First term (2022–2025) Domestic affairs Economy Albanese's first term was dominated by Australia's
cost-of-living crisis, attributed to the worldwide
inflation surge of 2021–23. Monthly inflation peaked at a high of 8.4% in December 2022, and the
Reserve Bank of Australia increased interest rates twelve times, reaching a rate of 4.35% by November 2023, the highest since 2011. In the
2023 Australian federal budget, the Albanese government delivered a surplus of $22.1 billion (equivalent to 0.9% of Australia's GDP); this was Australia's first budget surplus in 15 years, and the largest ever Australian budget surplus. In the
2024 budget, the government posted a second consecutive surplus of $9.3billion. The budget returned to a $42.1 billion deficit in the
2025 budget. In January 2024, the Albanese government made changes to the previously legislated
stage three tax cuts, which would see individuals earning less than A$150,000 receive a larger tax cut than under the original plan. These changes were met with some criticism, particularly by the Opposition and conservative media outlets, and was viewed as a breach of a pre-election promise, as Albanese had repeatedly stated he would not alter the tax cuts if elected. Despite this, the changes proved popular with the public, and the overhauled tax cuts were passed by the Senate on 27 February 2024. His government announced a further $17 billion in tax cuts in the 2025 budget, which will reduce the bottom tax bracket from 16% to 15% in 2026, and to 14% in 2027.
Housing Albanese took office amid a major
housing affordability crisis, with the average Australian house price being nine times the average household income by 2024. To remedy supply-side issues that contribute to rising prices, in August 2023, Albanese reached an agreement with
National Cabinet to build 1.2 million houses over five years. On 13 September 2023, the government passed the Housing Australia Future Fund (HAFF), a $10 billion investment fund controlled by the
Future Fund that is designed to build 30,000 new social and affordable homes over the following five years in a further effort to increase supply. On 25 September 2024, his government instructed the
Treasury to examine
negative gearing. As a divisive
wedge issue in Australian politics, changes to negative gearing rules were proposed by Labor prior to the 2019 election, in which they were defeated. Albanese had previously pledged not to modify negative gearing as Opposition Leader, leading to criticism from the Coalition and conservative media outlets for appearing to backtrack on this promise. After intense media speculation, Albanese ruled out making changes to negative gearing the next day. In November 2024, the Albanese government legislated a "help-to-buy"
shared equity scheme that aims to allow up to 40,000 first-time home buyers to purchase a home with a shared contribution with the government, and a tax concession to incentivise developers to build houses
specifically for the purpose of renting. In February 2025, his government placed a two-year ban on non-citizens buying existing houses. In the
2025 Australian federal election campaign, housing affordability and its link to
immigration were central points of contention between Albanese and Opposition Leader
Peter Dutton.
Manufacturing In March 2023, Parliament passed the government's National Reconstruction Fund (NRF), a $15 billion investment fund for the manufacturing sector designed to increase manufacturing capability. In November 2024, the NRF made its first investment, a $40 million grant to a Queensland-based mining equipment company. In April 2024, Albanese announced a major industrial policy called
Future Made in Australia, which seeks to promote Australian manufacturing in
sustainable energy. Future Made in Australia has been likened to the United States'
Inflation Reduction Act and the
European Green Deal. As part of the policy, the government's third budget contained $22.7 billion over a decade in support of domestic
green hydrogen, solar-panel manufacturing, and mining of critical minerals. This includes a $1 billion "Solar Sunshot" program to support solar panel manufacturing in Australia, and a $566 million "Resourcing Australia's Prosperity" initiative for geomapping for mining resources. In July 2024, his government introduced legislation to give further effect to the policy, which passed the Parliament in November 2024.
