Coalition proposes cutting climate and housing funds to finance income tax cuts

Angus Taylor, head of the opposition coalition, announced a plan to abolish the Australian Renewable Energy Agency, the Housing Australia Future Fund and the National Reconstruction Fund, as well as the Net Zero Economy Agency and subsidies for home batteries and electric vehicles. He claims the resulting $31 billion in savings will fully fund a proposal to index income-tax brackets to inflation and still improve the budget by $22 billion between 2028/29 and 2031/32.

Taylor argued that Labor’s climate and housing bureaucracies have failed to deliver emissions cuts and affordable homes, and that reducing spending is essential for faster economic growth and lower inflation. The coalition’s calculations do not factor in other promised spending cuts or tax measures, such as a fuel-excise adjustment or tobacco excise reduction. Shadow Treasurer Tim Wilson added that banning non-citizens from welfare and NDIS payments could add another $2 billion to the budget. Treasurer Jim Chalmers countered that the opposition has not explained how it would fund $110 billion of unfunded commitments.