What the election result could mean for your wallet

What an extraordinary business politics can be. One day you're a leader, the next you're looking for a new job. Talk about tough!

For the rest of us, voting is done and dusted, and it's time to get on with life. But it may not be "business as usual".

Here are five big changes we can expect based on Labor's promises.

1. Student debt slashed by 20%

From 1 June, the newly re-elected Albanese government will cut 20% off all student debts, a move set to wipe around $5,520 from the average HECS debt.

When it comes to student debt, it's easy to assume we're talking about 20-somethings heading off to lectures. The reality is very different.

A whopping three million Australians have an outstanding student debt. And we're not talking nickel-and-dime balances. The average HECS debt is $27,640. One in four people with student debt owes more than $40,000.

This debt can be a real barrier for young Australians buying a first home. Financial regulator APRA is in discussion with banks about how to exclude HECS repayments from mortgage serviceability assessments - but only if the borrower is likely to pay off their debt in the near future. 

It makes the 20% cut to student debt a wide-ranging initiative, especially as it's coupled with a higher repayment threshold and lower repayment rates.

From 1 July 2025, the minimum repayment threshold for student loans will rise from $54,435 to $67,000. Repayments will be based on income above the new $67,000 threshold rather than total annual income. For someone earning $70,000, for example, this will mean paying around $1,300 less in annual repayments.

Just as exciting, from 2027 Labor will make fee-free TAFE courses permanent, with 100,000 places to be offered each year. Great news for anyone hoping to invest in their personal skills.

2. Minor tax savings from 1 July 2026

They may not be big in financial terms, but Labor's promised tax cuts will have a wide reach, impacting 14 million Australian taxpayers.

From 1 July 2026, Labor will cut the 16% tax rate to 15% (for incomes between $18,201 and $45,000). The following year, from 1 July 2027, this will be scaled down to 14%.

It will see Australians earning above $45,000 (around 80% of taxpayers) score a tax cut of $268 in 2026-27 and $536 from 2027-28, compared to 2024-25 settings.

New personal tax rates and thresholds

Source: Ministers Treasury portfolio

More hip pocket relief will flow from 1 July 2026, when the $1,000 instant tax deduction for work-related expenses is introduced. It's expected to see Aussies earning between $45,001 and $135,000 save up to $320 annually.

But not everyone is happy. Accounting body CPA Australia says allowing taxpayers to choose a $1,000 instant tax deduction instead of claiming individual work-related expenses may see people miss out on the full refund they are entitled to by claiming actual costs. It's something to bear in mind come tax time in 2027.

3. $150 saving on power bills

Households are guaranteed more relief from high power costs, with the Labor government pledging a further $150 in energy bill rebates until the end of 2025.

This measure has the potential to dish up a double-whammy. Along with helping households save on power bills, the rebate may also contribute to a decline in inflation (energy costs being a key component of CPI). This could further support cuts to the official cash rate, helping to drive down home loan interest rates.

4. More bulk billed medical appointments...maybe

The Labor government has pledged to invest $8.5 billion in the nation's health system to support, among other things, an additional 18 million bulk billed GP visits each year.

This is being touted as having the potential to save patients and families "hundreds of dollars a year in out-of-pocket costs", with nine out of 10 GP visits to be bulk billed - albeit by 2030.

Will it mean free visits to the doctor for all? Not necessarily.

If we drill down, Labor's pledge involves a new Bulk Billing Practice Incentive Program from November 2025. The idea is that a metro-based GP, for example, can earn $69.56 for a standard appointment, up from $42.85 at present.

While the uplift may encourage more doctors to bulk bill, the reality is that GPs are free to set their own prices. Labor's new incentive may see your GP embrace bulk billing but there are no guarantees.

One change is certain. From January 2026, a prescription will cost no more than $25 under the Pharmaceutical Benefits Scheme (PBS). That's down from $31.60 today.

5. Additional support for first home buyers

Housing affordability was a hot election issue, and rightly so.

From 2026, it should be easier for all first home buyers to get started in the market, as Labor will scrap the current income limits and raise property price caps for the 5% deposit Home Guarantee Scheme.

Meanwhile, Labor's Help to Buy shared equity scheme, which sees the federal government pitch in up to 40% of the cost of buying a home, is yet to get off the ground. The hold-up is due largely to the need for each state and territory government to legislate the scheme.

These measures may support first-time buyers but they don't address housing affordability. CoreLogic has noted that as a nation, we can't keep kicking the can down the road on housing affordability. Concessions and incentives may provide a short-term sugar hit for buyers but history has shown they often do very little to support long-term affordability.

The Grattan Institute claims one of the most effective ways to make housing more affordable is to build new homes. This is where Labor's pledge to invest $10 billion to build up to 100,000 homes exclusively for first home buyers comes in.

This should help to boost supply over time. However, it's an ambitious target given the nation's well-documented shortage of tradies (the government is trying to remedy this with a $10,000 cash bonus for construction apprentices), and building costs that are rising at 2.9% annually.

What about the extra tax on super balances above $3 million?

Let's address the elephant in the room - the proposed Division 296 tax that could see investment returns on super balances above $3 million taxed at 30% instead of the standard 15%.

This move was meant to kick off from 1 July 2025, but failed to score sufficient Senate support.   

Time will tell if - and when - the higher tax on super-sized super earnings goes ahead.

Frankly, with such a decisive result, there is always the prospect of entirely new policies being introduced over the next three years. All we can do is wait and see.