Alliance Costs Reveal Deficits, Cuts in Foreign Aid and Environmental Programs in the Next Two Years | Australian Elections 2025

As shadow finance minister Jane Hume insists her party plans to cut the number of Canberra-based civil servants by 41,000, which is possible through "natural wear", the coalition government will further deepen the budget in the next two years.

If returned to power, the alliance will dabble in a long list of environmental and clean energy programs, including the elimination of net zero economic institutions, reversed workers’ tax breaks on electric vehicles and redirected payments for home battery programs.

The coalition’s election policy costs show that a reverse tax benefit for green hydrogen will save $1.5 billion in four years, while a $1.2 billion saving without Labor’s key mineral production tax credit.

In addition, the coalition government will provide $36.4 billion in stock investment in 2035 to deliver two government-owned power plants and another $118 billion to build the nuclear power industry by 2050.

When Jim Chalmers lashed out these costs as a “brutal scam” and failed to correctly explain the loss of public wallets in the Nuclear Power Plan, Shadow Finance Minister Jane Hume told the press conference, “We want to provide Australians with clear choices in this election.”

Hugh said: "The choice between responsible economic management or labor reckless expenditures. Lower and simpler and more equitable taxes (and) more taxes on labor.

Since Donald Trump came to power, in line with the development of U.S. policy, Australia's foreign aid budget will reduce by $813 million through efficiency drives over four years, excluding aid in our region.

To show growing frustration with the coalition’s campaign, a Liberal backstage MP said cuts in foreign aid betrayed “core liberal values,” which date back to Robert Menzies.

"Investing in foreign aid is not 'good'," they said.

“This is a key component of our identity as compassionate neighbor and nationality. It must and should continue to expand to Africa and Southeast Asia.”

The alliance’s more than 200 policy cost list includes raising $3.6 billion in four years, allowing VAP products to be sold in supermarkets and convenience stores, and taxed like cigarettes.

Although there is no budget expenditure to build nuclear power plants, tens of millions of dollars are spent on government agencies as part of the nuclear program, including $93.7 million over four years to establish nuclear energy coordination agencies and national nuclear training facilities and fuel laboratories.

In order to cancel the suspension of nuclear power, there will be $87.5 million to establish community support for "zero emission nuclear technology".

The coalition, which would cut Canberra’s civil servants in four years as 41,000, saved $17.2 billion, has been under scrutiny during the campaign, while the shadow finance minister was once again forced to defend his goal.

She said: “We have worked closely with the PBO (Parliamentary Budget Office) and our advice is that … Recruitment freezes and natural loss will allow us to reduce ASL (Average Staffing Level) by 41,000 in five years.

Commentary contradicted the league campaign spokesman James Paterson, who said: "We have been choosing and we will use voluntary layoffs if necessary."

Hume also claimed that the cuts would come from 110,000 Canberra bureaucrats in mid-2024, with data from the Australian Public Service Commission showing about 70,000.

Guardian Australia understands that the 110,000 figures are based on Australian Bureau of Statistics figures, which include military personnel and reserves, although the coalition explicitly exempts these workers from the proposed layoffs.

The chart shows "two ways to budget deficit"

Even though Angus Taylor slams Labour’s “deficit decade”, he confirmed that $15.4 billion spent on one-time tax refunds, the temporary gasoline excise tax will further bring U.S. financial situation in the two upcoming fiscal years.

These costs show that the budget will increase by $13.9 billion over the four years.

"The alliance has a very clear, responsible, credible economic plan to restore our country's financial situation, strengthen our economy, address inflation and put Australia on track," Taylor said.

Chalmers said, "The league has at least five big holes in the cost."

"They haven't provided enough for nuclear reactors yet. They've made wrong figures on the cuts in Australia's public service sector. Their long lunch policy, petrol policy, and mortgage deductible policy also misunderstood their figures."

The alliance's estimates allow first-time home buyers to claim mortgage interest of $1.3 billion in four years, while allowing small businesses to claim $243 million in two years of work-related meals.

Cherelle Murphy, chief economist for Oceania in Europe, said there is no evidence that long-term plans can solve the country's financial situation.

“The trajectory of the basic cash balance is to extend the deficit over the next four years and is combined with the long-term long-term costs of the alliance’s nuclear program, which have no structural fiscal restoration,” Murphy said.

"This means that while the government debt trajectory may be a little better than the current policy setting, debt will continue to increase for some time compared to the ALP's plans," she said.