Policy Comparison:
Liberal vs Labor
A comprehensive analysis of the major parties' policy positions for the 2025 federal election.
Economy & Cost of Living
The economic policies of the major parties reflect their different philosophies on taxation, government spending, and the role of the state in managing the economy.
Liberal-National Coalition Approach
The Coalition's economic platform centers on lower taxes, reduced government spending, and support for business growth.
- Tax Relief: One-off Cost-of-Living Tax Offset of up to $1,200 for individuals earning up to $144,000
- Fuel Costs: Cut fuel excise by 25 cents per liter for 12 months (saving approximately $750 per vehicle owner per year)
- Small Business: Reinstate $30,000 instant asset write-off for small businesses permanently
- Spending Cuts: Promise to cut $100 billion from Labor's spending measures
Australian Labor Party Approach
Labor's economic agenda focuses on targeted tax relief for lower and middle-income earners, investment in renewable energy, and support for local manufacturing.
- Income Tax: Tax cuts to lower income thresholds: reduce rate from 16% to 15% (mid-2026) and then to 14% (2027)
- Work Expenses: $1,000 tax deduction for workplace expenses on annual tax return without documentation
- Energy Relief: Additional $150 energy bill relief for all households and 1 million small businesses
- Local Manufacturing: Investment in local manufacturing through Future Made in Australia Act
Key Election Issues
The 2025 election comes amid rising cost of living pressures, with both major parties offering different approaches to tackling inflation and economic growth. The Coalition emphasizes immediate tax relief and spending cuts, while Labor focuses on targeted relief and strategic investments.
Detailed Policy Comparison
Policy Area | Liberal-National Coalition | Australian Labor Party |
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Tax Relief |
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Government Spending |
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Small Business |
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Industrial Relations |
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