Australian Coalition proposes $31 billion in savings to fund tax cuts

The Liberal-National Coalition has unveiled a plan to generate $31 billion in savings over the four years from 2028/29 to 2031/32 to fund income tax bracket indexation. Coalition leader Angus Taylor stated the proposal aims to reduce income taxes through a ‘Tax Back Guarantee’ while controlling spending to combat inflation.

The proposed savings target several government agencies and programs, including the abolition of the Net Zero Economy Agency, reforms to the Australian Renewable Energy Agency, and the scrapping of electric vehicle subsidies and home battery programs. Additionally, the plan seeks to eliminate the Housing Australia Future Fund, the National Reconstruction Fund, and various incentives for green hydrogen and critical minerals.

According to the Coalition, these measures would leave the federal budget $22 billion better off after accounting for the $20 billion tax relief plan. The Coalition criticized the current Labor government for high levels of spending, characterizing existing climate and housing initiatives as ineffective bureaucracies.