Federal Opposition Leader Peter Dutton has delivered his Budget Reply — the Coalition’s formal response to the Government’s 2025/26 Budget.
The Budget Reply is an opportunity for the Opposition to lay out its criticisms of the Government’s Budget measures and outline alternative spending plans.
It’s widely expected the Federal Election will be called tomorrow, with Dutton’s speech containing specific election promises, such as halving the fuel tax and reducing migration levels.
Federal Budget
The Federal Budget is the Government’s main economic document. It details two things: where the government will allocate its money (spending), and how it will pay for it (revenue).
The Government released the 2025/26 Budget on Tuesday. Based on the narrow time frame between the budget and the upcoming election, it contained the government’s pre-election commitments.
After the Government hands down its Budget, the Opposition prepares a formal response, known as the ‘budget-in-reply’.
Fuel excise
Opposition Leader Peter Dutton has pledged to halve the fuel excise for a year if he wins the election, and then review it.
The excise is effectively a tax on petrol, which has been around since federation in 1901.
The fuel tax accounts for roughly 50.8 cents per litre of petrol.
Dutton estimates the year-long cut would save $1,500 a year for an average household with two cars filling up once a week.
Energy
Gas reserves will be introduced under the Coalition’s “domestic gas plan”.
The plan will require gas companies to save gas for Australia’s east coast instead of being exported offshore.
“This is all about ensuring Australian gas is for Australians,” Dutton said.
Dutton also promised to fast-track approvals to extend the life of an offshore gas project off Western Australia’s coast, known as the North-West Shelf project.
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Health
The Coalition has matched some of Labor’s healthcare commitments in recent weeks, including $8.5 billion to boost bulk-billing rates at GPs.
The Opposition will also cap the maximum cost of medicines listed on the Pharmaceutical Benefits Scheme (PBS) from $31.60 to $25 if it wins the election.
Dutton announced he would lock in a permanent doubling of subsidised mental health sessions from 10 to 20.
Public service
Dutton has pledged to “reverse” the government’s “increase of 41,000 Canberra public servants”.
He claimed the cut to public service, across federal departments like education, health, and defence, would save $7 billion a year.
The Coalition will also defund the Environmental Defenders Office. The partially publicly-funded lawyers can prosecute claims on behalf of communities for environmental destruction and climate-related claims.
Other plans
Dutton repeated his pledge to cut annual migration if he wins the next election.
His plan would reduce the number of permanent migrants arriving in Australia from 185,000 to 140,000.
He also repeated his plans to open up seven nuclear reactors across Australia and allow first home buyers to use $50,000 of their superannuation for a home deposit.
Election pitch
The Prime Minister is widely tipped to announce the election tomorrow morning, likely to be held on 3 May.
Dutton called the upcoming election a “sliding doors moment” for Australia.
“At this election, the choice could not be clearer,” Dutton said.
“We have a positive plan to deliver: a stronger economy with lower inflation, cheaper energy, affordable homes, quality healthcare and safer communities.”
