Labor accuses Liberals of $10bn black hole in costings for three signature policies

Labor has accused the Coalition of releasing “dodgy figures” on the cost of three major policies, claiming economic analysis exposes a $10bn shortfall.

Labor has accused the Coalition of releasing “dodgy figures” on three of its major policies, warning the budget could be facing a $10bn black hole.

The Albanese government claims the costings on the Opposition’s key housing, fuel and small business tax break plans don’t stack up, as it attempts to paint itself as better economic managers.

Treasurer Jim Chalmers is also doubling down on claims the Coalition will “need to make savage cuts to health and education” to pay for its nuclear plan, despite the Coalition calling out the move as a scare campaign tactic.

“The dodgy figures they have put out show they have a budget black hole worth billions of dollars for just three policies alone,” Mr Chalmers said.

“The Coalition needs to come clean on its full costings, and that means accounting for these policy backflips and blunders.”

The Opposition’s plan to make interest repayments tax deductible on the first $650,000 of a mortgage for eligible first home buyers of new builds is estimated to cost $1.25bn over four years.

But the government is seizing on analysis from economists who forecast it could cost up to $8bn.

Treasury estimated that the Coalition’s capped tax deduction of $20,000 for business-related meal and entertainment expenses would be double the $250m price tag the Opposition says the Parliamentary Budget Office costed.

While an assurance to preserve fuel tax credits for heavy vehicle operators is estimated to cost up to $2.4bn, after the Coalition announced it would halve the fuel excise for 12 months.

Originally published as Labor accuses Liberals of $10bn black hole in costings for three signature policies