UPDATE: Prime Minister Anthony Albanese is returning to Sydney’s inner-west as a more confident leader than at the start of the parliamentary year, wrapping up December 2025 with a significant electoral victory. Labor has successfully secured a record 94 seats, solidifying Albanese’s position and dispelling predictions of a single-term government.
The Prime Minister’s popularity has surged, with Australians showing a stronger preference for him over Opposition Leader Sussan Ley. Recent polling indicates a split in public sentiment, with voters equally divided between satisfaction and dissatisfaction with his governance. This shift is critical as it comes after Albanese faced dire forecasts just a year ago.
Abroad, Albanese has successfully mended relations with US President Donald Trump, signing landmark defense agreements with Indonesia and Papua New Guinea, a move designed to maintain balance with China. However, domestic reforms remain a slow process. The recent passage of the Environment Protection and Biodiversity Conservation Act with the Greens just hours before the end of the parliamentary calendar serves as a notable achievement, although it has sparked outrage in the resources sector due to restrictions on coal and gas projects.
Despite these gains, Albanese warns his party against complacency. He has urged his MPs to stay vigilant and continue campaigning throughout the summer break. The pressure mounts as economic challenges loom, with inflation rising and economists predicting potential interest rate hikes in the coming year.
Albanese and Treasurer Jim Chalmers face the daunting task of addressing the cost-of-living crisis while managing a deepening structural deficit. Chalmers has asked department heads to identify areas for budget cuts in preparation for December’s mid-year budget update, emphasizing the need for substantial savings to support priority initiatives, including a universal childcare plan that Albanese hopes will define his legacy.
As the Prime Minister reflects on a year of unexpected success, the upcoming months will test his leadership further as he navigates economic pressures and public expectations. The stakes are high, and with a turbulent opposition unable to mount a challenge, the Albanese government must remain proactive to sustain its momentum into the next year.
