Opposition Leader Angus Taylor has outlined a Coalition government's plan to phase in income tax indexation under a 'tax back guarantee', costing $22.5 billion over the forward estimates. In his budget reply speech, Taylor described the proposal as 'generational tax reform' that would fully protect 85% of income earners from inflation, with benefits starting at $250 in the first year and growing to over $1,000 annually by the fourth year.
Taylor also announced a hardline welfare policy, denying non-citizens access to 17 benefits and payments, including JobSeeker, Youth Allowance, and the Family Tax Benefit, as well as the National Disability Insurance Scheme. He claimed this would save billions of dollars but did not provide a specific estimate.
On immigration, Taylor committed to capping the intake based on the number of homes constructed each year, stating that the Coalition would deliver 'one of the biggest cuts to immigration in Australian history'. He avoided giving a precise number, saying it would be provided closer to the next election.
Taylor reaffirmed the Coalition's defence spending target of at least 3% of GDP and promised to appoint a dedicated National Security Adviser. He also proposed allowing businesses with turnover under $10 million to immediately deduct assets up to $50,000 permanently, and banking 80% of higher-than-forecast resource revenues in a Future Generations Fund.
Additionally, Taylor reiterated plans to improve fuel security by working with coal-fired power plant owners to keep them running and making the Fuel Security Services Payment available for new refinery construction.
