Now that Labor has won… what does this actually mean for your finances?
We’re not saying politics is sexy, but it can change how much money is in your bank account. So here’s what Labor’s win means for your wallet, your debt, your tax time, and your cost of living.
Disclaimer before we get into the juicy deets, this is what Labor promised prior to being elected, some of these, if not all, will need to go through parliament first.
💸 Student debt is getting a haircut
Labor’s coming in hot with a 20% cut to student debt across the board. That includes HECS, HELP, VET Student Loans, and apprenticeship loans. About 3 million Aussies will benefit, with around $16 billion of debt being wiped.
The repayment threshold is also going up. Instead of paying your loan back once you earn $54K, it’ll now kick in at $67K. Plus, they’ll only take a percentage of the income you earn above that line. More room to breathe. We like it.
🏡 Buying your first home just got a little less impossible
Labor’s $43 billion Homes for Australia plan includes 100,000 new homes. First-home buyers can access the scheme with just a 5% deposit, and they won’t need to pay Lenders Mortgage Insurance.
The government is guaranteeing 15% of the property value, so buyers can avoid extra fees. There are no income caps and no price limits. The scheme launches in January 2026, with homes expected to be ready in 2027 or 2028. So not immediate, but it’s something.
🧾 A little tax relief is coming (emphasis on little)
From July 2025, there’ll be a small tax cut of around $5 a week. It increases to about $10 a week the year after. Not groundbreaking, but hey, that’s a coffee or two.
More exciting is what’s coming from July 2026. You’ll be able to claim a $1,000 tax deduction for work-related expenses without needing to keep receipts. Around six million Aussies are expected to benefit. Less paperwork, more refund. We’re into it.
⚡ Energy rebates are being extended
If your energy bills have been ruining your day, there’s a bit of relief. Labor is continuing its rebate scheme, giving $150 off power bills between July and December this year.
This will go to around 10 million households and 1 million small businesses. It’s temporary, and some energy experts are calling for the scheme to be phased out. So enjoy it while it lasts and keep being smart with usage.
🩺 Medicare is getting a $8.5 billion boost
Labor’s putting more money into the health system. There’ll be 18 million extra bulk-billed GP visits and 50 new urgent care clinics. They’re also offering scholarships and training for more GPs and nurses.
Basically, this could make it a little easier to get a doctor’s appointment without having to spend half your rent.
📉 But what’s the overall vibe?
While these changes are welcome, the economy still has its challenges:
Inflation is lower than the 2022 peak but still sitting higher than anyone would like
Australia has seen the biggest drop in real household income of any OECD country, down 8% in the last two years
Housing approvals are still way too low to meet national targets
So while this is a financial step in the right direction, it’s not a full-blown fix.
Whether you’re drowning in student debt, saving for a house, or just trying to afford groceries without panic-buying noodles, these policies could help.
But do you feel more hopeful, or just more cautious with your money?
Just a friendly reminder: Our content is here to inform and empower, not to provide personalised financial advice. We love making money talk fun and accessible, but when it comes to your own finances, it’s always best to chat with a licensed professional who understands your unique situation. Do your research and make informed choices that work for you!