Australia’s election campaign heats up as Peter Dutton promises up to $1,200 in one-off tax relief, while Anthony Albanese pledges to build 100,000 homes for first-time buyers. Both leaders are targeting the cost of living and housing affordability with big-ticket pledges funded by taxpayer money.
Two major election commitments have been unveiled by the Coalition and Labor as they launch their official campaigns in key battleground regions. These $10 billion policies highlight contrasting priorities: immediate tax relief versus long-term housing reform.
The announcements come amid mounting public pressure on both parties to address spiralling living costs and a national housing shortage. With the federal election scheduled for early May, these pledges aim to win over undecided voters in outer metropolitan and resource-rich regions.
Coalition Promises Targeted Tax Relief for Over 10 Million Australians
Peter Dutton’s centrepiece proposal revives a version of the former Low and Middle Income Tax Offset, offering a one-time tax break of up to $1,200. The policy will apply to Australians earning up to $144,000, with full relief granted to those within the $48,000–$104,000 income range.
According to The Sydney Morning Herald, this tax relief would reach approximately 85% of taxpayers, benefiting half with the maximum offset.
The Cost of Living Tax Offset, as it has been named, would be delivered in the upcoming financial year, providing direct assistance at a time when households are facing increased pressure from inflation and rising mortgage repayments.
The Coalition has positioned this measure as “temporary and targeted”, aimed at delivering immediate relief without committing to long-term fiscal changes. In addition to the offset, the Coalition has reiterated its plans to cut fuel excise by 25 cents per litre, as part of a wider $16 billion cost-of-living relief package due to expire by 2027.
Labor Unveils Nationwide Housing Plan for First Home Buyers
Prime Minister Albanese’s campaign centres on a $10 billion housing plan dedicated to constructing 100,000 new homes reserved exclusively for first-time buyers. According to The Guardian, the program combines $2 billion in grants with $8 billion in zero-interest loans or equity investments, contingent on matched funding from state and territory governments.
Construction is expected to begin in 2026, with the first homes completed by 2027-28. Homes will be built on government land with streamlined planning processes. The scheme avoids legislative hurdles and mirrors successful state-level models, such as South Australia’s RenewalSA.
Labor will also expand the First Home Guarantee Scheme, removing income and participant caps.
Under this system, eligible buyers can purchase a home with just a 5% deposit, with the Commonwealth guaranteeing up to 15% of the property’s value—thereby bypassing lender’s mortgage insurance, which can cost around $23,000. Property price caps have also been lifted, reaching $1.5 million in Sydney.
