Money
Budget 2025 reply: What a vote for the Coalition will get you
No tax cuts, a reduction in fuel prices and bolstered defence… Nicole Pedersen-McKinnon reports on what’s in the Coalition's Budget reply for us.
By Nicole Pedersen-McKinnon
We now know we are having an election on 3 May… and we know the respective policy platforms of our 2 main alternatives.
See the ALP’s packet here: Budget 2025: All the hip-pocket help for over 50s
Well, until both major parties drop the inevitable, enticing, last-minute announcements.
But the vote-buying is already in full swing with the Coalition launching measures to counter Labor’s tax cuts, which have already been rushed through parliament and the opposition (in a bold move) will repeal if elected.
So, in what leader Peter Dutton called a “sliding doors moment” for the country, let's take a look at how a vote for the Coalition might change things.
Cuts to your fuel cost
The Coalition will slash the fuel excise by 25 cents a litre – a halving – as soon as the legislation is passed.
This will have a bigger and more immediate impact than Labor’s tax cuts, which phase in from July 2026 and July 2027.
But, on the flipside, the hip-pocket help is only for one year – what the opposition says is temporary and targeted.
Of course, the benefit will be felt most strongly by people who drive long distances, so it’s targeted to ‘butter up’ people in regional and more remote areas.
Higher income earners, who typically live in more urban areas, are more likely to use public transport and/or walk or ride to work and other destinations. So this assistance probably won’t have as much impact on them.
How do Labor’s tax cuts stack up against the Coalition’s fuel cuts?
The bottom-line comparison: Under the Coalition’s policy, if you refilled a 55-litre car once a week, you would come out ahead by around $13.75 a week. That’s $715 a year. Run 2 cars and that doubles.
Under Labor’s tax cuts, when they kick in from July 2026 every worker will receive an extra $5.15 a week.
From July 2027, that amount becomes $10.30 a week.
And that will be enjoyed into the future, with such an amount worth comparatively more to a lower income earner.
The Coalition’s proposed fuel excise discount will come at a cost of $6 billion for the year that it would be in place, which will be as soon as the legislation can be tabled in parliament. This is versus $17 billion over 5 years for Labor’s enacted tax cuts.
In reality, both offer limited relief.
Plan to bring down energy prices
The Coalition wants to remove the choice of “to heat or eat”, but it won’t extend the $75-a-quarter electricity rebate for six months like Labor intends.
Instead, it will change the mix of energy sources: gas then nuclear.
There would be a new national gas plan introducing a gas reservation to boost supply, with an aim to drive down the wholesale domestic gas price from $14 to $10 per gigajoule by the end of the year.
Existing overseas contracts will be honoured but the excess diverted domestically to bring more gas supply on more quickly.
This will include an extra gas pipeline, the details of which are unclear, worth $1 billion.
In the Coalition’s Budget reply, there were 2 references to nuclear power and a reiteration of the transition to that power over the long term, from 2035, with gas bridging the gap.
The Coalition says its energy plan is 44 percent cheaper than Labor’s plan.
Try this: Bring down your energy prices at home
Medicare match plus mental health
The Coalition has committed to matching all of Labor’s Medicare initiatives, including aiming to make 9 out of 10 doctor’s visits bulk-billed by 2030.
It, too, will allocate $500 million to women’s health, bringing the total spend to $9 billion.
But it will additionally reinstate 20 subsidised psychology visits and extra funding for youth mental health.
Access to super for a first home
For your children or grandchildren, once again, the opposition is taking to the electorate a policy to allow them to access $50,000 of their super for a first home.
This is a top up to the existing First Home Super Saver scheme, which already allows people to save up to $50,000 in that tax-advantaged environment.
And that’s about where the Coalition’s promised direct financial assistance for Aussies ends (it opposes Labor’s proposed discount to HECS).
It’s also where the party’s broader economic and policy positioning begins…
An immigration cut to decrease housing demand
Mr Dutton confirmed in his Budget reply that the Coalition would go to the electorate with a cut to immigration, but there was no further detail besides their known plan to decrease permanent migration by 25%.
The net migration target is still undisclosed.
But the position is that this will alleviate the pressure on housing and open the door for locked-out first homebuyers.
Dutton also declared: “We will ban foreign investors and temporary residents from purchasing existing Australian homes for 2 years.”
Public service shake-up
One of the Coalition’s central cost-cutting measures is that 41,000 public service positions will be “reversed”. The commitment is that none of these will be frontline, service-delivery workers.
Insurance premiums strategy
The Coalition has alluded to a yet-to-be-detailed plan to potentially break up large insurers where it’s deemed they are charging customers too much.
This is in response to the impact floods and other natural disasters are having on home insurance – and other insurance – premiums.
Try this tip to lower your premiums: Do this at least once a year to save big money
Extra money for defence
Mr Dutton said we find ourselves in the most precarious national security position for decades and in a brief mention in his Budget reply speech, pledged a “significant funding commitment” to boost Australia’s defence.
It has already earmarked $3 billion for fighter jets. There was no confirmation of a rumoured 2.5 % increase of gross domestic product… This announcement is clearly being saved for the campaign.
Labor has also brought forward some of its $50 billion in already allocated defence spend.
But it should be noted that all of the above is assuming a post-May parliamentary majority for the Coalition, which is probably a big assumption this election… for either party.
Read the full Budget reply at Liberal.org.au. Care has been taken to check the figures quoted in this article but all information should be verified with the source material.
Feature image: iStock/FreshSplash
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