Federal Election 2025: Prime Minister Anthony Albanese doesn't rule out raising taxes amid decade of deficits and soaring debt

Sky News AU

01-05-2025

Prime Minister Anthony Albanese has refused to rule out raising taxes if re-elected, as he also declined to commit to achieve another budget surplus.
Although the Albanese government recently legislated meagre tax cuts taking effect in 2026, Mr Albanese was unable to rule out increasing taxes after the election.
He was pressed repeatedly by Sky News on whether voters could expect new or increased taxes under a re-elected Labor government.
'Well, what we've got… is our policies out there for all to see,' Mr Albanese said on Thursday.
'What we've got out there is lower taxes, lower interest rates and at this election there is a real choice: lower income taxes under Labor or higher income taxes under the Liberals.'
Mr Albanese ruled out changes to negative gearing, while the government has been rumoured to be eyeing potential changes to taxes on trusts in a bid to increase tax revenue.
The federal budget has faced increasing strain, with national debt projected to top $1.2 trillion within two years and deficits expected to persist through the decade.
When asked directly whether he had "given up on ever delivering another surplus," Mr Albanese avoided making any firm commitment.
'The last election, I didn't promise to deliver a surplus and we delivered two,' he said, referring to the tow surpluses delivered during his term.
'This year's deficit is $27 billion, but that's almost half of what was anticipated.'
Despite the improvement, Treasury forecasts show deficits continuing into the foreseeable future—including $180 billion in deficits over five years.
The government's net debt has been expected to rise by $300 billion over the next three years, making interest payments one of the largest federal expenses.
Meanwhile, Mr Albanese defended his government's fiscal record, pointing to budget savings and avoided interest payments.
'We have cut the budget bottom line. We've made it $208 billion better,' he said.
'Australians have saved $60 billion in interest payments as a result of the measures that we've put in place.'
But when pressed again on the long-term outlook, he was unable to say if he would ever achieve another surplus.
'What I won't do is speculate. What I will do is say that we've been responsible economic managers and we'll continue to do so,' he said.
The Coalition released its election costings on Thursday, promising to improve the Albanese government's budget deficit by $10 billion.
The costings outline a suite of savings measures aimed at reversing what the Coalition claims is Labor's 'decade of deficits' and spiralling national debt.
Opposition Leader Peter Dutton has committed to eliminating billions of dollars of the Albanese government's spending to improve the budget.
These include scrapping the $20 billion Rewiring the Nation fund, $10 billion Housing Australia Future Fund and $14 billion in green hydrogen production tax credits.