‘Tough choices’: Dutton reveals multibillion-dollar cuts

Peter Dutton has detailed how he will cut billions of dollars from Labor’s spending plans if elected, saying getting Australia’s economy back on track will require ‘real leadership’ and hard decisions. DETAILS

A Dutton government would slash $40 billion off the $1.2 trillion debt forecast under Labor over the next four years, arguing getting Australia’s economy back on track will mean “tough choices and real leadership”.

The Coalition will unveil the cost of its suite of election policies on Thursday, which will include cutting major off-budget spending measures by the Albanese Government like the $10bn Housing Australia Future Fund (HAFF), and a promised $16bn reduction to Australians’ student HECS debt.

In addition to a $40bn improvement to Australia’s forecast debt over the forward estimates, the Coalition is also expected to deliver a double-digit – meaning above $10bn – saving on the deficit.

Peter Dutton: the Coalition is also expected to deliver a double-digit – meaning above $10bn – saving on the deficit. (Photo by Dan Peled/Getty Images)

This compares to a modest $1.1bn budget bottom line improvement over four years delivered by Labor in its election costings released on Monday.

Opposition treasury spokesman Angus Taylor said Labor had delivered the longest per-capita recession “on record,” which he blamed on “bad management” rather than “bad luck”.

“After raking in almost $400bn in extra revenue, Labor chose to splurge instead of save, leaving Australians more exposed to the next economic shock,” he said.

Senator Jane Hume: ‘The Coalition will restore discipline, reduce debt, and deliver cost-of-living relief that doesn’t fuel inflation.’

Coalition finance spokeswoman Jane Hume accused Labor of “gambling” with Australia’s AAA credit rating after “ignoring” agencies’ warning about unsustainable debt.

“The Coalition will restore discipline, reduce debt, and deliver cost-of-living relief that doesn’t fuel inflation,” she said.

“Getting Australia back on track means tough choices and real leadership, not more lies and broken promises from Labor.”

The Coalition is pledging to dump Labor’s $20bn Rewiring the Nation Fund and cancel its $14bn production tax credits scheme, which was designed to financially incentivise major industries to do more processing of critical minerals in Australia.

Opposition treasury spokesman Angus Taylor said Labor had delivered the longest per-capita recession “on record. Picture: Alison Wynd

The Opposition has argued the tax credits, which were also targeted at green hydrogen production, were not going to work.

Any contracts already under way for houses funded under the HAFF or other projects in receipt of support from off-budget funds would not be cancelled, meaning the Coalition would not be able to claw back all the money allocated to the programs by Labor.

Despite slashing Labor’s off-budget funds and measures, the Coalition is also adding to its own spending in this column, including creating a $20bn Regional Australia Future Fund for infrastructure projects.

Peter Dutton Coalition is also expecting about $3bn in revenue over the next four years by cutting Labor’s tax break for electric vehicles purchased on a novated lease. . (Photo by Dan Peled/Getty Images)

Most of the Coalition’s spending on its plan to build seven nuclear power plants around Australia would also be off-budget, which would mean it does not contribute to the deficit however does have an impact on government debt and interest payments.

The opposition has previously announced it would cancel $2.2bn in Commonwealth funding for Victoria’s Suburban Rail Loop project, but this will not amount to a large saving as most of the funds are being redirected to the state’s Airport Rail Link proposal.

Despite Mr Dutton initially saying it would not be touched, the Coalition is also expecting about $3bn in revenue over the next four years by cutting Labor’s tax break for electric vehicles purchased on a novated lease.