The Coalition has promised to reduce gross debt by more than $40 billion and slash the Albanese government’s budget deficit by at least $10 billion across the next four years.
Shadow treasurer Angus Taylor and shadow finance minister Jane Hume will announce the official costings on Thursday, sharpening their economic pitch ahead of the election.
The costings outline a suite of savings measures aimed at reversing what the Coalition claims is Labor’s “decade of deficits” and spiralling national debt.
Mr Taylor said the costings reflected the Coalition’s “economic responsibility” in contrast with the Albanese government’s spending “splurge”.
“Labor has delivered the longest per-capita recession on record and the biggest collapse in living standards in the developed world,” he said.
“That’s not bad luck, that’s bad management.”
According to the Coalition, the savings plan would restore fiscal discipline and help safeguard Australia’s AAA credit rating.
It comes after ratings agency S&P Global expressed concern about the nation’s rating being under threat unless both major parties took action to curb long-term spending.
Since the last election, Labor has overseen $425 billion in new spending and “thrown away” almost $400 billion in additional revenue, according to the Coalition.
It argues these funds should have been used to rebuild the country’s fiscal buffers.
“After raking in almost $400 billion in extra revenue, Labor chose to splurge instead of save, leaving Australians more exposed to the next economic shock,” Mr Taylor said.
The Coalition has committed to eliminate billions of dollars of the Albanese government’s spending, including the $20 billion Rewiring the Nation plan and $10 billion Housing Australia Future Fund.
It would also cut nearly $14 billion in green hydrogen production tax credits and cancel $200 billion in federal support for Victoria’s Suburban Rail Loop.
“We can’t afford more of Labor’s reckless spending,” Senator Hume said.
“The Coalition will restore discipline, reduce debt and deliver cost of living relief that doesn’t fuel inflation.”
Labor’s own updated budget costings, released on Tuesday, forecast $6.4 billion in savings over the forward estimates and $760 million in additional visa revenue.
Treasurer Jim Chalmers promised to use the $7.2 billion in overall savings to improve the budget by $1 billion over the forward estimates.
However, Mr Taylor dismissed those measures and accused Mr Chalmers of “losing control” of his colleagues’ spending habits.
“You have to have rules to manage your budget — people understand that, it’s just common sense,” he told Sky News earlier this week.
“Jim Chalmers threw out the rule book in his first budget and that’s why he’s losing control. He’s got no control over his colleagues — if they want to spend, they spend.”
