Labor’s Win: What It Means for You, Your Tax, and Your Business

With Labor securing a majority in the House of Reps, the dust has settled and now it’s time to get stuck into what this victory actually means - for individuals, small businesses, and the economy at large. Whether you’re a first home buyer, a small business owner, or just keen to keep more in your pocket come tax time, here’s what to expect from the promises and priorities on the table.

For Individuals

Personal Income Tax Cuts (Yep, They’re Locked In)

The good news? Modest tax cuts are officially legislated, giving a little breathing room to all taxpayers from 1 July 2026. Here’s how it breaks down:

• The 16% tax rate for the $18,201–$45,000 income bracket will drop to 15% in 2026–27, and down again to 14% in 2027–28.
• That’s a max saving of $268 in 2026–27 and $536 in 2027–28.
• Parliament passed the legislation on 26 March 2025, so this one’s locked and loaded.

It’s not game-changing, but every dollar counts.

$1,000 Instant Work-Related Tax Deduction

One of the headline grabs this budget is the new shortcut $1,000 work-related deduction for anyone earning labour income. Think of it like a no-fuss claim - great for busy workers who can’t be bothered tracking every receipt.

• Available only to those earning labour income (sorry, not for business or investment income).
• If your usual work-related claims are under $1,000... tick the box and take the shortcut.
• You can still claim other non-work-related deductions separately.

It’s about simplifying the system and helping workers get quick wins at tax time.

Energy Rebate Boost

Another win for households and small business owners alike: energy bill relief continues into the new financial year.

• From 1 July 2025, there’ll be an additional $150 rebate, spread across electricity bills in quarterly instalments, through to the end of the calendar year.
• No need to apply - this one happens automatically.

Home Battery Discounts (Finally!)

Thinking of going green at home? The Government is stepping in to make battery storage more affordable.

• From 1 July 2025, households can snag a 30% discount off the installed cost of a home battery.
• That’s roughly $4,000 in savings on a typical setup.
• It’s an extension of the existing Small-scale Renewable Energy Scheme.

It’s a big nudge towards cleaner energy... and some serious cost savings long-term.

Buying Your First Home? Here’s a Boost

The existing Home Guarantee Scheme just got a major upgrade. Here’s what’s changing:

• Eligible first home buyers can now purchase with just a 5% deposit - no Lenders Mortgage Insurance required.
• The updated scheme includes higher property price limits, no cap on places, and no income limits.
• You’ll still need to be an Australian citizen or permanent resident and either never owned property or not owned in the last 10 years.
• Applies to owner occupiers only.

This makes home ownership more accessible, especially in competitive markets. It’s a big step for those stuck in the renting loop.

What’s Up with Super?

Ah, Division 296. If you've got over $3 million in super, this is one to watch.

• The proposed 30% tax rate on earnings for super balances above $3m was originally meant to kick in from 1 July 2025.
• But the legislation lapsed when Parliament dissolved - meaning it’s back in limbo for now.

The Greens, who may hold the balance of power, are pushing for:

• Lowering the threshold to $2 million.
• Indexing it to inflation.
• Banning super funds from borrowing to finance investments.

The policy captures both realised and unrealised gains, but also lets you carry forward negative earnings... so the mechanics are complex. If you’re in the high-balance category, keep an eye on this space.

For Small Business

$20,000 Instant Asset Write-Off Extended

This one’s a crowd-pleaser:

• The $20,000 instant asset write-off has been extended to 30 June 2026.
• Applies to the 2024–25 and 2025–26 financial years.
• It allows small businesses to immediately deduct eligible asset purchases up to $20,000.

This gives businesses flexibility to invest in tools, tech, and equipment when they need it - without waiting years to claim the cost back.

National Small Business Strategy in the Works

Labor’s also rolling out a new National Small Business Strategy, currently in consultation. It’s focused on:

• Smoothing out how businesses interact across multiple government systems.
• Cutting red tape between state and federal jurisdictions.
• Making it easier to comply and compete.

This is about making the back-end of business easier... less form-filling, more time growing.

Energy & Industry: A Greener Push

$2 Billion for Green Aluminium

One of the more strategic announcements is the Green Aluminium Production Credit - with a $2 billion investment designed to help Aussie smelters transition to renewable energy.

Why aluminium?

• It’s the second most used metal in the world.
• Australia’s aluminium smelting accounts for around 10% of the country’s electricity demand.
• Tomago Aluminium, just north of Newcastle, is the largest single user of electricity in Australia - with power making up around 40% of its costs.
  
  Under this new initiative:

• Smelters can access emissions-linked credit contracts, paid per tonne of green aluminium produced.
• Contracts run for up to 10 years, tied to reductions in Scope 2 emissions (those from purchased electricity).
• Scope 2 emissions make up 85% of the emissions in aluminium smelting, so the impact is significant.

For more, check out:

• Aluminium to forge Australia's manufacturing future
• Department of Industry, Science and Resources
  

Final Thoughts

Labor’s win brings a mix of targeted relief and long-term reform. From tax cuts to home battery discounts, super reforms to industrial innovation, the Government is trying to balance short-term cost of living support with future-focused policy.

For individuals, it’s a little extra back in the bank and simplified returns. For businesses, it’s a clearer path to investment and a greener future.

We’ll be watching closely as these promises unfold... and keeping our clients in the loop every step of the way.

If you're wondering how any of this affects you, your business, or your future plans - get in touch with Trekk Advisory. We’re here to simplify the complex and make sure your financial strategy stays future-ready.