Albanese’s springboard for even greater triumphs

Last week’s courageous budget could portend an era of substantial achievement, as Alan Austin reports.

“I could make this very short and simply say, ‘Just do it’. In the national interest, just do it and stop the crap that the Australian public have put up with for decades now.”

It wasn’t just the blunt language, but the timing. That exhortation from respected tax authority and national treasure Dr Ken Henry came exactly three weeks before Treasurer Jim Chalmers had to deliver the most keenly anticipated federal budget in memory.

Prime Minister Anthony Albanese’s cabinet was being urged to implement multiple monumental reforms, including some that would break election promises.

But, hey, if not now, when? Will any PM ever again have a 94-seat majority in the House, favourable approval 54% to 46% and an Opposition in total disarray?

So they just did it. Albo and Dr Jim took the plunge in several controversial areas (although not the specific one Ken Henry was referencing in April).

Vital questions now remain: how successful will the Government be henceforward? And what further challenges might it tackle should its energy and popularity continue?

Chalmers' fair go budget a fair bet to charm

It is the most ambitious Federal Budget the nation has seen for a couple of decades and the strain of committing to action showed on the faces of Labor’s front bench last night.

Major achievements so far

All lists of accomplishments differ.

Ours includes these ten:

1. Federal budget restored

In its first two years, Labor’s surpluses repaid much of the Coalition’s disastrous debt. The 2022 pre-election economic and fiscal outlook predicted that deficits under Coalition policies over the four years from 2022-23 to 2025-26 would total $224.4 billion. Chalmers reduced this to $431 million.

2. Citizens lifted out of poverty

Since December 2023, inflation has been 9.7%. The age pension has increased by 13.3%, the dole is up by 16.7%, the youth allowance is 20.3% higher and commonwealth rent assistance is up by 39.4%.

3. Environment Protection Reform Bill 2025

The Senate passed this critical legislation last December. Tuesday’s budget allocated $2.63 billion to ensure its success. That’s 18.8% higher than the 2024-25 allocation to environmental protection.

4. National Disability Insurance Scheme secured

Recent tough decisions have restricted access but ensured long-term viability.

Global agencies give Australia’s economy thumbs up

As job losses, inflation and weak growth impact many economies, Australia advances apace.

5. Housing rorts ended

Last week’s budget replaced the 50% capital gains tax discount on all assets with a discount indexed to inflation with a 30% floor. It restricted negative gearing to new houses.

6. Leading global economy

Australia alone in the world achieved through 2025:

jobless rate below 4.5%;
inflation below 4%;
interest rates between 3% and 5%;
GDP growth above 2.5%; and
triple A credit ratings with major agencies.

7. National Anti‑Corruption Commission

Okay, it’s not perfect, but it’s operating — at last!

8. Social media ban for children

This pioneering move has now been adopted by Austria, Denmark, France, Greece, Indonesia, Malaysia and elsewhere.

Most are now seeing reduced truancy, child suicides, hospitalisation for anxiety and other adverse outcomes.

9. Coalition destroyed

At the 2025 election, the Coalition won just 43 House seats out of 150. After two subsequent losses, they are now down to 41. It will be at least a decade, maybe two, until they have any significant influence.

10. Murdoch media neutered

They are still screaming at all Labor governments, but few voters are listening.

A tumultuous month ahead for the economy and policy makers

In the next few weeks, there will be a raft of economic policy decisions taken that will be life-changing for many Australians.

Challenges ahead for a rampant regime

Again, all lists of future aspirations will differ.

Ours includes these ten:

1. Buy back the electricity grids

Liberal state governments were warned in the 1990s that selling off publicly owned power generation and distribution networks would end badly three or four decades later.

So it has proven. Inflation for the 12 months to February 2026 was 3.79%. The increase in electricity prices over that period was 30.94%. Much of the gouged revenue was trousered in Singapore, Hong Kong, China and the Middle East.

Buying back those assets will cost billions, but it will be worth it.

2a. Hybrid liquid petroleum gas and electric cars

Australia already manufactures automotive parts, including engines, so it could collaborate with Indonesia or Malaysia to build low-cost LPG-fuelled cars. Sales should target Australia, New Zealand and Southeast Asia.

2b. Export of ultra-cheap liquid gas for Indo-Australian cars to regional neighbours to replace petrol and diesel

3. Low-cost alternative housing

Affordable, environmentally friendly homes can be built quickly with sandbags, bamboo, synthetic concrete, old shipping containers, recycled rubber, timber, glass and other reclaimed materials.

4. Gourmet food exports

Europeans love exotic meats. They now grow their own kangourou.

Expanding Australia’s kangaroo exports could be as lucrative as Wagyu beef from Japan or Iberico pork from Spain, given zero production costs.

5. Roundabouts to replace traffic lights

Australian motorists waste thousands of dollars idling at empty intersections. Roundabouts avoid this, cut pollution and cost less to maintain.

6. Flight training for the world

Australia is ideal for pilot training due to its open spaces, varied climate, advanced aeronautical industries and more than 2,000 airstrips, thanks to 98 years of flying doctor services.

7. Light aircraft tourism

No other country offers aerial outback safaris with the safety, cost-effectiveness and variety of destinations as Australia. Extraordinary potential.

8. Lithium battery manufacture

Australia exports lithium concentrates worth around $5 billion annually, leading the world. It then imports lithium batteries. Exporting both could earn multiples of $100 billion.

9. Endangered species recuperation

This requires collaboration of governments, Indigenous communities and the industries that have caused the damage.

10. Fair return on exported gas

This was Ken Henry’s focus four weeks ago. He was right.

Whether or not Dr Henry triggered Dr Jim’s gutsy landmark budget, as we suspect he did, he has commended the result:

“This feels like a budget crafted with the same policy disciplines that drove the reforms of the 1980s and 1990s, reforms that set Australia up for an extended period of prosperity that was the envy of the world. On this, the treasurer should be congratulated.”

So, yes, we applaud the Government’s successes and urge it to keep going.

Alan Austin is an Independent Australia columnist and freelance journalist. You can follow him on Twitter @alanaustin001 and Bluesky @alanaustin.bsky.social.

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Australia License

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POLITICS ECONOMICS

ANTHONY ALBANESE Jim Chalmers Labor Government Federal Budget Budget 2026 Auspol Alan Austin Ken Henry economic reform budget surplus