Treasurer Jim Chalmers has announced new savings measures that will improve the federal budget bottom line by more than $1 billion, amid criticism of Labor's extensive election spending spree.
Key among the savings is an increase in the price of student visas for international students, which will now cost $2,000. The move is aimed at helping to fund Labor’s election promises while keeping the nation's finances in check.
In releasing the full costings of Labor’s campaign commitments, Dr Chalmers said that despite a flurry of spending, the government had managed to strengthen the budget’s position.
"The costings that we released today show that we will more than offset our election campaign commitments in every year of the forward estimates," Dr Chalmers said.
"We will finish this election campaign with the budget in a stronger position than at the start of the election campaign."
The Treasurer's announcement comes as global credit rating agency S&P warned that the Albanese Government’s heavy reliance on “off-budget” spending—such as the nearly $85 billion allocation for projects like the Whyalla steelworks—could threaten Australia's credit rating.
Despite these concerns, Dr Chalmers defended the government's economic management, asserting that Labor’s election commitments are responsibly funded.
“Because our election commitments are offset in each year over the forward estimates, the underlying cash balance position is slightly better in all four years and cumulatively more than $1 billion stronger than the 2025 Pre-Election Economic and Fiscal Outlook,” he said.
Meanwhile, the Treasurer challenged the Liberals to release their own costings, increasing pressure on the opposition as the federal election campaign enters its final stages.
The announcement comes amid heightened scrutiny of both major parties’ economic plans, with the electorate keenly watching how each side proposes to manage the nation’s finances.