Environment and energy Albanese campaigned on renewable energy and reducing carbon emissions during the 2022 election, pledging to set a target to reduce emissions by 43% on 2005 levels and increase the share of renewable energy in the electricity market to 82% by 2030. On 16 June 2022, Albanese submitted a new
Nationally determined contribution to the United Nations which formally committed Australia to reducing
carbon emissions by 43%, an increase from the 26 to 28% target under the previous government. In September 2022, the Albanese government passed legislation to write this climate target into law. Albanese's government also entered a bid for Australia and its Pacific island neighbours to host the
2024 United Nations Climate Change Conference. Albanese supported a major expansion of
gas production to support renewables in the energy grid. In December 2024, he approved the expansion of four
coal mines. He declared that he would not lift the moratorium on
nuclear power in Australia. In late 2022, his government announced reforms to the "safeguard mechanism", an
emissions trading scheme that requires Australia's largest carbon emitters to keep their emissions under a "baseline limit", either by reducing them, or by purchasing
carbon credits. The mechanism was introduced by the
Turnbull government in 2016, but failed to reduce emissions as the rules were often left unenforced. In March 2023, the Albanese government received the necessary support to pass the legislation from the
Greens, who negotiated a "hard cap" on emissions that cannot be offset by carbon credits. The bill was passed on 30 March 2023, marking the most significant piece of climate change legislation passed through the Australian parliament since the
Clean Energy Act 2011. On 5 October 2023, Australia re-joined the United Nations'
Green Climate Fund, which the previous Morrison government had withdrawn from in 2018. In December 2023, the government legislated a "nature repair market" to create a
biodiversity market to encourage private companies to invest in projects that
protect biodiversity, and committed to establishing a federal environmental protection agency (EPA). However, the legislation to establish an EPA was delayed after lobbying from the mining sector and the
state government of Western Australia, attracting criticism from environmental groups. In May 2024, the government legislated a
vehicle emission standard for new vehicles sold in Australia from 1 July 2025, in an effort to introduce more fuel efficient vehicles to the Australian market. Albanese's government took office during a massive surge in electricity prices exacerbated by the
global energy crisis and the
Russo-Ukrainian War. On 9 December 2022, Albanese convened a meeting of the
National Cabinet and announced a coordinated plan to introduce temporary caps on gas and coal prices. On 15 December, Albanese recalled Parliament to pass a 12-month cap on gas prices to limit electricity price rises.
Industrial relations In one of his first acts as prime minister on 27 May 2022, Albanese confirmed that his government would make a submission to the
Fair Work Commission in support of an increase to the national minimum wage. On 2 June 2023, the Albanese government contributed to a decision by the Fair Work Commission with another letter encouraging a rise in the minimum wage in line with inflation. The government announced that a submission had been formally made to the commission on 3 June 2022 and that a "deliberate" policy of lower wages was not the policy of the new government. The Fair Work Commission subsequently announced on 15 June 2022 that the minimum wage would be raised by 5.2%. The government passed new workplace harassment laws through the Parliament on 28 November 2022. The new laws are in line with Albanese's promise to implement the recommendations of the Respect@Work Report by creating a positive duty requiring employers to implement measures to prevent sexual harassment. On 2 December 2022, the government passed its
Secure Jobs, Better Pay law through the Parliament. The new law allows unions to negotiate multi-employer pay deals in an effort to secure wage increases across particular sectors such as child care and aged care. The law also aims to close the gender pay gap by prohibiting pay secrecy employment clauses and secures the right of workers to seek flexible working arrangements. Throughout 2023, the Albanese government attempted to pass additional industrial relations reforms through Parliament, dubbed the
Closing Loopholes bill, which aimed to ensure temporary workers employed through
labour hire were paid the same wage as regular workers, criminalise
wage theft and make companies responsible for
industrial manslaughter, among other changes. Despite fierce opposition from the Liberal Party and business lobbies, the first part of the bill was passed by the Senate on 7 December 2023. The second tranche of legislation, which introduced minimum standards for
gig workers and allowed workers the
right to disconnect, was passed on 8 February 2024.
Indigenous affairs In his victory speech on election night, Albanese expressed his support for the
Uluru Statement from the Heart, and stated that his government would implement it in full within its first term. In his first press conference as Prime Minister, the podium flags in the blue room at Parliament were changed to include Indigenous and Torres Strait Islander flags in addition to the
Australian flag. Upon the opening of the
new Parliament, both flags began to be displayed in the
House of Representatives and
Senate chambers. Albanese pledged to hold a referendum to enshrine an
Indigenous Voice to Parliament to assist the government with Indigenous issues, and
recognise Indigenous Australians in
Australia's constitution. The
2023 Australian Indigenous Voice referendum was held on 14 October and the change to the Constitution was rejected by the majority of Australian voters and passed in no state or territory, bar the
Australian Capital Territory.
