Anthony Albanese didn’t just win re-election – he shattered expectations. In a historic show of confidence, voters handed Labor a second term on a scale that surprised even the party’s senior leadership. As Treasurer Jim Chalmers admitted, the result “exceeded Labor’s most optimistic expectations.” Labor priorities second term
This triumph not only underscores public endorsement of Albanese’s leadership but also sets the stage for transformative policy initiatives. The scale of the overachievement – beyond even Labor’s rosiest forecasts – suggests a public appetite for ambition. The electorate is not simply rewarding caution; it is inviting courage. For a Prime Minister once derided as a political journeyman, Albanese has emerged with a historic mandate that demands more than managerial competence.
Labor’s “small target” strategy – careful, incremental, and grounded in managing expectations – may have delivered two elections, but it will not secure a third. The public now expects bolder ideas and deeper reforms that go beyond risk-managed policy tweaks. The second term should not be a period of consolidation, but of conviction. Here’s what Labor must tackle with urgency and clarity:
-
Addressing the Housing Affordability and Rental Crisis
Australia’s housing market continues to suffer from chronic affordability issues, particularly in urban centres. Home ownership among under-35s has fallen to just 34%, according to the Australian Bureau of Statistics (ABS 2023). Comparable countries such as the UK, Canada, and Germany report home ownership rates for under-35s in the 41–47% range. The gap underscores the depth of generational inequality in access to property. While Labor has initiated schemes to boost supply and support renters, much more remains to be done. This includes tackling structural drivers of urban sprawl.
A smarter approach involves: Labor priorities second term
- Incentivising decentralisation of population and industry to regional centres
- Zoning reforms that prioritise schools, jobs, and infrastructure beyond the capital cities
- Offering incentives for institutional build-to-rent schemes
- Enforcing national standards on rental protections
- Expanding support for first-home buyers beyond temporary grants.
2. Reforming the Migration System to Strengthen the Tax Base
Australia faces a demographic cliff and the Australians know it. That is in part why Peter Dutton’s dog whistles on immigration did not work. Employers across the country know how hard it is to find labour right now. The fertility rate has fallen to 1.58 births per woman (ABS 2023), well below the replacement level of 2.1. Meanwhile, over 20% of the population is projected to be aged 65 or older by 2034 (Productivity Commission, 2021), placing immense pressure on the tax base and public services. Skilled migration must be the solution – but it needs to be smarter.
Permanent skilled migrants aged 25–44 contribute $12,000 more per year than the average taxpayer (Grattan Institute, 2022). Yet, our system is clogged with:
- Low-quality education visas and rampant fraud
- Poor regulation of migration agents
- Inadequate vetting that allows importation of foreign political tensions.
To fix this, Labor must:
- Clean up the student visa program urgently even if it means short term pain for the Universities
- Prioritise employer-sponsored and regional migration with the right incentives
- Align skilled visa categories with actual workforce needs.
3. Strengthening the India-Australia Economic Partnership
The economic partnership with India must be reimagined as a national security priority. As of 2024, China accounted for nearly 26% of Australia’s total two-way trade (goods and services), while the United States accounted for 10%. India, by contrast, made up just over 4%. Australia’s trade exposure is heavily concentrated towards China and the US, making diversification urgent not only for economic resilience but strategic autonomy (DFAT 2024).
To reduce strategic dependence on China and the US, Australia must:
- Deepen two-way trade and investment with India while avoiding the minefield of religious sensitivities that dominate Indian politics.
- Establish joint ventures in critical minerals, clean tech, and manufacturing
- Push for greater market access for Australian products and services.
- Leverage the Indian diaspora not just to import Indian goods into Australia, but to champion Australian exports and partnerships within India – transforming cultural ties into commercial advantage.
India applies a clear hierarchy in its foreign relations. Its recent standoff with Canada contrasts starkly with its deepening strategic and economic ties with countries it views as serious partners, such as the US, and Japan. It is difficult to imagine India embedding a sophisticated ‘nest of spies’ in Washington, as it allegedly did in Australia – a claim that further underscores the asymmetry in India’s treatment of its international counterparts. For Australia to be taken seriously, it must project itself as an independent and strategically minded partner – willing to invest in the relationship on terms that resonate with a rising, self-confident Indian Republic.
4. Advancing Reconciliation with First Nations Peoples
While the failed Voice to Parliament referendum was a political setback, the cause of reconciliation cannot be shelved. Albanese, once a fiery idealist, has matured into a pragmatist, wary of stoking culture wars.
But nation-building demands moral clarity. Labor must:
- Recommit to key elements of the Uluru Statement
- Fund local truth-telling and treaty processes Labor priorities second term
- Ensure structural change in Indigenous health, education, and justice outcomes.
The crushing defeat of the Voice Referendum made him too careful. I have a feeling he got over that on the momentous night of May 3.
Conclusion
Albanese has the trust, the numbers, and the mandate. But history won’t remember the scale of his victory – only what he chose to do with it. Housing, trade, reconciliation, and migration are not mere policy choices – they are existential questions for the Australia we wish to build. Labor priorities second term
The time for incrementalism is over. The second term must be bold.
READ ALSO: Australian voters heeds US warning
