable purpose by 30 June 2026.<\/span>
\n<\/p>\n This follows the now <\/span>legislated<\/span><\/a> temporary increase in the IAWO threshold to $20,000 for 2024\u201325.<\/span>
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<\/p>\n The Prime Minister announced in a <\/span>media release<\/span><\/a> on 22 April 2025 that a re-elected Albanese government would commit to new practical steps to crack down further on perpetrators and address financial abuse in Commonwealth systems.<\/span>
\n<\/p>\n Part of the ALP\u2019s plan, <\/span>Building Australia\u2019s future: Labor\u2019s commitment to women<\/span><\/a> (<\/span>the Plan<\/span>), focuses on ending financial abuse \u2014 a fast-growing and insidious form of domestic and family violence where perpetrators incur tax or social security debts in their partner\u2019s name.<\/span>
\n<\/p>\n The plan proposes to:<\/span>
\n<\/p>\n prevent perpetrators from using the tax and corporate systems to create debts as a form of coercive control, and make perpetrators accountable for these debts if they do;<\/span>
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<\/p>\n look at making perpetrators liable for social security debts incurred by a victim-survivor due to coercion or financial abuse; and<\/span>
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<\/p>\n look at how the government can stop perpetrators of domestic and family violence from receiving their victims\u2019 superannuation after death.<\/span>
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<\/p>\n Thanks to the efforts of those who are tirelessly advocating for change and have worked assiduously to ensure that addressing financial abuse is on the national agenda, a groundswell of support is leading to real change.<\/span>
\n<\/p>\n More information on the impact of financial abuse and what is needed to support victim-survivors can be found in my <\/span>Accountants Daily column<\/span><\/a> published on 6 March 2025.<\/span>
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<\/p>\n The Coalition announced in a <\/span>media release<\/span><\/a> on 13 April 2025 that an elected Dutton government would deliver cost-of-living relief from 1 July 2026 in the form of a one-off income tax offset of up to $1,200.<\/span>
\n<\/p>\n The tax offset would be available to Australian residents for tax purposes who have a taxable income of up to $144,000:<\/span>
\n<\/p>\n those earning between $48,000 and $104,000 would receive the full $1,200 tax offset;<\/span>
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<\/p>\n those earning less than $48,000, and more than $104,000 but no more than $144,000, would receive an offset of less than $1,200.\u00a0<\/span>
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<\/p>\n The tax offset would be delivered after lodgment of the 2025\u201326 income tax return.<\/span>
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<\/p>\n As part of the Coalition\u2019s <\/span>Plan to get Australia back on track<\/span><\/a>, published on its website on 20 January 2025, an elected Dutton government would deliver more affordable housing to Australians by allowing first home buyers to access up to $50,000 of their super for a home deposit.<\/span>
\n<\/p>\n The money initially withdrawn from super would need to be returned when the house is sold to support retirement.<\/span>
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<\/p>\n The Coalition announced in a <\/span>media release<\/span><\/a> on 13 April 2025 that an elected Dutton government would enable first home buyers to deduct mortgage interest payments for new build homes.<\/span>
\n<\/p>\n Under the scheme:<\/span>
\n<\/p>\n first home buyers would be eligible if they purchase a newly built home as their principal place of residence;<\/span>
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<\/p>\n individuals earning up to $175,000 and joint applicants earning up to $250,000 would be eligible (once eligible, participants would retain access to the deduction even if their income rises);<\/span>
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<\/p>\n first home buyers would be able to deduct from their assessable income the interest paid on up to $650,000 of their mortgage; and<\/span>
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<\/p>\n the overall size of the mortgage or price of the home would not be capped, but only the interest on the first $650,000 of the loan would be deductible.<\/span>
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<\/p>\n The Coalition announced in a <\/span>media release<\/span><\/a> on 19 January 2025 that an elected Dutton government would allow small businesses with a turnover of up to $10 million to claim up to $20,000 worth of deductions for meal and entertainment expenses. The expenditure would also be exempt from fringe benefits tax.<\/span>
\n<\/p>\n The deduction would be available for meal and entertainment expenses that have a connection with business activity and income, including dining and entertainment provided to clients, vendors, and employees. Alcohol would be excluded. The measure is proposed to run for an initial two years.<\/span>