Immigration On 25 May 2022, in one of its first acts upon coming to government, the Albanese government allowed the
Murugappan family to stay in Australia after the previous Morrison government had attempted to deport them. In February 2023, the Albanese government abolished
temporary protection visas, allowing up to 19,000 asylum seekers to stay in Australia permanently. On 8 November 2023, the
High Court of Australia ruled on
NZYQ v Minister for Immigration, striking down the precedent established by
Al-Kateb v Godwin and holding that
indefinite detention of immigrants was illegal, leading to the immediate release of 148 people, some of whom had committed serious crimes. In response, the government enacted emergency legislation to put those released under strict visa conditions − including mandating the use of ankle monitoring and a mandatory curfew – and establish a
preventive detention scheme to re-detain people who were found to pose a high risk to the community. However, in November 2024, the High Court would also find these laws unconstitutional, striking them down on the grounds they were too punitive. To circumvent this ruling, Albanese's government unveiled legislation that gave the federal government comprehensive powers to deport non-citizens. Despite vociferous criticism from human rights and refugee advocacy groups, the necessary bills passed on 29 November 2024. In 2023–24, the number of
migrant arrivals decreased to 667,000, down from 739,000 a year earlier. Net overseas migration was 536,000 in 2022–23, up from 170,900 in 2021–22. On 11 December 2023, the Albanese government announced its ten-year migration strategy designed to overhaul the immigration system and reduce Australia's annual net migration intake to 250,000 by June 2025. His government also announced it would introduce caps on the annual intake of international students, but attempts to pass these into law were blocked by the Opposition and the Greens in Parliament. Net permanent and long-term arrivals in the 12 months to May 2024 were a record 482,450.
Social media In June 2024, Albanese pledged to introduce legislation that would force social media companies to ensure users under 16 years old could not create accounts, in an effort to curb the negative effects of social media on children. This plan was criticised by industry groups and major social media companies such as
Meta (parent company of
Facebook). The
Online Safety Amendment (Social Media Minimum Age) Act 2024 was passed by Parliament on 28 November 2024, making Australia the first country in the world to legislate a minimum age for social media use. The ban commenced on 10 December 2025. Albanese's government attempted to pass laws that would have compelled social media companies to regulate
misinformation on their platforms, but abandoned them after they failed to find support in Parliament.
Healthcare In May 2023, Albanese's government invested $3.5 billion to triple the fee general practitioners receive for
bulk billing their patients in order to address the decline in rates of bulk billing. In February 2025, Albanese committed his government to invest $8.5 billion in
Medicare services including $18 million in subsidised general practitioner's visits, 400 nursing scholarships and general practitioner training programs for 2,000 doctors The Albanese government implemented an election promise to fund non-emergency urgent care clinics, opening up 58 across every state and territory by the beginning of 2024.
Aged care and childcare The first bill Albanese's government passed was one responding to the 17 recommendations of the
Royal Commission into Aged Care Quality and Safety. The legislation amended the aged care funding model and introduces new reporting and transparency requirements. The government passed reforms to aged care in November 2024 to increase funding for
home care and cut down waiting times for new entrants into aged cared facilities. In March 2025, Albanese and his government passed legislation to subsidise the cost of
childcare for most families and guarantee a minimum of three days of subsidised care.
Government integrity In November 2022, Albanese's government fulfilled its election commitment to legislate the
National Anti-Corruption Commission (NACC), with the commission commencing on 1 July 2023. Following the revelation that former prime minister Scott Morrison had
secretly sworn himself into several ministerial positions, Albanese and his government successfully moved a
censure motion against him in November 2022. Albanese's government abolished the
Administrative Appeals Tribunal (AAT) and replaced it with the
Administrative Review Tribunal (ART), with attorney-general
Mark Dreyfus stating the AAT had been "compromised" by
political appointees. The ART commenced operations in October 2024, with a new merits-based process for appointing members.
