Labor's messaging on economic management doesn't resonate with voters more concerned about their hip pocket. There are already signs it's trying to change tune.
Anthony Albanese and the Labor Party’s hope of clinging to government in 2025 hinges on dramatically reshaping their pitch to voters more concerned about hip-pocket issues than broader economic messages.
Labor needs to craft messages that resonate in an effort to win back support that has dwindled since 2023.
Reforms to the composition of the reserve bank and positive economic trends might excite financial markets, but everyday voters need to be spoken to at the level of their pocketbook concerns.
The reality
If polls are correct, the Albanese government now trails the Coalition. This is a difficult, but relatively common predicament in Australian politics.
A first-term government has not lost an election since the Great Depression, yet while this would suggest history is on Labor’s side, every government has inevitably lost seats in its sophomore outing.
The Howard and Turnbull governments were reduced to razor-thin majorities in 1998 and 2016 respectively, each losing 14 seats, while the Gillard government was forced into minority government in 2010 after losing 11 seats.
If Labor suffered similar losses in 2025, it would be reduced to a seat total in the mid-60s and a long way from the 76 required to maintain a majority.
The Albanese government has struggled to ‘thread the needle’ throughout its term — trying to balance a focus on fiscal responsibility and being ‘the adults in charge’ while trying to present itself as reformist and transformational.
Yet it is cost of living that has dominated headlines and voter concerns. Labor has to convince sceptical voters that the government’s economic strategy is working, even while many still feel the effects of higher inflation and interest rates.
Unemployment is at a low 3.9 percent and the government has delivered two healthy budget surpluses — but higher prices on everyday goods means that these headline figures are of little solace to voters.
What has Labor done?
The government has tried to reassure voters that the cost of living is its ‘number one priority’.
It points to measures such as a rework of the Stage 3 tax cuts, one-off energy rebates of $300, reduced HECs indexation, the introduction of a grocery code of conduct and a focus on driving wage growth.
These are all modest, slow-moving changes that have not cut through with voters, begging the question: What does the Albanese government stand for?
Labor has delivered for its traditional union base with reforms such as the right to disconnect and the criminalisation of wage theft, but has been largely unwilling to engage in larger redistributive programs such as raising the rate of social allowances.
Its efforts to address the rental and housing affordability crisis through investments in social and affordable housing will take a long time to materialise.
Talking a big game
Despite boasts of reforming capitalism and redesigning markets, the government has been hesitant to make sweeping reforms. It has instead prioritised budget surpluses, alienating progressive interest groups along the way.
In the lead up to electoral success in 2022, Albanese emphasised his upbringing with a single mother in social housing as a foundational part of his personal narrative. It was his way of connecting with lower and middle-income voters who struggled financially.
In 2025, he has been plagued by headlines around his substantial portfolio of investment properties and a multimillion-dollar waterfront property purchase.
Even before an election date was confirmed, both major parties hit the campaign trail across the country.
What is the Labor message?
Labor has been attempting to set the agenda, emphasising its flagship policies.
The key so far has been its commitments to enhance health services, with a focus on women’s health.
In government, Labor has shown a focus on broader issues related to women, such as its attempts to reduce barriers to workforce participation through subsidies within early childhood education.
These are areas of traditional strength for Labor, contrasting with its early emphasis on fiscal prudence — traditionally seen as a Coalition strength.
In Parliament so far in 2025, Labor has had a clear theme of enhancing women’s services. In February, Labor announced a $575.3 million investment in Medicare services related to PBS listing for oral contraception, long-term contraception, menopause services and awareness campaigns, as well as endometriosis and pelvic pain clinics.
After a strong performance by Peter Dutton and other Liberals on the campaign trail, there are signs Labor is attempting to revive its “Mediscare” tactics. This highly successful 2016 Labor campaign sought to stir concerns about the Liberal’s plans for healthcare services and funding.
Albanese’s first speech for 2025 referenced Medicare 10 times and that has been backed up by other senior Labor figures. Claims by Health Minister Mark Butler and Foreign Minister Penny Wong that a Dutton government would cut Medicare have already landed the party into hot water.
Labor has also made pledges in another area of perceived policy strength — education — including ‘enduring’ fee-free TAFE and apprenticeships.
The challenge
The Labor government under Albanese and Treasurer Jim Chalmers have been competent economic managers dealt a tough hand but they still need a rapid rethink of the party’s message to the electorate.
That’s critical when Dutton’s Liberals are targeting traditional areas of Labor support to try to compensate for ‘teal’ independent incursions into more affluent parts of major cities.
The shift to focusing on traditional areas of Labor strength in health and education suggests that the government is aware of its challenge.
Originally published under Creative Commons by 360info™.