Dutton said an elected Coalition government would deliver a once-off Cost of Living Tax Offset for eligible Australians earning up to $144,000 when they lodge their tax return.

Around 85 per cent of all workers would be eligible for this temporary tax relief.

Around half of all taxpayers would receive the full $1200 offset, which would cost the government $10 billion.

Dutton said this once-off tax relief policy would be vital support for families struggling against a tough economic climate.

“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,” Dutton said today.

“And then by giving back up to $2400 per family whilst we clean up Labor’s mess. Labor’s 70c a day is a band-aid on a bullet wound.”

Dutton used his policy announcement to take aim at the federal government’s modest tax cut announced in the 2025 Federal Budget, which amounts to around 70c per day.

“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,” he added.

Shadow Treasurer Angus Taylor said the Coalition is committed to delivering a “comprehensive” plan to rebuild the economy and to target cost of living.

”The Coalition’s approach is different – we will provide temporary and targeted cost of living relief while we get our economy back on track,” he said.

“We will restore responsible economic management, deliver a plan to lower electricity and gas bills, and restore prosperity for working Australians.”

Labor also said it would raise the income and price cap to make all first homebuyers eligible for a five per cent deposit on a property.