Income Tax Cuts Election 2025.
Both Labor and the Coalition are offering income tax relief after the 2025 Federal Election.
- The Labour tax relief gives nothing for the 2025-26 tax year.
- The Coalition tax relief gives up to a $1,200 tax reduction for the 2025-26 tax year.
Under a New LNP government the changes to Income tax will be:
A Cost of Living Tax Offset (CLTO?) for the 2025/26 tax year, which will be similar to the previous Low and Middle Income Tax Offset (LMITO).
This will give eligible Australians earning under $144,000, up to $1,200 in tax relief, when they lodge their tax return for the 2025/26 tax year. This will currently only apply for the 2025/26 tax year.
Under a New ALP government the changes to Income tax will be:
A tax rate reduction of 1% to be effective from July 2026.
