Labor vs Coalition: Who’s Cutting Your Costs?

Labor’s Tax Cuts: A Slow Drip

‍Labor is cutting the tax rate on incomes between $18,201 and $45,000—dropping to 15% in mid-2025 and 14% in 2026. If you earn $45,000 or more, you’ll save $268 in year one and $536 every year after that. Lower earners get less—just $118 in year one and $236 after.

While these cuts offer some long-term relief, they don’t provide an immediate impact on cost-of-living pressures. With inflation and rising expenses, many Australians might feel these savings barely scratch the surface. However, they do offer a structured, ongoing reduction in tax.

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Dutton’s Fuel Excise Cut: Quick but Temporary

The Coalition promises to halve the fuel excise for a year, cutting it from 50 cents to 25 cents per litre. This means a $14 saving per tank or $700 a year for weekly fill-ups. But after 12 months, it’s back to full price.

For those who rely heavily on their cars, this is an immediate and noticeable relief. However, it's a short-term fix rather than a long-term financial benefit. Once the year is up, Australians will face the full brunt of fuel costs again—unless the policy is extended, which remains uncertain.

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Who Wins?

If you drive often, the Coalition’s cut saves you more—fast. If you’re a lower-income worker, Labor’s tax cuts offer small but lasting relief. But are either of these policies enough to truly ease financial stress?

Labor’s approach provides incremental, long-term savings but lacks immediate relief. The Coalition's plan delivers short-term savings but disappears after a year. 

With the cost of living skyrocketing, is either party doing enough to truly help everyday Australians? 

The answer is yes, but also no. 

The Australian government needs to do so much more to meet the needs of Australians who are truly struggling in this cost-of-living crisis. 

With an election looming, the time to take action is now. 

Stay tuned for further updates and insight in the coming weeks!