The Coalition has kicked off its 2025 federal election campaign in Sydney with several major cost-of-living measures announced.
Opposition Leader Peter Dutton today already unveiled his plan to deliver a once-off $1200 tax relief and used the campaign launch to announce his landmark tax policy to ease mortgage stress.
Watch the Liberal Party’s federal election campaign launch above
At today’s official campaign launch, attended by three former Liberal prime ministers, Dutton responded to Labor’s housing plan with a pledge to provide annual mortgage interest rate relief on up to $650,000 of a home loan.
Mortgage relief of up to $12,000 for first homebuyers
The opposition leader today declared himself as the “prime minister who restores the dream of home ownership”.
Dutton then unveiled his plan to allow first-time homeowners of newly-built properties to deduct mortgage interest payments from their taxable income.
Dutton said an elected Coalition government would implement this major tax change which could save the average household with a taxable income of $120,000 around $12,000 per year for up to five years.
The scheme is limited to five years, is against only the first $650,000 of a home loan and is means-tested with income caps of $175,000 for singles and $250,000 for couples.
“We will allow these deductions for five-years, provided you continue to live in that home for that period,” Dutton said.
Once-off $1200 tax relief for millions of Aussies
Ahead of today’s official campaign launch, Dutton responded to Labor’s housing plan with a pledge to give 10 million Australians a $1200 tax cut in the next financial year.
Dutton said an elected Coalition government would deliver a once-off Cost of Living Tax Offset for eligible Australians earning up to $144,000 when they lodge their tax return.
Around 85 per cent of all workers would be eligible for this temporary tax relief.
Around half of all taxpayers would receive the full $1200 offset, which would cost the government $10 billion.
These tax cuts would also save families with two incomes up to $2,400.
Dutton said this once-off tax relief policy would be vital support for families struggling against a tough economic climate.
“A Coalition government will first provide help to families by cutting fuel by 25 cents a litre – a saving of about $1500 a year for a two car family,” Dutton said today.
“And then by giving back up to $2400 per family whilst we clean up Labor’s mess. Labor’s 70c a day is a band-aid on a bullet wound.”
Dutton used his policy announcement to take aim at the federal government’s modest tax cut announced in the 2025 Federal Budget, which amounts to around 70c per day.
“Our Cost of Living Tax Offset will put more money back into the pockets of millions of Australians at a time when they’re being crushed by skyrocketing grocery bills, rent, mortgage repayments and insurance costs,” he added.
Shadow Treasurer Angus Taylor said the Coalition is committed to delivering a “comprehensive” plan to rebuild the economy and to target cost of living.
”The Coalition’s approach is different – we will provide temporary and targeted cost of living relief while we get our economy back on track,” he said.
“We will restore responsible economic management, deliver a plan to lower electricity and gas bills, and restore prosperity for working Australians.”
Scrapping family car and ute tax
Dutton said the Coalition will axe Labor’s family car and ute tax, which he said would save families $9700 for choosing a RAV4 hybrid model or $14,400 for a Ford Ranger.
“Australians shouldn’t be penalised for choosing to buy a petrol, diesel or hybrid vehicle over an EV,” he said.
“Indeed, we will save Australians an average of $2,300 per vehicle.”
Using super to buy a house
The opposition leader also reaffirmed his earlier promise to allow Australians to pull up t $50,000 from their superannuation accounts to pay for a house deposit.
He said Australians should be able to access their retirement funds whenever they want.
“Your super is your money – not the government’s,” he said.
“We will also work with the prudential regulator to ease rigid and overly-strict lending criteria,” he added.
“And that will result in tens-of-thousands more Australians being able to get a home loan.”
A $20 billion ‘Regional Australia Future Fund’
The Coalition has pledged a $20 billion fund to invest in regional, remote and rural Australian communities.
Nationals Leader David Littleproud championed this policy today at the Liberal Party’s campaign launch and said the Coalition would ensure no Australian is left behind.
Littleproud said the multibillion-dollar fund would invest in childcare, improving healthcare access and funding roads and infrastructure in regional communities.
“I got into politics in regional Queensland because I was sick of seeing young people go over the divide,” Littleproud said.
“It’s time to bring them home and to keep them home – to know that they have a future in regional Australia, because you’re going to have a government that believes in you, and that’s the legacy that Peter Dutton and I intend to leave for regional Australia.”
Labor also said it would raise the income and price cap to make all first homebuyers eligible for a five per cent deposit on a property.
