Labor claims new analysis shows Aussies will be worse off under Dutton

Labor claims new analysis shows Aussies will be worse off under Peter Dutton but the opposition leader says his tax relief would help families now.

Labor claims new analysis shows Australians would be $13,200 worse off under a Dutton-led government, but the opposition leader says his tax relief measures would help families now.

Labor’s analysis was calculated over forward estimates across 2025-26 to 2028-29 showing a difference in earnings growth, Labor’s tax cuts and the party’s $1000 tax deduction for work related expenses.

It was compared against the Liberal Party’s promise of a one-off tax offset of $1500 and fuel excise reduction for 2025-26.

The analysis assumed each household had two average income earners showing scenarios under both parties would be the same in the financial year 2024-25.

Once Labor’s tax cuts were fully implemented Prime Minister Anthony Albanese and Treasurer Jim Chalmers said average income earners would receive $3110 when combined with their tax reform. Picture: Jason Edwards / NewsWire

In 2025-26, the analysis shows Australian households would receive a $1200 tax offset and save $490 under the Liberals fuel excise reduction, but earnings growth would be 1.05 per cent better under Labour.

The fuel excise was calculated on a person travelling 13,800km in a year with an average fuel consumption of 7L per 100km.

From 2026-27, Labor’s first round of tax cuts would take effect but the Liberals tax offset and fuel reduction excise ceases.

Each year of the analysis, earnings growth was more than 1 per cent higher under Labor.

On Sunday, opposition leader Peter Dutton said in a statement the Liberal’s fuel excise would save a two car family about $1500 a year and the $1200 tax relief for people earning up to $144,000 would help families now.

Opposition leader Peter Dutton said the Liberal Party’s tax relief would help families now. Picture: Richard Dobson / Newswire

“Our Cost of Living Tax Offset will put more money back into the pockets of millions of Australians at a time when they’re being crushed by skyrocketing grocery bills, rent, mortgage repayments and insurance costs,” he said.

“Labor’s so-called tax cut – just 70 cents a day – is a slap in the face to hardworking Australians and an insult to families trying to make ends meet.”

In a joint statement, Prime Minister Anthony Albanese and Treasurer Jim Chalmers said they would introduce a $1000 instant tax reduction from 2026-27.

They also announced tax cuts for every income earner in Australia with the first round expected to be around $43 per week or $2200 in 2026-27, and $50 per week or more than $2,500 the following year.

Once Labor’s tax cuts were fully implemented they said average income earners would receive $3110 when combined with their tax reform.

Originally published as Labor claims new analysis shows Aussies will be worse off under Dutton