Australian Greens propose tax cut and welfare boost as leadership sharpens challenge to Labor

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Greens propose tax and welfare boost

Highlights

Greens propose raising the tax-free threshold from A$18,200 to A$26,000, offering personal income taxpayers up to A$21 per week in tax cuts.
The package, costing A$22 billion annually, would also increase income support payments by the same amount, funded by unfinalized resource sector tax plans including a proposed 25% gas export tax.
Parliamentary Budget Office warns the welfare boost may reduce work incentives as the A$1,092 increase could be lost entirely once means-tested payment thresholds are exceeded.

Policy launch and funding plan

As reported by ABC News, Shoebridge is set to use a National Press Club speech on Wednesday to propose lifting the tax-free threshold from A$18,200 to A$26,000, delivering a tax cut of up to A$21 a week for all personal income taxpayers. The Greens also want to add the same amount to income support payments, including JobSeeker, student and carer payments, and the Age Pension.

The party says the package would cost the federal budget A$22 billion a year, citing the independent Parliamentary Budget Office. Shoebridge is arguing the measure can be funded by capturing what he calls "rivers of gold" from gas and mining companies, although key parts of that revenue plan remain undeveloped.

The Greens' proposed 25% gas export tax, adapted from The Australia Institute, has not been costed by the Parliamentary Budget Office. Shoebridge is also citing Australia Institute analysis suggesting a gas tax could raise A$17 billion a year, while a separate claim of A$28 billion from mining-related taxation draws on Prosper Australia estimates that are described in the source text as a broad calculation rather than a detailed federal model.

Political strategy and policy risks

The announcement forms part of Shoebridge's attempt to differentiate the Greens more sharply from Labor after taking over the leadership. Internal debate has continued since the party recorded a 12% primary vote in the 2025 election and lost three lower house seats, with some figures favouring a more cooperative stance toward Labor and others pushing for a more confrontational approach.

Shoebridge's early period as leader is also being overshadowed by allegations against senator Jordon Steele-John, which he denies, and by reported tensions over Ukraine policy with leadership rival Sarah Hanson-Young. Those issues are disrupting a broader reset that some Greens supporters hoped would revive the party's momentum.

The economic package itself may also face scrutiny over design details. The Parliamentary Budget Office notes the welfare increase may discourage some recipients from working additional hours because the payment would not be means-tested separately, meaning eligible recipients could lose the full A$1,092 once they move past the threshold for their existing welfare payment.

In our earlier article on Malaysia’s Budget 2027 spending growth ahead of the next general election, we outlined how federal allocations rose to RM459.8 billion and why post-election budgets have historically tended to climb further. We also noted the key drivers behind the higher outlays—election preparations, minimum wage implementation, tourism promotion, and SEA Games planning—along with the resulting fiscal pressures and questions about deficit management.

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