n a bold move to win back voter support ahead of the May 3 federal election, Opposition Leader Peter Dutton has announced a one-off $1200 tax cut for millions of Australians. The $10 billion policy, set to be unveiled at the Liberal Party’s campaign launch in Western Sydney on Sunday, comes as the Coalition attempts to narrow the gap against the Albanese government, which currently leads 52.5 per cent to 47.5 per cent on a two-party preferred basis.
Under the plan, taxpayers earning between $48,000 and $104,000—roughly half of all working Australians—will receive the full $1200 tax offset once they lodge their tax return for the upcoming financial year. Those earning up to $144,000 will also benefit, covering approximately 85 per cent of the workforce.
“This is immediate relief for hardworking Australians,” Mr Dutton said. “Families are getting smashed under the Albanese government, and they need help now—not years down the line.”
The policy directly challenges Labor’s $17.1 billion tax cut scheme, which is due to commence in July 2026. That plan offers more modest permanent savings of up to $268 in the first year and $536 in the second year, which Mr Dutton labelled as “a bandaid on a bullet wound.”
Alongside the tax cut, the Coalition has pledged to cut fuel prices by 25 cents a litre—an annual saving of up to $1500 for a two-car family—bringing the total relief package for some families to as much as $2400.
Shadow Treasurer Angus Taylor reinforced the Coalition's strategy, calling it a “responsible and targeted” response to the cost-of-living crisis. “Our plan is to deliver relief now while cleaning up Labor’s economic mess,” he said. “We will restore responsible economic management and lower energy bills to ensure a better future for working Australians.”
Meanwhile, Prime Minister Anthony Albanese is set to unveil a rival $10 billion housing plan in Perth, promising to build 100,000 homes exclusively for first-home buyers. The policy will expand the Help To Buy scheme by removing income caps and increasing property price limits, enabling buyers to enter the market with just a 5 per cent deposit while the government covers the remaining 15 per cent under a co-ownership model.
As the election campaign enters its third week, both major parties are ramping up promises to address cost-of-living pressures, with voters now facing a clear choice between immediate tax relief or long-term housing support.
The high-stakes policy battle comes amid polling that shows Labor holding its strongest lead in 18 months—surpassing its 2022 federal election performance that delivered a majority government to Prime Minister Albanese.
