Australia news as it happened: PM plans to call election for May 3; Dutton calls Labor’s tax cuts ‘insulting’, commits to national gas reservation policy

That’s where we’ll leave our live coverage of the federal opposition’s budget reply. Thanks so much for joining us.

As the live blog wraps up, here’s your guide to all our reporting on Peter Dutton’s reply speech.

• Leading our coverage is chief political correspondent David Crowe’s report on Dutton ducking a tax cut to pledge cheaper energy and discount fuel.
• If it’s analysis you’re looking for, national affairs editor James Massola discusses the 126 words in Dutton’s speech that make it clear Australia has only one problem.

Join us again Friday morning, where we will continue our comprehensive coverage of the 2025 federal election campaign with Anthony Albanese expected to visit Governor-General Sam Mostyn in Canberra and call a May 3 election.

Opposition Leader Peter Dutton has confirmed the Coalition will not offer tax cuts to match Labor during the election campaign.

It means the cost-of-living battle will be fought on Labor’s tax reduction versus the opposition’s fuel excise cut.

“We have a great desire at some stage [to introduce tax cuts] when we clean up Labor’s mess, but we won’t be able to provide tax cuts during this campaign,” Dutton said in an ABC 7.30 interview following his speech, adding that Labor might ditch its own income tax plan if it was forced to by the Greens in a minority government.

Opposition Leader Peter Dutton delivers the budget reply. Credit: Getty Images

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

The $6 billion price tag of the petrol policy over one year meant the opposition had minimal wriggle room to match or go further than Labor on its tax cut that costs $17 billion over four years.

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

Peter Dutton has concluded his speech with a standing ovation from his colleagues.

Prime Minister Anthony Albanese is expected to call the election tomorrow morning, with the election date tipped for May 3.

Nearing the end of his half-hour address, Dutton has flagged, without providing much detail, that a Coalition would overhaul school curriculums, arguing the current system had failed students.

Continuing his dark description of the nation’s current climate, Dutton said the Coalition would “nurture pride and unity in our country – at a time when we need it most”.

Opposition Leader Peter Dutton and his party will now turn their attention to the federal election.Credit: Dominic Lorrimer

He singled this issue out as an “incredibly important point”.

“A Dutton Coalition government will restore a curriculum that teaches the core fundamentals in our classrooms,” he said.

“A curriculum that cultivates critical thinking, responsible citizenship, and common sense.”

Dutton is ramping up his personal attacks on the prime minister as a weak, ponderous leader.

In this speech, he is sharpening lines we can expect to see until election day on May 3, while pledging to toughen bail laws and to deport criminal dual citizens.

Peter Dutton again called Prime Minister Anthony Albanese “weak”. Credit: Dominic Lorrimer

“Australians tell me they’ve never been more worried about crime and division,” Dutton said.

“It started with the prime minister’s Voice referendum which sought to divide our country by ancestry and race.

“All too often, this prime minister is too weak, too late, and too equivocal.”

Dutton is repeating his pledge to cut permanent migration by 25 per cent, which he says will lower the cost of housing, reduce homelessness and help young Australians buy new homes.

“Australians are generous and welcoming people – but they want migration to be sustainable – and the government to be in control of it.

“Labor is neither in control of migration – nor has it kept migration at sustainable levels.

“I don’t want young Australians locked out of the property market – or having to rely on the bank of mum and dad. I want to see fewer Australians homeless and more Australians in homes.”

Dutton has pledged to cut environmental and other regulations on industry, pledging that a Coalition government will set about “ripping up as much red and green tape as possible”.

“Tonight, I commit to removing regulatory burdens where we can – where there’s duplication across local, state, and federal government – during a Dutton Coalition government’s first term.

“My intention is to make Australia a mining, agricultural, construction, and manufacturing powerhouse again.”

A centrepiece of this pledge is to fast-track approval of the giant North West Shelf gas project in Western Australia.

Dutton says his plan to cut 41,000 federal public servants will save $10 billion over the forward estimates – $14 billion less than the figure he originally cited.

Dutton last month said he would pay for $9 billion in extra health spending - which has since reached $12 billion - by slashing the public service at a cost of $6 billion a year.

“Under the Labor Party [there are] 36,000 additional public servants, that’s at a cost of $6 billion a year, or $24 billion over the forward estimates... So, we’ve well and truly identified the savings,” he said at the time.

But in his budget reply speech, he put the savings from public service cuts over the four-year forward estimates at $10 billion – not enough to cover new spending.

“We will reverse Labor’s increase of 41,000 Canberra-based public servants – saving $7 billion a year once in place, and well over $10 billion over the forward estimates,” Dutton said.

This indicates it will take the Coalition several years to eliminate all the extra workers added under Labor, and means the opposition will have to find extra savings elsewhere to fund its pledges.

Dutton has revealed what looks set to become a campaign mantra – branding his gas reservation plan the “Australian gas for Australians” scheme.

“This will secure an additional 10 to 20 per cent of the east coast’s demand – gas which would otherwise be exported.”

The gas reservation scheme carries some risk, as it will be opposed by industry. But Dutton said it would send more gas to the local market, which would help lower energy bills.

“Gas sold on the domestic market will be de-coupled from overseas markets to protect Australia from international price shocks,” he said.

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

Dutton has confirmed that a Coalition government would establish the first-ever scheme to reserve gas for domestic use on Australia’s east coast.

That means mega-gas export projects would be forced to offer any spare gas they have to local buyers, instead of seeking potentially higher prices overseas.

“We will immediately introduce an east coast gas reservation.”