JIM CHALMERS MP
TREASURER
 
SENATOR KATY GALLAGHER
MINISTER FOR FINANCE
MINISTER FOR WOMEN
MINISTER FOR THE PUBLIC SERVICE
MINISTER FOR GOVERNMENT SERVICES

Only a re-elected Albanese Labor Government offers a responsible, coherent and costed plan to help with the cost-of-living and Build Australia’s Future.

Labor’s election costings continue the responsible economic management that has been a hallmark of the Albanese Labor Government.

Our costings confirm that we have more than offset our campaign commitments in every year over the forward estimates.

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.

We have engineered the biggest nominal Budget turnaround in a Parliamentary term on record. Since coming to government:

• We have turned two Liberal deficits into two Labor surpluses, almost halved this year’s deficit and lowered the deficits every year over the forward estimates compared to when we were elected.
• The Budget position has improved by more than $207 billion over the seven years to 2028 29 and is better in every year over the forward estimates.
• Debt is $177 billion lower this year, which will help us avoid around $60 billion in interest repayments over the decade.
• Real payments growth is estimated to average 1.7 per cent per year over the seven years to 2028-29, which is around half the average under our predecessors.
• We have identified over $100 billion in savings and reprioritisations, including new savings announced today.
• We have banked around 70 per cent of upwards revisions to tax receipts compared to our predecessors who averaged around 40 per cent.

The latest monthly financial statements show we are continuing to make progress on the budget position for this year.

At the same time as making all this progress in the Budget, together we have been making substantial and sustained progress in the economy. Under Labor:

• Inflation is almost a third of what we inherited. It has a 2 in front of it. It had a 6 in front of it and was rising at the time of the last election.
• We’ve overseen the creation of more than a million jobs since we came to office, a record for a Parliamentary term – stronger jobs growth than any major advanced economy.
• The average unemployment rate under the Albanese Labor Government is the lowest of any Government in 50 years.
• Real wages and living standards were going badly backwards at the time of the last election but are now growing again.
• Growth has rebounded solidly in our economy, with the private sector resuming its rightful place as a key driver of growth.
• Interest rates are now falling but were rising at the time of the last election.

This progress is welcome and encouraging but we know there’s more to do because people are still under pressure and the global economy is highly uncertain.

While Australia is not immune from extreme global economic volatility, the progress we’ve made together and our costed plan put us in good stead.

It’s why our investments to make our economy more resilient, competitive and productive, while delivering more cost-of-living help, are so important.

We’ll continue to help ease pressure on Australians with tax cuts, energy rebates, higher wages, strengthening Medicare and cheaper medicines at the same time as we repair the budget and Build Australia’s Future.

In these uncertain times, now is the worst time to risk a Dutton-led Coalition Government that would make Australians worse off.

Peter Dutton has made more than $60 billion of spending commitments and that’s before you get to his $600 billion nuclear scheme, yet he won’t say what essential services will be cut to pay for all of it.

The Government released a full budget that was validated in PEFO, we have been upfront about the financial impact of our policies, and we have now released comprehensive election costings.

Dutton has run out of dodgy distractions to cover up his secret costs and savage cuts. He should come clean and release the Coalition’s final costings.

A Dutton-led Coalition Government will mean higher income taxes, lower wages, higher energy prices, a return to a budget full of rorts and waste and savage cuts to health, education and housing.

Only a re-elected Albanese Labor Government will help Australians with the cost of living, and build a stronger economy and stronger budget in uncertain times.

New savings measures
 
Our election costings include two new additional savings:

• $6.4 billion from further reducing spending on consultants, contractors and labour hire, and non-wage expenses like travel, hospitality and property, continuing similar measures committed in previous budgets.
• $760 million from increasing the visa application charge for primary student visas applicants to $2,000 from 1 July 2025. The arrangements for Pacific Island and Timor-Leste primary applicants will remain the same.

In contrast to the Liberals’ plan to cut 41,000 public service jobs and the services Australians rely on, Labor’s responsible savings target consultants, contractors and labour hire and non-wage expenses.

Agencies will be directed to achieve savings through reduced spending on consultants, contractors and labour hire and other non-wage expenses, including travel, hospitality, advertising, property and legal services. Agencies will also be encouraged to achieve savings through whole-of-government purchasing arrangements and productivity gains from new technologies and flexible work.

Labor will continue the work needed to rebuild the public service after inheriting one that was hollowed out after a decade of the Liberals’ outsourcing, underinvestment and undervaluing of the work that public servants do and the services they deliver. 

For all of our election commitments we received costings advice from the Australian Public Service or they are a capped amount. The delivery of grants will be subject to an assessment of value for money and compliance with the applicable requirements of the Commonwealth Grants Rules and Principles 2024.

As at 28 April 2025.

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