Labor Plans $17.1 billion Tax Cuts in 2025 Budget

In a bid to secure voter support ahead of the federal election, Treasurer Jim Chalmers announced a $17.1 billion tax cut plan during the recent budget presentation, promising significant financial relief for lower and middle-income households. The two-step tax cuts will lower the tax rate from 16% to 15% next year and further to 14% by mid-2027, benefiting those earning between $18,201 and $45,000. Alongside these tax measures, the budget includes a $150 energy rebate and aims to make most GP visits free, as Labor faces a projected deficit of $42.1 billion. Chalmers emphasized the importance of addressing cost-of-living pressures, asserting that the budget reflects responsible economic management despite returning to deficit after previous surpluses. Opposition leader Peter Dutton is set to respond with his own budget counterproposal, critiquing Labor's reliance on taxpayer funds for these initiatives. The government also plans to provide additional support following the impact of ex-Tropical Cyclone Alfred on the budget.