How Labor and Liberal promise to ease the cost of living crunch for Australians

Cheaper fuel, tax cuts, affordable childcare and education are all on the table. Here are the promises that the Labor and Liberal party have made ahead of the election. SEE THE VIDEO

Anthony Albanese and Peter Dutton have spent their election campaigns spruiking their cost of living measures to voters.

Recent RedBridge polling has shown cost of living measures are one of the most important factors in how Australians are choosing to vote

Here are the promises the two major parties have made to the nation regarding cost of living relief.

Labor

• Ensure all 14 million Australian taxpayers receive a tax cut, on top of the tax relief already being rolled out. The two tax cuts save the average working Australian $268 a year in 2026-27 and $538 a year in 2027-28

• Provide an additional $150 in energy bill relief for every Australian household and about one million small businesses

• Wipe 20 per cent off student HECS debt, as well as raise the repayment threshold and lower repayment rates

• $1.5bn to make fee-free TAFE permanent

• Guarantee eligibility for three days of subsidised childcare per week for children who need it, and build more childcare centres across Australia

• Simplify the tax system and introduce a $1000 instant tax deduction

• Banning non-compete clauses for low and medium income workers, making it easier to move jobs

• $8.5bn to triple GP bulk billing

• Capping the price of medication on the PBS to $25

• $2.6bn pay rise for 60,000 nurses

• Write to Fair Work Commission asking for above inflation wage rise for award workers

• Allow taxpayers an automatic $1000 deduction off their tax return without receipts, saving people an average $215 a year

• Legislate to protect penalty rates in awards, thus cement higher wages for about three million workers

• $2.3bn for households to save 30% on home batteries up to $4,000 per household

• Crack down on price gouging by supermarkets by implementing the ACCC’s supermarket inquiry report recommendations that will improve transparency about prices, price trends and promotions, and loyalty programs

• Two-year tax freeze on draught beer excise

• 12-month extension of the $20,000 instant asset write off for small and medium businesses

What has Anthony Albanese said about cost of living?

Prime Minister Anthony Albanese has said the cost of living is Labor’s top priority.

“We have provided cost of living relief, whether it be cheaper childcare, free TAFE for 600,000 people, energy bill relief, and importantly as well, tax cuts,” Mr Albanese said at the third leaders debate on Tuesday.

“...you’ve got to be careful about how you provide cost of living support. So we’ve done it in a way that has helped to bring down inflation.

“So fee-free TAFE, for example, has helped 600,000 people get the skills they need. But it’s also helped them get something for free and it helps the country because it helps build those skills up.”

Mr Albanese has also said Australians will be able to see the GP for free.

Prime Minister Anthony Albanese during the third leaders' debate. Picture: Alex Ellinghausen / POOL/ via NewsWire

What do Australians think about Labor’s promises?

RedBridge director Kos Samaras said with only weeks remaining it was becoming clear that Labor had edged ahead in the battle to win over Millennials and Gen Z voters in key electorates.

“Whichever major party managed to secure the backing of these cohorts — whether directly or through preferences — was always going to be in the strongest position to claim victory in this election and as of this week, that is going to be Labor,” he said.

The latest Newspoll results showed voters believe Mr Albanese is better-placed to tackle cost-of-living pressures, housing, tax relief and health services.

Peter Dutton has made a staggering number of visits to the bowser during this election. Picture: Richard Dobson

Liberals

• Give more than 10 million voters a one-off tax cut of up to $1200, or $2400 for families

• Slash 25c per litre off fuel, saving some motorists an average of $14 per week to fill up their tank

• Repeal Labor’s tax cuts for 2026-27 and 2027-28

• Introduce divestiture powers to break up supermarkets

• Increase the instant asset write-off for small businesses up to $30,000 and make it permanent, and introduce a deduction for two years for business related meal expenses.

• $500m to increase Medicare-subsidised psychological sessions from 10 to 20

• $8.5bn to match Labor’s GP bulk-billing announcement

• Match Labor’s commitment to reduce PBS scripts to no more than $25

What has Peter Dutton said about cost of living?

In the third leaders debate on Tuesday, Mr Dutton stood by his key policy to halve the fuel excise despite petrol prices coming down in the aftermath of Donald Trump’s tariffs.

“It is because it goes across the economy. So it’s not just for families who are doing it tough,” Mr Dutton said.

“Pensioners are really doing it tough because they’ve got fixed incomes and rising costs under this government, electricity is up by 32 per cent, gas is up by 34 per cent and for those pensioners and self-funded retirees, for small businesses as well, they benefit.

“So whether petrol is at $2 a litre or $1.05 a litre, it will always be 25 cents cheaper under us.”

He has said the policy would save families about $1500 a year for a two-car family.

Previously, Mr Dutton has said: “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.”

What do Australians think about Liberals’ promises?

According to an exclusive Newspoll conducted for The Australian, Mr Dutton is yet to convince voters that the Coalition has a better plan to tackle cost-of-living pressures, housing, tax relief and health services.

The latest Newspoll was conducted online between April 14-17 with 1263 voters and showed that on cost-of-living pressures, Mr Albanese holds a narrow lead, 31 to 28 per cent.

While men lean slightly toward Mr Dutton, women overwhelmingly favour Labor on this front.

Originally published as How Labor and Liberal promise to ease the cost of living crunch for Australians