CANBERRA – Anthony Albanese has secured a second term as Australia’s prime minister, leading Labour to a bigger majority. The win comes after a close campaign focused on rising living costs and worries about Donald Trump’s influence on Australian politics.
Peter Dutton, leader of the Liberal Party, admitted defeat and also lost his seat. This followed a trend seen in Canada where conservative leaders faced trouble linked to Trump’s image. Labour’s win gives Albanese a stronger position, as he becomes the first Australian leader in over two decades to win two elections in a row.
By late evening, the Australian Broadcasting Corporation projected Labour would win at least 86 seats in the 151-seat House of Representatives. Last term, they held 77.
As Albanese spoke to cheering supporters in Sydney, he stressed the party’s focus on Australian values. He said, “We’re proud of who we are and everything we’ve built together.” He told the crowd that Australians had voted for fairness and for a government that would support people facing challenges.
Dutton admitted responsibility for his party’s loss, saying, “We didn’t do well enough during this campaign.” He congratulated the Labour candidate who won his old seat and said that the party would look to rebuild.
Trump’s Shadow on the Election
Throughout the campaign, the cost of living and concern over Trump’s politics were big topics. Some Liberal candidates, like Jacinta Price, used slogans similar to Trump’s, which brought more comparisons.
Price said, “You made it all about Trump.” Dutton had promised her a spot in a new government, which echoed some of Trump’s ideas.
James Paterson, a Liberal senator, said the Trump issue hurt their campaign. He pointed to Canada as an example where conservatives struggled due to the same problem.
Labour’s Treasurer, Jim Chalmers, said the party struggled at the end of 2024 but turned things around thanks to Albanese’s leadership, their approach to the cost of living, and the reaction to Trump’s politics. He called Labour’s win “a victory for the ages.”
Australia’s Economic Challenges
With a clear mandate, Albanese faces big economic choices. Australia’s growth depends on China, immigration, and housing, all facing pressure right now. Experts say the country needs strong reforms to boost growth and improve living standards. Past leaders have often avoided these changes because of political risks.
Both Labour and the Liberals made housing a key issue. Albanese promised billions for first-time buyers and said they could buy homes with deposits as low as 5%.
Labour now has a chance to push its clean energy plans and give more certainty to investors. In its first term, the government set new targets for cutting emissions and spent heavily on clean energy and manufacturing.
During the campaign, Labour announced a Cheaper Home Batteries program to help households lower power bills and reduce cost-of-living pressures.
