Opposition unveils harsh $31 billion austerity push as inflation worries are used to attack climate and social support
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Opposition leader Angus Taylor released costings for a $31 billion slash to government spending, with deep cuts aimed at climate programs, subsidies, housing schemes and support payments, while the government defended spending on welfare, Medicare and jobs.
Opposition leader Angus Taylor announced a plan to cut $31 billion from the federal budget, framing the move as a remedy for inflation pressures and a path to lower taxes, even as it would rip funding from vital public programs. The proposal includes $7.3 billion from reductions in subsidies for firms and tax credits for critical minerals, $4.7 billion from scrapping housing schemes, and $2 billion from limiting certain disability and welfare payments for permanent residents. A major component is a $9.4 billion reduction in agencies that support emissions-reduction targets, alongside the removal of home-battery incentives and electric-vehicle tax breaks. The Clean Energy Finance Corporation would be the only climate-focused entity retained.
Finance Minister Katy Gallagher responded that the opposition’s cuts ignore the reality of how current spending is actually structured, pointing out that most of the budget goes to social security, welfare, defence, state payments and Medicare. She argued that excluding disability assistance would make current spending lower than under previous prime ministers, underscoring how extreme the proposed cuts are.
Prime Minister Anthony Albanese, during question time, highlighted that Australia’s budget deficit is smaller than those of G7 nations and suggested that the government’s spending stance is designed to protect jobs rather than sacrifice people to ideology. Treasury spokesperson Jim Chalmers said external factors such as Middle-East volatility add to domestic economic challenges and emphasized that it is the government’s responsibility to identify appropriate spending reductions.
Economists offered mixed commentary. UNSW economist Richard Holden said the opposition needs to present a clear plan instead of slogans, while independent economist Chris Richardson suggested trimming federal-state infrastructure funding and “pork-barrel” grants could signal fiscal resolve, though the financial impact would be modest. KPMG chief economist Brendan Rynne noted that public spending has expanded over successive governments.