Dutton Announces $1,200 Tax Cut as Coalition Launches Official Campaign

The Coalition campaign launch will be held in Sydney on April 13. Labor will launch an official campaign in Perth.
Dutton Announces $1,200 Tax Cut as Coalition Launches Official Campaign
Leader of the Opposition Peter Dutton delivers his 2025-26 Budget Reply Speech in the House of Representatives at Parliament House, Canberra, Australia on March 27, 2025. AAP Image/Mick Tsikas
Monica O’Shea
Updated:
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A Dutton government will offer a tax cut of up to $1,200 (US$750) to more than 10 million working Australians in the next financial year if elected on May 4.

Liberal leader Peter Dutton is expected to make the announcement at the Coalition’s official campaign launch in southwest Sydney, where the Liberals are hoping to claw back the seat of Werriwa from Labor.

“We will deliver a cost of living tax offset to more than 10 million taxpayers as part of our plan to get Australia back on track,” the Coalition said in a statement seen by the Epoch Times.

“It means Aussies earning up to $144,000 receive up to $1,200 in tax relief when they lodge their tax return for the upcoming 2025-26 financial year.”

The policy will cost $10 billion to the taxpayer, but the Coalition argues they will not introduce it immediately so they have time to curb inflation.

“It is important we get Labor’s home-grown inflation under control where the price of rents have risen 18 percent, electricity 32 percent, and insurance 35 percent,” the Coalition said.

The Coalition will also cut the fuel tax to save Australians $14 per week or $700 per year based on a 55-litre car.

In addition, they plan to reduce public spending to lower inflation.

Labor also announced two cuts, worth an extra $268 in 2026–27 and $536 in 2027–28 as part of the 2025-26 budget.
Dutton and his family, former Prime Minister Scott Morrison, Liberal Deputy Leader Sussan Ley, and Nationals leader David Littleproud are expected to attend the campaign launch.

Labor Campaign Launch in Perth

On the same day as Dutton launches his campaign, the Labor Party will also hold an event in Perth.

Albanese is unveiling a plan to expand the scheme and give all first-home buyers access to a 5 percent deposit, along with a $10 billion spend on up to 100,000 new homes.

“We want more Australians to buy a home of their own sooner—with lower deposits. Labor will enable every Australian to buy their first home with a 5 percent deposit. There will be higher property price limits and no caps on places or income, in a major expansion of the existing scheme,” Prime Minister Anthony Albanese and Housing Minister Clare O'Neil said.

This would enable a resident in Sydney to purchase a $1 million apartment with a $50,000 deposit.

The announcement builds upon the Labor government’s existing $10 billion fund for social and affordable housing, which passed parliament after months of negotiations with the Greens.

Monica O’Shea
Monica O’Shea
Author
Monica O’Shea is a reporter based in Australia. She previously worked as a reporter for Motley Fool Australia, Daily Mail Australia, and Fairfax Regional Media. She can be reached at monica.o'[email protected]