How your personal finances may change under Labor

A new Labor government will see a few new proposals that may impact your finances.

While there aren’t any drastic changes, there are a few that might combat the cost of living and potentially make everyone’s lives easier. For example, areas where we’ll see changes include childcare subsidies and housing.

“We’ve done a lot of work already when it comes to savings. But there will be much more work to be done,” said new Federal Treasurer Jim Chalmers to the ABC. 

“And so the priority in those early briefings, as we get ready for a Budget in October, is how do we responsibly begin to deal with those big challenges?"

Labor’s proposed Government Childcare Subsidy

As mentioned, a key talking point for Labor’s campaign was a potential increase in the government childcare subsidy (CCS).

“We want to get real wages moving again by making the economy more productive and growing it the right way. That’s why [we’re investing] in cheaper childcare,” said Chamlers.

Key points from Anthony Albanese’s childcare subsidy plan are:

• Lifting the maximum CCS rate to 90% for families with their first child in care.
  

• Increasing the subsidy rates for every family with one child in care earning a household income of less than $530,000.
  

• Keeping higher subsidy rates for additional children in care.
  

• Extending the subsidy to outside school hours care. 
  

We actually have an article on Labor’s proposed childcare subsidy policy that you should read.

Labor’s Help to Buy program

With house prices through the roof and home loan interest rates on the rise, you knew the housing crisis and unaffordability were a hot topic. 

The Labor Party's answer is the Help to Buy program, which involves entering a co-ownership agreement with the government. According to the ALP, this will reduce the upfront and ongoing costs of having a mortgage.

“After nine long years in government, housing affordability has only got worse under the Liberal-National Government. Help to Buy is part of Labor’s plan to tackle the housing crisis,” said Australia’s new Prime Minister, Anthony Albanese.

Under this program, the government would cover up to 40% of the price of a new house and 30% of the cost of an existing house. 

Keep in mind that the price cap for the houses depends on your state, so be sure to read our complete explanation of Labor’s Help to Buy program.

What about taxes?

For the most part, the Labor Party will be upholding the Liberal Party’s previous policies around taxes. 

This includes the “stage three” tax cuts previously legislated by the Liberal party. The abolition of the Low and Middle Income Tax Offset and no changes to current property investment property taxes. 

If you want to keep up with government policies that may affect your finances, be sure to check out our family finances page.