Labor Aims for $6.4 Billion in Budget Cuts; Student Visa Fees Set to Increase
A primary objective of the Labor government is to reduce consultancy expenditures and increase in-house work within the public service.
With only four days remaining until the polls close, the Albanese government has revealed its election costings, committing to $6.4 billion in new savings.
These savings will come from cutting consultant contracts and expanding in-house capabilities in a strengthened public service, as well as increasing student visa application fees from $1,600 to $2,000 starting July 1.
This move is projected to generate $760 million, with primary applicants from Pacific Island nations and Timor-Leste retaining their current arrangements.
Labor’s budget plan, titled Building Australia’s Future, indicates that the reduction of consultants alone is expected to save $800 million in 2025–26, escalating to $1.6 billion the next year, and reaching $2 billion annually thereafter.
The proposal for a nationwide 24/7 health advice and after-hours GP telehealth service, supported by Medicare, will incur a cost of $204.5 million over four years.
Labor has stated that all election pledges have been analyzed by the Australian Public Service (APS).
“The budget is in a better position at the end of the campaign than it was at the start,” remarked Treasurer Jim Chalmers.
The strategy is projected to enhance the budget by an additional $1 billion compared to the 2025 Pre-Election Economic and Fiscal Outlook.
Finance Minister Katy Gallagher asserted that the initiative to save won’t compromise service quality or result in job reductions.
“In our first term, we have identified roughly $5.3 billion in savings in these areas,” Gallagher explained.
“Thus, this continues that trend, and we are confident that we can achieve these savings without significantly affecting the services and programs provided by the APS.”
Shadow Treasurer Angus Taylor criticized the government’s overall economic management and pointed out S&P ratings agency’s latest caution regarding Australia’s economic perspective.
“There is a more effective path. We can restore the budget to a healthy state. We can revitalize the economy. That’s our commitment, and we will keep advocating for it,” he stated.
Labor has urged the Coalition to disclose its own financial plans, which it has promised to reveal later this week.
