Sussan Ley, the new opposition leader, plans to address Australia's reliance on welfare and universal government subsidies in her first major economic speech. Ley aims to restore her party's conservative economic reputation following the last election, where the Liberal Party's budget projections were less favorable than Labor's for the next two years. This situation arose from numerous costly promises related to the cost of living.

In her speech at the think tank CEDA, Ley will emphasize that the government "cannot, and should not, shield everyone from every cost of living pressure by writing a cheque." She will also highlight that it has become politically sensitive to suggest that not everyone deserves government benefits. Ley argues that this "time of dependency" has weakened "our national character."

While her speech will not include major policy announcements, Ley's comments indicate a desire to uphold the Coalition's fiscal rules. These non-binding rules limit the federal government's tax revenue to 23.9 percent of the economy, a threshold that has not been surpassed since the Howard government.

Ley will advocate for "targeted" welfare and spending programs instead of universal ones. Historically, Australia's welfare system has been focused on those in need, with benefits like unemployment assistance and the age pension available only to low-income individuals. However, recent initiatives, such as the National Disability Insurance Scheme (NDIS) and expanded childcare subsidies, have provided support to a broader range of recipients, regardless of their financial situation. This shift has drawn criticism from various economic think tanks, which have noted a growing "culture of dependency."

In her speech, Ley will reference a report indicating that over half of the population relies on government support for most of their income, a statistic that includes retirees and public sector workers. She will stress that while she does not plan to cut funding for health or education, she will focus on eliminating "low-value" government programs. Ley aims to promote self-reliance by helping individuals transition off welfare.

Continuing a theme from the Dutton opposition, Ley will criticize the current level of government spending, which stands at 27 percent of GDP this financial year, the highest outside of crisis periods since the 1980s. She will argue that the country is operating a peacetime economy under emergency fiscal conditions, which is unsustainable.

Labor has taken steps to manage the rising costs of aged care and the NDIS, receiving bipartisan support for these measures. Ley has also expressed her intention to contain NDIS costs and has ruled out reducing the JobSeeker unemployment payment, which is currently below the poverty line. The Coalition had previously suggested spending cuts, including reducing public service jobs, but all election policies are currently under review. Additionally, the Coalition has called for a significant increase in defense spending.