The Coalition would allow some people with mortgages to deduct their interest repayments from their income tax if it wins the 3 May election.
It has also announced it will provide $1,200 tax relief for anyone earning between $48,000 and $104,000 in July 2026.
The pitches have come ahead of both major parties’ official campaign launches today.
New mortgage plan
It’s rare for a property to be bought outright. Instead, it requires most people to take a loan (a mortgage) from a bank, which is a combination of a home’s value and interest.
If the Coalition wins the election, first home buyers would be able to deduct their mortgage interest repayments from their income tax.
It would apply to the interest payments earned on the first $650,000 of a mortgage.
Those eligible would need to be have a taxable income of under $175,000, or a taxable income of $250,000 for a couple.
The scheme would be in place for five years, and participants need to live in the home through that time.
Opposition Leader Peter Dutton told supporters at his campaign launch that the mortgage plan would provide cost of living relief and help encourage new housing supply.
Your contribution ensures The Daily Aus can continue doing the work you love.
I want to give $10 monthly to help TDA keep doing the news.
Your details:
Based on the party’s estimates, a family on an average income would be $11,000 a year better off under the tax relief.
Tax cut
The Coalition has also pledged a one-off tax cut for anyone earning up to $144,000.
Anyone earning between $48,000 and $104,000 would be eligible for a $1,200 tax cut in July 2026.
According to the Coalition, roughly half of taxpayers would be eligible for the maximum tax relief.
Those earning under $48,000, or earning between $104,000–$144,000, would be eligible for a smaller, undisclosed amount.
Campaign launches
In Australian elections, the major parties put on large events around mid-way through the campaign trail, known as the “campaign launch”.
The launch is an opportunity for the leaders to address party supporters and lay out major policy pitches.
Prime Minister Anthony Albanese launched Labor’s campaign in Perth, while the Coalition’s event was in Western Sydney.
