Peter Dutton outlined his plan to tackle inflation, lower energy prices and strengthen the Australian economy on Thursday night, accusing Labor of driving inflation through excessive spending, a practice he labelled as the government’s economic mismanagement.
“First, we will rein-in inflationary spending. Second, we will reduce the cost of energy. And third, we will strengthen the economy to work for you,” Dutton said.
As Prime Minister Anthony Albanese prepares to announce the election on Friday, with the vote scheduled for 3 May, Dutton’s proposed cost-cutting measures, if elected, include scrapping Labor’s $20 billion Rewiring the Nation Fund, the $10 billion Housing Australia Future Fund, and the $14 billion allocated for production tax credits over the next decade aimed at critical minerals and green hydrogen.
Additionally, Dutton plans to reduce the number of public servants by cutting 41,000 jobs in Canberra, claiming this would save $7 billion annually.
“To get inflation down, we need to address its underlying causes – and that’s just something the government hasn’t done. We want to stop wasteful government spending,” Dutton said.
“Tonight, I announce that a Coalition government will rein-in key inflationary, ineffectual, and imprudent spending – which has been a hallmark of this government.”
Dutton also vowed to slash energy prices under the Coalition’s National Gas Plan, which, he said, is all about ensuring “Australian gas for Australians”.
His strategy centres on a domestic gas reservation, requiring exporters to allocate an additional 10 to 20 per cent of their product for the domestic market, shielding Australians from the impact of global price fluctuations.
“We will immediately introduce an east coast gas reservation. This will require a proportion – between 50-100 petajoules of spot cargo exports – to be delivered to the domestic market,” Dutton said.
“This will secure an additional 10 to 20 per cent of the east coast’s demand – gas which would otherwise be exported for use in other markets for consumers in those countries.
“Gas sold on the domestic market will be de-coupled from overseas markets to protect Australia from international price shocks. And this will drive down new wholesale domestic gas prices from around $14 per gigajoule to under $10 per gigajoule.”
Among other measures, he also promised a $1 billion critical gas infrastructure fund to boost pipeline and storage capacity.
On boosting the economy, Dutton emphasised “ripping-up as much red and green tape as possible”, and eliminating duplication between local, state, and federal governments.
He also vowed to revitalise key sectors such as mining, agriculture, construction, and manufacturing, believing the revenue generated will fuel investments in infrastructure, health, education, and defence.
“My intention is to make Australia a mining, agricultural, construction, and manufacturing powerhouse again,” he said.
In addition to backing Australia’s natural strengths, Dutton said a Coalition government will “encourage new areas of the economy”, like artificial intelligence, automation, cyber security, space, bio, and nanotechnologies.
Dutton also slammed Labor’s tax cuts as a “cruel hoax” and a “shameless vote-buying exercise”, arguing they won’t ease cost-of-living pressures. Instead, he is pushing the Coalition’s plan to halve the fuel excise from 50 cents to 25 cents per litre for a year, claiming it would save the average family $14 a week.
Meanwhile, Labor’s proposed tax cuts would see workers earning over $45,000 save just $5 a week initially, doubling to $10 by 2027.
“I think it’s insulting, to be honest,” Dutton said.
Speaking to InvestorDaily ahead of Dutton’s speech, AMP’s Shane Oliver said the Opposition leader’s plan to cut the fuel excise is “poor policymaking, designed to get votes”.
For an in-depth analysis of Labor’s budget, featuring special guest Shane Oliver, click here.
