As Australians turn the page on a new financial year, they will be waking up to yet another wave of cost increases and economic pressure - all under the Albanese Labor Government’s watch.
From 1 July, the Government starts rolling out a raft of changes that will hit households, businesses and workers in the hip pocket. Whether it’s higher electricity prices, increased small business costs, more red tape or new vehicle taxes, the common thread is clear - Australians are being asked to pay more and get less.
Under Labor, gross debt is heading for nearly $1.2 trillion, or around $45,000 for every Australian. Labor is pushing Australia’s debt to the highest level in our nations history. While the Government pats itself on the back, it’s leaving future generations to foot a growing bill. Labor’s boastful spin about so-called “cost-of-living relief” has never been more tone deaf.
The new financial year should bring fresh opportunity. Instead it brings:
- Higher energy bills: The energy regulator’s Default Market Offer for 2025 kicks in across NSW, South Australia, Queensland. Compared to 2024-25, from 1 July prices for households will be up to 9.7% higher, and up to 8.5% higher for small businesses. Over the last three years of price rises under Labor, households will have spent up to $3,177 more, cumulatively, on electricity, compared to 2021-22 levels.
- A tax on aspiration: Labor’s proposed tax on superannuation balances above $3 million hasn’t even passed Parliament, yet they plan to backdate it to 1 July. If legislated, this tax would double the rate from 15 to 30 per cent and apply not just to realised earnings, but to unrealised gains – taxing Australians on paper profits they haven’t even received. This is a broken promise that punishes aspiration, undermines trust in the system, and sets a dangerous precedent for future raids on unrealised gains on other investments.
- A tax on investment: Labor’s new mandatory mergers notification regime begins its transition phase, and businesses could now face fees of over $1 million to have transactions reviewed by the ACCC. With a $56,800 Phase 1 fee and an eye-watering $952,000 Phase 2 fee, this regime risks deterring investment, choking off small-scale mergers, and driving away international capital. Labor had just 13 days of consultation before locking in these costly changes, and the result is a bureaucratic, expensive regime that flies in the face of the Government’s claimed productivity agenda.
- A tax on small business: From today, the Albanese Government has removed the tax deductibility of interest charged by the ATO on overdue tax debts. With the ATO’s interest rate currently at 11.17%, this change increases the financial burden on approximately 2.6 million small businesses, making it more costly to manage cash flow and settle tax obligations.
- A new tax on vehicles: Labor’s New Vehicle Efficiency Standard kicks in, applying financial penalties on popular vehicles like utes, 4WDs and family cars. Industry experts warn these penalties will increase prices by thousands of dollars - at a time when families are already stretched.
- New tax reporting rules: From 1 July, Labor’s costly multinational tax reporting rules kick in. These won’t raise extra revenue but will burden businesses with $30 million in compliance costs, scare off foreign investment, and push start-ups offshore. Despite talking deregulation, Labor introduced over 5,000 new regulations last term that threaten Australia’s competitiveness, economy, and future industries like AI and biotech.
- NBN price hikes: From 1 July, wholesale prices for 7 out of 8 NBN plans are increasing by between 2% and 3%, adding up to $1.71 more per month for providers. While it may seem small, these increases will likely be passed on to households already struggling with rising bills – yet another cost-of-living hit under Labor.
- Stamp prices to rise: From 17 July, the cost of sending a standard letter will rise by 13.3%, from $1.50 to $1.70. While Labor claims this will only add a dollar or so to household costs, it’s part of a growing trend of rising prices for essential service – and another reminder that nothing is staying affordable under this Government.
- More expensive to register a business name: From 1 July, ASIC has increased the cost of registering or renewing a business name. A one-year registration or renewal now costs $45, up from $44, while a three-year term has risen to $104, up from $102.
- More expensive to register a company: ASIC has also raised fees for company services. Registering a new proprietary company now costs $611, up from $597, and the annual review fee for such companies has increased to $329, up from $321.
- More red tape for suppliers: From 1 July, Labor’s Environmentally Sustainable Procurement Policy will apply to government contracts over $1 million for ICT, textiles, and furniture. Businesses will face new reporting and compliance burdens, with estimated costs of $1.2 million a year – locking out smaller suppliers and adding to Labor’s growing regulatory load.
Labor promised a better life for families. Instead, Australians are being squeezed, living standards have declined, and the economy is going nowhere fast.
Under Labor the economy is stalling, and households have gone backwards. Business investment is falling, productivity has flatlined, and real GDP per capita has plunged from 20th to 60th in just a year.
The reality Australians face is grim. Since Labor came to office, prices have surged across the board:
- Health costs are up 13.4%
- Education is up 17.3%
- Food is up 13.9%
- Housing is up 15.4%
- Rents are up 18.6%
- Insurance has skyrocketed by 35.9%
- Electricity is up 33.5% (before government rebates)
- Gas is up 34.2%
As the clock ticks past midnight, Australians won’t be met with fireworks for the start of a new financial year, just higher bills.
This new financial year was Labor’s chance to reset, instead Labor have doubled down on higher costs, more red tape, and policies that make life harder for working Australians.
The longer Labor is in power, the poorer Australians become.