‘Deceitful and deceptive’: Labor accuses Peter Dutton of blowing $10 billion hole in the budget
Treasurer Jim Chalmers has accused the Coalition of being “deceitful and deceptive”, warning that the maths doesn’t add up on its flagship budget policies.
Treasurer Jim Chalmers has accused Peter Dutton of blowing a $10 billion hole in the budget, warning that the maths doesn’t add up on the Liberal’s flagship policies to slash fuel excise and offer tax deductions for mortgages and long lunches.
Both the major parties are set to release the final costs of election promises announced during the campaign in the final fortnight of the campaign.
The Liberal Party maintains it will deliver “a better bottom line” after refusing to back $100bn in Labor spending since 2022.
But the Labor Party maintains the Coalition has failed to release costs on a raft of major policies released in the lead up to the election being called and the claimed cost to the budget of the ones they have flagged don’t add up.
“This deceitful and deceptive Coalition is deliberately denying Australians the chance to see their costings because people know these secret costs mean more secret cuts,” Treasurer Jim Chalmers told news.com.au.
“The dodgy figures they have put out show they have a budget black hole worth billions of dollars for just three policies alone.
“We know they need to make savage cuts to health and education to pay for their $600 billion nuclear scheme but these fudged figures mean they’ll need to cut even further and Australians will pay.”
Mortgage tax deductions – up to $6.75 billion more
The Liberals maintain that a promised mortgage tax deduction for eligible first home buyers will only cost $1.25bn over four years.
But Mr Chalmers insists that experts disagree and say it will cost billions more – up to $6.75bn more than they’re costing.
For example, Outlook Economics director and former Treasury forecaster Peter Downes estimates as much as $4bn to $8bn over four years.
Economist Chris Richardson said: “I’m now convinced the mortgage break will end up costing more than the $1.25 billion – especially over time.”
Fuel excise backflip on fuel tax credits – around $2.4 billion more
The Opposition Leader has gone on a national tour of Australia’s petrol stations during the campaign but the Treasurer maintains the numbers don’t add up because of a sneaky carve out.
The Liberals’ temporary 12-month reduction in fuel excise prompted concerns from the transport sector over the impact on fuel tax credits.
Labor claims that the Liberals have now quietly cut a deal with the SA Road Transport Association (SARTA) to reinstate credits for truck drivers – without publicising it.
Restoring fuel tax credits for those heavy vehicle users would blow out their original costing by around $2.4bn according to Labor.
Taxpayer-funded long lunches – at least $750 million more
It’s the policy that had the Treasurer reaching for the Les Paterson gags as Mr Dutton pledged to bring back the long lunch – sans alcohol.
But a policy to allow deductions for meal expenses only will actually cost $500 million a year and cut GST revenue for the states according to Labor.
That would be $1bn over their two-year policy, $750m more than the Liberals’ estimates.
The policy could cost over $10bn per year if all businesses claimed the maximum they are entitled to according to some estimates.
Liberals pledge ‘better bottom line’
Speaking on the Today Show last week, opposition treasury spokesman Angus Taylor insisted he would deliver “a better bottom line” than Labor.
“Whatever happened to the ‘economic surgery’ Peter Dutton says was needed to balance the books?,” host Karl Stefanovic said.
“I mean, you guys are butchering the budget.”
Mr Taylor pointed out that the Liberals had opposed billions of dollars in “bad” Labor spending over the last term.
“We will deliver a better bottom line than Labor and the reason is because we’ve opposed over $100 billion of bad Labor spending in this term of parliament,” he said.
“And that includes now, in this spending, $42 billion of spending on housing that the Treasurer last night had to admit hasn’t delivered a single house for a family.
“Not a single family is living in any of these houses. Now, there’s a whole range of programs we’ve opposed.
“We’ve got to fix two budgets here, the government budget, and we will make sure we have a stronger bottom line than Labor. But also household budgets that have been trashed under Labor. The biggest hit to our standard of living in history, worse than any of our other peer countries. And both of those budgets are fixable. Getting the balance right is the focus.
“And that’s why we’re able to help Australian households with their budgets with, as you said, a $1,200 tax offset, lower taxes for Australians next financial year, helping young Australians to get into a home, making sure that we don’t have to pay more fuel at the bowser. Fixing the household budget and fixing the government budget are both imperatives. Labor has failed on both.”
Originally published as ‘Deceitful and deceptive’: Labor accuses Peter Dutton of blowing $10 billion hole in the budget
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