Federal Election 2025: Peter Dutton promises $1200 tax cut to ease cost-of-living pressure on families

In his boldest pitch for votes since the start of the campaign, Peter Dutton has promised to give more than 10 million workers a one-off tax cut of as much as $1200 next year.

Peter Dutton has promised to give more than 10 million voters a one-off tax cut of as much as $1200 – $2400 for families – under a Coalition cost-of-living measure targeting a swag of must-win seats.

In his boldest pitch for votes since the start of the campaign, the Liberal leader will today unveil the $10 billion policy measure at the party’s campaign launch in the southwestern Sydney seat of Werriwa.

The Coalition has estimated about 85 per cent of all taxpayers will benefit from the offset, which will be paid when people lodge their tax returns for the upcoming financial year.

The announcement is expected to be seized upon by Labor after the Coalition vowed to repeal the Albanese government’s promised tax cuts, which it branded as “a cruel hoax” and “an election bribe”.

However, Mr Dutton is unlikely to care, given the pre-election sweetener – which is five times Labor’s $5-a-week tax cuts – will be welcomed by struggling families in target seats, many of whom will also benefit from the Coalition’s cut to the fuel excise.

Peter Dutton and Jacinta Nampijinpa Price serve up the sausages at a rally in Western Australia on Saturday. Picture Thomas Lisson

Called the Cost of Living Tax Offset, the relief will be available to Australian residents for tax purposes earning an annual taxable income of up to $144,000, with the full offset available to those earning between $48,000 and $104,000.

The Coalition estimates roughly half of all taxpayers will receive the maximum offset of $1200.

In NSW, the offset will in particular benefit the must-win mortgage-belt seats such as the Labor-held Robertson on the Central Coast, where the median household income is about $84,000.

In Liverpool-based Werriwa, another Labor-held seat the Liberals are ­desperate to win, the median household income is just under $100,000, while in the Labor-held Gilmore on the south coast, it is about $68,000.

The policy will also appeal to cash-strapped younger voters – many of whom have been priced out of metropolitan housing markets.

Mr Dutton will sell his “temporary” and “targeted” policy measure as making a real difference to struggling families.

Anthony Albanese and his fiancee Jodie Haydon were also serving up snags in WA on Saturday. Picture: Jason Edwards

“Australians are hurting – and Anthony Albanese isn’t listening,” he 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.

“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 while we clean up Labor’s mess. Labor’s 70 cents a day is a Band-Aid on a bullet wound.”

He said the offset would put more money back into the pockets of millions at a time when they were being crushed by “skyrocketing grocery bills, rent, mortgage repayments and insurance costs”.

Shadow Treasurer Angus Taylor. Picture: Dylan Coker

Shadow treasurer Angus Taylor, who earlier slammed Labor’s tax cut pledge of $268 in 2026 and $538 the following year as “a cruel hoax” and “an election bribe of 70 cents a day”, described the Coalition tax measure as part of a ­“responsible” plan to ease cost-of-living pressures.

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

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

“This is part of our comprehensive plan to rebuild the economy, ease cost of living pressures, and reward hard work.”

The Coalition will be hoping the announcement will be a game-changer for Mr Dutton who began the week with a backflip on promises to cut work from home for the public service and slash up to 41,000 bureaucrats. Instead, he said the Coalition would pursue job-cutting of public servants through natural ­attrition and other means, and not through forced ­redundancies.

While delivering a solid performance at the first leaders’ debate, Mr Dutton also failed to secure the breakthrough moment he needed.

Mr Dutton was ­campaigning in Perth, where he was questioned about Coalition frontbencher Jacinta Nampijinpa Price after she vowed to “make Australia great again”, echoing US President Donald Trump.

Mr Dutton deflected the questions with an answer on cost of living. Ms Price, who made the comment while standing beside Mr Dutton at a campaign rally, later said she had not realised she had made it: “I want to ensure that we get Australia back on track”.

Originally published as Federal Election 2025: Peter Dutton promises $1200 tax cut to ease cost-of-living pressure on families