Albanese to call election date of May 3 first thing this morning

Australians will cast their votes at a federal election on May 3 after Prime Minister Anthony Albanese cleared the way for the formal campaign for power, as Opposition Leader Peter Dutton stepped up the political fight over energy costs by vowing to open up more gas fields.

Albanese plans to name the election date around 8am Friday morning after visiting Governor-General Sam Mostyn in Canberra at sunrise to start a five-week campaign with a contrast between Labor’s plan for a personal tax cut and the Coalition’s promise to cut fuel excise.

Dutton moved on Thursday night to intensify the contest over households’ budgets with a pledge to drive down the cost of energy by ramping up gas supplies and forcing producers to divert more gas to the local market, in a controversial “gas reservation” proposal.

In the only savings measure in his budget reply speech to parliament, Dutton said he would reverse the government’s decision to add 41,000 public servants and would save $7 billion a year once this policy was in place, while saying nothing about how long that would take.

Dutton estimated the job cuts would save $10 billion over four years, indicating a long time to phase in the plan and retreating on earlier claims he could save $24 billion over four years.

The opposition leader chose not to match the government on the $17.1 billion personal tax cut in this week’s federal budget, arguing it was too small and that he would offer faster help for families with his $6 billion plan to cut fuel excise.

Speaking on the ABC’s 7.30 program following his speech, Dutton confirmed he would not offer tax cuts to match Labor during the election campaign, meaning the cost-of-living battle will be fought on Labor’s tax cut versus the opposition’s fuel excise cut.

Senior Coalition MPs confirmed earlier to this masthead that they were confident the petrol cut was a more immediate and popular measure.

“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,” Dutton said on 7.30.

He also confirmed in the 7.30 interview that he would announce during the election campaign a target for net overseas migration, after last year he walked back a commitment to lower that measure of migration, which is more difficult to reduce than the permanent migration intake.

In a signal he could extend the petrol excise cut, Dutton added to his draft speech when speaking in parliament by saying he would review the policy after its first year.

He sought to intensify his attacks on the government on other fronts by signalling holding out the promise of a significant policy to increase housing supply – but keeping the details in reserve for later in the campaign.

Treasurer Jim Chalmers mocked the Coalition in parliament on Wednesday for voting against the personal tax cut – worth up to $268 in its first year and up to $536 in its second and later years – and promising to repeal it in office.

“This will haunt them for every single day of the election campaign,” the treasurer said.

But Dutton dismissed the tax cut “top-up” as a tax cut “cop-out” and sought to make the election about a question of leadership between himself and Albanese.

“I will make the tough decisions – not shirk them,” he said in his budget reply speech. “I will lead with conviction – not walk both sides of the street.”

Dutton promised to introduce four pieces of legislation on his first day in parliament if elected: an energy price reduction bill; a housing and lower immigration bill; a community safety bill; and a bill to guarantee funding for health, education and essential services. He also promised $400 million for youth mental health.

The Coalition claims its cut in fuel excise would deliver $1500 in savings over a year for a household with two cars being filled once a week.Credit: Dominic Lorrimer

The opposition leader used his budget reply speech to restate key policies, including a 25 per cent cut to permanent migration, letting people use superannuation to buy their first home, funding housing infrastructure, and co-ordinating with states on knife and bail laws.

In two other new measures, Dutton said he would pay businesses $12,000 to employ new apprentices in critical industries and give $50 million to charities including OzHarvest and Foodbank.

The speech included a pledge to make mortgage lending easier.

In an attempt to counter negative perceptions of his attempts as health minister to create a GP co-payment, Dutton is promising to maintain funding for health, aged care, veterans support, the NDIS and defence.

Military spending would be increased by a “significant” amount under a Coalition government, he said, in a clear signal he will announce more plans during the election campaign to add to a $3 billion promise for more F-35 jet fighters.

Promising to make Australia a manufacturing and mining powerhouse, Dutton claimed he would “rip up as much red and green tape as possible”.

He mocked the tax cut for being only worth $268 annually when it starts in July next year, while it scales up to $536 in its second and later years.

“Labor will spend $17 billion of taxpayers’ money to give you back 70¢ a day – in 15 months’ time. And yet, a family with a typical mortgage is $50,000 worse off under Labor. Frankly, it’s insulting,” he said.

“We oppose these tax cuts and will repeal them – because they come at a great cost to the economy with little cost relief for Australians. Instead, we will provide immediate cost-of-living relief for Australians.”

Albanese attacked the Coalition over the cost of living in question time on Wednesday after shadow treasurer Angus Taylor said he would “absolutely” vote to repeal the tax cut.

“Labor is the party of lower taxes,” Albanese told parliament, to roars of derision from Coalition MPs. He added: “You know you’ve hit a nerve by how loudly they shout.”

The policy contest sets up a choice for voters between the Labor tax cut and the Coalition cut to fuel excise, with Dutton offering a bigger gain sooner for motorists.

The Coalition claims its cut in fuel excise would deliver $1500 in savings over the year for a household with two cars being filled once a week. For a household with two workers and two cars, the Labor tax cut exceeds the value of the Coalition fuel excise cut at the end of the second year.

The $17.1 billion personal tax cut was made law on Wednesday after being approved by the Senate despite being opposed by the Coalition.

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