With the Australian federal election drawing near, Peter Dutton has voiced concerns over Labor’s tax cuts, questioning their impact on the country’s struggling families. In a move to offer more immediate relief, Dutton is set to reveal an alternative proposal that targets the rising cost of living.
According to 7NEWS, his policy will focus on reducing fuel prices, providing much-needed financial relief to many Australians. This new stance has ignited a debate between the opposition and the government, as both sides vie for voter support with contrasting approaches to addressing economic pressures.
Labor’s Tax Cuts : Modest Relief or Too Little, Too Late?
In the federal budget, Labor unveiled a two-phase tax cut plan that promises to reduce taxes for Australians, with savings of up to $268 in 2026/27 and up to $536 annually thereafter. However, critics, including Dutton, argue that these cuts will not provide immediate relief for families struggling with rising bills.
Dutton emphasized that a tax cut of just 70 cents a day, scheduled for 15 months from now, is insufficient to address the financial challenges many Australians are currently enduring. He argued that the cuts were “too little, too late for struggling Australians.”
Dutton stated,
“What’s obvious here is that a 70-cent-a-day tax cut in 15 months’ time is just not going to help families today who are really suffering.”
His criticism reflects concerns from voters who believe the tax cuts fail to address immediate needs, particularly as energy bills and living costs continue to soar.
Dutton’s Alternative : Fuel Excise Cut
In contrast to Labor’s tax cuts, Dutton proposed a temporary fuel excise cut, which would halve the excise on petrol and diesel from about 50 cents to 25 cents per litre for 12 months. Dutton believes this would offer direct savings for individuals and families who rely on transport, particularly in light of rising fuel prices.
His proposal was positioned as a solution that would have an immediate impact, directly addressing the cost of fuel that has placed significant strain on the budgets of many Australians.
Voters’ Concerns: Is It Enough?
Despite the potential benefits of Dutton’s fuel excise cut, public reactions suggest that Australians remain dissatisfied with the scale of both Labor’s tax cuts and Dutton’s fuel relief.
Ravi Velu, a 43-year-old unemployed worker from St Albans, Melbourne, expressed frustration, noting that the proposed tax cuts would have no impact on his situation. Velu, who had to quit his electrician job due to personal issues, has faced escalating cost-of-living pressures.
To make ends meet, he has been forced to pawn his belongings and move in with his partner and her family.
He shared his concerns, saying,
“I’m no spring chicken anymore, especially trying to get back into the workforce and dealing with personal situations, it’s hard.”
Velu emphasized that, as an unemployed individual, the proposed tax cuts would not benefit him and that he is considering voting for a politician who genuinely addresses the struggles faced by thousands of people in his position.
Similarly, Meiko Smith, who owns a hair salon in Devonport, Tasmania, expressed dissatisfaction with the modest scale of the tax cuts. Smith noted that the costs of running her business have nearly doubled since the COVID-19 pandemic, with price hikes now occurring every year instead of every two or three years.
Smith remarked,
“We used to have price hikes every two or three years. Now we’re getting it every year.”
She criticized the tax cuts, which amount to the cost of “one cup of coffee a week,” calling them inadequate in addressing the cost-of-living crisis. She further added that these tax cuts appear to be a political strategy ahead of the election, stating,
“Because an election is coming up, they’re making promises just to get everyone to vote Albanese. It just all seems to be a lot of talk.”
Political Back-and-Forth: Coalition vs Labor
The political debate over the budget and cost-of-living policies has become heated. Treasurer Jim Chalmers defended Labor’s tax cuts, describing them as:
“Modest in isolation but substantial when combined with all of the ways that we are helping.”
In contrast, the coalition criticized the cuts, with shadow treasurer Angus Taylor arguing that Labor’s approach focused only on the next five weeks, ahead of the election, rather than on long-term economic strategies.
Referring to the imminent election campaign. Dutton and other opposition leaders have called for more substantial, immediate relief for Australians, expressing doubts about the timing and scope of Labor’s measures.
On the other hand, Chalmers attacked the opposition for voting against the tax relief on the same day inflation figures showed further moderation. Chalmers pointedly remarked,
“Spare us the lectures about inflation and living standards, if you really cared about the cost of living, you would have voted for our tax cuts.”