Foreign affairs meeting with US president
Joe Biden, Indian prime minister
Narendra Modi and Japanese prime minister
Fumio Kishida.|241x241px Albanese took his first international trip on 23 May 2022 immediately after being sworn in as prime minister when he flew to Tokyo to attend a
Quadrilateral Security Dialogue meeting with fellow world leaders: US president
Joe Biden, Indian prime minister
Narendra Modi and Japanese prime minister
Fumio Kishida. At the meeting, Albanese committed his new government to the goals of the Quad and confirmed that his government would seek to take stronger action in reducing carbon emissions. On 5 June, Albanese and
Penny Wong visited Indonesian president
Joko Widodo in
Jakarta to develop
Australia–Indonesia relations. Albanese said he would not "publicly intervene" to prevent
WikiLeaks founder
Julian Assange from being extradited to the United States. Instead, he and his government engaged in what was dubbed "quiet diplomacy" with the United States, including raising the issue directly with president Biden. Assange was released from custody after striking a plea deal in June 2024. Barrister
Greg Barns, who acted as a legal advisor to Assange, credited Albanese's government as "instrumental" to Assange's release. in Kyiv Later in June, Albanese attended the
2022 NATO Madrid summit to discuss security threats facing the Pacific region. On 30 June, Albanese met with French president
Emmanuel Macron in Paris to "reset"
Australia–France relations, which had been damaged following the cancellation of a
submarine deal by the preceding government. The next day, Albanese travelled to Ukraine to meet with President
Volodymyr Zelenskyy, making him the first Australian prime minister to make a diplomatic visit to Ukraine. Albanese pledged a further $100 million in aid to assist with the ongoing
Russo-Ukrainian War. On 26 September 2022, Albanese travelled to Japan to attend the
state funeral of former prime minister
Shinzo Abe. at an
AUKUS summit in March 2023 The relationship between Australia and China has started to improve since Albanese became prime minister. In November 2022, Albanese held a bilateral meeting with Chinese President
Xi Jinping, bringing an end to the longest diplomatic freeze in 50 years between Australia and China. In early 2023, China ended its unofficial ban on imports of
Australian coal, with all restrictions reportedly being lifted by 14 March. China agreed to lift its ban on barley imports from Australia in April, and imports of Australian timber in May, further improving the relations. In February 2023, Albanese hosted his
New Zealand counterpart Chris Hipkins, who undertook his first official visit. While the two leaders reaffirmed
Australian-New Zealand bilateral relations, they also discussed the controversial
Section 501 deportation policy. Albanese confirmed that
his government would amend the deportation policy to take into account individuals' connections to Australia and the length of time they had lived in the country. In March 2023, Albanese visited India to attend the Australia-India Annual Leaders' Summit in New Delhi. During the visit, he also led a trade delegation, which included Trade Minister
Don Farrell and Resources Minister
Madeleine King, after the implementation of the Economic Cooperation and Trade Agreement (ECTA) between Australia and India on 29 December 2022. He also attended the
75 Years of Friendship through Cricket Event hosted by PM Modi at the
Narendra Modi Stadium in
Ahmedabad to celebrate 75 years of strong diplomatic and cricketing ties between the two nations. The PMs attended a match of the
Border–Gavaskar Trophy where Albanese handed over Australian Cricket Captain
Steve Smith his test cap. (right) at the
49th G7 summit On 13 March 2023, Albanese travelled to San Diego to officially commence the
AUKUS security pact with President Biden and United Kingdom prime minister
Rishi Sunak. Through the deal, which was signed by Albanese's predecessor, Australia will procure $368 billion worth of defence materiel, including
nuclear-powered submarines in an effort to counter China's dominance in the Indo-Pacific region. The deal has been negatively received by China and former prime minister
Paul Keating, who called it the "worst deal in all history". during his visit to
Manila Australia–Philippines relations upgraded to a
strategic partnership when Albanese visited
Manila on 8 September 2023, the first bilateral visit to the
Philippines by an Australian prime minister in two decades. He and President
Bongbong Marcos agreed for their
defence ministers to meet annually due to "rising security challenges" in the Indo-Pacific. In August 2025,
Australian and
Philippine forces conducted a bilateral
military exercise in
Palawan involving over 3,600 personnel—Australia's largest deployment of troops to Southeast Asia since the
2006 crisis in Timor-Leste—near
