Federal election 2025: Liberals vow $40b savings in statement ahead of release of the party's costings
A Liberal Government would undertake 'responsible' budget repair, shadow treasurer Angus Taylor will announce on Thursday, vowing to cut forecast national debt by $40 billion over the next four years.
In a statement ahead of the release of the party's election costings on Thursday, Mr Taylor said Labor had failed to rein in spending and prepare for leaner economic times, flagging the Coalition's savings.
As part of the savings, the Coalition has already committed to cutting $86 billion in spending, including the $20b Rewiring the Nation Fund and the $10b Housing Australia Future Fund.
The release of the cost of the Coalition's promises comes after the Federal Budget in March revealed a decade of forecast deficits, fuelled by Labor's additional $70b in new spending over the forward estimates.
The budget predicted an underlying deficit of $42.1 billion next year, with Federal debt rising above $1 trillion in the 2025-26 financial year, before hitting a new high of $1.2b by June 2029.
Mr Taylor said Labor had delivered the 'longest per-capita recession on record' on top of the biggest collapse in living standards in the developed world.
'That's not bad luck, that's bad management,' he said.
'After raking in almost $400 billion in extra revenue, Labor chose to splurge instead of save, leaving Australians more exposed to the next economic shock.'
'We will rebuild the nation's fiscal buffers, reduce debt, and begin budget repair because that's what economic responsibility looks like.'
Shadow Finance Minister Jane Hume said getting Australia back on track required 'tough choices and real leadership'.
'Labor's decade of deficits is a warning sign — they've ignored the IMF and credit agencies and are gambling with Australia's AAA credit rating. This won't just affect business but would impact all Australians,' she said.
'We can't afford more of Labor's reckless spending. The Coalition will restore discipline, reduce debt, and deliver cost-of-living relief that doesn't fuel inflation.'
Earlier this week, international rating agency S&P Global warned Australia's AAA rating could be under threat as parties wrack up election commitments pile up.
In a report titled 'Hey Big Spender', S&P warned the nation's top tier rating could be jeopardised if election promises resulted in 'larger structural deficits, and debt and interest expenses rising more than we expect'.
S&P raised concern with the continued use of so-called 'off budget' spending, such as the National Broadband Network, Clean Energy Finance Corporation, Snowy Hydro, and Housing Australia. Labor's decision to wipe $16b from student HECS debt also falls into the category.
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