Peter Dutton announces National Gas Plan, promises to divert gas from offshore sales but rules out tax cuts

Peter Dutton has used a key pre-election speech to detail how he will reduce energy bills and divert gas into Australia’s energy grid, but rules out tax cuts.

Peter Dutton has vowed to lower east coast energy bills by diverting gas which would have been exported offshore into Australia’s energy grid.

But he has confirmed that the Coalition will not be promising any tax cuts during the upcoming election campaign.

“I would love to introduce tax reform and tax cuts, but the Labor Party has racked up what we now see in the budget papers of about $1.2 trillion of debt,” Mr Dutton told 7.30 after his budget reply speech on Thursday night.

“So we have to be realistic and understand the constraints that we have.

“We have a great desire at some stage when we clean up Labor’s mess, but we won’t be able to provide tax cuts during this campaign and I think, frankly, the Labor Party’s tax cuts are a cruel hoax on Australians.”

Mr Dutton outlined in his budget reply speech the other ways the Coalition would address cost of living issues, including the gas plan and halving fuel excise for 12 months.

Peter Dutton will force gas companies to put more gas into the grid, instead of selling overseas. Picture: NewsWire/ Martin Ollman

Prime Minister Anthony Albanese was on hand with the his cabinet to hear the Opposition Leader’s budget reply. Picture: NewsWire / Martin Ollman

In his dual pitch to lower energy prices and boost supply, the Opposition Leader said a Coalition government would implement a National Gas Plan, and immediately introduce an “east coast gas reservation” which would secure and additional 10 to 20 per cent of NSW and Victoria’s gas needs.

“Gas sold on the domestic market will be decoupled from overseas markets to protect Australia from international price shocks,” he told the parliament in his highly anticipated budget reply speech.

“And this will drive down new wholesale domestic gas prices from over $14 per gigajoule to under $10 per gigajoule.

Despite being the Coalition previously heralding its promise to build seven nuclear reactors by 2050, the word “nuclear” only received two mentions in the 4300-word speech, with gas taking centre stage.

Mr Dutton’s pitch for lower electricity bills will also include a “fit-for-purpose gas trigger to safeguard supply,” “Use it or lose it” rules to ensure offshore gas fields are not banked to reduce competition, and a commitment to audit development-ready projects which boost supply in Australia’s southern states.

“This plan will prioritise domestic gas supply, address shortfalls, and reduce energy prices for Australians,” he said.

Cabinet minister Jason Clare rubbished the gas policy and said Labor had already secured “six times as much gas” as Mr Dutton’s policy.

“The amount of gas that we secured would power Queensland for two years, we’ve reduced the price of gas from something like $30 a gigajoule down to $12 per gigajoule,” he said.

“That’s why I say this is a distraction from this unpopular nuclear policy that he knows is unpopular.”

Mr Dutton also flagged a “significant funding commitment to defence” which would be announced during the election campaign, which Anthony Albanese is expected to call on Friday.

This comes after Tuesday’s budget figures revealed Australia would not meet the US’ call to boost defence spending to 3 per cent of our GDP, with current funding commitments to reach 2.3 per cent by 2033-34.

Mr Dutton said the defence spending promise was “commensurate with the challenges of our times,” and would “re-tool the ADF with asymmetric capabilities to deter a larger adversary”.

In addition to halving the fuel excise for a year, saving households and businesses between $700 to $750 per vehicle per year, Mr Dutton also spruiked a $400m investment into youth mental health services, in addition to doubling the Medicare rebate of psychology sessions from the current 10.

Mr Dutton’s budget reply speech has served as his opener for the election campaign expected to start on Friday. Picture: NewsWire / Martin Ollman

Coalition senators watched Peter Dutton’s budget reply speech from the gallery at Parliament House. Picture: NewsWire / Martin Ollman

Migration will also be cut by 25 per cent and potentially legislated through a Lower Immigration and More Homes for Australians Bill, with the Coalition again hinting at incoming “stricter caps on foreign students”.

Although they would be tighter than Labor’s failed 270,000 figure, Mr Dutton has yet to disclose the figure.

A Coalition government would also target boosting apprentices and trainees by 400,000, with “targeted and proven incentive payments for employers to hire and train an apprentice”.

In doing so, Mr Dutton announced a $12,000 grant payment to small and medium businesses which would support trainees in their first to years of training

The Coalition’s plans will boost the east coast’s gas demands by 10 to 20 per cent. Picture: NewsWire/ Gaye Gerard

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This would be in place of Labor’s plan to give apprentices in construction-related fields $10,000 in staggered payments to complete their training.

Mr Dutton’s key speech comes as the Prime Minister is set to call an election on May 3 on Friday.

The pivotal moment comes as Labor has regained lost ground in the polls.

The latest Newspoll, published on March 24, reported the Coalition leading Labor 51 to 49 on a two-party preferred basis, however voters maintained Mr Albanese would make the better Prime Minister on 47 points, ahead of Mr Dutton on 38, with 15 per cent uncommitted.

Mr Dutton gave a shout out to his wife Kirilly, who could not be in parliament MAFS

clashes with this broadcast,” he joked.