Election 2025: Will Labor or the Coalition deliver real help for older Australians? 🧐
As we approach the 2025 Australian federal election, both major political parties are offering policies aimed at easing the financial burden on older Australians, seniors, retirees, and small family business owners. However, many of these promises come with serious concerns, particularly around the cost of living, healthcare access, and the ability of the government to follow through on its pledges.
Below is a detailed breakdown of what both Labor and the Coalition are offering, with a critical look at the pros and cons of the top three respective policies that relate to older Australians.
1. Tax Cuts and Financial Relief: Promises with Uncertain Results
Both parties have offered tax cuts, but the timing and impact of these measures raise doubts, especially for older Australians who are struggling with rising living costs.
Labor’s Tax Cuts: Modest Relief with Long-Term Delays
Labor has promised two tax cuts starting in 2026 and 2027. The first tax cut will return $268 annually for those earning above $45,000, and a second cut will follow with a $536 annual saving by 2027. These tax cuts will translate to an additional $5 per week in 2026, rising to $10 per week in 2027.
What This Means for You:
- For Older Adults on Fixed Incomes: While any tax cut is welcome, the amounts are modest and unlikely to have a significant impact on your financial situation, especially as seniors face rising costs in areas like healthcare and energy.
- For Small Business Owners: While the tax cuts could offer minor savings, the delays in implementation mean that small businesses, especially those in the service sector, will face ongoing financial strain until the cuts are realised.
Coalition’s Fuel Excise Cut: Immediate Relief, But Is It Enough?
The Coalition is promising a one-year reduction in the fuel excise, halving the excise from 50.8 cents per litre to 25.4 cents. This reduction is expected to save drivers approximately $455 to $750 annually, depending on fuel consumption.
What This Means for You:
- For Older Adults: If you’re still driving, this policy could offer immediate relief from rising fuel prices, which are a significant expense for many seniors, especially those in regional or rural areas with limited public transport.
- For Small Business Owners: This measure could be beneficial for small business owners whose operations depend on transportation, providing much-needed cost relief for a year.
Energy Rebate Extension: More Help, But Will It Solve the Problem?
Labor has extended its $150 energy rebate, but experts suggest that for many Australians, including older Australians, this amount will remain insufficient in covering rising energy bills.
What This Means for You:
- For Older Adults: The extension is welcome, but many retirees may find it insufficient, especially as energy prices continue to rise, particularly in states like NSW, where additional costs are expected.
- For Small Business Owners: If your business relies on energy for daily operations, the rebate offers limited support. The Coalition’s focus on gas supply and nuclear energy could lead to more substantial long-term changes, but their plans also come with significant risks.
2. Healthcare and Aged Care: Repeated Promises, Uncertain Outcomes
Labor and the Coalition agree on expanding access to healthcare, but the effectiveness of these policies is still in question, especially given Labor’s track record.
Labor’s Bulk Billing and Healthcare Policies: Is It Just a Band-Aid?
Labor’s flagship policy is to boost bulk billing so that 9 out of 10 GP visits are bulk-billed by 2030. They are also capping the maximum cost of PBS medicines from $31.60 to $25, starting in January 2026.
What This Means for You:
- For Seniors: Expanding bulk billing is a welcome change, but the reality is that many doctors are already warning that the funding may not be enough to make a difference. With GPs raising concerns about the sustainability of these policies, it’s unclear whether more seniors will be able to access free or low-cost healthcare in the near future.
- For Pensioners: The PBS prescription reduction is a step in the right direction, but the long delay in its implementation means that seniors will still be paying full price for many prescriptions in the meantime.
Coalition’s Focus on Medicare and GP Access: A Stronger Commitment?
The Coalition has promised to triple the bulk-billing incentive for GPs, which could lead to improved access to free healthcare for seniors, though the effectiveness of these measures is still uncertain.
What This Means for You:
- For Seniors: While the Coalition’s approach seems more focused on immediate improvements to bulk-billing rates, there is still a lack of clarity around how quickly these changes will be implemented. Both parties share the goal of making healthcare more accessible, but neither has fully addressed the root causes of the Medicare system’s strain.
Aged Care: Reform on the Horizon, but Can It Be Delivered?
Both parties have committed to increasing funding for aged care, but the reforms Labor has initiated face significant delays, raising doubts about their effectiveness.
What This Means for You:
- For Seniors in Aged Care: Labor’s ongoing reforms are necessary, but with mounting concerns from aged care providers about the sustainability of funding, it’s unclear whether these reforms will be implemented in time to meet the growing demand for aged care services.
- For Family Members of Seniors: The Coalition’s approach to gas and nuclear energy policies could potentially lead to more sustainable energy options in aged care facilities, but this will take years to come to fruition.
3. Superannuation and Retirement: Labor’s Taxes and the Coalition’s Promise to Protect Savings
Both parties have proposed changes to superannuation, but the spectre of a new “savers tax” looms large, particularly under Labor’s policies.
Labor’s Superannuation Tax: A Hidden Burden?
Labor has proposed a new tax on unrealised capital gains for superannuation balances above $3 million. This “savers tax” would apply to those who hold large super balances, with potential for further expansion beyond superannuation into other investments.
What This Means for You:
- For Retirees with Large Super Balances: If you have a super balance over $3 million, you could be hit with this tax, which could dramatically reduce your retirement savings. While this tax may initially apply to those with larger balances, there are concerns that it could eventually be extended to other forms of investment, including the family home.
- For Small Business Owners: Many small business owners use superannuation as a tax-efficient means of wealth management, and this new tax could significantly affect your ability to save for retirement.
Coalition’s Protection of Superannuation: More Flexibility, Less Tax
The Coalition has promised to protect superannuation savings from new taxes, particularly for those with smaller balances. They have also committed to making it easier for business owners to access superannuation savings in retirement.
What This Means for You:
- For Retirees: The Coalition’s more conservative approach to superannuation could provide more security for your retirement savings, allowing you to keep more of your super intact for the future.
- For Small Business Owners: The Coalition’s commitment to protecting super balances means you may face fewer barriers to saving for your retirement within your superannuation fund.
So, What’s Best for You?
The 2025 election presents older Australians with two very different paths. While Labor’s policies may provide some immediate relief, their track record of failed policies and hidden taxes leaves many seniors and retirees uncertain about the long-term implications. The Coalition’s focus on protecting superannuation savings and providing more direct relief through fuel excise cuts and energy rebates offers some immediate benefits, but their lack of comprehensive healthcare and aged care reforms raises concerns about the future.
Ultimately, your decision will depend on what you value most—whether it’s cost-of-living relief, healthcare access, or retirement security. Make sure you carefully consider each party’s proposals and how they will affect your future before casting your vote.
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