2025 Election Policies Unpacked: From Super to Student Loan
Written by Shara Cox
The Federal Government has announced a range of proposals during the 2025 election campaign and Budget. While these changes aren’t law yet, they give a good indication of what may be coming. Here's a summary of what these announcements could mean for you.
Please note: These proposals still need to be passed into law. Details and start dates may change.
Superannuation
New Super Tax for Large Balances
From 1 July 2025, a 15% tax may apply to earnings on super balances over $3 million. This is still being debated and hasn’t been passed yet, but it could affect those with higher super savings.
Tax Changes
$1,000 Work Expense Deduction
Starting 1 July 2026, eligible workers could receive a $1,000 automatic tax deduction for work-related expenses, no receipts required. You can still claim more, but you’ll need to provide proof.
Small Business Support
Small businesses may be able to continue writing off asset purchases up to $20,000 instantly until 30 June 2026. This helps reduce tax and encourages investment in equipment and tools.
Support for Students and Graduates
20% Cut to Student Loans
If passed, student and apprenticeship loan balances would be reduced by 20% before indexation on 1 June 2025. For example, someone with $27,600 in debt would see their balance drop by around $5,500.
Lower Student Loan Repayments
From 1 July 2025, the income level at which student loan repayments kick in will rise to $67,000. Only income above this will count, so many people will repay less and have more money in their pocket.
Help for Home Buyers
More Help to Buy a Home
The Government’s shared equity ‘Help to Buy’ program will be expanded, with higher income limits and property price caps. The Government could contribute up to 30 - 40% of your home's value, making home ownership more affordable.
Easier Access to First Home Guarantee
First-time buyers will be able to purchase a home with just a 5% deposit, without needing to pay Lenders Mortgage Insurance. The income limits are being removed, and price caps increased, to help more people qualify.
Foreign Buyers Pause
From 1 April 2025, foreign buyers (including temporary residents) may be banned from buying existing homes for two years. This is designed to help free up more housing for local buyers.
Energy and Cost-of-Living Relief
Solar Battery Subsidy
From 1 July 2025, households could receive a 30% subsidy (around $4,000) towards installing a solar battery. Small businesses and community groups may also qualify.
Help with Power Bills
Electricity bill rebates will continue from July to December 2025. Eligible households and businesses could receive $150, split into two instalments.
Cheaper Prescription Medicines
From 1 January 2026, the maximum cost of many PBS medicines will drop to $25 (currently $31.60). If you reach the PBS Safety Net, you’ll pay even less (or nothing) for the rest of the year.
More Bulk-Billed GP Visits
Starting 1 November 2025, more Australians will be eligible for free GP visits under Medicare. Doctors who bulk bill all their patients may receive extra incentives to do so.
If you have questions about how any of these proposed changes might affect your personal circumstances, feel free to reach out to us. We're here to help.