Federal Budget 2025-2026: Opposition's Reply

Dutton’s Budget Reply Focuses on Cost-of-Living Relief Ahead of Election

Opposition Leader Peter Dutton has made lowering electricity prices and tackling the cost of living the centrepiece of his budget reply, delivered Thursday night. It was announced on Friday 28 March that Austrailians will be heading to the polls on Saturday 3 May, with the stage now set for a heated election contest focused on household costs, energy, and migration. In a wide-ranging speech to Parliament, Dutton unveiled the Coalition’s economic vision, anchored by a national gas plan designed to lower power prices.

Key Measures: Gas, Fuel, and Spending Cuts

The plan includes the creation of an east coast gas reserve to secure 10–20% of domestic demand, along with a commitment to halve project approval times to expedite supply. Gas will also be added to the capacity investment scheme, and $1 billion will be allocated to a new gas infrastructure fund for pipelines and storage facilities. To provide further relief, Dutton proposed halving the fuel excise for 12 months, equating to a 25-cent-per-litre discount at the bowser and around $14 in savings per tank for the average motorist.

Migration, Energy and Spending

In a bid to ease pressure on housing and infrastructure, Dutton said a Coalition government would cut permanent migration by 25%. At the same time, the Coalition would redirect government spending by axing $46 billion from Labor’s key policy initiatives, including:

• The Housing Australia Future Fund
• The $20 billion Rewiring the Nation energy grid
• Renewable energy investment funds
• Critical minerals tax credits

Support for Small Business and Home Buyers

The Opposition Leader announced a number of small business and housing measures, including:

• Increasing the instant asset write-off threshold for small businesses to $30,000
• Allowing first home buyers to access their superannuation for a home deposit

Skills, Health, and Safety

Dutton’s speech also included a major skills and training commitment, with a goal to train 400,000 apprentices and trainees across the country. Employers would receive $12,000 in support over two years to take on new apprentices. Employers are essential to the apprenticeship system, without them, there are no apprentices. Providing financial support to employers is vital in tackling the nation’s ongoing skills shortage. MPAQ has long advocated for increased support for employers, so it's great to see this recognised in the budget reply.

Other commitments included:

• $9.4 billion investment in health, including reducing PBS medicine co-payments to $25
• An additional $400 million for youth mental health services
• $50 million for food charities, including school breakfast programs
• Tougher bail laws for domestic violence offenders and nationally consistent knife crime laws
• The establishment of a dedicated anti-Semitism task force

While the speech aimed to position the Coalition as a cost-of-living-focused alternative, its delivery was somewhat overshadowed by the growing likelihood of an imminent election announcement, which was subsequently announced the following morning. With voters increasingly concerned about inflation, interest rates, and energy bills, Dutton’s policy platform sets the tone for a high-stakes election campaign.

View the LNP budget reply here. 

With the Federal Election announce for Saturday 3 May, MPAQ has also provided a summary of the Labour Government's budget announcement. Click here to view it.