UPDATE: Prime Minister Anthony Albanese concludes 2025 on a high note, delivering a remarkable turnaround for the Labor Party after securing a record 94 seats in Parliament. This victory comes as a stark contrast to his earlier struggles, and Albanese now holds a commanding lead over Opposition Leader Sussan Ley as the preferred Prime Minister.
As the parliamentary year closes, Albanese returns to Sydney’s inner-west notably more relaxed than in previous years. Just a year ago, he faced dire predictions of losing his position after a single term, a fate not seen since James Scullin in 1932. However, recent data reveals that voters have warmed to Albanese, leading to an even split in public sentiment regarding his performance.
On the international stage, Albanese has significantly improved relations with US President Donald Trump, while also signing landmark defense deals with Indonesia and Papua New Guinea. These achievements come amid a challenging domestic landscape, where reform efforts have been gradual. Just hours before the end of the 2025 sitting calendar, Albanese reached an eleventh-hour deal with the Greens to pass reforms to the Environment Protection and Biodiversity Conservation Act, allowing the government to avoid accusations of inaction.
However, these reforms have not satisfied all parties. The resources industry has expressed outrage, as coal and gas projects have been excluded from new streamlined assessment processes. Nevertheless, these changes have taken five years to materialize, and both Albanese and Environment Minister Murray Watt are likely to highlight this tangible achievement.
Despite the government’s recent successes, Albanese has cautioned his MPs against complacency, urging them to remain vigilant and campaign-ready. He has adopted a no-nonsense approach, reminiscent of the famous Glengarry Glen Ross mantra: Always. Be. Campaigning.
Looking ahead, Albanese and Treasurer Jim Chalmers face pressing challenges as inflation resurges and economists warn of potential interest rate hikes in 2026. Chalmers has directed department heads to identify areas for budget cuts as they prepare for the upcoming mid-year budget update in December. Significant savings are necessary to address the government’s deepening structural deficit and to secure funding for priority initiatives, including the universal childcare plan that Albanese envisions as his legacy.
With inflation on the rise and public spending concerns mounting, the Albanese government is at a critical juncture. The next few months will be crucial as they navigate these challenges while maintaining the hard-won support from Australian voters. The government’s immediate actions will be pivotal in determining whether they can sustain their momentum into the new year.
