Australia: Labor Party’s 2025 tax agenda following federal election win
Including foreign resident capital gains tax changes and expansion of general anti-abuse rules
Following the Australian Labor Party’s victory in the 2025 federal election, it is expected the federal government will implement the following tax policies in 2025:
- Introduce a $1,000* instant tax deduction for individual work-related expenses from 2026-2027 for taxpayers earning labor income
- Extend from June 30, 2025, to June 30, 2026, the instant asset write-off (IAWO), which allows small businesses to immediately deduct the full cost of eligible assets costing less than $20,000
In addition, there are several previously announced but unenacted measures on which developments are expected (e.g., foreign resident capital gains tax changes, payday super, new penalties for mischaracterized payments, and expansion of general anti-avoidance rules).
For more information, contact a KPMG tax professional in Australia:
Alia Lum | alum@kpmg.com.au
Amanda Maguire | amaguire@kpmg.com.au
*$=Australian dollar