What’s in the wind now?

Appleby
May 7
3 min read

Federal Election: 5 Government Plans That Could Affect Your Money Advice

Now that the Federal Election is over and the Government is remaining in power, there are new rules coming that could change how tax and financial advice works. The Institute of Financial Professionals Australia (IFPA) picked out five important plans that could affect financial advisers and taxpayers. and they are:

1. $1,000 Work Expense Tax Break (Starting 2026-27)

If you earn money from working (like wages), you’ll be able to take $1,000 off your taxes automatically—no need to keep receipts for work-related costs. But if you spend more than $1,000 on work stuff, or don’t have a job, you’ll still have to follow the old rules.

2. $20,000 Small Business Equipment Write-Off (Until June 2026)

If you run a small business that makes less than $10 million a year, you can still write off (deduct) the full cost of equipment under $20,000 until June 30, 2026. Each item must be under $20,000. Bigger items can still be deducted over time.

3. Student Loan Help (From 2025)

If you have a student loan (HELP debt), 20% of it will be wiped out before they add interest in June 2025.

Also, the income level where you have to start repaying your loan will go up to $67,000 in July 2025.

That means people will take home more money before having to repay their loans.

4. Extra Tax on Large Superannuation Balances (Division 296 Tax)

The Government plans to impose an additional 15% tax on superannuation (retirement savings) balances exceeding $3 million. This proposal hasn't become law yet because the previous bill didn't pass before the election.

Concerns people have include:

It taxes income that hasn't been earned yet.
The $3 million threshold isn't adjusted for inflation, potentially leading to more people being taxed in the future.
It's complex and could negatively impact those who own assets like farms or property that are difficult to sell quickly.

The Government is expected to reintroduce the bill soon, and it might become law by July 2025. IFPA opposes it and is working to prevent or amend it.

5. Changes to Financial Advice Rules (DBFO Reforms)

The Government wants to make financial advice easier to get and more affordable. Some ideas that have been put forward include:

Replace long, complicated advice documents with simpler ones.
Let super funds (retirement funds) give and charge for advice for all members.
Let super funds suggest changes to members about their savings.

IFPA thinks these changes are mostly good, but still need work. They made some suggestions:

Make advice easy to read and helpful, not full of legal talk.
People should only pay for advice they actually receive.
If advice only covers part of a person’s situation, that should be clear.
Super funds should tell members to see a financial adviser if their needs are more complex.
Avoid penalizing advisers for minor errors if no harm was caused.

As the dust settles from the election, it's clear that the new government has a mixed bag of policies ready to roll out. From tax breaks to student loan relief, and even a controversial superannuation tax, there's something for everyone to cheer or jeer. Whether you're a small business owner eyeing that $20,000 equipment write-off or a student hoping for a lighter loan burden, the future holds both promise and challenge. So, buckle up and stay tuned—because in the world of politics, the only constant is change. And who knows? Maybe next election, we'll be debating the merits of tax breaks for our robot overlords. Until then, keep your receipts, your financial adviser on speed dial, and your sense of humour intact. After all, it's going to be an interesting ride!