The election’s over, and Labor has secured another term. Now what?

“Albanese and the Labor government are going to be in power,” said Jason Weatherby on Table Talk. “So what does that look like for us from a superannuation and tax point of view?”

Let’s break down what you need to know.

The $3 Million Super Tax Is Back

Labor is likely to reintroduce a previously failed superannuation tax, known as the Division 296 tax.

“It’s essentially taxing people with super balances over $3 million,” Jason explained. “Right now, pension balances over that amount aren’t taxed. Labor wants to change that.”

At first glance, that might sound fair. But there’s a catch.

The Unrealised Gains Problem

Labor wants to tax unrealised capital gains. That means you’d pay tax on an asset’s increase in value, even if you haven’t sold it.

“If you bought farmland for $500,000 in 2000 and now it’s worth $5 million, Labor wants to tax the $2 million gain,” Jason said. “But you haven’t sold the land where does the money come from to pay that tax?”

This rule would also apply to shares or other fast-growing assets. Even worse? If the asset drops in value the next year, it’s unclear if you’d get a refund.

It’s Not Indexed, So More of Us Will Pay

The $3 million cap isn’t indexed to inflation.

“Today, it affects the wealthy,” Jason said. “But in ten years, if super grows at 7.2% per year, people with just $1.5 million now will be hit by the tax.”

That means younger Australians may be taxed on super balances they haven’t even reached yet and likely will need help from accountants just to calculate how much they owe.

Election Promises and Cost of Living Relief

Labor’s campaign centred around cost of living and housing. So what support is coming?

“There’s help on the way,” Jason said. “But it’s not massive.”

Here’s what we know:

  • Energy rebate: $150 per year off your power bill.
  • HECS relief: From July 1, 2025, HECS debts will be reduced by 20%.
  • Tax cuts: $10 per week starting July 1, 2026.
  • Work-related expenses: A new $1,000 instant deduction without receipts may be introduced.

“It’s a cup of coffee a week,” Jason said of the tax cut. “And it’ll cost the government $17 billion.”

Help to Buy: Good Intentions, But Is It Enough?

The federal government has committed another $800 million to its Help to Buy scheme.

Under this plan, the government becomes a co-owner in your home. First home buyers can purchase with just a 5% deposit and skip lender’s mortgage insurance.While schemes like this help individuals, they don’t fix the core issue, housing supply.

“What we really need to fix is supply,” Jason explains. “There’s not a lot in there for what we really need.”

Demand is growing. Migration continues to rise. Some cities are already feeling the pressure.

“I think Adelaide is now more cost-effective to live in than WA,” Jason notes.

In Victoria, changes to investment taxes are “driving people out,” he says. As people leave, they put more pressure on other states.

Resale Rules Limit Flexibility

Even when these government-backed homes are sold again, they often stay within the scheme.

“Yeah, and I think even when they’re resold, they’ll only let first home buyers buy them again,” Jason says.

That limits the buyer pool. Still, it can help people move forward.

“It allows first home buyers to pay off some debt, move on. So yeah. It can work,” he says. “But it’s certainly not a normal market.”

Skilled Workers Needed But Where Will They Live?

Migration isn’t just about population growth. Australia needs skilled workers to build more homes.

“We need people to come in to build houses,” Jason says. “But we don’t have the houses for those people to live in.”

It’s a tough cycle. We need more homes, but we also need people to build them. And those builders need homes too.

“It is really, it’s easy for us to sit and say, you know, fix the supply. Very difficult to do.”

Don’t Panic Get Educated

So what can everyday Australians do right now?

Jason offers this encouragement: “We’ve just had a bit of a blow off on the stock market. It’s a really good time… to invest.”

He suggests using this time to learn more.

“Go to the ASX website, go to ASIC’s MoneySmart website,” he says. “Do a bit of reading about super and how it’s invested.”

Many Australians don’t think much about superannuation. But understanding it now could help long-term.

“Make sure it’s invested properly. Know that you’ve got a long time to invest,” he says. “Don’t panic… just get yourself ready. And why not now?”

Final Thought

The post-election landscape brings both challenges and opportunities. Whether it’s navigating super changes or stretching your dollar, being informed helps you make better decisions.

“Cost of living is a thing,” Jason said. “But if you can prioritise a few luxuries, you might come out ahead and a little healthier too.”

Listen to the full conversation below.