With the 2025 Federal Election approaching, tax policy is a central topic of debate. Here’s a concise comparison of some the major parties’ key tax proposals to help you stay informed when Australia goes to the polls on 3 May 2025:

ALP (Labor) Policies:

• Personal Tax Cuts: Legislated cuts to individual tax rates, reducing the 16% rate to 15% from 1 July 2026, and to 14% from 1 July 2027.
• Small Business Support: Extension of the $20,000 instant asset write-off for small businesses until 30 June 2026.
• Simplified Deductions: Option for employees to claim a $1,000 instant tax deduction (with simplified substantiation) from 1 July 2026.
• First Home Buyers: Access to 5% home loan deposits with government guarantees and a $10 billion investment to build up to 100,000 homes exclusively for first home buyers.

Coalition Policies:

• Personal Tax Cuts: Plans to repeal Labor’s legislated tax cuts if elected.
• Small Business Incentives: Permanent $30,000 instant asset write-off, a capped $20,000 deduction for business meals (excluding alcohol), a “Tech Boost” deduction, and an Entrepreneurship Accelerator offering a tapered tax offset for new businesses.
• Cost of Living Relief: One-off tax offset giving up to $1,200 to eligible individuals earning up to $144,000.
• First Home Buyers: Mortgage interest deductibility for new homes (on up to $650,000 for 5 years), access to $50,000 from superannuation for deposits (to be repaid upon sale), and expanded home guarantee eligibility.
• Electric Vehicles: Proposal to scrap the current FBT exemption for EVs.

Australian Greens Highlights:

• Tax Reform: Proposals include phasing out negative gearing and the 50% CGT discount, introducing a 40% tax on excess profits for large corporations, and a 10% net wealth tax on Australia’s 150 billionaires.

In Summary:
The major parties offer contrasting visions on personal tax, small business support, and housing affordability, with the Greens pushing for more radical tax reforms. These policies will shape the tax landscape depending on the election outcome.

Download the NTAA Snapshot here.

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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. (Source: NTAA Election Tax Policy Snapshot, May 2025). Liability Limited by a scheme approved under Professional Standards Legislation.