Millions of Aussies set for a cash boost—here’s what it could mean for you
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A sweeping political victory is set to bring big changes—and even bigger promises—to millions of Australians.
While many of the perks may take time to land, the proposed reforms touch everything from housing to tax to student debt.
Here’s what the next few years could look like under a newly re-elected Labor government.
A second-term Labor government was officially secured following a landslide federal election win, and Australians were told to expect sweeping changes—though many of the benefits wouldn’t kick in until 2026.
Labor’s resounding majority in parliament strengthened its mandate to deliver a series of long-promised reforms, with a heavy focus on easing financial burdens for working Australians.
Prime Minister Anthony Albanese’s campaign appealed to a wide base by targeting cost-of-living pressures, offering help with taxes, housing, wages, and education costs.
One of the flagship policies was the ability for any first-home buyer to purchase with just a five per cent deposit—no matter how much they earned—from January 2026.
The program lifted current price caps across all capital cities, allowing buyers to access properties that were previously out of reach without needing a 20 per cent deposit.
Sydney’s limit jumped to $1.5 million, up from $900,000, while Melbourne’s rose to $950,000 and Brisbane’s to $1 million.
Other revised limits included $900,000 in Adelaide, $850,000 in Perth, $700,000 in Hobart, $1 million in Canberra, and $600,000 for the Northern Territory.
Taxpayers would guarantee the remainder of the 20 per cent deposit, removing the need for costly lenders' mortgage insurance.
Labor also promised tax relief, pledging to reduce the 16 per cent tax rate to 15 per cent in 2026 and further to 14 per cent in 2027 for income between $18,201 and $45,000.
This would give workers earning above $45,000 an extra $268 back in 2026–27 and a further $536 from 2027–28.
When combined with the stage three tax cuts already in effect, a worker earning $72,592 would get $1,762 in tax relief in 2026–27 and $2,030 per year from 2027–28.
From 1 July 2026, Australians would also be able to claim $1,000 in work-related expenses without needing receipts, up from the current $300 threshold.
This measure was expected to help 5.7 million workers, or about 39 per cent of taxpayers.
CPA Australia’s Jenny Wong warned: ‘Allowing taxpayers to choose to claim a $1,000 instant tax deduction instead of claiming individual work-related expenses may save some workers a bit of time—but could mean they miss out on the full refund they are entitled to.’
H\&R Block’s Mark Chapman said: ‘The ATO will not need to audit taxpayers who claim the standard deduction...This will enable them to focus on higher tax claims—including work-related deductions over $1,000—which is sure to increase the pressure on taxpayers to make sure they have the necessary records to support their claim.’
Electric vehicle buyers who opted for novated leasing arrangements would continue to access generous fringe benefits tax exemptions.
This policy, introduced in 2022, allowed employers to avoid paying FBT on EVs under the $91,387 luxury car tax threshold if the car was bought via salary packaging.
Labor claimed the fringe benefit exemption could save employers up to $9,000 and employees $4,700 on a $50,000 EV such as the Tesla Model 3.
Meanwhile, households were offered a rebate of up to $4,000 for installing solar battery systems, with no income restrictions.
Albanese’s government also pledged a major win for young Australians, announcing a 20 per cent reduction in student loan debt.
That move would save the average graduate roughly $5,500 on their Higher Education Contribution Scheme balance.
Labor also intended to lift the HELP repayment threshold from $54,000 to $67,000, which would reduce repayments by about $1,300 annually for someone earning $70,000.
A further proposal would see student debt indexed to whichever is lower between the wage price index and the consumer price index.
Opposition Leader Peter Dutton had opposed the student debt relief plan, arguing it was unfair to tradies and non-university workers.
Labor’s free TAFE program, which began in January 2023, also came under fire from the Coalition, who pointed to low course completion rates.
The government confirmed it would provide two more $75 power bill discounts in the final two quarters of the year.
Childcare reform remained in place, with families earning up to $533,280 a year entitled to three days of subsidised care each week.
Aged care workers were promised pay rises, backed by $2.6 billion in funding to benefit 60,000 nurses.
Labor also supported increases to the minimum wage and award wages, submitting recommendations to the Fair Work Commission ahead of the July 2025 wage decision.
‘The idea that a Labor government would ever advocate for a below-inflation increase, that people on the minimum wage should go backwards—that’s not the party I belong to and not the party I lead,’ said Albanese.
The national minimum wage stood at $24.10 per hour, translating to $915.90 a week or $47,626.80 per year, with casuals earning about $30.13 an hour with loading.
A 2.4 per cent increase would see hourly pay rise to $24.68, giving workers about $21.98 more per week.
Roughly 180,000 minimum wage earners and another 2.6 million award-reliant workers were expected to benefit from the Annual Wage Review outcomes.
Tradies were also in line for a windfall, with new apprentices in residential construction set to receive a $10,000 cash bonus.
The scheme had budget room for around 60,000 apprentices, and employers could access a $5,000 incentive for hiring in high-demand trades.
Labor rejected the Coalition’s $6 billion plan to halve the fuel excise for one year, a move that would have saved some drivers $14 a week at the pump.
Instead, the government prioritised broader tax reform and targeted support over short-term fuel savings.
To see how the election night played out and what led to Labor’s landslide win, watch the full coverage below.
Don’t miss the key moments and reactions—hit play now!
Source: Youtube/9 News Australia
With so many promises on the table, which of Labor’s reforms are you most keen to see roll out? Let us know your thoughts in the comments.