contested areas of the
South China Sea. Between 4 and 7 November 2023, Albanese visited
Shanghai and
Beijing, becoming the first Australian prime minister to visit China in seven years. The trip, described as an effort to get relations between Australia and China on track, coincided with the 50th anniversary of Prime Minister
Gough Whitlam's visit to China, the first by an Australian prime minister. During the trip, Albanese gave a speech at the
China International Import Expo, and met with Premier
Li Qiang and President Xi Jinping. The following week, he signed the Falepili Union treaty with the Pacific island country of
Tuvalu. Described as "groundbreaking" by legal scholar
Jane McAdam, the treaty entrenches
bilateral relations between the two countries, with Australia agreeing to provide funds to help the country deal with the effects of climate change and also resettle 280 Tuvaluans a year, as the country is particularly vulnerable to the effects of
climate change. ,
Prabowo Subianto,
Xi Jinping and other leaders at the
APEC Summit in Lima, 16 November 2024 In March 2024, Albanese was referred to the
International Criminal Court (ICC) by Birchgrove Legal as an
accessory to genocide for his government's actions during the
Gaza War, which included freezing funding to
UNRWA, providing military aid to Israel, and allowing Australian citizens to serve in the
IDF. The document, which was signed by over 100 Australian lawyers and barristers, made Albanese the first Western leader to be referred to the ICC in the context of the Gaza War. In April 2024, Albanese told Israeli Prime Minister
Benjamin Netanyahu that Australians were outraged by the death of an Australian citizen in Israel's
attack on aid workers in Gaza. Albanese condemned the
Iranian strikes in Israel and reiterated the necessity for
sanctions against Iran. Following the
Israeli attacks on the Gaza Strip in March 2025, Albanese called on all parties to respect the
ceasefire and the hostage agreement. In August 2024, Albanese and Indonesian President-elect and Defense Minister
Prabowo Subianto announced a new defence cooperation agreement to strengthen
Australia–Indonesia security ties.
Appointments Public service On 3 April 2024, Albanese announced
Sam Mostyn as the new
governor-general of Australia, replacing the outgoing
David Hurley. She began her term on 1 July 2024. On 25 July 2024, Albanese announced jointly with the energy minister Bowen that former New South Wales energy minister
Matt Kean would become the new Chair of the
Climate Change Authority. In July 2024, Albanese appointed
Jillian Segal as Special Envoy to Combat
Antisemitism in a response to an increase in anti-semitic rhetoric and violence since the beginning of the
Gaza war. He similarly appointed Muslim faith leader Aftab Malik as Special Envoy to Combat
Islamophobia in October 2024.
Judiciary On 17 October 2022, Albanese's government appointed
Jayne Jagot as a Justice of the
High Court of Australia, giving the High Court a majority of female Justices for the first time in its history. On 22 August 2023, his government appointed
Stephen Gageler as
chief justice of Australia.
2025 federal election On 28 March 2025, Albanese called a
federal election for 3 May. The first week of campaigning was dominated by the imposition of
tariffs on Australia by U.S. President
Donald Trump, to which Albanese responded by urging Australians to buy locally made products. He participated in a Sky News debate against Opposition Leader
Peter Dutton on 8 April, which he narrowly won according to a poll of 100 undecided voters interviewed by Sky. He took part in
three further debates with Dutton over the course of the campaign. On 13 April, Albanese launched Labor's campaign, announcing flagship policies to aid first home-buyers by allowing them to buy a house with a five percent deposit and build 100,000 homes exclusively for first-time home purchasers. The predominant issues of the campaign were cost-of-living, housing affordability, healthcare and immigration. Albanese led his government to a
landslide victory at the election, defying a global
anti-incumbency surge and becoming the first prime minister since
John Howard at the
2004 election to lead his government to re-election. Several media outlets attributed Albanese's victory to anti-Donald Trump sentiment and drew parallels to the
2025 Canadian federal election, which saw similar results for the incumbent
Canadian Liberal Party. Labor gained 17 seats to hold a total of 94 seats in the House of Representatives, the joint most seats ever held by a party in federal Parliament, tied with Howard's Coalition government in the
1996 election. Labor also retained every seat they occupied prior to the election, making Albanese's government the first to retain all of its seats since
Harold Holt's Coalition in
1966. The
second Albanese ministry was sworn in on 13 May 2025.
