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A re-elected Labor government will push for an automatic $1000 tax deduction for every Australian taxpayer, Anthony Albanese announced today during his official campaign launch in Perth.
After the federal government pledged to give first homebuyers in Australia the chance to afford a house with a five per cent deposit, the PM has pledged a fresh instant tax write-off to match the Coalition's once-off $1200 tax relief.
After the Coalition made a barrage of cost-of-living announcements aimed at easing pressure on mortgage holders and helping Australians buy their first home, Labor responded with two major economic policies.
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An instant $1000 tax deduction
Albanese said the extra $1000 deduction for work expenses will give more Australians "your own money faster" and won't need to claimed through an accountant or receipts.
"This will guarantee everyone can opt for an automatic tax deduction of $1000 on their work expenses," the PM said today in Perth.
"No paperwork, no box of receipts, no scrolling through your online banking – just tick the box and your return is ready."
Albanese said taxpayers who regularly claim more than $1000 on work expenses can still claim a higher deduction the usual way.
He said nearly six million Australians will benefit from his promised automatic tax deduction, which could kick in from July 1, 2026.
The average amount of annual tax relief for workers who benefit will be $205.
"We have already delivered a tax cut for every taxpayer, and we want to continue to reform the tax system to slash red tape and make it easier for people to keep more of what they earn," the PM said.
"You will earn more, keep more of what you are and now you get more back at tax time as well."
Five per cent deposits for first homebuyers
In a plan to tackle the housing crisis, Labor also vowed to cut out Lenders Mortgage Insurance (LMI) for first-time buyers and expand an income and price-capped program to make five per cent deposits a universal option if re-elected.
Labor's proposed plan would raise the price cap for properties eligible under this existing scheme to include higher-priced homes in places like Sydney and Melbourne and will scrap the income test.
In Sydney, the property price limit would be raised from $900,000 to $1.5 million and in Melbourne, the limit changes from $800,000 to $950,000.
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If re-elected, PM Anthony Albanese said it would allow a Sydneysider to buy a $1 million apartment with a $50,000 deposit or a Queenslander to buy a $850,000 property with just $42,000.
The government expects this will save Australians an average of $23,000 on Lenders Mortgage Insurance and cuts the time needed to save for a deposit.
"You won't have to pay a single dollar in mortgage insurance, our government will cover it," the PM said today.
The federal government also said it will invest $10 billion into building 100,000 homes reserved for first homebuyers to address the housing shortage.
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This package will include $2 billion in grants and $8 billion in zero-interest loans or equity investments.
"I want to help young people and first homebuyers achieve the dream of home ownership," Albanese said today.
"When a young person saves a five per cent deposit, my government will guarantee the rest with their bank."
If re-elected, these changes would be put in place from January 1, 2026.
Minister for Housing Clare O'Neil said this plan will ensure young Australians are no longer "bearing the brunt of the housing crisis".
"We want to help young Australians pay off their own mortgage, not someone else's," O'Neil said.
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