Arabic version: الائتلاف يوضح حزمة خفض إنفاق بقيمة 31 مليار دولار

According to ABC News, the Coalition has released partial costings that put savings from its proposed spending cuts at $31 billion over four years. The package, costed by the independent Parliamentary Budget Office, includes cuts to climate and housing initiatives as well as a plan to remove welfare and National Disability Insurance Scheme access for permanent residents and other non-citizens.

The $31.3 billion package more than offsets the Coalition’s $9.7 billion income tax policy to index tax brackets and scrap the $250 workers’ tax offset. Opposition Leader Angus Taylor described the savings as a “down payment” for tax cuts, while arguing that controlling spending was critical.

More than half of the proposed savings would come from climate-related measures. The Coalition estimates $9.4 billion in savings from ending the new vehicle efficiency standard, the electric vehicle discount, home battery subsidies, the net zero advisory body, some functions of ARENA and Scope 3 emissions reporting. Ending green aluminium and hydrogen subsidies, critical-minerals support and other industrial subsidies under Labor’s National Reconstruction Fund would save another $7.3 billion.

Housing measures would account for a further $4.7 billion, through the abandonment of Help to Buy, the social housing fund, build-to-rent tax incentives and payments to states meeting housing supply targets. Removing welfare and NDIS eligibility for permanent residents and other non-citizens would save $2 billion over four years. The Parliamentary Budget Office has also estimated that cutting tobacco excise and legalising vapes would save $7.9 billion.

The update does not include the cost of the Coalition’s migration cuts, its proposal to scrap Labor’s tax cuts, or other commitments including changes to capital gains, negative gearing, trusts and high-balance superannuation tax measures, a lower net migration target and increased defence spending. Shadow Treasurer Tim Wilson blamed government spending for persistent inflation, while Treasurer Jim Chalmers said the government was budgeting responsibly. The Reserve Bank’s monetary policy board meets next Tuesday to consider the cash rate.