Australia set to hold general elections on May 3: What are key issues for voters? Explained
As Prime Minister Anthony Albanese's centre-left Labour Party is seeking a second, it faces a crucial test amid economic concerns, rising living costs, and policy debates that could define the nation's future.
The general elections in Australia are set to be held on May 3 as Prime Minister Anthony Albanese's centre-left Labour Party seeks a second three-year term. On Friday, Albanese reached Governor-General Sam Mostyn's official residence to formally trigger the election before making the announcement at a news conference at Parliament House. Addressing the nation, the Prime Minister acknowledged the challenges faced in recent years but emphasised his government's commitment to tackling global uncertainties.
"Over the last few years, the world has thrown a lot at Australia. In uncertain times, we cannot decide the challenges that we will face, but we can determine how we respond," Albanese stated, as per the Associated Press (AP). He also weighed on Labour's focus on easing cost-of-living pressures while laying a strong foundation for the future. As the campaign unfolds, opposition leader Peter Dutton's conservative coalition is expected to gain ground in the House of Representatives.
From inflation to housing shortage: Major issues for voters
As per reports, the upcoming elections in the country are likely to be dominated by the soaring cost of living, the economy, energy and China. With affordable housing in short supply and interest rates remaining high, voters face a stark choice between two parties deeply divided on how to transition the nation’s energy sector away from fossil fuels. The country has endured one of the sharpest rises in the cost of living in recent history, with the current Labour government overseeing some of the toughest economic conditions. According to government data, egg prices surged by 11% last year, while beer prices rose by 4%. Meanwhile, property analyst CoreLogic reported that Australian rents climbed 4.8% in 2024, following an even sharper 8.1% spike in 2023.
Inflation has forced several construction firms out of business, further tightening the already limited housing supply and driving rental prices even higher. While the government has rolled out tax cuts and subsidies for rent and energy bills, critics argue that its spending policies have contributed to stubbornly high inflation.
On energy policy, both major parties in the country agree on achieving net zero emissions by 2050 but propose drastically different roadmaps. The opposition has pledged to construct seven government-funded nuclear power plants, with the first expected to be operational by 2035. The government, however, argues that Australia's aging coal and gas-fired generators will not last long enough to bridge the gap until nuclear energy becomes viable. Instead, it aims to have 82% of the nation's energy grid powered by renewables -- such as wind and solar -- by 2030.
The opposition contends that the government's aggressive shift toward renewables is unrealistic and could deter investments in clean energy technologies. Labour came to power in 2022 with a commitment to slash Australia's greenhouse gas emissions by 43% below 2005 levels by the end of this decade. With energy policy set to be a defining issue of this election, the outcome could determine the country's path toward a sustainable future—or a return to more traditional energy sources.
Albanese govt seeks second term
Historically, Australian governments rarely lose power after just one term—something that hasn't happened since 1931 during the Great Depression. However, second-term elections often see ruling parties lose seats. Labour currently holds a slim majority with 77 seats in the 151-seat House of Representatives. Redistributions mean there will be only 150 seats after the next election. One likely outcome is a minority government supported by independent or minor party legislators. The 2022 election brought a record 19 lawmakers who were not aligned to either the government or the opposition into the Parliament. Unaligned lawmakers could be crucial to whether Labour or Dutton's conservative Liberal Party forms Australia's first minority government since the 2010 election.