Anthony Albanese, Peter Dutton go tit-for-tat in populist cash splash

Labor is promising $10bn to build up to 100,000 homes reserved for first homebuyers, with the Coalition offering $10bn in temporary tax relief for millions of workers.

The big-spending contest between the Prime Minister and Opposition Leader ahead of the May 3 election will intensify on Sunday. Picture: Newswire

Anthony Albanese and Peter Dutton will splash $20bn on populist housing and cost-of-living policies at their election campaign launches, with Labor promising $10bn to build up to 100,000 homes reserved for first homebuyers and the Coalition offering $10bn in temporary tax relief for millions of workers.

The big-spending contest between the Prime Minister and Opposition Leader ahead of the May 3 election will intensify on Sunday as the leaders use campaign launch speeches in Perth and western Sydney to make their pitches to voters in front of party faithful and elders.

As flagged by The Australian, Mr Albanese will repeat the housing focus of his 2022 campaign launch speech – also delivered in the key election state of Western Australia – and increase Labor’s Homes for Australia plan from $33bn to $43bn.

Labor says it will turbocharge a Coalition-era scheme underwriting deposits for first homebuyers, while pouring $10bn into housing projects that will be set-aside for them.

Mr Dutton, who will also unveil a major housing and property announcement on Sunday, has committed to revive a Morrison government tax offset program that would provide more than 10 million Australians earning up to $144,000 as much as $1200 in tax relief in 2025-26.

The Coalition believes the “cost-of-living tax relief” package, which is similar to the tax offset announcement in the 2022-23 budget, will have broadbased appeal for cash-strapped voters. Conscious of not wanting to fuel inflation, the policy has been designed to begin flowing from August 2026, after the Coalition’s halving of fuel excise and energy rebates cease.

Mr Albanese – who is increasingly hopeful of holding WA seats gained by Labor in 2022 – has aggressively lifted government funding and support programs to ensure he can come close to achieving his pledge to build 1.2 million new homes by mid-2029.

The Labor leader on Saturday said a re-elected Albanese government would give all first homebuyers access to 5 per cent deposits, with the Commonwealth guaranteeing their mortgage to avoid them paying lenders’ mortgage insurance.

First introduced by the former Morrison government in 2020 and later expanded by Labor, the revamped Home Guarantee Scheme would loosen the scheme’s eligibility requirements, a move that will double the demand for the program at a time when housing supply remains constrained.

Coupled with its changes to the Home Guarantee, Labor will also pledge to spend $10bn for the construction of as many as 100,000 new homes to be exclusively sold to first-home buyers. The new homes, however, will not be built until the 2028 financial year. As part of the investment, Labor will provide state and territory governments with $2bn in grants, matched dollar-for-dollar, and $8bn in zero-interest loans or equity investments.

Peter Dutton visits a petrol station in Redcliffe Perth on Saturday. Picture Thomas Lisson / NewsWire

Anthony Albanese on the campaign trail with wife Jodie Haydon. Picture: Jason Edwards / NewsWire

Mr Albanese said Labor’s plan to get more Australians into homes was in “stark contrast to Peter Dutton who wants to cut billions from housing”.

“When a young person saves a 5 per cent deposit, my government will guarantee the rest with their bank. We will also invest $10bn to build 100,000 homes to be set aside and kept affordable for first home buyers,” Mr Albanese said.

While Mr Dutton has held-back Coalition housing policies, he will on Sunday ramp-up his focus on helping relieve cost-of-living pressures for households and businesses.

After pledging to halve fuel excise in his budget-in-reply speech on March 27, the Liberal leader will use his launch address to unveil the Coalition’s commitment to introduce a “temporary and targeted cost-of-living tax offset”.

As Coalition strategists fight to stay in the game amid plunging support in the polls, Mr Dutton said “Australians are hurting – and Anthony Albanese isn’t listening”.

The tax offset will be available to Australians earning up to $144,000, with the full $1200 rebate available to those earning between $48,000 and $104,000 when they lodge their tax return. Attempting to usurp Labor’s recent tax changes, the Coalition estimates about 85 per cent of taxpayers will benefit from the offset.

Mr Dutton 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”.

“A Coalition government will first provide help to families by cutting fuel by 25 cents a litre – a saving of about $1,500 a year for a two car family. And then by giving back up to $2,400 per family whilst we clean up Labor’s mess,” Mr Dutton said.

Labor’s proposed changes to the Home Guarantee scheme, which was originally targeted towards first-home buyers earning up to $125,000 income annually, or $200,000 for couples, under Labor’s proposed changes, income caps will be dumped in their entirety. The number of places on the scheme, currently limited at 50,000 this financial year, will similarly be uncapped.