Ley reveals tax cuts, backflips on unpopular policies

Andrew Brown and Grace Crivellaro | October 20, 2025

Opposition Leader Sussan Ley has backflipped on unpopular policies put to voters by her predecessor, outlining plans to cut taxes under a future coalition government.

In a major economic speech in Sydney on Monday, Ms Ley pointed to personal income tax cuts as the centrepiece of the policy offerings she will bring to voters.

While outlining budget repair would be a priority of a Ley government, she emphasised support for work-from-home arrangements, a reversal of the stance taken by former leader Peter Dutton to the last election.

She said future tax cuts would be focused on areas where financial burdens are being felt the hardest.

“I’m conscious … there are a lot of Australians who are battling right now,” she said after her speech to the Centre for Independent Studies. 

“We’ll start where the pressure is greatest: low- and middle-income earners who are feeling the squeeze from higher prices and rising living costs,” the opposition leader said.

“This is not a passing policy preference.”

Ms Ley admitted the coalition made the wrong move in pushing to limit work-from-home arrangements for public servants.

“This is something that we got wrong in the lead up to the 2025 election. And we have listened,” she said.

“We know employers and employees will take a commonsense approach. Different arrangements suit different industries, sectors, businesses and workers.”

The coalition’s policies have been under review since its defeat, with areas such as energy and climate still to be determined amid internal party tensions.

Ms Ley said any economic policy taken to the next election would have a firm focus.

“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,” she said.

“Every instinct in my being tells me that Australians should keep more of what they earn.”

Labor Treasurer Jim Chalmers attacked the coalition, saying it has “no costings, no details and no idea”.

“When we legislated two more tax cuts for every taxpayer, the Liberals and Nationals voted against them and promised to repeal them,” he said on Monday.

“If they won the election and had their way, income taxes would be going up, not down.”

Dr Chalmers accused the opposition of planning “savage cuts to Medicare” – a familiar Labor argument – under its ongoing promise to cut government spending and reduce the budget deficit.

“Labor is the only party delivering tax cuts for every taxpayer, including more tax cuts next year and the year after,” he said.

The opposition leader also used her speech to call for generational fairness for younger Australians and outline priorities in industrial relations.

She said flexibility for workers remained important.

“I want to give Australian workers this assurance: flexibility does not mean stripping away worker protections,” Ms Ley said.

“It means giving workers more choice in how they balance work and life, and giving businesses the ability to test new ideas, attract talent and reward merit.”

Employment Minister Amanda Rishworth called Ms Ley’s policy “very sparse” and said a lot more detail was needed if “any of her positions are to be taken seriously”.

“When it comes to industrial relations, Sussan Ley has got to explain how paying people less will actually lead to greater productivity,” Ms Rishworth told ABC TV.

“They’re allowing for flexibility between employers and employees. 

“But when it comes to multi-employer bargaining, is Sussan Ley saying that she is going to rip up the agreement that is delivering our early educators wage increases?”

Asked whether she thinks the coalition can agree on a net-zero policy amid coalition tensions on the issue, Ms Ley said her party was still focused on developing it while calling out Labor failures.