Opposition Leader Angus Taylor has pledged to overhaul Australia’s welfare system by restricting a broad range of taxpayer-funded benefits to Australian citizens, unveiling one of the Coalition’s toughest policy platforms on migration and social services in recent years.

Delivering his first Budget Reply speech as Liberal leader, Mr Taylor said a future Coalition government would adopt an “Australians First” approach, arguing that taxpayer-funded welfare should primarily benefit those who have become Australian citizens.

“If you commit to Australia, Australia will commit to you,” Mr Taylor told Parliament, framing the proposal as a restoration of what he described as a long-standing national principle rather than a withdrawal of Australia’s humanitarian obligations.

Under the proposal, future access to 17 welfare payments and benefits—including JobSeeker, Youth Allowance and the Family Tax Benefit—would be limited to Australian citizens from 1 July 2028. The Coalition also proposes restricting future eligibility for the National Disability Insurance Scheme (NDIS) to citizens, while maintaining existing recipients under grandfathering arrangements.

The policy would also apply to the federal government’s First Home Buyer 5% Deposit Scheme, with the Coalition arguing that taxpayer-funded housing assistance should likewise be reserved for Australian citizens.

Mr Taylor said many Australians were unaware that some non-citizens can currently qualify for certain government assistance programs after meeting residency and eligibility requirements. He argued that the Coalition’s reforms would reinforce the distinction between permanent residency and citizenship while encouraging migrants to complete the citizenship process.

The Opposition says the proposal is not intended to affect everyone currently receiving benefits.

According to the Coalition’s policy, existing recipients would continue receiving support, while humanitarian entrants, emergency assistance programs, domestic violence services, child protection services and Australia’s existing international social security agreements would remain protected. Eligible New Zealand Special Category Visa holders covered under current NDIS arrangements would also retain existing access.

Mr Taylor presented the proposal as part of a broader economic platform designed to reduce government spending, ease pressure on public finances and restore what he described as fairness for Australian taxpayers.

His Budget Reply outlined seven major commitments, including indexing income tax brackets to inflation through a “Tax Back Guarantee”, linking future migration levels to housing construction, establishing a Future Generations Fund to reduce public debt, and tightening migration compliance by increasing action against visa overstayers.

The welfare proposal quickly became one of the speech’s most discussed measures because it represents a significant shift in the Coalition’s approach to migration and social policy.

Supporters argue that access to taxpayer-funded welfare should follow citizenship rather than permanent residency, particularly at a time when Australia continues to face cost-of-living pressures, rising government debt and increasing demand for public services.

Coalition figures say the policy would save taxpayers billions of dollars over time, although the Opposition has not released a detailed costing for every component of the package.

The Albanese government has strongly criticised the proposal.

Labor ministers argue that many permanent residents already face waiting periods before becoming eligible for Commonwealth benefits and contend the Coalition is overstating the extent to which recent migrants can immediately access Australia’s welfare system.

Critics also argue that permanent residents contribute income tax, GST and other government revenue while living and working in Australia, and that many provide essential services in sectors including healthcare, aged care, education and regional industries.

Advocacy groups have warned the proposal could create uncertainty for skilled migrants considering long-term settlement in Australia, while refugee organisations argue access to certain support services remains important during the settlement process.

The Coalition rejects those criticisms, insisting its proposal specifically protects humanitarian entrants and existing recipients while focusing future eligibility on citizens.

Mr Taylor argues that the reforms are intended to strengthen the value of Australian citizenship rather than discourage skilled migration.

The welfare announcement also forms part of a broader strategy to distinguish the Coalition from Labor ahead of the next federal election.

Alongside welfare reform, Mr Taylor committed to tying annual migration levels to housing construction, arguing Australia should not admit more people than the country can reasonably house. He also pledged to remove what he described as unnecessary bureaucracy, scrap several climate-related tax concessions and pursue measures aimed at reducing government spending.

Political analysts say the Budget Reply signalled a more assertive Opposition seeking to regain support after the Coalition’s election defeat.

The speech placed migration, housing affordability, government spending and welfare eligibility at the centre of the Coalition’s political message, areas where Opposition strategists believe public concern has continued to grow.

Whether the proposed welfare restrictions ultimately become law would depend on the Coalition winning government and securing parliamentary support for the necessary legislation.

In the meantime, the announcement has already intensified debate over how Australia balances fiscal sustainability, migration policy and the role of citizenship within the country’s social safety net.

For supporters, the proposal reinforces the principle that publicly funded welfare should primarily benefit Australian citizens who have formally committed to the nation. For opponents, it raises questions about the treatment of permanent residents who pay taxes, contribute to the economy and may spend many years building their lives in Australia before becoming citizens.

As the federal political contest intensifies, the Coalition’s “Australians First” welfare platform is likely to remain one of the defining policy debates leading into the next election.