Fiscal Policy, Defence Properties

Darmanin disputed the opposition's claims, stating that expenditure relative to GDP reached a high of 31.4 per cent during the Morrison government and had fallen to 24.4 per cent by 2022-23. Darmanin highlighted that the government had found $114 billion in savings and delivered a $233 billion budget improvement over three years, reducing debt to $176 billion. Darmanin argued that the Howard government was the highest-taxing in modern history, with tax take reaching 24.2 per cent of GDP in 2005-06. Darmanin also noted that the Coalition opposed recent tax cuts and proposed higher personal income taxes.

Smith argued that the government's economic management had led to rising energy costs, inflation, and interest rates, describing this as a trifecta of trouble for families. Smith cited statistics showing that power bills rose by 19.9 per cent in the 12 months ending November 2025 and that inflation had risen to 3.8 per cent, outside the Reserve Bank's target band. Smith claimed that government spending was growing at four times the rate of economic growth, reaching 26.2 per cent of GDP in 2025-26. Smith suggested that the government's own minister had acknowledged the need to repair the budget due to excessive spending.

Dolega criticised the previous government's WorkChoices reforms, stating they resulted in pay cuts and loss of loadings for many workers. Dolega highlighted current government measures to reduce cost-of-living pressures, including capping PBS scripts at $25 for most and $7.77 for pensioners. Dolega noted the establishment of Medicare mental health centres and urgent care clinics in Tasmania, which allow access without out-of-pocket costs. Dolega also mentioned supporting a 15 per cent wage rise for aged-care workers and increasing public sector wages.

Price argued that the government had deceived the public regarding historical debt levels, claiming the Coalition left $516 billion in net debt rather than the trillion dollars alleged by Labor. Price stated that $343 billion of that debt was for pandemic measures that saved businesses and jobs. Price criticised the government for omitting the context of the pandemic when citing inflation figures and for failing to deliver on promises regarding power bills and housing. Price warned that current spending levels would result in $1.2 trillion of debt before the next election.