Dutton announces major tax change for 10 million Aussies if elected

By ZAK WHEELER FOR DAILY MAIL AUSTRALIA

Published: 13:31 BST, 12 April 2025 | Updated: 13:36 BST, 12 April 2025

Peter Dutton has promised low and middle-income Australians a massive one-off tax cut if the Coalition wins the federal election next month. 

The Opposition leader pledged on Saturday to introduce a Cost of Living Tax Offset to more than 10million taxpayers. 

Under the plan, Australians earning between $48,000 and $104,000 will get up to $1,200 in tax relief when they lodge their tax returns for the upcoming financial year.

Mr Dutton said around 85 per cent of taxpayers would benefit from the proposal and roughly half of them would receive the maximum offset.

Labor introduced its own tax cut in the Budget on March 25.

From July 1, 2026, the 16 per cent tax rate for workers earning $18,201 to $45,000 will be reduced to 15 per cent – leading to tax relief of $268 per year. 

The cut would be delivered over two consecutive years, adding up to $536 for part-time workers.

Mr Dutton however said that Labor’s Budget plan was too little to help struggling families amid the cost-of-living crisis.

Peter Dutton has pledged to introduce a one-time tax offset which will help families struggling amidst the cost-of-living crisis in the upcoming financial year 

Mr Dutton slammed Prime Minister Anthony Albanese for mishandling the economy during his first term

The Opposition leader said his one-off offset would cost $10 billion and that it would buy the government time to address the underlying causes of inflation. 

‘Australians are hurting – and Anthony Albanese isn’t listening,’ Mr Dutton said in a statement.

‘The Coalition is stepping up with a plan that provides real help.

‘Families are getting smashed under the Albanese Government, and they need help now.’

The savings would go much further towards helping workers than Labor’s initiatives, Mr Dutton claimed.

‘Our Cost of Living Tax Offset will put more money back into the pockets of millions of Australians at a time when they’re being crushed by skyrocketing grocery bills, rent, mortgage repayments and insurance costs,’ he said.   

‘Labor’s so-called tax cut – just 70 cents a day – is a slap in the face to hardworking Australians and an insult to families trying to make ends meet.

‘It shows just how out of touch Mr Albanese really is.’

Taxpayers earning between $48,000 and $104,000 will get an offset of up to $1,200 when they file their next tax returns 

Shadow Treasurer Angus Taylor said the ‘targeted’ scheme would provide the Coalition with a year to sort out the underlying issues with the economy 

Despite Australia having a worrying debt-to-GDP ratio, Shadow Treasurer Angus Taylor said this tax relief plan was responsible.

‘Under Labor, Australians have suffered the largest fall in living standards in our nation’s history,’ Mr Taylor said.

He said the Coalition would restore ‘responsible economic management’ and deliver a plan to lower electricity and gas bills.

‘This offset is part of our comprehensive plan to rebuild the economy, ease cost of living pressures, and reward hard work,’ Mr Taylor said. 

The new tax offset would be coupled with Mr Dutton’s pre-existing promise to halve the 50.8 cents a litre fuel excise for a year if he becomes Prime Minister. 

The Coalition vowed to halve the fuel excise to 25.4 cents for a year from July 1 which would result in about $1,500 worth of savings over a year for a two-car family.

Combining it with the newly announced tax offset, Mr Dutton claimed families would save up to $2,700 across both programs. 

Australians will head to the polls on May 3.

Anthony AlbanesePeter Dutton

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Dutton announces major tax change for 10 million Aussies if elected

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