Overview

• In her first major economic address, Sussan Ley said welfare should be tightly targeted and that benefits should not go to high‑income households.
• She vowed to fight Labor’s move toward a universal childcare model being designed with Deloitte, arguing universal subsidies misdirect resources as childcare costs the budget about $16.2 billion this year.
• Ley promised an “unrelenting” cull of duplicative or low‑value programs while saying core health and education would be protected and indicating no intention to reduce the JobSeeker rate.
• She warned government spending will reach 27% of GDP this year and cited forecasts of gross debt near $1.22 trillion by 2028–29, saying emergency‑style settings risk the AAA rating.
• Finance Minister Katy Gallagher criticized the pitch as recycled policies voters rejected, and the Coalition remains split over climate targets after recent internal discipline, including Jacinta Nampijinpa Price’s sacking.