Federal election 2025: Dutton releases tax plan as cost-of-living battle heats up

Australian taxpayers will get a cost-of-living tax offset next financial year, boosting tax returns by as much as $1200 — if Peter Dutton wins government.

With rising living expenses and an Australia-wide lack of housing key issues this election, Mr Dutton has sought to entice voters to vote Liberal by promising a tax offset he says will go to more than 10 million taxpayers in 2025-2026.

The policy would see eligible Australians earning up to $144,000 receive up to $1200 in tax relief when they lodge their tax return for the next financial year.

The one-off offset has been costed at $10 billion. About 85 per cent of taxpayers would benefit from the offset while roughly half of all taxpayers would receive the maximum offset of $1200.

The Opposition Leader said the tax offset would provide vital support for families “while the Coalition addressed the underlying economic problems created by Labor, including weak growth and spiralling energy prices”.

“Australians are hurting — and Anthony Albanese isn’t listening,” Mr Dutton said.

“The Coalition is stepping up with a plan that provides real help. Families are getting smashed under the Albanese Government, and they need help now.”

Both Mr Dutton and Prime Minister Anthony Albanese will launch their election campaigns on Sunday.

The leaders are in a furious battle to win the cost-of-living battleground by pitching plans to woo under-pressure voters.

In WA, despite a flourishing mining industry which brings billions in royalties to State coffers, welfare agencies report record numbers of West Australians seeking help to feed and house their families.

In Jim Chalmers’ May Budget, Labor revealed new tax cuts amounting to an extra $5 a week, when introduced in 2026. Labor has also promised a $150 power bill credit next financial year.

Mr Dutton labelled those cuts a “cruel hoax”, announcing his own policy of cheaper petrol for one year by halving the fuel excise.

“A Coalition government will first provide help to families by cutting fuel by 25 cents a litre — a saving of about $1500 a year for a two-car family. And then by giving back up to $2400 per family whilst we clean up Labor’s mess,” he said.

“Labor’s 70 cents a day is a band-aid on a bullet wound.”

The Coalition’s cost-of-living tax offset is available to Australian residents earning an annual taxable income of up to $144,000 with the full offset available to those earning between $48,000 and $104,000.

“Our cost-of-living tax offset will put more money back into the pockets of millions of Australians at a time when they’re being crushed by skyrocketing grocery bills, rent, mortgage repayments and insurance costs,” Mr Dutton said.

“Labor’s so-called tax cut – just 70 cents a day – is a slap in the face to hard-working Australians and an insult to families trying to make ends meet. It shows just how out of touch Mr Albanese really is.”

Shadow Treasurer Angus Taylor said the Coalition’s tax relief plan was “responsible, temporary and targeted”.

“Under Labor, Australians have suffered the largest fall in living standards in our nation’s history,” Mr Taylor said.

“Labor’s big-spending agenda is fuelling inflation and driving up the cost of everything. The Coalition’s approach is different — we will provide temporary and targeted cost-of-living relief while we get our economy back on track.”

In the midst of a COVID-19 pandemic, the former Coalition government introduced a one-off $420 cost-of-living tax offset.