8 Takeaways From One Nation’s Budget Reply

Amid surging support for her party, One Nation leader Pauline Hanson has delivered her own official budget reply speech on the floor of the Senate.

The conservative-leaning leader outlined her vision for Australia including an overhaul of the tax system while taking aim at Labor’s recent budget.

On May 12, Labor handed down its first official budget after winning the May election last year.

It contained sweeping changes to how Australians previously could invest, preserve, and generate passive income.

Labor’s changes include removing the 50 percent capital gains tax (CGT) discount so that those selling investment assets like shares, crypto, and property will be liable for a higher tax.

Another is removing negative gearing from property investments, meaning investors can no longer deduct losses from their property against their taxable income, except for new builds.

While the third major change is a new flat 30 percent tax on income going into a discretionary trust, a legal vehicle often used by families and small business owners to help “split” income and reduce their own tax burden.

High Deficits and Interest Payments

Hanson began her argument on May 14 with data showing worsening government finances.

She said government revenue had risen from $773 billion to $815 billion, while expenses increased from $812 billion to $833 billion.

Hanson said gross interest payments were projected to rise from $27 billion to $40 billion over the forward estimates, while budget deficits were expected to grow by another $100 billion to $1.3 trillion.

She also pointed to nearly 50,000 business insolvencies since Labor came to office, productivity remaining at six-decade lows, and private sector confidence falling to recession-era levels.

Hanson claimed eight out of every 10 new jobs were now being created by government, and that 337,000 households were struggling to pay energy bills.

Hanson Takes Aim at Labor, Coalition Approach to Bracket Creep

Hanson accused Labor of offering only token relief through its proposed $250 Working Australians Tax Offset.

She said the tax relief amounted to less than $5 a week and would be wiped out by bracket creep, where inflation pushes workers into higher tax brackets over time.

One Nation previously proposed linking tax brackets to inflation to stop the issue of “creep,” but this idea did not get support.

Now, Opposition Leader Angus Taylor has committed to a similar policy in his official budget reply.

Under the Coalition’s plan, the two lowest income tax thresholds—covering those earning between $18,201 to $135,000—will be indexed to inflation from 2028–29 so that Australians don’t inadvertently get swept into higher tax brackets.

In response, Hanson accused the Coalition of mimicking her policies, and Labor for making it harder for younger Australians to buy a home or build wealth.

“Young people are not struggling because older generations succeeded. They are falling behind because governments have chosen subsidies and wealth redistribution over allowing free enterprise to flourish.”

She also warned total government liabilities were projected to exceed $1.9 trillion over the forward estimates, calling it an unfair burden on future generations.

GST-Free Building Material for Homes and a Migration Reset

Housing was central to One Nation’s economic pitch. Hanson said the party would remove GST on building materials for homes worth up to $1 million for five years to lower construction costs and improve affordability.

Hanson also linked the housing crisis to high migration, arguing rapid population growth without enough homes was pushing up rents and housing prices.

“This is not about blaming migrants. It’s about recognising limits,” she said.

She accused the government of using migration as a revenue source because of higher visa application fees and pointed to Canada’s migration cuts as an example of how to drive down rents and prices.

Splitting Taxable Income Between Family Members

Hanson also reiterated her “income splitting” policy for families with dependent children.

Under the idea, if one parent earns $120,000 while the other stays at home or earns little income, part of that income can be shifted to the lower-income partner.

In turn, this reduces the overall tax paid by the household—families often do this via trusts, which the Labor government is now targeting.

Hanson estimates her policy could leave some single-income families about $9,500 better off each year.

She also pledged to remove GST from insurance and allow pensioners and veterans to work without losing pension or healthcare benefits.

Axing the Climate Change Department to Save $30 Billion

Hanson said Australia needed stronger domestic fuel reserves, reliable energy systems and sovereign industrial capability.

“We will ditch net zero, exit the Paris Agreement, and axe the Climate Change Department, saving $30 billion in the process. We will back coal and gas and support bringing nuclear power to bring down prices, restore reliability and guarantee national energy security.”

She also promised to fast-track major project approvals, particularly in energy, within six months.

Hanson said One Nation would introduce a new gas policy, which could see the government take a stake in domestic projects and use the returns to pay down government debt.

Hanson also backed an ambitious rail project to link Queensland coalfields to Western Australian iron ore areas.

Ban on Farm Sales to Foreigners

Hanson said agriculture, water and food security should be treated as national security priorities.

“They are national security imperatives in agriculture; we will ban the further sale of controlling interest in freehold farmland to foreign investors and limit the sale of leasehold farmland to a maximum of 25 years,” she said.

Hanson said One Nation would also ban foreign ownership of water assets and backed changes to the contentious Murray-Darling Basin Plan.

The party also backed a modern version of the Bradfield Scheme to provide water across inland Queensland, pledging new dams and water infrastructure.

No More Taxpayer-Funded Welcome to Country

Hanson said One Nation would abolish what she described as divisive race-based programs and cultural departments.

“Help will be given on the basis of genuine need, not race, noble special privileges, equal rights for all and special rights for none,” she said.

“No more taxpayer-funded Welcome to Country.”

Defence and National Security

Hanson said Australia’s defence force should focus on military capability and operational readiness rather than “identity politics.”

She also opposed Labor’s plan to sell historical military bases.