Opposition Leader Sussan Ley has unveiled the Coalition’s first major economic policy since its election defeat, pledging tax cuts for low and middle-income Australians in an attempt to reassert the party as a credible alternative government.
Speaking ahead of her address to the Centre for Independent Studies in Sydney, Ms Ley said the Coalition’s economic platform would be built around two central goals — lowering personal income taxes and repairing the federal budget.
“Every instinct in my being tells me that Australians should keep more of what they earn,” Ms Ley said, describing Labor’s industrial relations changes as a “handbrake on productivity”.
The policy announcement marks the first significant move by the Opposition since its defeat in the May election and comes amid renewed internal unrest within the Nationals, with former Deputy Prime Minister Barnaby Joyce reportedly considering quitting the party following tensions with leader David Littleproud.
While details of the Coalition’s proposed tax cuts remain limited, Ms Ley said the plan would focus on low and middle-income earners struggling under cost-of-living pressures, with further specifics to be revealed once the nation’s final budget position becomes clearer in the coming years.
Drawing on comparisons with the Howard government’s era of economic strength, Ms Ley pointed out that the average worker paid 22.3% of their income in tax in 2007, compared with 24.3% today — a figure projected by the Parliamentary Budget Office to rise to 27.7% by 2035–36.
“That means families working longer hours will see less in their pay packets, small business owners will be pushed into higher brackets sooner, and ambition itself will be taxed away,” she warned.
Her address also follows Treasurer Jim Chalmers’ recent backdown on controversial superannuation reforms, which reduced expected government revenue by $4.2 billion over the near term.
Ms Ley is expected to argue for smaller government, intergenerational fairness, and reduced red tape, saying Australia cannot afford more delays in reform.
“Every delay means lost opportunities, forgone jobs and wages, and a heavier debt burden for our children,” she said.
The speech represents a defining moment for the Opposition as it seeks to rebuild credibility and confidence among voters who turned away from the Coalition at the last election.