While many of the perks may take time to land, the proposed reforms touch everything from housing to tax to student debt.
Here’s what the next few years could look like under a newly re-elected Labor government.
A second-term Labor government was officially secured following a landslide federal election win, and Australians were told to expect sweeping changes—though many of the benefits wouldn’t kick in until 2026.
Labor’s resounding majority in parliament strengthened its mandate to deliver a series of long-promised reforms, with a heavy focus on easing financial burdens for working Australians.
Prime Minister Anthony Albanese’s campaign appealed to a wide base by targeting cost-of-living pressures, offering help with taxes, housing, wages, and education costs.
Labor secures mandate for sweeping economic reforms. Image source: EPA
One of the flagship policies was the ability for any first-home buyer to purchase with just a five per cent deposit—no matter how much they earned—from January 2026.
The program lifted current price caps across all capital cities, allowing buyers to access properties that were previously out of reach without needing a 20 per cent deposit.
Sydney’s limit jumped to $1.5 million, up from $900,000, while Melbourne’s rose to $950,000 and Brisbane’s to $1 million.
Other revised limits included $900,000 in Adelaide, $850,000 in Perth, $700,000 in Hobart, $1 million in Canberra, and $600,000 for the Northern Territory.
Taxpayers would guarantee the remainder of the 20 per cent deposit, removing the need for costly lenders' mortgage insurance.
Labor also promised tax relief, pledging to reduce the 16 per cent tax rate to 15 per cent in 2026 and further to 14 per cent in 2027 for income between $18,201 and $45,000.
This would give workers earning above $45,000 an extra $268 back in 2026–27 and a further $536 from 2027–28.
When combined with the stage three tax cuts already in effect, a worker earning $72,592 would get $1,762 in tax relief in 2026–27 and $2,030 per year from 2027–28.
From 1 July 2026, Australians would also be able to claim $1,000 in work-related expenses without needing receipts, up from the current $300 threshold.
This measure was expected to help 5.7 million workers, or about 39 per cent of taxpayers.
CPA Australia’s Jenny Wong warned: ‘Allowing taxpayers to choose to claim a $1,000 instant tax deduction instead of claiming individual work-related expenses may save some workers a bit of time—but could mean they miss out on the full refund they are entitled to.’
H\&R Block’s Mark Chapman said: ‘The ATO will not need to audit taxpayers who claim the standard deduction...This will enable them to focus on higher tax claims—including work-related deductions over $1,000—which is sure to increase the pressure on taxpayers to make sure they have the necessary records to support their claim.’
Electric vehicle buyers who opted for novated leasing arrangements would continue to access generous fringe benefits tax exemptions.
This policy, introduced in 2022, allowed employers to avoid paying FBT on EVs under the $91,387 luxury car tax threshold if the car was bought via salary packaging.
Labor claimed the fringe benefit exemption could save employers up to $9,000 and employees $4,700 on a $50,000 EV such as the Tesla Model 3.
Meanwhile, households were offered a rebate of up to $4,000 for installing solar battery systems, with no income restrictions.
Albanese’s government also pledged a major win for young Australians, announcing a 20 per cent reduction in student loan debt.
That move would save the average graduate roughly $5,500 on their Higher Education Contribution Scheme balance.
Labor also intended to lift the HELP repayment threshold from $54,000 to $67,000, which would reduce repayments by about $1,300 annually for someone earning $70,000.
A further proposal would see student debt indexed to whichever is lower between the wage price index and the consumer price index.
Opposition Leader Peter Dutton had opposed the student debt relief plan, arguing it was unfair to tradies and non-university workers.
Labor’s free TAFE program, which began in January 2023, also came under fire from the Coalition, who pointed to low course completion rates.
The government confirmed it would provide two more $75 power bill discounts in the final two quarters of the year.
Childcare reform remained in place, with families earning up to $533,280 a year entitled to three days of subsidised care each week.
Aged care workers were promised pay rises, backed by $2.6 billion in funding to benefit 60,000 nurses.
Labor also supported increases to the minimum wage and award wages, submitting recommendations to the Fair Work Commission ahead of the July 2025 wage decision.
‘The idea that a Labor government would ever advocate for a below-inflation increase, that people on the minimum wage should go backwards—that’s not the party I belong to and not the party I lead,’ said Albanese.
The national minimum wage stood at $24.10 per hour, translating to $915.90 a week or $47,626.80 per year, with casuals earning about $30.13 an hour with loading.
A 2.4 per cent increase would see hourly pay rise to $24.68, giving workers about $21.98 more per week.
Roughly 180,000 minimum wage earners and another 2.6 million award-reliant workers were expected to benefit from the Annual Wage Review outcomes.
Tradies were also in line for a windfall, with new apprentices in residential construction set to receive a $10,000 cash bonus.
The scheme had budget room for around 60,000 apprentices, and employers could access a $5,000 incentive for hiring in high-demand trades.
Labor rejected the Coalition’s $6 billion plan to halve the fuel excise for one year, a move that would have saved some drivers $14 a week at the pump.
Instead, the government prioritised broader tax reform and targeted support over short-term fuel savings.
To see how the election night played out and what led to Labor’s landslide win, watch the full coverage below.
Don’t miss the key moments and reactions—hit play now!
Source: Youtube/9 News Australia
With so many promises on the table, which of Labor’s reforms are you most keen to see roll out? Let us know your thoughts in the comments.
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