Cash boost of billions of dollars worth of cost-of-living relief is due to flow through to Aussies following Labor’s re-election.
Tax cuts, slashed HECS debts, energy rebates and boosts to Medicare are among the list of cost-of-living promises set. This to flow through to Aussies following Labor’s historic win. Prime Minister Anthony Albanese will lead a majority Labor government after winning a second term.
The cost-of-living crisis was a key issue in this year’s federal election. Both parties making promises to ease budget pressures. Households are being hit with higher prices from all angles, with mortgage and rent payments soaring, grocery prices climbing higher, and energy prices also remaining at a high.
The Labor government has promised billions of dollars worth of cost-of-living relief for Aussies. Here’s what you can expect.
Tax cuts that will cash boost
Every taxpayer will get another tax cut, as first announced in the federal budget.
The lowest rate bracket will drop from 16 to 15 per cent from July 1, 2026, and 15 to 14 per cent from July 1, 2027.
The first year is expected to save Aussies about $5 a week from 2026 and then $10 a week from 2027.
$1,000 instant tax deduction
A $1,000 instant tax deduction will be introduced from July 1, 2026.
This would allow taxpayers to choose to claim an instant deduction instead of claiming individual work-related expenses.
Energy rebates
Every household and around one million small businesses will get another $150 energy bill rebate from July 1, 2025, extending the rebates until the end of 2025.
HECS debts cut
Student loans will be cut by 20 per cent from June 1, 2025, before indexation is applied.
This is set to wipe $16 billion in student debt from around three million Aussies, with the average student and graduate to see $5,520 wiped from their HECS debt.
Minimum income thresholds will be increased from $54,000 to $67,000 from July 1. This would mean someone earning $70,000 would pay around $1,300 less per year in repayments.
The government will also fund 100,000 fee-free TAFE places a year from 2027.
Housing
First-home buyers will be able to access 5 per cent deposits and not pay lenders mortgage insurance.
The government will also invest $10 billion to build up to 100,000 homes, with these homes reserved for sale only to first-home buyers.
The income caps and property price caps for the Help to Buy shared equity scheme will also rise, allowing more buyers to access the scheme. This allows 40,000 homebuyers to “co-buy” their home with the government.
Medicare boost
Medicare will receive a $8.5 billion boost over four years to deliver an extra 18 million bulk-billed GP visits each year and make 9 out of 10 GP visits bulk-billed by 2030.
The bulk billing incentive will be tripled for all Australians from November 1 to create a new incentive payment for practices that bulk bill. The money will also go towards training 2,000 new GPs a year by 2028.
The price of PBS-listed medicines will also be capped at $25 per script.
Labor also promised $650 million to build 50 new urgent care clinics around the country.
Childcare
Parents will get a guaranteed minimum three days of subsidised childcare, with legislation already passed by the government.
The previous ‘activity test’ that required parents to be working or looking for work to access subsidies has been scrapped.
A $1 billion fund to build and expand around 160 childcare centres over four years has also been promised.
Supermarket price gouging ban
Price gouging by supermarkets will be banned.
The government said it would implement the ACCC’s supermarket inquiry report recommendations to improve transparency around prices, price trends and promotions, and loyalty programs.
It will also establish a taskforce to provide advice on introducing an excessive pricing regime for supermarkets, to be enforced by the ACCC.
Beer tax freeze
The alcohol excise on draught beer will be frozen for two years from August 1, 2025.
This tax usually adds about one to two cents per pint bought at the pub.
Solar battery incentive
The $2.3 billion Cheaper Home Batteries Program will roll out from July 1, 2025.
It will reduce the cost of a typical installed battery by 30 per cent, saving around $4,000 on a typical battery.
$10,000 tradie bonus
Apprentices in construction will get a $10,000 cash boost.
This will be paid at six, 12, 24, 26 months, and at the completion of their apprenticeship.
Those eligible include bricklayers, electricians, carpenters and plumbers.
EV tax break
Electric and hydrogen-powered vehicles will continue to not to attract fringe benefits tax if they are under the luxury car tax threshold of $91,387 and bought through a salary packaging program.
