Opposition Leader Promises Tax Bracket Indexing, Migration Cuts and End to EV Incentives

Angus Taylor has delivered his first budget reply as Liberal leader, outlining several major policy commitments. The Coalition said it would index income tax brackets to inflation, a measure that would cost approximately $22.5 billion over four years beginning in 2028-29.

Taylor promised one of the largest reductions in overseas migration in Australian history, bringing annual levels below 200,000. The policy would link future immigration intake directly to the construction of new housing. The Coalition would also prevent migrants and all non-citizens from accessing social welfare support.

Most of these groups already face waiting periods of four years or longer before becoming eligible. Taylor said the party would rein in spending by eliminating the net zero agency, electric vehicle tax breaks and other climate incentives. He added that the Coalition would develop a new national security strategy and appoint a national security adviser.

Labor described the announcements as uncosted nonsense. The party warned that the Coalition could not outdo One Nation on immigration policy. Refugee and migrant groups criticised the immigration proposals. They described the measures as fearmongering and dog-whistling.

Taylor told the audience he was not suggesting problems would be resolved immediately. He said there would nevertheless be a difference at auctions that weekend.

The indexing of tax brackets represents a significant fiscal commitment starting in the 2028-29 financial year. The Coalition framed the move as relief for taxpayers amid ongoing cost-of-living pressures. Plans to scrap the net zero agency and electric vehicle concessions form part of a broader effort to reduce government expenditure on climate-related programs.

These changes would take effect if the Coalition wins the next election.

The proposed migration cut aims to bring annual permanent and temporary arrivals below 200,000. Linking intake to housing supply is intended to ease pressure on infrastructure and accommodation. The appointment of a national security adviser and development of a new strategy reflect heightened focus on defence and border issues.

Further details on implementation timelines were not provided in the speech.