Labor rolls out cost-of-living Budget ahead of election

LABOR is talking up the cost of living measures in its 2025-26 Budget, handed down by Treasurer Jim Chalmers on Tuesday this week.

Dr Chalmers said the average earner would be $536 a year better off once new tax cuts were fully implemented.

The first round will be from July 2026, with those on an average income (around $80,000) getting a $268 boost, with the second round coming in from July 2027.

After the government’s 2024/25 tax cuts are included, it is estimated taxpayers will be more than $2,500 a year – or about $50 a week – better off overall in 2027-28.

The cuts will cost $17 billion over the next four years, but Dr Chalmers said the first tax rate would be at its lowest level in more than 50 years.

“These additional tax cuts are modest but will make a difference.”

The tax cuts are among multiple cost of living measures locked in by Labor in a pitch to voters ahead of the federal election, due to be held in May.

Corangamite Labor federal member Libby Coker said the Albanese Labor Government remained focused on delivering for households.

“The Budget has a strong focus on delivering for the regions, including an additional $68 million to deliver the Stage 2 upgrade of Barwon Heads Road, duplicated all the way to the Lower Mount Duneed Road roundabout – this project is an absolute game-changer for the Bellarine, Armstrong Creek, and the Geelong region.

“It also provides funding for a Medicare Urgent Care Clinic in Torquay as part of the Albanese Labor Government’s commitment to deliver another 50 clinics across the country.

“It’s a responsible Budget that will deliver much-needed cost of living relief with new tax cuts for taxpayers, energy bill relief, investment in every stage of education, and more support for Australians who want to buy a home.”

G21 chief executive officer Giulia Baggio said it was good to see that housing remained a priority in the Budget.

“There’s a few little extra measures there to keep driving [housing] production and productivity. We’ve just got to keep pushing on that.

“We feel we’ve turned the corner on inflation, and if we keep going in that direction, the cost of living will start to ease for people.”

In response, the Liberals have criticised the budget for having no extra money for community infrastructure programs.

“The Budget confirmed the $150 energy rebate will barely make a dent in the energy price hikes under Labor, with annual power bills in Victoria up to $638 more than Labor promised,” Wannon Liberal federal member Dan Tehan said.

“The relief in this budget will be cold comfort to the typical Australian household with a mortgage that is $50,000 worse off under Labor.

“Inflation is staying higher for longer under Labor and this government has increased spending by $425 billion – or around $40,000 for every Australian household.”

– WITH AAP