One year ago, the Albanese Government made a bold and strategic move—ensuring that every Australian taxpayer would receive a tax cut to ease the burden of cost-of-living pressures. Now, as we move into 2025, new figures reveal an even bigger boost to incomes, reinforcing Labor’s commitment to economic fairness.
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Bigger Tax Cuts Coming in July 2025
Since July last year, 14 million taxpayers have already benefitted from Labor’s tax relief plan. By the end of this financial year, around 84% of all taxpayers will have received a larger tax cut than what was originally planned under the Morrison Government’s 2019 proposal.
Even more significantly, nearly three million low-income earners—those making under $45,000—who would have missed out completely under the Liberal-National plan are now set to benefit from Labor’s tax policy.
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How Much Will You Save? A Closer Look at the Numbers
Thanks to stronger wage growth under the Albanese Government, tax cuts will increase from an average of $1,888 in 2024 to $1,944 in 2025. This means more money for everyday Australians, allowing them to better navigate economic challenges.
Here’s a breakdown of projected savings for key professions:
- Truck drivers earning $72,800 in 2024 will see their tax cut rise from $1,499 to $1,569 as their income increases to $75,600 in 2025.
- Nurses earning $72,300 this financial year will experience a tax cut increase from $1,487 to $1,567 with an income rise to $75,500.
- Teachers earning $85,600 will see their tax cut grow from $1,819 to $1,874 as their salary increases to $87,800 next financial year.
Economic Strength: Wages Rising, Inflation Easing
The government’s comprehensive approach extends beyond tax cuts. Under Labor, wages are rising at nearly twice the rate seen under the previous government, ensuring that Australian workers see real financial improvements.
Key Economic Wins Under Labor:
- Inflation down from 6.1% (May 2022) to 2.8%
- 1.1 million jobs created since the election
- Unemployment remains low at 4%
- Real household incomes, which were declining at 1.6% under the previous government, are now growing
Coalition’s Opposition: The Risk to Taxpayers
Despite the clear benefits, Opposition Leader Peter Dutton has openly stated that a Coalition government would “absolutely” consider reversing these tax cuts. Rather than prioritizing relief for everyday Australians, the Coalition has pushed for tax breaks that benefit corporate lunches and golf days.
While Labor remains focused on tax cuts for workers and energy bill relief for families, the Coalition continues to advocate for wasteful corporate perks at the expense of middle- and low-income Australians.
The Path Ahead: A Fairer Tax System for All
Labor’s tax policy is a direct response to years of economic mismanagement and declining real wages under the Liberals and Nationals. Now, thanks to stronger wage growth, declining inflation, and progressive tax relief, Australian workers are in a better financial position than they were three years ago.
No matter where you live or how much you earn, you deserve a fair tax system. The Albanese Government is delivering exactly that—ensuring Australians earn more, keep more, and build a stronger financial future.
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