For a fourth time as Leader of the Opposition, the Hon Peter Dutton MP has delivered his Budget Address in Reply before the Australian Parliament.
Mr Dutton’s speech emphasised energy, housing, migration, crime, and health as key areas in the effort to get Australia ‘Back on Track.’
Nexus APAC has developed an overview of the key themes of this evening’s Budget in Reply.
Response to the Budget
Central to his address, Mr Dutton outlined a five-point plan to address key economic and social challenges, emphasising responsible fiscal management, lower inflation and greater affordability for households and businesses.
At the core of the Opposition’s approach is a commitment to:
- Strengthening the economy by tackling inflationary pressures and ensuring sustainable growth;
- Reducing energy costs to support households and industries;
- Increasing housing affordability by addressing supply constraints and migration settings;
- Guaranteeing investment in health, education and essential services; and
- Enhancing community safety through stronger laws and enforcement measures.
To support this agenda, the Opposition has committed to introducing four key legislative measures on the first sitting day of Parliament. These include the Energy Price Reduction Bill, the Lower Immigration and More Homes for Australians Bill, the Keeping Australians Safe Bill, and the Guaranteed Funding for Health, Education and Essential Services Bill.
Coalition’s Economic Plan
The Coalition’s economic plan focuses on three key priorities:
- Reining in inflationary spending;
- Reducing the cost of energy; and
- Strengthening the economy.
To curb inflationary spending, Mr Dutton announced that a Coalition government would eliminate the $20 billion Rewiring the Nation Fund, discontinue the $10 billion Housing Australia Future Fund, and scrap tax production credits for green hydrogen. He also re-affirmed the Coalition’s plan to cut 41,000 public servant positions to save $7 billion annually.
Mr Dutton described the Government’s tax cut as a “cruel hoax” and pledged immediate cost-of-living relief for Australians. Key measures include halving the fuel excise for 12 months – an initiative costed at $6 billion – and allocating $50 million for food charities like SecondBite and OzHarvest to meet rising demand.
Mr Dutton stated that these savings would be reinvested into frontline services, including childcare, health and aged care, veterans’ support, the NDIS, Indigenous affairs, and defence.
To support small businesses, Mr Dutton committed to raising the instant asset write-off threshold from $1,000 to $30,000 and introducing a deduction of up to $20,000 per year for business-related meal expenses.
Skills
In his address, the Opposition Leader announced a target of 400,000 apprentices and trainees training across Australia, with an incentive payment of $12,000 for small and medium sized businesses to support them with hiring and training. This program will be focused on the building and construction sector in particular.
Health
On the topic of health, Mr Dutton outlined a $9.4 billion investment across several key initiatives, including incentivising junior doctors to work as GPs, boosting Medicare bulk billing, investing in hospitals (particularly in high population growth areas), guaranteeing cheaper medicines, lowering the PBS co-payment to $25, and investing $500 million into women’s health.
Mental health was a key focus, with Mr Dutton committing to doubling the number of subsidised mental health sessions from 10 to 20, investing an additional $400 million in youth mental health services, and expanding the National Centre of Excellence in Youth Mental Health into a national institute.
Energy
Mr Dutton outlined the Coalition’s energy strategy, emphasising a practical approach to ensure affordability and reliability for Australians. He highlighted the need for a balanced energy mix to support households and industries.
As a solution, Mr Dutton announced the Coalition’s National Gas Plan to prioritise domestic gas supply and reduce energy prices. Key elements of this plan include:
- Introducing an east coast gas reservation, requiring 50 to 100 petajoules of spot cargo exports to be redirected to the domestic market;
- Reducing wholesale domestic gas prices from around $14 per gigajoule to below $10 per gigajoule;
- Fast-tracking gas project approvals by halving approval times;
- Accelerating investment into gas projects by reinstating a $300 million strategic basin plan and including gas in the capacity investment scheme;
- Investing $1 billion into a Critical Gas Infrastructure Fund to increase gas pipeline and storage capacity;
- Introducing ‘use it or lose it’ provisions for offshore gas fields; and
- Implementing a fit-for-purpose gas trigger to safeguard supply.
Additionally, Mr Dutton announced that a Coalition government would advance zero-emission nuclear power to secure long-term energy security, aligning with other major economies in adopting this technology. He claimed this plan has been independently costed at 44% cheaper than the current government’s approach, potentially saving Australians $263 billion.
To further streamline energy development, he committed to removing regulatory duplication across local, state, and federal governments within a first-term Coalition government.
Housing and Immigration
Mr Dutton outlined the Coalition’s plan to address housing affordability and migration pressures, aiming to restore opportunities for Australians to own homes. He emphasised the importance of sustainable population growth and infrastructure investment to support growing communities.
Specifically, he stated that a Coalition Government would cut the permanent migration program by 25%, ban foreign investors and temporary residents from buying existing homes for two years, and set stricter caps on foreign students to ease rental market strain.
Additionally, the Coalition would invest $5 billion in essential infrastructure to unlock 500,000 new homes and allow first home buyers to access up to $50,000 of their super for deposits, promoting homeownership as a cornerstone of economic stability.
Crime
In his address, Mr Dutton highlighted concerns about rising crime, citing the increase in antisemitism and violent incidents, including reports of grocery workers being threatened with machetes.
To address these concerns, the Coalition have pledged to:
- Establish an Antisemitism taskforce;
- Enforce national uniform knife laws;
- Toughen bail laws;
- Strengthen border security; and
- Deport criminal non-citizens.
Defence
While the Coalition did not announce a specific funding figure for defence, Mr Dutton stated that “during the election campaign, we will announce our significant funding commitment to defence.”
Mr Dutton emphasised the importance of AUKUS and AUKUS 2 for its potential to strengthen Australia’s defence capabilities and drive economic growth through civil and industrial development. He also affirmed the Coalition’s commitment to modernising the Australian Defence Force, stating they will “retool the ADF with asymmetric capabilities to deter larger adversaries.”
Additionally, he announced that a Coalition government would allocate $3 billion to reinstate the 4th Squadron of the F-35 Joint Strike Fighters.
Education
Toward the end of his address, Mr Dutton hinted at a major overhaul of school curriculums under a Coalition government, arguing that the existing system had not adequately served students, though he did not provide specific details about the proposed changes. Mr Dutton also emphasised the need to restore a sense of national pride and unity, stating that Australia needs a “curriculum that cultivates critical thinking, responsible citizenship and common sense.”
Industry
Mr Dutton pledged a significant reduction in regulatory burdens, committing to “ripping as much red and green tape as possible” across local, state and federal government levels within the Coalition’s first term. This initiative aims to revitalise key sectors such as mining, agriculture, construction, and manufacturing, with the goal of transforming Australia into an industrial powerhouse. A key example highlighted in his address was fast-tracking the approval of the North-West Shelf gas project in Western Australia.
Beyond deregulation, Mr Dutton outlined a vision for a stronger economy built on both traditional strengths and emerging sectors. He emphasised the importance of encouraging new areas such as artificial intelligence, automation, cybersecurity, and space technologies. He also pledged to curtail union militancy, reform workplace definitions, and restore integrity to the construction industry.
Conclusion
The Opposition Leader used the Budget Address in Reply to highlight the upcoming election as a pivotal opportunity for positive change. He described it as a “sliding doors moment for our nation”. With the stage now set, voters face a defining choice about the country’s future direction.
If you have any queries, or would like a briefing, please contact the Nexus APAC team.
