Labor has revealed its policy costings showing it would spend $7.4 billion more than the Coalition if elected, but says spending is focused on delivering "bang for buck."
The deficits compare to those outlined by the Coalition outlined in the March budget, but the Coalition has promised to save another $1 billion since then.
The Opposition also said it has found $11.5 billion in budget improvements that it argues would offset the majority of its election spending commitments.
Labor's Treasury spokesman Jim Chalmers said the economy posed the “trickiest” conditions that would be inherited by an incoming government since World War Two.
“The choice at this election is clear, a better future or more of the same,” he told reporters in Canberra.
“A more responsible budget, stronger economy, and a better future under Labor."
Labor has promised 13 savings measures, including cracking down on multinational tax avoidance as well as "waste, rorts and mismanagement."
Other measures would also include imposing increased penalties on businesses that engage in anti-competitive behaviour.
Mr Chalmers said Labor's added spending is focused on investments in childcare, training and education as well as investments in the transition towards renewable energy.
"Where you get the best bang for buck is in areas like childcare, like training, like energy and that’s what we’ve gone for here," he said.
"The extra investment we are making, these decisions are not taken lightly."
The policies also $407 million over the forward estimates dedicated towards abolishing temporary protection visas (TPVs).
TPVs are currently issued to asylum seekers who arrive in Australia without a visa and are subsequently found to be owed protection.
They can last for up to three years, and the holders of TPVs are allowed to work and have access to Medicare.
Labor's Finance Minister Katy Gallagher said under their costings about 19,000 people on the visas would have these abolished and be shifted onto permanent visas.
"Under the new visa subclass it would provide allow the same support as under existing visa," she said.
"The would be entitled to work, access medicare, income support, English langauge tuition and also trauma and counselling services."
Some of Labor's key commitments, costed over four years:
- Abolish TPVs and SHEVs (Safe Haven Enterprise Visa) and create a new permanent visa - $407 million
- Anti-racism Strategy - $7.5 million
- Improving the Adult Migrant English Program - $20 million
- National Anti-Corruption Commission - $40 million
- 20,000 More University Places - $523.8 million
- Cheaper Child Care - $1.8 billion
- Community Language Schools - $15 million
- Plans for the NDIS - 33.2 million
- Robodebt royal commission - $30 million
- Implementing Uluru Statement from the Heart - $27.7 million
- Boosting Australian Development Assistance to the Pacific - $538.2 million
- Fixing the "Aged Care Crisis" - $1.3 billion
Another $7.5 million would also be directed towards the creation of an anti-racism strategy and $20 million towards improving the adult migrant English program.
Labor has also justified spending on community sport and infrastructure projects during the campaign, after years of criticising government grants as rorting and pork barrelling.
"I don't think anyone expects you to go through a campaign and not make commitments," Senator Gallagher said.
"We are being upfront and clear and accounting for the costs."
The Morrison government released its policy costings on Tuesday, revealing it had made $2.3 billion in spending promises since the beginning of the election.
It also said proposed cuts to the public sector through an efficiency dividend would deliver $3.3 billion in savings, helping improve the budget bottom line by $1 billion.
Labor's budget deficit for the 2022/23 financial year will be $79.1 billion.
This compares with the $77.9 billion as forecast in the pre-election economic and fiscal outlook independently produced by the departments of Treasury and Finance in the early days of the campaign.
The Coalition’s cumulative deficits are predicted to reach $223 billion over the next four years.
Coalition attacks costings as 'riddled with holes'
The release of Labor's costings came as the Australian Bureau of Statistics released data showing the unemployment rate remained at 3.9 per cent in April.
Prime Minister Scott Morrison said job results showed the government's economic plan "is working because Australians are working".
He also took aim at the release of Labor's costings, as the Coalition attempts to contrast its approach to the economy with the Opposition to boost its electoral prospects.
"What they are going to do is increase the deficit by $7 billion. When we released our costings, we were reducing the deficit by $1 billion," he said.
"What we have always seen from the Labor Party is when they can't manage money."
Labor’s spending has either been costed through the Parliamentary Budget Office, are capped commitments or aligned with government policy costed by Treasury and the Department of Finance.
But Finance Minister Simon Birmingham attacked the costing document, claiming that it would require Australians to pay for higher debt under Labor.
"It's a costings document that as flimsy as they possibly can. It's a costings document, riddled with holes," he said.
Opposition leader Anthony Albanese defended the policy costings as fiscally responsible.
"This is the most wasteful government since Federation," he said.
"This government has spent more, it's borrowed more and taxed more than the previous Labor government."
