Labor Accuses Dutton of Creating $10 Billion Budget Black Hole, Slams Coalition’s ‘Deceptive’ Costings
Treasurer Jim Chalmers has launched a scathing attack on Opposition Leader Peter Dutton, accusing him of blowing a $10 billion hole in the federal budget and hiding the true cost of key Coalition election policies.
With both major parties set to release full costings of their election promises in the final two weeks of the campaign, Chalmers warned that the Coalition’s headline proposals — including mortgage tax deductions, fuel excise cuts, and meal expense write-offs — don’t add up and would result in deep cuts to essential services.
“Deceitful and Deceptive”: Chalmers Ramps Up Attack
Calling the Coalition “deceitful and deceptive,” Chalmers claimed the opposition is intentionally withholding the full financial impact of its policies from voters.
“These secret costs mean more secret cuts,” Chalmers told news.com.au. “The dodgy figures they’ve released show a black hole worth billions for just three policies alone.”
He further argued that the Coalition would be forced to cut funding for health and education to fund its proposed $600 billion nuclear energy plan.
Disputed Costings on Flagship Policies
The Coalition insists its proposed mortgage tax deduction for first home buyers would cost just $1.25 billion over four years. But independent estimates paint a much costlier picture.
Former Treasury forecaster Peter Downes of Outlook Economics suggested the policy could cost between $4 billion and $8 billion, while economist Chris Richardson agreed the policy was likely to exceed the Coalition’s estimate “especially over time.”
Labor also claimed the Coalition quietly promised to reinstate fuel tax credits for truck drivers, potentially adding $2.4 billion to the cost of the proposed 12-month fuel excise cut — a carve-out that Labor says has not been made public.
The “Long Lunch” Debate
Peter Dutton’s proposal to reintroduce tax deductions for business lunches — minus alcohol — has drawn further scrutiny. While the Liberals estimate the measure will cost $250 million per year, Labor claims it would actually cost $500 million annually, or $1 billion over the two-year policy window.
Some analysts warn the true cost could be significantly higher if businesses fully exploit the deductions, with one estimate putting the potential cost at over $10 billion per year.
Coalition Defends Budget Strategy
Responding to the criticism, Shadow Treasurer Angus Taylor argued the Coalition would still deliver “a better bottom line” than Labor, thanks to its opposition to over $100 billion in government spending over the past term — including $42 billion for housing programs that he claims have failed to deliver results.
“We’ve got to fix two budgets — the government’s and the household’s,” Taylor told The Today Show. “Labor has failed on both fronts.”
He said the Coalition’s strategy includes:
- A $1,200 tax offset
- Lower income taxes next financial year
- Support for first home buyers
- Cheaper fuel via a temporary excise cut
“We are focused on fixing the cost-of-living crisis and delivering a stronger bottom line,” Taylor said.
