Labor and the Coalition have officially launched their federal election campaigns, with the cost of living and first home buyers taking centre stage as the race nears the halfway mark.
announced a $10 billion plan that Labor says will help first home buyers get on the property ladder by making 100,000 homes available exclusively to them. He also pledged to expand the first home guarantee scheme — which allows a 5 per cent deposit to purchase, with the government guaranteeing the other 15 per cent — to all first-time buyers.
Albanese also revealed Labor would introduce a $1,000 “instant tax deduction” for work-related expenses.
Meanwhile, said the Coalition would allow first home buyers who purchase new builds to deduct the interest component of their mortgage repayments on the first $650,000 of their home loan for five years. The scheme would apply to owner-occupiers and be means-tested, with an income cap of $175,000 for singles and $250,000 for couples. Dutton also confirmed towards a deposit for their first home.
The Opposition leader also announced $10 billion would go towards a once-off cost of living tax offset. The tax break would be applied to those earning up to $144,000, and calculated to deliver up to $1,200 back at the end of the financial year.
Dutton says Australia faces a ‘pivotal election’
Dutton spoke at the Liverpool Catholic Club in south-west Sydney. Former prime ministers John Howard, Scott Morrison, and Tony Abbott were among those in attendance.
He said the nation was facing a “pivotal election”, the outcome of which would “define the decades to come”.
“We must become a more resilient, self-reliant, resourceful, and robust country,” Dutton said, adding that a Coalition government would “revive our national self-confidence”.
Former prime minister John Howard (pictured shaking Peter Dutton’s hand) was among the former leaders to attend the Coalition campaign launch. Source: AAP / Mick Tsikas
He said Australia would become a “nuclear-powered nation” under the Coalition, claiming the technology would lower power prices for consumers — a claim , at least in the short term.
The Coalition would conduct a “full audit” on government spending for Indigenous programs, Dutton said, which would “improve housing, health, education and employment” outcomes.
He said a Coalition government would hold a royal commission into sexual abuse in Indigenous communities. Many groups have said there is .
Dutton said a government he leads will be “committed to ensuring that classrooms are places of education — not indoctrination”, adding that a curriculum that focused on reading, of writing and arithmetic would “become the norm” under a Coalition government.
The Opposition leader said the world faced “uncertain times” and that Australia’s military must be equipped “at speed and scale”, and that the Coalition would “soon announce a significant investment in defence”.
“It’s a necessary investment in our security, in deterring aggression, and in maintaining peace,” he said.
Albanese wants to give young Australians a ‘fair crack’ at purchasing a home
Speaking at a conference centre in Perth, Albanese said $10 billion pledge to first home owners would give young Australians a “fair crack” at purchasing because they would not have to compete with property investors.
“We want Australians to be able to afford a home where they want to live — close to their family, friends, work and community,” Albanese said.
Labor has promised to work with states and territories to use vacant or under-utilised government land to fast-track release and planning approvals to build the 100,000 homes from 2026, with buyers moving in by 2028.
But the pledge comes as Labor faces pressure over its broader pledge to , although it maintains the target can still be met.
From left to right: Home Affairs Minister Tony Burke, Foreign Affairs Minister Penny Wong, former prime minister Julia Gillard, and Finance Minister Katy Gallagher at Labor’s 2025 federal election campaign launch on Sunday. Source: AAP / Lukas Coch
Albanese said the $1,000 “instant tax deduction” for work-related expenses would be help people avoid missing out on claims they’re entitled to and prevent them from paying more tax than they should.
It would be made available from the 2026-2027 financial year, and would give taxpayers the option to claim a flat $1,000 deduction for such expenses instead of itemising individual claims. Those who opt in would not need to keep receipts for expenses under the threshold.
“If you’re in a job where you spend more than $1,000 each year on your uniform or equipment, you can still claim a higher deduction in the usual way,” he said.
Albanese also accused the Coalition of wanting to “mimic” US-style policies.
“Why on earth would we try to mimic anywhere else?,” Albanese said. “We don’t want a wager system where people have to rely on tips to make ends meet. We don’t want Australian students burdened by a lifetime of debt. And we never ever want an American-style health system in this country.”
The Coalition has so far not announced a policy that would increase university fees for domestic students. Labor has pledged to , but it has left the former Coalition government’s — which saw cuts so some degrees and vast increases to others — in place.
The Coalition has also Labor’s $8.5 billion Medicare and $573 million women’s health promises.
