Peter Dutton to woo voters with one-off $1200 tax cut in major $10bn election sweetener

Peter Dutton will pledge to give most Aussie tax payers a one-off sugar hit of up to $1200, as the Coalition ups to ante to win back voters.

About one in two Aussie tax payers will get a one-off tax cut of $1200, as the Coalition ups the ante after languishing in the polls following the first two weeks of campaigning.

Aussies who earn up to $144,000 will benefit from the policy, covering about 85 per cent of Australian workers.

The $10bn tax relief plan will be delivered once eligible Australians lodge their tax return for the upcoming financial year.

Taxpayers who earn between $48,000 to $104,000 will receive the maximum $1200 benefit, which accounts for about half of all tax payers.

The Opposition Leader will make the significant announcement at the Liberal Party’s campaign launch on Sunday in Western Sydney, with the date colliding with Labor’s launch in Perth.

Mr Dutton will pitch the $1200 tax cut against Labor’s $17.1bn two-year tax cut plan which is slated to start on July 1, 2026.

The permanent changes to the lowest tax bracket will cut the taxes of all taxpayers by up to $268 in the first year and $536 in the second year, however the Coalition argues the ongoing plan will bake in budgetary pressures in the long term.

Peter Dutton will attempt to win back voters with a $1200 tax cut for about one in two NCA 2025 Federal Election Liberal Bus 12/04/2025 Western Australia Leader of the Australian Liberal Party Peter Dutton visits a petrol station in Redcliffe Perth to discuss fuel prices on the 2025 federal election. Picture: Thomas Lisson/ NewsWire

Mr Dutton labelled Labor’s policy a “bandaid on a bullet,” with taxpayers set to receive about 70c a day, or about $5 a week in the first year, and $10 a week in the second year.

“Families are getting smashed under the Albanese government, and they need help now,” he said.

“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 whilst we clean up Labor’s mess.”

Shadow Treasurer Angus Taylor said the Coalition’s one-off sugar hit was more responsible and targeted, and criticised Labor for its “big spending agenda”.

“The Coalition’s approach is different – we will provide temporary and targeted cost of living relief while we get our economy back on track,” Mr Taylor said.

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

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

Anthony Albanese is also set to launch Labor’s $10bn housing policy on Sunday. Picture: Jason Edwards/ NewsWire

On Sunday, Anthony Albanese will also announce a $10bn housing package to build 100,000 homes exclusively for first-home buyers and remove income caps, and increase price limits on its Help To Buy scheme.

The co-ownership housing policy will also be extended to all first-home buyers, which allows someone to purchase a home with just a 5 per cent deposit, with the government guaranteeing the remaining 15 per cent.

In what will become the battle of the cash splashes, voters will be asked to consider the two major cost-of-living policies ahead of the May 3 election.

Following two weeks of campaigning, the Coalition has continued to trail Labor 47.5 per cent to 52.5 per cent on a two-party preferred basis, with Labor increasing its margin by 1.5 per cent.

The result was Labor’s best performance in 18 months, and surpassed the 2022 federal election results which secured the Prime Minister a majority government.