Beyond The Ballot - Can Labor Deliver on Housing, Wages and Tax Reform?

With the campaign promises made and voter confidence renewed, the government must now begin the challenging task of delivering the economic and social outcomes it pledged, especially in the areas of housing, wages, and tax relief.

This article draws on insights from The Conversation’s recent analysis and outlines what’s next for Labor as it shifts from campaigning to delivery.

Prime Minister Anthony Albanese has stressed that no Australian should be without secure housing or the opportunity to own a home. Now, with a firm mandate, Labor has the platform and responsibility to act.

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Supporting first home buyers

Central to Labor’s housing agenda is a $10 billion commitment aimed at increasing home ownership. This funding will help deliver an additional 100,000 new homes in partnership with state governments, starting from July. While the plan spans eight years — beyond the current term — the pressure is on to make significant progress during this period.

To support the construction sector, Labor will also boost subsidies for housing apprentices and expand free TAFE places.

At the same time, the government is widening the reach of its existing schemes. The Home Guarantee Scheme will now allow more Australians to enter the market with just a 5% deposit and without the burden of LMI. Reforms include lifting income thresholds and raising property value caps to better reflect current prices.

The Help to Buy program will also see broader access. Eligible buyers on lower incomes will be able to purchase with as little as a 2% deposit, with the federal government contributing up to 40% of the property’s cost. This contribution is repayable over time or when the home is sold.

Both schemes are established policy platforms, making their expansion a relatively low-barrier step toward immediate impact.

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Broader measures to lift housing supply

Labor’s housing reforms aren’t just for first-time buyers. The government has pledged $54 million to accelerate the rollout of modular and prefabricated homes via a national certification framework. A further $1.5 billion infrastructure investment — targeting enabling works like roads, sewerage, and utilities — will help unlock more land for development.

On the affordable housing front, Labor remains committed to its goal of delivering 55,000 social and affordable homes through the Housing Australia Future Fund and Social Housing Accelerator. Additionally, new Build to Rent tax incentives aim to facilitate up to 80,000 new rental properties.

The federal government has also indicated plans to coordinate with state and territory governments to bolster renter protections — a growing concern in Australia’s overheated rental markets.

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Addressing housing for the vulnerable

Vulnerable groups haven’t been forgotten. Labor has committed $1 billion to boost crisis and transitional housing for women and children escaping domestic violence, as well as people experiencing homelessness. An additional $6.2 million will be allocated in targeted homelessness grants, signalling a stronger national focus on emergency accommodation needs.

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Lifting wages for low-income workers

Labor has continued to advocate for stronger wages, particularly in sectors with historically low pay. The government has formally urged the Fair Work Commission to ensure that minimum wages grow faster than inflation — which currently sits at 2.4%.

As a result, the minimum hourly wage is likely to rise to at least $24.68, with changes expected from July following the Annual Wage Review. This comes on top of major increases secured through the Fair Work Commission for aged care workers under the Aged Care Work Value case.

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Tax reform for everyday Australians

Tax relief is also on the agenda. From 2026–27, workers earning between $18,201 and $45,000 will see the 16% tax rate fall to 15%, and then to 14% in 2027–28 — just ahead of the next election. These reductions will deliver annual tax savings of $268 and $536 respectively.

Labor has positioned this as a measure to increase workforce participation and boost disposable income, particularly among younger and lower-income workers.

The government also plans to introduce automatic tax deductions for work-related expenses for salary and wage earners from 2026–27. This reform aims to reduce red tape for taxpayers while improving take-home earnings.

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Changes to the Medicare levy threshold

To complement tax cuts and wage increases, Labor will lift the low-income thresholds for the Medicare levy by 4.7% from July 1, 2024. This means more low-income earners, seniors, and pensioners will be exempt from the levy or pay a reduced rate — offering immediate financial relief in the 2024–25 financial year.

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What comes next?

While many of Labor’s proposals are grounded in existing policies and appear administratively feasible, their true test will be execution. Delivery will depend not only on policy design but also on cooperation with state governments, efficient use of funds, and workforce capacity — particularly in construction.

Albanese has promised an optimistic, inclusive government. But as the post-election dust settles, attention will quickly turn to outcomes. Implementation, not aspiration, will shape the legacy of this term.

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