The election is done. The votes are in and the sausage sizzles have wrapped up, it’s tempting to move on… but we thought it would be useful to briefly pause and take stock.

With so many policies thrown around from all the parties before and during the election, we thought it would be good to summarise the key tax and super policies of the winning Labor party.

Here’s what you need to know 👇

 

 

1.  the proposed 15% tax on super balances over $3 million

This is probably the policy we are worried about the most.

Labor wants to introduce an additional 15% tax on super balances over $3 million.  It had previously been defeated in the Senate, and we just do not know whether they plan to amend the proposed legislation and try and get it passed as is again.

The big problem that we have with the draft legislation is that it proposes to tax  unrealised gains – meaning you’d pay tax on increases in asset values even if you haven’t sold the asset or received any cash.

Labor expects this measure could raise $5.5 billion over four years. For business owners, it’s likely to impact how you manage super strategies from here on.

Hold fire for now, and as soon as we have more information, we will keep you in the loop.

 

2.  a $1,000 instant deduction for work expenses

From 2026-27, Labor plans to introduce a $1,000 instant deduction for work-related expenses.

This means:

  • Less paperwork.
  • Fewer small claims.
  • A simpler tax return process for many individuals.

If you claim work-related deductions in your individual tax return, this could streamline things considerably.

We are big fans of this policy with the hope it will make for quicker tax processes.

 

3.  instant asset write-off extended

Here’s some good news for business investment. The $20,000 instant asset write-off is set to continue until 30 June 2026.  Originally, the federal budget did not allow for this extension of the popular concession.

So, if you’re planning to buy business equipment or invest in assets under $20,000, you’ll still be able to claim the full tax deduction immediately.

 

4.  HECS-HELP debt relief

A proposed 20% reduction in HECS-HELP balances is scheduled to take effect on 1 June 2025.

This won’t affect every business owner, but it’s important if you, your family or your employees carry HECS debt – it could ease cash flow pressures of the individuals concerned and maybe even flow through to them asking for more pay increases.

 

5.  small income tax cuts

At budget time, Labor proposes reducing the lowest income tax rate from 16% to 15% starting 1 July 2026, and then down to 14% in the following financial year.

It’s hard to get excited about this, but a tax cut is a tax cut!

 

6.  small energy rebates

Finally, a $150 energy rebate has been proposed for households and small businesses, extending through to the end of 2025.

It’s a modest saving but, again, every dollar counts for you and your employees.

 

what should business owners do now?

Most importantly: none of these proposals are law yet. They all need to pass through Parliament and could face changes or delays.

Here’s what I recommend:

  • Stay informed as legislation develops.
  • Factor these potential changes into your tax and super planning.
  • Talk to your advisor before making major financial decisions.

 

As always, we’ll keep monitoring developments and sharing updates as they happen.

If you’d like to discuss how these proposals might impact your business, reach out to your usual businessDEPOT contact or give us a buzz on 1300 BDEPOT.

 

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