"What Peter Dutton aims to reduce in his campaign against 'wasteful' spending"

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Opposition leader Peter Dutton says he wants to “rein in wasteful government spending” but Labor has warned he will be a leader who will “cut everything but your taxes”.

, Dutton outlined his policies to cut government programs and reduce the number of public servants.

Labor has warned other cuts would also be required — from Medicare to the newly legislated tax discounts — to fund the Coalition’s proposed nuclear power plants.

Prime Minister Anthony Albanese said on Tuesday: “Peter Dutton, a Coalition leader who will cut everything except for your taxes because he has to pay for his $600 billion nuclear plan.”

But the Opposition says it plans to “rein in wasteful government spending that is fuelling inflation”, according to a document detailing the priorities of a Coalition government under Dutton.

Here’s what we know about the Coalition’s proposed “cuts”.

Public servants to face cuts

Dutton has vowed to cut 41,000 Canberra-based public servants, saying it will save $10 billion over the forward estimates (across four years).

He promised the party “won’t cut frontline service delivery roles”, following concerns that it would affect essential services like health, aged care, veterans support and the National Disability Insurance Scheme (NDIS).

The Opposition has been critical of increases in Australia’s public service under the Albanese government. The latest budget papers reveal average staff levels grew by 36,008 between 2021-22 and 2024-25.

Labor argues it had to rebuild the public service after low growth rates during previous Coalition governments.

It has previously highlighted how the cuts resulted in a “shadow workforce” of private consultants, costing taxpayers $20.8 billion in 2021 at the height of the COVID-19 pandemic.

Cuts to ‘ineffectual’ government programs

Dutton has promised to “rein in key inflationary, ineffectual, and imprudent spending measures”.

This includes axing Labor’s which was meant to boost social and affordable housing supply but has not yet built a single new home.

The Coalition also plans to end the $20 billion Rewiring the Nation Fund, which invests in transmission lines required to transport renewable energy around the country. It will also scrap .

The Coalition estimates these measures alone will save $46 billion.

Last week’s federal budget revealed government spending had increased to 27 per cent of gross domestic product (GDP) in 2025-26.

According to the Parliamentary Budget Office, it is the highest spending as a share of GDP this century — outside of economic stimulus during the pandemic.

Cuts to the suburban railway link

On Tuesday, Dutton revealed the Coalition would also cut $2.2 billion previously committed in federal funding for Melbourne’s contentious Suburban Railway Loop (SRL).

The loop is a new orbital rail line between Cheltenham in Melbourne’s south-east and Werribee in the south-west, which Dutton has labelled an “unfunded, cruel hoax of a project”.

Instead, the Coalition will divert $1.5 billion in funding towards Melbourne’s Airport Rail, which includes a new station at Sunshine in the city’s west, originally planned to connect to the loop.

A graphic image of a train staning on railway tracks.

The proposed line will link Melbourne Airport to the CBD. Source: Supplied

This project will involve trains running through Sunshine, then into the Metro Tunnel and the heart of the Melbourne CBD, before continuing on to the Cranbourne and Pakenham lines.

The Albanese government has committed $7 billion for the Airport Link and an additional $2.2 billion towards the loop.

But the Victorian state government has faced ongoing criticism about the cost of the loop. The first of the initial three stages underway is projected to cost up to $34.5 billion.

Tax cuts on the line

The Coalition says it will repeal legislation granting Australians , after the measures passed the Senate last week.

The changes introduced by the Albanese government will result in the rate of tax paid on earnings between $18,201 and $45,000 reduced from 16 per cent to 15 per cent from 1 July 2026. The following July, the rate will be cut further to 14 per cent.

The $17.1 billion Labor promise means anyone earning more than $45,000 will save $268 initially and $536 the following year if the government is re-elected.

Instead, a Dutton-led government has promised to save families hundreds by from about 50 cents to 25 cents per litre on its first sitting day.

It estimates the $6 billion fuel excise freeze would save a one-car household an average of $14 a week, or roughly $700 across 12 months.

Will there be cuts to Medicare?

Anthony Albanese, in a suit, holds up a Medicare card as he talks to reporters.

Labor has pledged the biggest boost to Medicare since it was created in 1984, and the Coalition has matched the commitment. Source: AAP / Jeremy Ng

Labor has repeatedly accused the Opposition of plans to cut funding to Medicare.

“Everything in Peter Dutton’s record tells us that he will start by cutting Medicare and he won’t stop there,” Albanese said during his election date announcement last week.

But the Coalition has in February, committing to $9 billion towards fixing the healthcare crisis.

On Tuesday, Dutton was to maintain funding for health, education, ABC, and SBS.

Abbott subsequently made budget cuts in a number of those areas.

Dutton said he would commit to funding health and education at similar levels but did not directly address the question of matching Labor’s funding for public broadcasters.