Australia’s federal election is today, 3 May, as Prime Minister Anthony Albanese looks set for a second term after three years in office. The ruling centre-left Labor Party entered the campaign with reasonable accomplishments to tout: a steadily growing economy, modest inflation and consistently low unemployment. Albanese has further strengthened Australia’s standing in the world, with his government committing A$368 billion (£170 billion) to the AUKUS submarine pact with the US and UK. Additionally, he reopened dialogue with China, ending a recent trade standoff. Labor led in late-April polls by roughly 55–45% on a two-party basis. But analysts caution that high living costs and a failed Indigenous recognition referendum have cost Albanese political capital. Voters are mainly concerned about housing affordability, energy bills, and cost-of-living concerns. Meanwhile, global security issues, namely China’s naval ambitions and shifting US alliances, add to the uncertainty. Nevertheless, he has managed to pull away in the opening hours. So who is Albanese, what is he up against, and how important is this election?
Who is Anthony Albanese?
Anthony Albanese, 62, is from a working-class Sydney background—raised by a single mother in public housing on a disability pension—which he says gave him a lifelong concern for fairness and social justice. Colleagues describe him as pragmatic and empathetic: as one Labor MP put it, “there is a lovely softness to him” from growing up poor. His nickname “Albo” and down-to-earth style plays well with voters which goes to explain his personal popularity in polls. In parliament, he served many years and held key posts (including Infrastructure Minister) before becoming Labor leader in 2019. Albanese emphasises consensus and calm leadership; when asked in debate if he was “too soft” for tough times, he replied that “kindness isn’t weakness”.
In office, Albanese has represented stability and continuity, in a country where the Prime Minister rarely wins multiple terms. Seeking a balanced approach, he has managed the budget conservatively, expanding his base to those in the middle class. Simultaneously, he has been able to deliver on core promises such as increasing funding for childcare and wage packets for low-income workers. Moreover, he’s been able to boost defence spending and international security ties. However, global inflation remains a challenge for Australia, and critics say Albanese has been cautious on big reforms. Overall, he is seen as a moderate centre-left leader, driven by personal experience and focused on both pragmatic governance and international cooperation. His main opponent for the upcoming election is Liberal leader Peter Dutton.
Who is Peter Dutton?
Peter Dutton, 54, is the leader of the Liberal-National Coalition, the conservative centre-right opposition to Labor. A former Queensland police officer and small-business owner, he has long represented a “plain-speaking” conservative wing of the party. Dutton served in the previous Scott Morrison government as Home Affairs Minister and as Defence Minister. He is known for his tough stances on crime and borders, championing hardline immigration policies and law-and-order measures for decades. In 2022, he became party leader after Liberal moderates lost several inner-city seats to climate-focused independents. Dutton has since pitched to middle-class suburban voters, promising tax cuts and relief on living costs.
However, Dutton’s campaign has been hampered by his Trump-style image. Critics note that he recently attacked major media outlets as “hate media”—rhetoric that observers immediately compared to Donald Trump. This “Trump effect” has been pronounced: his return to the White House has loomed over the campaign. One expert said Trump is like a “third candidate, ” making it “difficult for Peter Dutton to be seen as an independent figure”.
Polls back this up: after Trump’s tariffs on Australia, Labor surged from trailing by six points to leading by about nine points in early 2025. Likewise, a Lowy Institute survey found voters split on who could handle Trump better (34% for Albanese, 35% for Dutton and 30% undecided). However, they strongly favoured Albanese on China (45% vs. 25% for Dutton) and on foreign policy generally (41% vs. 29%). In short, many Australians are uneasy with Trump-aligned politics, and that wariness has dragged on Dutton’s bid. Even some of Dutton’s own colleagues have warned him that the “Trump brand” is toxic at home.
What are the key issues?
Australians head to the polls primarily concerned about cost-of-living pressures, especially energy bills, inflation, wage growth and housing affordability. National security and geopolitical alliances, notably AUKUS and China relations, have risen in prominence, which plays favourably into Albanese’s bid. Meanwhile, the failed 2023 Voice referendum and climate change have receded in voter priorities. Australia, like many Western democracies, is facing intense cost-of-living pressures, as household budgets remain under strain from soaring energy prices and everyday costs. In late April, the Albanese government extended a A$1.8 billion (£875,000) energy-bill relief package for 2025, from an already initial A$3.5 billion (£1,698,900) subsidy that capped power bills for millions of households. A recent Newspoll found 67% of voters list cost of living as their top concern, up from 59% this time last year.
Working in parallel to this are concerns about housing affordability and inflation. Australia’s housing market remains a “perfect storm” of limited supply and high demand, especially in growth corridors around Sydney and Melbourne. The government has responded with a A$10 billion New Homes Fund to finance 100,000 affordable dwellings. At the same time, the Coalition offers mortgage-interest tax deductions and a temporary halving of fuel excise to ease commuter costs. Yet a Griffith University survey reports that 72% of first-home buyers now expect to rent permanently, underscoring deep pessimism about market access. Inflation remains elevated at 3.1%, above the Reserve Bank’s 2–3% target, keeping interest rates and mortgages higher for longer. GDP grew by 2.5% in 2024 and unemployment fell to 4.1%, figures Labor cites as evidence of sound economic stewardship. Despite this success, Australia’s economy is very much a work in progress. The Coalition has counter-proposed one-off tax cuts and a A$1,000 work-expense deduction. The aim is to boost disposable incomes, and they argue that Labor’s budget-balancing approach is too timid.
Foreign policy has surged up the agenda. Fearful of Chinese maritime assertiveness, Australia has both committed A$368 billion to AUKUS submarines and deepened Quad cooperation with the United States, Japan and India. Dutton, contrastingly, pledges to increase defence spending to 3% of GDP within ten years, positioning itself as the tougher hand against regional threats. A Lowy Institute poll shows 65% of Australians deem the US alliance “vital,” while 48% say China is their top strategic concern. This is moreover under the backdrop of Australia sending significant support to Ukraine in their war against Russia, putting further strain on this sector.
Minor Parties and Independents
Minor parties and independents still hold some sway, but so far they aren’t upending the two-party race as much as some expected. In 2022, a wave of centrist “teal” independents won several Liberal-held seats on climate and integrity platforms. Commentators speculated that this crossbench might grow further. However, estimates now suggest neither Labor nor the Coalition will lose a decisive share to small parties. Labor is still seen as the front-runner, and the Liberals are focused on winning back the affluent inner-city seats lost in 2022. Recent surveys show Labor or coalition candidates leading comfortably in most seats, so another mass independent surge seems unlikely. That said, a fully decisive majority by either major party may prove difficult, with most analysts agreeing a hung parliament remains possible. In that scenario, the Greens and remaining independents, especially those in rural or highly climate-concerned districts, could again hold the balance of power. But for now, voting intentions suggest most Australians are prioritising the Labor vs. Coalition contest, not casting widespread protest votes.
In the last few hours, Albanese has pulled way, making his return almost inevitable. This was not unexpected. Polls in late April gave Albanese’s government a clear lead – one survey had Labor at 55.5% of the two-party vote to the Coalition’s 44.5%. Commentators also said Albanese was “favoured to secure another term”. But the race is not over, and its impact is still unknown. Australians are facing a referendum-style choice between two leaders: Albanese, the cautious consensus-builder, or Dutton, the law-and-order conservative. Their preferences will determine not only who occupies the prime minister’s chair, but also how Australia will navigate rising global tensions and domestic challenges. Regardless of the outcome, in history’s page, let this stage, “Advance Australia Fair”.