The Coalition has released a comprehensive blueprint promising to bring down inflation, deliver cheaper energy, unlock affordable homes and restore fiscal discipline if it wins government.
Shadow Treasurer Angus Taylor says the party’s cost-of-living measures and budget repair strategy will reverse what he describes as three years of Labor’s runaway spending, which has fuelled higher prices and pushed Australia into its longest per-capita recession on record.
Labor’s stewardship, the Coalition argues, has added some $425 billion in new expenditure since the last election and forgone nearly $400 billion of windfall revenue that could have been used to rebuild fiscal buffers. With the IMF warning that growth is set to slow to 1.6 per cent in 2025 and inflation could rise to 3.5 per cent in 2026, the Coalition insists responsible budget management must be its first priority.
To ease immediate pressure on household budgets, the Coalition would halve the fuel excise, saving motorists about 25 cents a litre for 12 months, and introduce a one-off cost-of-living tax offset of up to $1,200 for low- and middle-income earners. First home buyers would also benefit from a new tax deduction on mortgage interest payments for new homes.
Mr Taylor said these steps, alongside lower taxes for families and small businesses, would deliver tangible relief far sooner than Labor’s proposal of a modest 70 cents a day cut in 15 months’ time.
At the same time, the Coalition plans to improve the budget bottom line by almost $14 billion over the four years to 2028–29 compared with the pre-election forecasts, enabling it to reduce gross debt by more than $40 billion over the same period.
“While Labor racks up debt and deficits, the Coalition will deliver lower inflation, cheaper energy and a stronger economy,” Mr Taylor said.
“Australians are paying the price for Labor’s incompetence and only a Dutton Coalition Government has a real plan to ease the cost of living and repair the budget.”
Shadow Minister for Finance Jane Hume added that under the Coalition’s plan, spending would be brought back under control without cutting essential services.
She said Labor’s “addiction to spending” has trashed the nation’s finances and left households poorer and less secure.
“The Coalition will stop the waste, pay down debt and secure our future,” Senator Hume said.
“Anthony Albanese has mortgaged Australia’s future; we will fix the budget and get Australia back on track.”
The Coalition’s fiscal strategy centres on restoring long-term budget guardrails. It proposes to limit total spending as a share of GDP, reintroduce a tax-to-GDP cap of 23.9 per cent, and commit 80 per cent of any positive revenue windfalls each year to two new nation-building funds: a Future Generations Fund to pay down debt and a Regional Australia Fund to support infrastructure outside the major cities. The plan also includes a hiring freeze and natural attrition to reduce the size of the public service by 41,000 over five years, while safeguarding frontline and national security roles.
On energy, the Coalition says it will create a balanced mix of renewables, gas and new zero-emissions nuclear power, promising to replace retiring coal-fired plants with government-owned nuclear stations and to establish a Critical Gas Infrastructure Fund to boost supply. It argues that a more reliable and diversified energy system will drive down power prices and help curb inflationary pressure on households and businesses.
Housing affordability features prominently in the Coalition’s agenda. The party aims to align migration levels with housing supply, restrict foreign investors and temporary residents from buying existing homes for two years, and expand its Home Guarantee Scheme to help first-time buyers. It would also fast-track critical infrastructure and support apprenticeships in construction to bolster local capacity.
The Coalition contrasts its plan with Labor’s record of decade-long deficits and a projected $1.2 trillion debt by 2028–29. It argues that only its approach—blending immediate cost-of-living relief with a credible path to budget surpluses—can restore confidence in Australia’s economic management, protect the nation’s AAA credit rating and ensure future governments have the fiscal firepower to respond to shocks.
As the election campaign enters its final week, both major parties are staking their reputations on whose economic plan voters trust. For the Coalition, the message is clear: lower inflation, cheaper energy, affordable homes, and safer communities can only be delivered through disciplined spending, tax relief and a stronger, private sector-led economy.
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