Coalition puts proposed budget savings at A$31.3 billion

The Coalition says its proposed spending cuts would deliver A$31.3 billion in savings over four years, releasing partial costings covering climate programs, housing initiatives and restrictions on benefits for non-citizens.

The Parliamentary Budget Office assessed the measures, but the update does not account for all Coalition commitments. Among the omissions are the costs of proposed migration reductions and its pledge to scrap Labor’s tax cuts. Opposition Leader Angus Taylor said the savings would help fund tax reductions.

Climate measures account for more than half the proposed savings. One group of changes, worth A$9.4 billion, includes abolishing the vehicle efficiency standard, electric vehicle discount and home battery subsidies. A further A$7.3 billion would come from ending support for green aluminium, hydrogen and critical minerals, along with other industrial subsidies under the National Reconstruction Fund.

The costings put savings from housing changes at A$4.7 billion. These include dropping Help to Buy and the social housing fund, removing build-to-rent tax incentives and ending payments to states that achieve housing supply targets. Removing access to welfare and the National Disability Insurance Scheme for permanent residents and other non-citizens would save A$2 billion over four years.

The opposition argues government spending is driving inflation. Treasurer Jim Chalmers rejected that claim, pointing to private demand growing faster than public demand. He said the government was managing the budget responsibly and would announce further savings in December.