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On opposite sides of the country, the major parties will use duelling election campaign launches to promise $10 billion of taxpayer money each for centrepiece policies.
Opposition leader Peter Dutton will on Sunday pledge a tax break of up to $1,200 for millions of low and middle income earners, with the cash delivered in this year’s tax return.
Prime Minister Anthony Albanese will target first-home buyers with a commitment to build up to 100,000 new homes, and a major expansion of the scheme that allows new entrants to the market to buy a property with a 5 per cent deposit.
Labor’s official launch will be held in Perth, in a sign of the significance the campaign is placing on seats in the resources state, and Albanese moving to capitalise on the popularity of the state brand after its .
Meanwhile, Liverpool in south-western Sydney has been chosen for the Liberal campaign launch, highlighting the importance Dutton is placing on a raft of marginal seats in outer Sydney that it’s trying to win.
While Labor was first out of the blocks in cementing this date for the launch, the Liberals have now countered the government’s campaign claim that the Opposition is the party of higher taxes.
The Coalition’s pitch: a tax return windfall this year
If elected, the Coalition says its tax cut, dubbed the Cost of Living Tax Offset, would deliver cash back to more than 10 million voters in this year’s tax return.
The tax break would be applied to those earning up to $144,000, and calculated to deliver up to $1,200 back at the end of the financial year.
According to the Opposition, around 85 per cent of taxpayers will benefit and half of all taxpayers will be able to access the full amount because they earn between $48,000 and $104,000.
“Australians are hurting — and Anthony Albanese isn’t listening,” Dutton said.
“The Coalition is stepping up with a plan that provides real help.”
Labor is already promising a two-year tax cut that would come into effect next year, delivering about $5 a week in the first year and $10 in the second year. This would be in addition to the stage three tax cuts already in place.
Treasurer Jim Chalmers put that proposal forward i, before swiftly passing it through parliament.
He described the tax cut as a modest and targeted approach that would not fuel inflation.
The Coalition immediately promised to repeal that tax cut if elected, leaving it open to claims from Labor that Dutton was embracing higher taxes. This policy, to be outlined on Sunday, is designed to neutralise that line of attack.
Opposition treasury spokesperson Angus Taylor described the tax relief as “temporary and targeted”.
The Opposition has already pledged and has released modelling suggesting its policy to reserve gas for the domestic market will reduce gas and electricity bills.
Labor’s play: Addressing the housing shortage
Under the $10 billion policy being unveiled on Sunday, $2 billion would be set aside for grants while $8 billion would be ploughed into zero-interest loans or equity investments.
States and territories would be required to match funding, and there would be a focus on government land that is vacant or underused, more work on fast-tracking land release and planning approvals as well as zoning changes.
The first homes would start to be built from July next year, with the first completions likely a year after that.
Labor has been under pressure over its broader pledge to , but maintains the target can still be met.
The Home Guarantee Scheme that allows the purchase of a property with a 5 per cent deposit will also be expanded to all first home buyers with no income caps or caps on the number of places.
The Commonwealth guarantees mortgages to allow a reduced 5 per cent deposit without Lenders Mortgage Insurance being payable.
Labor is promising a dramatic increase in the cap on the price of homes that would be eligible for the 5 per cent deposit.
In Sydney, it will be lifted from the current $900,000 cap to $1.5 million.
A $1 million property in Sydney could be purchased with a $50,000 deposit under this scheme, in a move aimed at helping new buyers and taking pressure off retirement savings for older generations.
“I want to help young people and first home buyers achieve the dream of home ownership,” Albanese said.
“When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank.
“This will help people buy their first home faster, without paying the burden of Lenders Mortgage Insurance.”
Labor has already announced significant cost of living support, including $, listed on the Pharmaceutical Benefits Scheme and funding more bulk-billed GP visits nationwide.
The Coalition has matched the health spending commitments.
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