Ley to Offer Tax Cuts, Limit $4.4 Billion of Red Tape in Economic Plan

Opposition Leader Sussan Ley has revealed parts of her economic agenda pledging to cut red tape, while cutting “personal income tax cuts” at the next federal election.

“Today I announce that at the next election the Coalition will take to the people a plan for personal income tax cuts,” Ley told the Centre for Independent Studies in Sydney.

Ley set out her strategy to restore the Coalition’s economic credentials following weeks of internal tension.

“We’ll start where the pressure is greatest—low and middle-income earners who are feeling the squeeze,” said Ley, who said her platform would draw from the Howard-era, focusing on lower taxes and smaller government size.

“Every time we say no to Labor’s waste, we will look first to return those savings to taxpayers or to strengthen the nation’s finances.”

Ley cited Treasury forecasts showing government spending had reached 27 percent of GDP—the highest level since the late 1980s outside the pandemic years.

When former Prime Minister John Howard left office in 2007, she said, the average worker paid 22.3 percent of income tax, compared with 24.3 percent today under Labor.

The speech marks a shift from the Coalition’s stance under former leader Peter Dutton, who had vowed to scrap Labor’s $536-a-year “top-up” tax cut.

Appeal to Youth

Ley argued that both government and households must “live within their means,” warning that excessive spending risks long-term intergenerational inequity.

She drew on findings from the Parliamentary Budget Office, which projected the average tax rate could climb to 27.7 percent by 2035–36 as excise revenues fall and deficits persist.

Ley said the Coalition would present a “plan for personal income tax cuts and budget repair” by ensuring savings were directed toward taxpayers rather than expanding programs.

In a direct pitch to young voters. Ley said “millennials and Gen Z are Australia’s new forgotten generation.”

“Our duty is to safeguard their opportunities, not saddle them with debt.”

Labor Accused of Introducing 5,000 New Regulations

Ley has pledged to overhaul Australia’s regulatory system.

“One of the fastest ways to boost investment and productivity is to clear the clogged arteries of regulation that are strangling projects and entrepreneurship,” she said. “Our goal is simple: bring down the absurd delays and give investors and communities the certainty they need, crave and deserve.”

She argued that overlapping federal and state approval processes must be streamlined so projects meeting environmental and safety standards are not left “in limbo for years.”

Ley accused the Albanese government of presiding over a record expansion of regulation, saying Labor had introduced more than 5,000 new regulations and 400 laws, adding at least $4.4 billion in compliance costs since taking office.

Australia now has over 1,200 Acts of Parliament, compared with just over 1,000 in New Zealand and fewer than 900 in Canada, despite Canada’s population being larger by 14 million people.

Ley said the Coalition would impose strict cost-benefit tests and sunset clauses on new rules, warning that “six out of every seven bills” currently pass Parliament without an impact assessment.

Tackling Labor’s Workplace Laws

The opposition leader also used the address to take aim at Labor’s workplace reforms, describing multi-employer bargaining laws as a “handbrake on productivity.”

“Labor’s restrictive industrial relations changes are acting as a handbrake on productivity,” she said. “Multi-employer bargaining laws are threatening small businesses with conditions they cannot afford.”

She said the Coalition would “chart a different course,” supporting enterprise-level agreements that reward performance and allow flexibility.

“We believe in enterprise-level bargaining—where businesses and their staff can strike agreements that reward higher performance and suit their circumstances—rather than industry-wide decrees,” she said.

Ley also backed modern work practices, including remote and flexible arrangements.

“We believe in options like flexible hours, remote work arrangements, and modern award structures that reflect today’s digital economy,” she said.

Support From Morrison

Former Prime Minister Scott Morrison praised Ley’s remarks, saying her focus on enterprise echoed the Coalition’s founding principles.

“She was making some very important points about what type of economy we want to have,” Morrison said.

“Do we want an economy driven by the hard work and enterprise of Australians, or one enabled by the rent of government? Australians have big choices to make, and I think Sussan is laying those out very well.”