Second term (2025–present) Domestic affairs Albanese pledged his first act in his second term would be to reduce
tertiary education loans by 20%. Legislation to put this reduction into effect passed on 31 July 2025. On 18 September 2025, Albanese announced his government's 2035
emissions reduction target, set at a range of 62 to 70%. He also announced new supports for industries to
decarbonise. On 1 October 2025, Albanese's government fulfilled an election commitment by expanding a pre-existing scheme to allow first-time home buyers to purchase a home with a five percent deposit, in an effort to address Australia's growing housing crisis. However, economists and figures in the real estate industry noted that the scheme will likely cause property prices to increase further due to heightened demand. In November 2025, the Albanese government passed legislation to overhaul Australia's main environmental and biodiversity law, the
Environment Protection and Biodiversity Conservation Act 1999, and create the
National Environmental Protection Agency (NEPA) after failing to do so in its first term. Also in November 2025, the government established the
Centre for Disease Control as a permanent agency, having previously formed it as an interim body in January 2024. In response to the
2025 Bondi Beach shooting, the Albanese government legislated reforms to
hate speech and
gun laws in January 2026. Following public pressure, Albanese announced a
Royal Commission on Antisemitism and Social Cohesion on 9 January 2026.
Foreign affairs , June 2025 On 14 May 2025, Albanese made his fourth prime ministerial visit to Indonesia, meeting with President
Prabowo Subianto to discuss defence and trade issues. On 19 May, he attended the
papal inauguration of
Pope Leo XIV, holding a private meeting with the Pope and inviting him to visit Australia at some point in the future. , 20 October 2025 In May 2025, Albanese echoed criticisms from other Western nations in demanding Israel allow the supply of
humanitarian aid into the
Gaza Strip, condemning Israel's actions as "completely unacceptable" and an "outrage". However, he opposed
sanctions against Israel over the
blockade of Gaza, saying he was focusing on "peace and security for both Israelis and Palestinians" rather than "soundbites". In June 2025, Albanese attended the
51st G7 summit, where he was due to meet with President Trump. However, their scheduled meeting was cancelled after Trump left the summit early to deal with increasing escalations in the
Iran–Israel war. He voiced support for
US strikes on Iranian nuclear sites, but insisted that it was "unilateral action taken by the United States". That month, Albanese delivered a speech asserting the need for Australia to pursue its own interests and not be "shackled to the past", which was considered by many commentators to be an attempt to distance Australia from United States foreign policy. Albanese had his first meeting with Trump at the
White House on 20 October 2025, and signed a trade agreement to
export critical
minerals to the United States, which was regarded as an action intended to counter China's dominance in the market. In July 2025, Albanese went on a six-day visit to China, touring
Shanghai,
Beijing, and
Chengdu. The visit included a trip to the
Great Wall and a panda breeding center, which drew criticism from the
Coalition. Albanese responded by saying that the visits were intended to show respect to China. at the
47th ASEAN Summit in Malaysia, 26 October 2025 Between 9 and 10 August 2025, Albanese visited New Zealand prime minister
Christopher Luxon in
Queenstown for an annual bilateral head of government meeting. During the visit, the two heads of government reiterated calls for a ceasefire in the
Gaza war and condemned Israel's plan to occupy
Gaza City. In addition, the two heads of government discussed various bilateral trade, defence issues and Australia's
501 deportation policy. The two leaders also laid
wreaths at a memorial to fallen
ANZAC soldiers in
Arrowtown on 10 August. In August 2025, the Greens urged the Albanese government to impose direct sanctions on senior members of Netanyahu's government and to stop supplying parts for
F-35 fighter jets to the global supply chain that can be accessed by Israel. In 2025, the Albanese government faced increasing pressure to review or suspend arms exports to the
United Arab Emirates (UAE) amid allegations that the UAE was providing military support to the
Rapid Support Forces (RSF) in
Sudan, which have been accused of committing
war crimes and acts of
genocide. The UAE is Australia's largest export market for weapons and ammunition. Over a five-year period, Australia exported nearly AUD 300 million worth of arms and munitions to the UAE. In mid-February 2026, Albanese announced that the federal government would not facilitate the repatriation of ISIS-linked families from Syria on security grounds, stating "if you make your bed, you lie in it." On 28 February 2026, Albanese, in a joint statement with Foreign Minister
Penny Wong and Defence Minister
Richard Marles, announced Australia's support for
US and Israeli strikes against Iran, citing the need to prevent the regime from obtaining
nuclear weapons and to counter its regional influence. == Political views ==