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<\/p>\n The Coalition announced in a <\/span>media release<\/span><\/a> on 19 April 2025 that an elected Dutton government would implement and deliver its <\/span>Plan for Small and Family Business<\/span><\/a> (<\/span>the Plan<\/span>), which aims to rebuild small businesses and revive entrepreneurship. The plan includes two new incentives for Australians to launch and grow their own small business.<\/span>
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<\/p>\n The new Entrepreneurship Accelerator would support newly incorporated businesses for the first three years of operation with reduced taxes on the first $200,000 of income as follows:<\/span>
\n<\/p>\n in the first year of operation, a tax offset at the rate of 75 per cent on the first $100,000 of taxable income and 50 per cent on the second $100,000 of taxable income;<\/span>
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<\/p>\n in the second year of operation, a tax offset at the rate of 60 per cent on the first $100,000 of taxable income and 40 per cent on the second $100,000 of taxable income; and<\/span>
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<\/p>\n in the third year of operation, a tax offset at the rate of 50 per cent on the first $100,000 of taxable income and 30 per cent on the second $100,000 of taxable income.<\/span>
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<\/p>\n For the first two years of a Dutton government, the new Tech Booster would provide an incentive for small businesses to invest in the digital tools needed to grow. The incentive would provide small businesses with an annual turnover up to $10 million with a bonus tax deduction of $2,000 for spending of $4,000 or more on upgrading eligible technology.\u00a0<\/span>
\n<\/p>\n Eligible investments would include:<\/span>
\n<\/p>\n digitally enabling technology (e.g. connectivity tools);<\/span>
\n<\/p>\n<\/li>\n
<\/p>\n digital media and marketing (e.g. websites and CRMs);<\/span>
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<\/p>\n eCommerce tools (e.g. modern point-of-sale systems); and<\/span>
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<\/p>\n cyber security (e.g. training and monitoring systems).<\/span>
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<\/p>\n A Dutton government would also:<\/span>
\n<\/p>\n permanently increase the small business IAWO threshold (currently, the legislated threshold is temporarily increased to $20,000 \u2014 see above); and<\/span>
\n<\/p>\n<\/li>\n
<\/p>\n increase the threshold to include assets costing up to $30,000 for small businesses with an annual turnover of up to $10 million.<\/span>
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<\/p>\n An elected Dutton government would repeal the <\/span>Tax Agent Services (Code of Professional Conduct) Determination 2024<\/span><\/a> which imposes eight additional Code obligations on registered tax agents under the <\/span>Tax Agent Services Act 2009<\/em> (<\/span>TASA<\/span>) from 1 January 2025 for larger agents (more than 100 employees) and 1 July 2025 for smaller agents (no more than 100 employees).<\/span>
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<\/p>\n An elected Dutton government has indicated that it would reject the Division 296 tax, which would tax at 15 per cent the earnings attributable to the part of an individual\u2019s total superannuation balance that exceeds $3 million.\u00a0<\/span>
\n<\/p>\n This measure is proposed to apply from 1 July 2025 and is contained in the <\/span>Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023<\/span><\/a>. This Bill is currently before the Senate and will lapse immediately before the new parliament commences.<\/span>\u00a0<\/span>
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<\/p>\nALP announcements<\/span><\/h2>\n
20% reduction on all student loans<\/span><\/h3>\n
$1k instant tax deductions for work-related expenses from 2026\u201327<\/span><\/h3>\n
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Extension of $20k IAWO for 12 months to 30 June 2026<\/span><\/h3>\n
Addressing financial abuse<\/span><\/h3>\n
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Coalition announcements<\/span><\/h2>\n
Cost-of-living tax offset<\/span><\/h3>\n
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First home buyers \u2013 access to super\u00a0
<\/span><\/h3>\nFirst home buyers \u2014 mortgage interest deductions<\/span><\/h3>\n
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$20k deduction for business-related meal and entertainment expenses<\/span><\/h3>\n
Measures for small and family businesses<\/span><\/h3>\n
Entrepreneurship Accelerator<\/span><\/h4>\n
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Tech Booster<\/span><\/h4>\n
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Make the increased IAWO threshold permanent<\/span><\/h4>\n
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Position on the Code of Professional Conduct in the TASA<\/span><\/h3>\n
Position on proposed Division 296 tax<\/span><\/h3>\n
Strengthening financial systems to eradicate financial abuse<\/span><\/h3>\n