Following the 3 May 2025 Federal Election, the Australian Labor Party (ALP), led by Prime Minister Anthony Albanese, secured another term in government. This result will shape national policies for the next few years. But how might these changes affect you, your family, and your future? Let’s explore the key areas: tax, welfare, health, aged care, and superannuation.
Tax: Relief for Low and Middle-Income Earners
Labor plans to reduce the tax rate for people earning between $18,201 and $45,000. The current rate of 16% will drop to 15% in 2026 and 14% in 2027 [1].
Additionally, Labor is introducing a $1,000 instant tax deduction for work-related expenses. This will benefit people who spend money on tools, uniforms, or other job-related costs [2].
Student Loans
From 1 July 2025, Labor intends to reduce all student loan balances by 20%. In addition, the minimum income threshold before loans become repayable will be increased from $54,000 to $67,000
Welfare: Supporting Families and Young Australians
With the cost of living continuing to rise, Labor is increasing support for people on welfare. This includes higher payments for those receiving government assistance and new programs to help first-home buyers. These changes aim to ease financial pressure on families and young people entering the workforce or housing market.
Health: Expanding Access to Care
Labor is making major investments in Medicare, aiming to improve access to healthcare. More doctors will offer bulk billing, meaning you won’t have to pay out of pocket for many GP visits [1]. They’re also opening 50 new urgent care clinics across the country, so most Australians will have one within 20 minutes of their home.
Mental health is another priority. Labor is investing $1 billion to expand services, especially for young people. This includes building 20 new Youth Specialist Care Centres and upgrading 58 headspace centres [1].
Aged Care: Improving Conditions for Older Australians
Labor is committed to reforming aged care. They plan to increase the number of aged care workers and improve their training and pay. This means better care for older Australians, whether they live at home or in aged care facilities.
Superannuation: Building a Stronger Retirement Fund
Superannuation is money saved for retirement, and Labor is changing how it’s paid. From 2026, employers will need to pay super every payday instead of quarterly [3]. This helps your super grow faster and more consistently.
For people with over $3 million in super, the tax rate will increase from 15% to 30% [3]. This change targets high-wealth individuals and won’t affect most Australians.
In Summary
Many of these measures will require legislation to be passed before they can be enacted.
Labor’s re-election means changes that could benefit many Australians—especially young people and working families. Lower taxes, better healthcare, stronger welfare support, and improved superannuation rules are all part of their plan. These policies aim to make life more affordable and secure, both now and in the future.
References
[1] Promises and Policies: Inside Labor’s 2025 Election Win
[2] Australia: Labor Party’s 2025 tax agenda following federal election win
[3] ALP election policies 2025 - CPA Australia