In a recent discussion on the government’s performance, finance expert Effie Zahos highlighted that the overwhelming victory for the Albanese government should facilitate the transition from campaign promises to concrete legislation. Zahos outlined a range of commitments made, including a two-year freeze on beer tax and improvements to Medicare.
She clarified that while there’s a proposed tax deduction, it’s important to understand it’s not a direct refund. The amount individuals benefit from will depend on their tax bracket, indicating that those on a 30% tax rate could expect about $300. Albanese noted that approximately six million Australians would experience an average tax relief of $205.
A minor tax cut from 16% to 14% for those earning between $45,000 and $80,201 will not take effect until July 1, 2027. This delay may affect many taxpayers waiting for immediate relief. Furthermore, the government aims to enable five per cent housing deposits and shared equity loans starting July 1, though Zahos mentioned uncertainties in its implementation due to state-level agreements.
The government also pledged to construct 100,000 new homes and provide a $10,000 bonus to eligible apprentices in the construction industry starting July 1, disbursed over several payments. Eligible tradespeople include bricklayers, electricians, carpenters, and plumbers who reside away from home.
In the education sector, Zahos pointed out that the government’s promise to reduce student HELP debts by 20% before June 1 could significantly attract younger voters, reducing the average debt by over $5,000. Additionally, starting January 5 next year, parents will benefit from three days of subsidised childcare without the previous activity test requirement.
Looking ahead, energy rebates and a 30% discount on home batteries are expected from July 1, though Zahos cautions that these measures are temporary and only extend through to the end of 2025. This suggests that ongoing challenges in the economic landscape may persist beyond this timeframe.
In summary, while the Albanese government has laid out ambitious plans to provide tax relief and support to various sectors, the timing and execution of these promises will be critical in determining their effectiveness and impact on the Australian public.