Australians will receive an automatic $1,000 tax deduction on their annual returns without the need to produce receipts or paperwork, as part of an election promise made by Labor’s Anthony Albanese. The announcement came shortly after the Coalition’s Peter Dutton promised a one-off tax refund of up to $1,200 for low- and middle-income earners, and allowed interest payments on mortgages to be tax deductible for first home buyers.

Both major parties have unveiled housing-related promises, with Labor aiming to increase the existing tax deduction benchmark from $300 to $1,000, benefiting approximately 5.7 million people. Albanese stated that “millions” of individuals miss out on deductions due to the complexities of the tax system and end up paying more tax than necessary. Labor also announced plans to build 100,000 new properties for first home buyers with a $10 billion investment.

On the other hand, the Coalition presented its own tax relief measures, including a $10 billion tax cut aimed at providing up to $1,200 in tax relief for low and middle-income earners and a new mortgage deductibility scheme for first home buyers. These proposals were seen as a surprise since Dutton previously called Labor’s tax cuts an “election bribe” and indicated that the Coalition could not match the tax changes.

Source: https://www.theguardian.com/australia-news/2025/apr/13/battle-of-the-election-sugar-hits-labor-and-coalition-announce-tax-plans-at-duelling-campaign-launches