Prime Minister Anthony Albanese shocked Australia by securing a historic win in Saturday’s election. Now, the question is whether he’ll use that mandate to push through tough measures to overhaul the nation’s economy.
For years, previous administrations have shied away from tackling politically difficult issues such as removing tax incentives for investment property and cutting red tape to improve housing supply. After winning a majority in parliament with the strongest mandate since World War II, Albanese’s center-left government now has the best chance in years to take the hard steps economists have called for to ignite growth.
The need to act is becoming more urgent as key pillars that drove Australia’s expansion in the past few decades start to unravel, including China’s massive demand for minerals. S&P Global Ratings warned last month that Australia’s prized AAA sovereign rating is at risk if election campaign pledges result in larger structural deficits, debt and interest costs.
