Australia’s Labor Government: Tax Policies

Instant Asset Write-Off

Since the budget, the ALP have announced a 12 month extension of the $20,000 instant asset write-off rules, allowing businesses to continue to claim an immediate tax deduction for the purchase of assets under the $20,000 threshold.  

Standard $1,000 Tax Deduction

The ALP has also proposed that, from July 2026, taxpayers will be able to claim a flat $1,000 deduction for work-related expenses without needing receipts. 

Division 296 Tax

Labor’s controversial tax on unrealised capital gains for Australians with superannuation balances over $3M (and not indexed) is now very much back on the table.

While many independent politicians and professional bodies within the superannuation industry have expressed strong opposition to this proposal, Jim Chalmers appears intent on introducing a new Division 296 tax bill into Parliament. The Greens broadly support the idea, however they want to see the threshold lowered from $3M to $2M. 

At this stage we are still waiting to see how the Bill will be drafted. We will be providing further guidance as the legislation is introduced and passed.