Labor’s election win means changes are coming for your tax, super, and household budget. Here’s what you need to know to prepare – and what’s still on the table.
What tax cuts are coming for individuals?
The Federal Budget has locked in personal income tax cuts from 1 July 2026. These apply to all individual taxpayers, not just high-income earners:
- From 1 July 2026, the tax rate for income between $18,201 and $45,000 drops from 16% to 15%.
- From 1 July 2027, that same bracket drops again to 14%.
That’s a maximum saving of $268 in 2026–27 and $536 in 2027–28, depending on your income.
Passed by Parliament on 26 March 2025
What is the new $1,000 instant work-related tax deduction?
From 2025–26, taxpayers earning labour income can claim a shortcut $1,000 deduction for work-related expenses – no receipts or itemisation required.
- It’s optional: If your actual expenses are more than $1,000, you can still claim them the usual way.
- Only applies to labour income – not business or investment income.
- You can also claim other non-work-related deductions on top.
This is designed to simplify tax time, especially for employees with modest work expenses.
Are there any rebates or support for household bills?
Yes. Energy relief is staying on the table:
- $150 energy rebate for households and small businesses
- Automatically applied from 1 July 2025 in quarterly instalments
- Runs until the end of December 2025
Are home batteries getting cheaper?
Yes – the home battery discount scheme kicks off on 1 July 2025:
- 30% off installed cost
- Estimated savings of around $4,000 per household
- Part of the extended Small-scale Renewable Energy Scheme
This aims to make clean energy storage more accessible for everyday Australians.
What support is there for first home buyers?
Labor is expanding the 5% deposit scheme for all eligible first home buyers, dropping some of the current restrictions:
- No income caps or limits on the number of places
- Government underwrites the loan, removing the need for Lenders Mortgage Insurance
- Property price caps will increase
- Open to Australian citizens and permanent residents who haven’t owned property in the last 10 years
This builds on the existing Home Guarantee Scheme, which remains available to owner-occupiers.
Will the Division 296 superannuation tax go ahead?
The Division 296 tax targeting large super balances (above $3 million) didn’t pass before Parliament dissolved.
Here’s what was proposed:
- 30% tax rate on earnings of super balances above $3 million
- Includes both realised and unrealised gains
- Negative earnings could be carried forward
- Originally intended to start 1 July 2025
The Labor Government may still push this through the Senate with Greens support, although Greens Senator Nick McKim wants the threshold dropped to $2 million and has tied his support to tighter borrowing restrictions on super funds.
This is one area where uncertainty remains.
What’s changing for small businesses?
Two key changes are relevant:
$20,000 Instant Asset Write-Off Extended
- Applies to assets installed by 30 June 2026
- Helps small businesses invest and grow
- Passed by Parliament on 26 March 2025
National Small Business Strategy in Consultation
A draft strategy is under review to improve how federal, state, and local governments interact with small businesses, aiming to reduce red tape and make it easier to get things done.
We’ll be watching this space closely as it evolves.
What is the Green Aluminium Production Credit?
Australia is investing $2 billion to support aluminium smelters switching to renewable energy. Why?
- Aluminium is the second most-used metal in the world
- Smelting uses ~10% of Australia’s electricity
- Tomago Aluminium alone is the largest electricity user in Australia
Under the scheme, aluminium producers will be paid a credit based on emissions reductions, for up to 10 years. The goal is to decarbonise a vital industry while keeping jobs and production onshore.
Key Takeaways
| Initiative | Who It Helps | When It Starts | Notes |
| Tax Cuts | All individual taxpayers | 1 July 2026 & 2027 | Up to $536 saving |
| $1,000 Deduction | Employees earning labour income | From 2025–26 | Optional shortcut |
| Energy Rebate | Households & small biz | 1 July–Dec 2025 | $150 in quarterly instalments |
| Home Battery Discount | Homeowners | From 1 July 2025 | ~30% or $4k savings |
| 5% Deposit Scheme | First home buyers | TBC | Broader eligibility |
| Super Tax (Div 296) | High super balance holders | Pending | May require Senate deal |
| Asset Write-Off | Small businesses | Until 30 June 2026 | $20k threshold confirmed |
| Green Aluminium Credit | Smelters | Pre-2036 | Contract-based emissions-linked payments |
Need help navigating what this means for you?
At C&N Accountants, we don’t just lodge tax returns. We help you understand how new policies impact your personal wealth, your super, and your business decisions. If you’re unsure how to take advantage of these changes, reach out to our team – we’re here to help.