While April brought a pair of long weekends and a chance to catch our breath, May comes with renewed focus on both the federal election and the approaching end of financial year. It’s a critical time for many Australians, with changes ahead that could impact your finances, your investments and your long-term plans. In this month’s newsletter, we break down what’s happening and what it could mean for you.

Federal Election: Australia Heads to the Polls

Australians will vote this Saturday, 3 May, in the 2025 federal election. Prime Minister Anthony Albanese is seeking a second term for the Labor government, while Opposition Leader Peter Dutton hopes to bring the Coalition back into power. It’s shaping up to be a closely watched election, with many experts predicting a tight result.

The Coalition has focused its campaign on cost of living relief and long-term energy reform, including the development of nuclear power. Labor has continued to highlight job growth, climate action and housing affordability. Minor parties like the Greens and independents may be the deciding factor in many electorates. With preferential voting in play, preferences could shape the final outcome in key marginal seats.

Regardless of who wins, the result is expected to influence Australia’s economic direction, tax policies and investor sentiment in the months ahead.

Tax Time: Getting Ready for the End of Financial Year

The financial year ends on 30 June, and now is a good time to get prepared. Whether you’re planning to claim deductions, make super contributions or just get your records in order, being organised will help make the process smoother.

This year, Stage 3 tax cuts are now in effect. Introduced on 1 July 2024, these changes benefit most Australians earning under $150,000, with further cuts expected in 2026 and 2027. If you’re unsure how the changes affect you, speak with your accountant or adviser.

Super contributions must be made by 30 June if you want them counted for this financial year. And if you lodge your own tax return, the deadline is 31 October. These small steps now can make a big difference at tax time.

Markets in April: A Mixed Month

Markets had a volatile start to April due to global uncertainty and trade tensions. The ASX 200 finished up 2.5% for the month but is still down 1.3% year-to-date. In the US, the S&P 500 rebounded after hitting its lowest point in over a year.

Australia’s unemployment rate crept up slightly to 4.1%, and consumer confidence fell by 6% in April. Much of the concern has been linked to international developments, including tariff policy shifts and commodity price changes. Meanwhile, the International Monetary Fund has lowered its growth forecast for Australia, though it maintains that global growth overall remains well above recession levels.

Looking Ahead

As the nation prepares to vote and the financial year draws to a close, now’s a great time to check in with your goals. Whether it’s budgeting, investing or making the most of new tax thresholds, a little forward planning can go a long way.

If you’d like help reviewing your strategy or making sure you’re on track, we’re here for you.