Business · Economy · 1 hr ago
Coalition plans $31 billion in cuts, including major climate policy rollback
Opposition Leader Angus Taylor has proposed $31 billion in spending cuts to fund tax cuts and strengthen the Coalition’s pitch on inflation in Australia.
The Coalition says it would cut subsidies, housing programs and some welfare payments, among other measures.
Its largest proposed saving is $9.4 billion from climate-related programs, including emissions agencies, home battery support and tax breaks for electric vehicles.
The plan would also scrap the safeguard mechanism, a key policy for reducing emissions, while retaining the Clean Energy Finance Corporation.
The Coalition is presenting the cuts as part of its inflation response, while Treasurer Jim Chalmers argues that spending on health and defence meets current needs.
A separate Coalition proposal to index tax brackets to inflation is estimated to cost about $20 billion over four years.
The Reserve Bank may raise interest rates again early next month, as it continues its fight against inflation.
The Coalition has proposed $31 billion in savings, including a $9.4 billion plan to cut or shrink climate-related agencies and programs.
Opposition Leader Angus Taylor said the savings would help fund tax cuts and fight inflation.
The climate proposals include ending the safeguard mechanism, home battery programs and tax breaks for electric vehicle purchases.
The government argued that the Coalition’s spending-cut calls do not reflect what the federal budget now funds.
Liberal senator Andrew McLachlan criticized the climate plans, saying they abandon the party’s environmental policy tradition.
- Who
- The Coalition, led by Opposition Leader Angus Taylor. The government and Liberal senator Andrew McLachlan also responded.
- What
- The Coalition proposed $31 billion in savings, including major cuts to climate policies, to fund tax cuts and fight inflation.
- When
- Taylor released the early costings on Monday, October 26, 2026.
- Where
- Australia.
- Why
- Taylor said the plan would help fight inflation and fund tax cuts.
Coalition
Australian government
Climate policy
Coalition
The Coalition plans to cut or shrink climate-related agencies and programs, including ending the safeguard mechanism.
Australian government
The government defended its spending priorities and said calls for cuts do not reflect what the budget now funds.
Public spending
Coalition
Taylor proposed $31 billion in savings to fight inflation and fund tax cuts.
Australian government
Finance Minister Katy Gallagher argued that much government spending responds to contemporary needs and includes demand-driven programs.
The Coalition abandoned its net zero emissions target.
Angus Taylor released early Coalition budget costings, including the proposed $31 billion in savings.
RBA policymakers are due to meet, with another rate rise signaled as likely.
- Total proposed savings
- $31 billion
- Climate-related cuts
- $9.4 billion to ditch or shrink agencies and programs
- Business subsidies and critical minerals tax credits
- $7.3 billion in proposed cuts
- Labor housing schemes
- $4.7 billion in proposed cuts
- NDIS and welfare payments
- $2 billion in proposed savings by blocking payments for permanent residents
- Safeguard mechanism
- The Coalition plans to end the main emissions reduction policy
3 sources
What people are saying
This treasurer and prime minister have run out of ideas
It is a sad day for the Liberal Party that [it] has now repudiated its once proud policy tradition of a commitment to a healthy environment
The Coalition policy suite is now solely focused on encouraging pollution.
confront the reality of what the Commonwealth budget now funds