2025 Australian Federal Election

    Policy Comparison:
    Liberal vs Labor

    A comprehensive analysis of the major parties' policy positions for the 2025 federal election.

    Economy & Cost of Living

    The economic policies of the major parties reflect their different philosophies on taxation, government spending, and the role of the state in managing the economy.

    Liberal-National Coalition Approach

    The Coalition's economic platform centers on lower taxes, reduced government spending, and support for business growth.

    • Tax Relief: One-off Cost-of-Living Tax Offset of up to $1,200 for individuals earning up to $144,000
    • Fuel Costs: Cut fuel excise by 25 cents per liter for 12 months (saving approximately $750 per vehicle owner per year)
    • Small Business: Reinstate $30,000 instant asset write-off for small businesses permanently
    • Spending Cuts: Promise to cut $100 billion from Labor's spending measures

    Australian Labor Party Approach

    Labor's economic agenda focuses on targeted tax relief for lower and middle-income earners, investment in renewable energy, and support for local manufacturing.

    • Income Tax: Tax cuts to lower income thresholds: reduce rate from 16% to 15% (mid-2026) and then to 14% (2027)
    • Work Expenses: $1,000 tax deduction for workplace expenses on annual tax return without documentation
    • Energy Relief: Additional $150 energy bill relief for all households and 1 million small businesses
    • Local Manufacturing: Investment in local manufacturing through Future Made in Australia Act

    Key Election Issues

    The 2025 election comes amid rising cost of living pressures, with both major parties offering different approaches to tackling inflation and economic growth. The Coalition emphasizes immediate tax relief and spending cuts, while Labor focuses on targeted relief and strategic investments.

    Detailed Policy Comparison

    Policy AreaLiberal-National CoalitionAustralian Labor Party
    Tax Relief
    • One-off Cost-of-Living Tax Offset of up to $1,200 for individuals earning up to $144,000
    • Cut fuel excise by 25 cents per liter for 12 months
    • No changes to negative gearing or capital gains tax
    • Abolish Labor's superannuation tax
    • Tax cuts to lower income thresholds: reduce rate from 16% to 15% (mid-2026) and then to 14% (2027)
    • $1,000 tax deduction for workplace expenses on annual tax return without documentation
    • Maintain Stage 3 tax cuts in modified form
    Government Spending
    • Cut $100 billion from Labor's spending measures
    • Reduce public service in Canberra through attrition and voluntary redundancies
    • Establish Future Generations Fund using 80% of commodity windfalls to pay down debt
    • Establish Regional Australia Future Fund for infrastructure
    • Additional $150 energy bill relief for households and small businesses
    • Continued investment in renewable energy infrastructure
    • Investment in local manufacturing through Future Made in Australia Act
    • Expansion of the Housing Australia Future Fund
    Small Business
    • Permanent $30,000 instant asset write-off for small businesses
    • Two-year deduction of up to $20,000 for business-related meal expenses
    • $12,000 in support for small businesses hiring new apprentices or trainees
    • Target of 400,000 apprentices and trainees in training
    • $150 direct energy bill relief for around one million small businesses
    • Support for small businesses through renewable energy and manufacturing investments
    • Current instant asset write-off threshold of $20,000 expires June 2025
    Industrial Relations
    • Reinstate industrial watchdog
    • New anti-racketeering laws
    • De-register the CFMEU
    • Return to individual employment agreements
    • Support for multi-employer bargaining
    • Maintain current industrial relations reforms including 'same job, same pay' regulations
    • Stronger protections for gig economy workers