Labor will spend an extra $7.4billion compared to the Coalition over the next four years if it wins power on Saturday.
The bulk of the difference is due to big spending on childcare, free TAFE, renewable energy and Medicare.
Over the next four years, Labor’s deficits would add up to $231.9bn, roughly $7.4bn higher than Scott Morrison‘s March budget forecast.
Both major parties will take Australia’s debt over $1trillion for the first time ever by 2024.
Labor will spend an extra $7.4billion compared the Liberals over the next four years if it wins power on Saturday. Pictured: Shadow treasurer Jim Chalmers
Labor’s big spending
Cheaper child care: $5.4billion over four years
Strengthening Medicare Fund: $750million
Powering Australia: $1billion
Free TAFE: $800million
Shadow Treasurer Jim Chalmers said the difference between the parties was ‘modest’ and said Labor’s investments would deliver returns down the track.
‘The modest $7.4 billion difference between the two budgets is made up of key investments in childcare, investments in training and education, and investments in cleaner and cheaper energy,’ he said.
Scott Morrison said $7.4billion was ‘a lot of money’.
‘Labor borrowing more, spending more, it puts pressure on interest rates. It puts pressure on inflation. It drives up the cost of living,’ he said.
‘You can vote for the Liberal-National Party team, vote for a strong economy and avoid the risk of a weaker one under a Labor Party that can’t manage money.’
Labor’s costing document – finally released two days before the election – shows $18.9 billion in new spending offset by $11.5 billion in savings.
There are 13 cost-cutting measures including abolishing the regionalisation grant program.
The ALP also claims it will save $400million by scrapping temporary protection visas and letting thousands of refugees stay permanently.
Mr Morrison blasted this policy, saying it would encourage more refugees to arrive illegally by boat.
‘Kevin Rudd thought that work too. And when he abolished temporary visas in August of 2008, what followed was 800 boats, 1200 lives lost and 50,000 people illegally entering Australia. The cost of that was $17 billion,’ Mr Morrison said.
‘They (Labor) an no more manage the borders than they can manage money.’
The ALP’s costings do not account for another $52billion in off-budget spending.
This includes $10billion on social housing, $15billion on manufacturing and $20billion on upgrading the electricity grid.
Anthony Albanese said the extra spending would not stoke inflation – which hit 5.1 per cent in April.
‘What it will do is produce a return. It produces economic activity,’ he said.
Labor will provide 465,000 free TAFE places and 20,000 extra university places under a $1.2billion plan. The Coalition has proposed a $2.4 billion plan to give apprentices in high-demand sectors $5,000 cash payment. Pictured: Sydney tradies.
Mr Albanese has pledged 50 first-aid clinics across the country if he wins the election.
The clinics will treat non life threatening injuries such as broken bones, minor burns, cuts and animal stings and will be open every day between 8am to 10pm.
He has also promised to spend $750 million over four years to improve access to GPs including outside business hours.
Labor will provide 465,000 free TAFE places and 20,000 extra university places under a $1.2billion plan.
The free TAFE places will be for courses in industries with a skills shortages such as trades and construction, resources, digital and cyber security, new energy and advanced manufacturing.
One of Labor’s most significant policies is to increase childcare subsidies for all families earning less than $530,000 – at a cost of more than $5billion over four years.
Mr Albanese would remove a cap that prevents families earning more than $189,390 from receiving more than $10,560 a year in subsidies.
A family on $189,390 that uses childcare five days a week would instead get $21,608 in subsidies, more than double the current allowance.
One of Labor’s most significant policies is to increase childcare subsidies for all families earning less than $530,000. The Coalition has increased the subsidy by 30 per cent for second and subsequent children