The Labor policies that your business needs to know
With the Labor Party elected and Anthony Albanese Australia's new Prime Minister, we’ve summarised the key policies that Labor will look to implement that matter to you and your clients.
Labor have created their own scheme, called ‘Help to Buy’ which isn’t restricted to first home buyers like the Liberal policy. Eligible buyers will only need a 2% deposit and won't have to pay lenders mortgage insurance.
The Labor party will take an equity stake of up to 40% in the home which they will then get back in capital gains when the house is sold. The owner must live in the home for two years and property price caps are also in place.
Labor will introduce their ‘Regional First Home Buyers Support Scheme’ for 10,000 first home buyers a year in regional areas. Their policy doesn’t require the home to be a new-build, and existing houses, townhouses and units will be included in the scheme
They will also look at improving the overall first home buyers scheme, declaring they’ll update property price caps every six months and be more efficient at reallocating unused guarantees to those who will use them.
The Labor party claims eight out of 10 small businesses find government regulation complex, so they are focusing on collaboration between government and small businesses. They want small businesses spending less time doing taxes and paperwork.
Labor said they want to maximise the amount that small businesses receive from the Commonwealth Procurement. The Commonwealth has a $190 billion purchasing power to support small businesses and grow the economy.
They have also stated they will provide more clarity for small businesses in times of crisis (bushfires, floods, pandemic).
Labor have stated they will not increase taxes and have no proposal to do so. Just as they stated for small businesses, they’re looking to provide more clarity on tax to families, with a key goal to make sure Australia has an economy that helps working families.
The Labor Party have pledged to deliver tax relief for more than 9 million Australians through tax cuts that benefit everyone with incomes above $45,000.
They will address cost-of-living relief for Australians through an increase in the low-and-middle income tax offset by $420 this year.
For a full list of Labor's policies, you can head to their website here.