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

Share
May 6, 2025

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

Thank you!

Thank you for contacting KPMG. We will respond to you as soon as possible.

Contact KPMG

Use this form to submit general inquiries to KPMG. We will respond to you as soon as possible.

By submitting, you agree that KPMG LLP may process any personal information you provide pursuant to KPMG LLP's . Privacy Statement

An error occurred. Please contact customer support.

Job seekers

Visit our careers section or search our jobs database.

Submit RFP

Use the RFP submission form to detail the services KPMG can help assist you with.

Office locations

International hotline

You can confidentially report concerns to the KPMG International hotline

Press contacts

Do you need to speak with our Press Office? Here's how to get in touch.

Headline