Election 2025: Labor finds $1bn extra in budget savings, Chalmers says

Labor has released its updated costings for the election promises, with Treasurer Jim Chalmers promising an extra billion dollars in budget savings.

The Albanese government has managed to “offset” its re-election campaign pledges and rustle up an extra billion dollars in savings, Jim Chalmers says.

Releasing updated costings on Monday, the Treasurer said Labor was offering “responsible economic management”.

Treasurer Jim Chalmers says the Albanese government has managed to offset its re-election campaign pledges while rustling up an extra billion dollars in savings. Picture: NewsWire/Tertius Pickard

“The costings that we released today show that we will more than offset our election campaign commitments in every year of the forward estimates,” Mr Chalmers told reporters in Brisbane.

“We will finish this election campaign with the budget in a stronger position than at the start of the election campaign.

“We have improved the budget position by more than $1bn comparing the pre-election outlook to the costings that we released today.”

Most election commitments were covered in the last budget, which forecast $178bn in deficits over the coming four years.

But according to the costings, the Albanese government also managed to scrounge together $760m from hiked visa fees for international students. It also saved $6.4bn in consultancy fees.

With just five days to go before Australians cast their ballots, Mr Chalmers also took a swipe at the opposition, warning the other side had “secret costs and secret cuts”.

Mr Chalmers says Opposition Leader Peter Dutton is the ‘biggest risk to our AAA credit rating’. Pictures Adam Head / NewsWire

“The biggest risk to our AAA credit rating is Peter Dutton and the Coalition,” he said.

“They’ve got more than $60bn of commitments. They won’t say where the money’s coming from.

“They’ve got a $600bn off-budget fund on the way which is their nuclear reactors.”

He called on the Opposition to release their campaign’s costings in full sooner rather than later.

“We call on the Coalition to release their costs and cuts immediately,” Mr Chalmers said.

“It is long past time for the Coalition to come clean on their secret cuts to pay for nuclear reactors.”

Parties traditionally do not release election costings till the last week of the campaign.

Shadow Treasurer Angus Taylor later on Monday, said he would release its costing shortly, saying the Coalition would put rules around the budget which Mr Chalmers “had thrown out”.

“The hard work that we’ve been doing for three years will be focused on what is necessary to try to fix the mess that Labor has created,” Mr Taylor told Sky News.

Mr Taylor said how the Coalition would manage that would be revealed in its costings, but guaranteed no “new taxes’.
“There won’t be a new tax in our costings, but it will be a stronger position, not just for the budget but for Australian households.”

Treasurer Jim Chalmers and Finance Minister Katy Gallagher released Labor’s election costings during a press conference in Brisbane on Monday. Picture: NewsWire/Tertius Pickard

Earlier on Monday, it was revealed Australia’s long-held AAA credit rating is at risk as both the major parties splash the cash ahead of Saturday’s election.

S&P Global says Australia’s budget is already stretched on slower global growth, with a big spending election only adding to a larger budget deficit and higher national debt.

“How the elected government funds its campaign pledges and rising spending will be crucial for maintaining the [AAA] rating,” S&P analyst Anthony Walker said.

Mr Walker warned these policies could put pressure on Australia’s budget.

“These commitments, however, will need to be funded at a time when the government is grappling with rising international trade tensions, economic uncertainty, and fast-growing structural spending in areas such as the NDIS, defence, health, aged care, and interest on government debt.”

Originally published as Election 2025: Labor finds $1bn extra in budget savings, Chalmers says