What the Election Means for You: Key Tax Updates for Individuals & Small Businesses

As Australia heads to the polls, tax policy is front and centre in the campaign promises from both major parties. With rising living costs and pressure on small businesses, both Labor and the Coalition have announced a range of measures that could impact your tax planning.

At Cloudhouse Consulting, we’re keeping a close eye on these developments so you don’t have to. Here’s what you need to know about the tax proposals—and what they could mean for you.

🏛️ Labor’s Tax Proposals: Simplifying & Supporting

Labor’s tax platform focuses on simplifying deductions, boosting small business investment, and addressing financial abuse.

✔️ $1,000 Instant Tax Deduction
If elected, Labor plans to introduce a $1,000 automatic deduction for work-related expenses. Instead of keeping receipts for smaller claims, you could claim this flat deduction—no paperwork required under $1,000.

👉 What it means for you: This could simplify your individual tax return, but it may also reduce opportunities for tailored advice if you skip your annual tax appointment.

✔️ Instant Asset Write-Off Extended
Labor also promises to extend the $20,000 instant asset write-off for another 12 months. Small businesses with turnover under $10 million would be able to immediately deduct eligible assets purchased and installed by 30 June 2026.

👉 What it means for you: More flexibility to invest in your business and reduce your taxable income.

✔️ Cracking Down on Financial Abuse
Labor is committed to closing loopholes that allow financial abuse through the tax system, ensuring perpetrators repay tax debts unfairly shifted to others.

✔️ Superannuation Tax on Large Balances
Labor has not backed away from its proposed Division 296 tax, which would impose an extra 15% tax on earnings from superannuation balances over $3 million. This measure faces hurdles in the Senate and would need to be reintroduced if Labor wins.

✔️ Future Tax Cuts
Labor announced planned tax cuts from 2026 onwards, reducing the tax rate on incomes between $18,201 and $45,000 from 16% to 15%, and later to 14%.

💼 Coalition’s Tax Proposals: Incentivising Small Business & Reducing Costs

The Coalition’s platform leans towards supporting small businesses and easing cost-of-living pressures.

✔️ Permanent Instant Asset Write-Off
The Coalition proposes making the $20,000 instant asset write-off permanent—giving businesses certainty to invest in equipment year after year.

✔️ $20,000 Meal & Entertainment Deduction
Small businesses (turnover under $10 million) could claim a deduction for business-related meals and entertainment (excluding alcohol), free from fringe benefits tax.

✔️ Entrepreneurship Accelerator
Aimed at new businesses, this tapered tax offset would allow start-ups to claim:

• 75% off their first $100,000 of taxable income

• 50% off their next $100,000

👉 What it means for you: Encouragement to take the leap into business, with big tax savings in your first year.

✔️ $2,000 Tech Upgrade Deduction
Under the Tech Booster, small businesses investing $4,000 or more in eligible technology (digital tools, marketing, cybersecurity) could claim an extra $2,000 deduction.

✔️ Temporary Cost of Living Tax Offset
Australians could receive up to $1,200 in tax relief in the next tax return under this one-off measure.

✔️ Fuel & Mortgage Support
The Coalition also announced:

• A 25c/litre cut to the fuel excise

• A tax deduction for first home buyers on mortgage interest (up to $650,000 loan, income thresholds apply)

✔️ Support for Accountants & SMSF Advice
The Coalition plans to repeal new rules increasing tax agent obligations and make it easier for accountants to provide self-managed super fund advice.

💡 What Does This Mean for You?

The election outcome will determine which policies move forward. Whether you’re a small business owner looking to invest in growth or an individual wondering about your next tax return, these proposals could affect your tax strategy in the coming years.

👉 At Cloudhouse Consulting, we’re ready to help you navigate the changes no jargon, no stress, just practical advice tailored to you.

If you’re thinking about upgrading your business, buying assets, or just want to make sure you’re claiming everything you’re entitled to, now’s a great time to chat with us.

📅 Book a tax planning session today and let’s get ahead of the changes whatever the election result.