Delivering cost of living relief

An elected Dutton Coalition Government will deliver a Cost of Living Tax Offset to more than 10 million taxpayers as part of our plan to get Australia back on track.

Our Cost of Living Tax Offset will put more money back into the pockets of millions of Australians at a time when they’re being crushed by skyrocketing grocery bills, rent, electricity bills, mortgage repayments and insurance costs.

The one-off Cost of Living Tax Offset will provide low and middle income earners a benefit of up to $1,200 when they lodge their tax returns for the 2025-26 financial year.

Frequently asked questions

What is the Cost of Living Tax offset?

The one-off Cost of Living Tax Offset will provide low and middle income earners a benefit of up to $1,200 when they lodge their tax returns for the 2025-26 financial year.

This means that dual income households on average incomes will receive $2,400 in cost of living support.

Unlike Labor’s tax cuts, our Cost of Living package is designed to provide significant and targeted near-term relief to those households that have been hit hardest under Labor’s homegrown cost of living crisis.

Who is eligible and how much can I save?

More than 10 million Australian taxpayers – around 85 per cent of taxpayers – will benefit from the Coalition’s Cost of Living Tax Offset.

Eligible Australians earning up to $144,000 will be able to receive up to $1,200 in tax relief when they lodge their tax return for the upcoming financial year.

Around half of all taxpayers will receive the maximum offset of $1,200.

Taxable (or assessable) income	Benefit
$37,000 or less	Up to $265
$37,001 to $48,000	$265 plus 8.5 cents for every dollar above $37,000
$48,001 to $104,000	$1,200
$104,001 to $144,000	$1,200 minus 3 cents for every dollar above $104,000

Do I need to apply?

No, you will receive the Cost of Living Tax Offset automatically when you complete your tax return. 

Why is it a temporary measure? 

The Cost of Living Tax Offset will provide targeted and timely support for household budgets while we implement our positive plan to get inflation down and our economy back on track. 

Our plan includes: 

• reining in wasteful spending to sustainably beat inflation;
• fixing our energy and housing markets;
• boosting investment and rebuilding small business; and
• repairing the budget for a stronger nation.

Why is this important?

Australians are doing it tough under Labor’s home grown inflation and cost of living crisis.

Costs are up under Labor – health 10%, food 13%, rent 18%, and gas and electricity both up over 30%.

The Coalition will deliver vital support for families now, while we implement our plan to get Australia back on track, with a strong economy, low inflation, cheaper energy and affordable homes.

What else is the Coalition doing to directly support household budgets?

Under our plan hard working Australians get immediate fuel tax relief, saving you 25 cents a litre every time you fill up. A household with two cars will save around $1,500 in a year.

Our plan, including the Cost of Living Tax Offset and the halving of the fuel excise, delivers the typical household 7 times the amount of support provided by Labor through to the middle of 2027, with the cut to the fuel tax starting around 12 months earlier.

In addition, an elected Dutton Government will deliver meaningful and ongoing cost of living relief for Australians by:

• Reining in wasteful spending that fuels inflation. With low inflation, we will reduce pressure on interest rates.
• Delivering cheaper medicines and record Medicare funding to ensure all Australians can afford to see a doctor.
• Lowering energy costs through a balanced energy mix, including more renewables and more gas. Our National Gas Plan will make more gas available for Australian businesses and consumers.
• Providing tax relief to small businesses, including increasing the instant asset write-off to $30,000 and making it permanent, and introducing a deduction for two years for business related meal expenses.