The 2025 Australian Federal Election: The Key Issues Between Wallets, Safety and Housing
Overview of the 2025 Federal Election
Scheduled to occur before the 25th of July, The 2025 Australian Federal Election is a pivotal democratic process which will determine the composition of Australia’s 150-seat House of Representatives and 40 Senate seats for the next parliamentary term (Jeffrey, 2025). In accordance with Australia’s two-party system, Prime Minister Anthony Albanese and the Labor Party will seek re-election, facing a challenging contest against the Liberal/National Coalition led by Peter Dutton. Hence the election also functions as a referendum on the current Albanese government’s performance implying voters would carefully evaluate competing platforms against key issues like economic management, climate change, healthcare and national security. Consequently, the electorate may respond by penalising the Labor Party in favour of the Coalition or rejecting the two-party system altogether by backing independents, teal candidates, and minor parties.
The 2025 elections also represent a significant shift in voter demographics fuelling the mixed evidence poised by recent polls predicting election outcomes. According to a YouGov national poll, The Coalition maintains a steady lead with 39% of the primary vote in contrast to Labor’s 32% while net approval ratings for the Party’s leaders have increased by an average of 3.5 points Despite this, recent statistics released by Australia Bureau of Statistics (ABS) showing improving employment and growth outcomes with the employment population ratio rising by 0.2% would fuel further revaluation as the Labor government is provided more talking points regarding economic management (Beamont, 2025). Furthermore, this election would see Gen Z and Millennial voters projected to become a dominant voting force. According to an Australian National University study, these younger voters show a complex political landscape: 67.1% are satisfied with the country’s direction, despite a decline in their confidence in the Albanese government since 2022 (Karvelas, 2025). It remains to see how younger demographics would respond to the ongoing political environment and vote in the 2025 election.
While social and economic shifts project uncertainty, there remains a relatively enduring list of economic and social issues that would influence voter sentiment and expedite the outcomes of the 2025 federal election. The Business Council of Australia and Roy Morgan Research have uncovered these issues through in-depth surveys revealing some unanimous themes that are of concern to electors (BCA, 2025; Roy Morgan, 2025). Therefore, the purpose of this article is to articulate on the top five issues that are most likely to dominate the minds of voters as they envision the future of Australia at the ballot box. These issues include cost-of-living pressures, interest rates, crime rates, immigration and the environment.
The Cost-of-Living Squeeze
The rising cost-of-living has firmly embedded itself in media discourse, academic research, and the daily conversations of everyday Australians, emerging as a pressing and inescapable challenge in recent years. According to Roy Morgan (2025), keeping daily day-to-day living costs remains a key concern up by 7% since the 2022 election affecting 57% of the electorate. One specific point of concern for consumers are food prices which is indiscriminately affecting Australia’s across several demographics. The latest consumer price. The latest Consumer Price Index data shows food price inflation decreased to 3.0% annually in the December 2024 quarter, down from 3.3% in the previous quarter, but still above the 10-year average of 2.7% (Barret, 2025). Specific items like bread, chicken, and beef continue to be costly, reflecting ongoing pressure on household budgets. While experts predict some stabilisation in grocery prices for 2025, they are unlikely to decrease significantly having compounded further by the price gouging techniques used by Woolworths and Coles in 2024. Inflationary pressures and the lack of governmental oversight over anti-restrictive trading practices only exacerbate the challenge of cost-of-living.
Economic analysts suggest that neither major political party has presented a comprehensive plan to significantly improve citizens’ economic well-being. The Coalition focuses on tackling inflation and cost-of-living pressures through eccentric measures like public sector defunding and nuclear energy transition, while Labor’s “Future Made in Australia” plan aims to transition to a net-zero economy with significant investments in renewable energy and industrial innovation (AFR, 2025). Neither of these plans adequately address how these policy positions would enhance citizen wellbeing and mitigate their concerns regarding the cost-of-living pressures. Instead, these plans are politically unpragmatic focusing on the party-specific policy positions thereby misrepresenting voter concerns. These unclear and impractical plans leave voters to weigh campaign promises against complex economic realities which would only complicate voter choices and persist cost-of-living concerns beyond the election.
The Rate Cut and Affordable Housing
Building on the strain of cost-of-living pressures, concerns around housing affordability, economic management and monetary policy have surfaced as extended challenges, further complicating the financial landscape for everyday Australians. According to Roy Morgan (2025), this issue has increased marginally in importance, up 2% points to 22% while reducing taxes holds steady at 15%. The latest inflation data for Australia’s December 2024 quarter shows a significant easing in price pressures, increasing the likelihood of an interest rate cut in the near future. The Consumer Price Index (CPI) rose by 0.2% in the quarter, bringing the annual inflation rate down to 2.4% from 2.8% in the previous quarter (Hawson, 2025). These figures have prompted major banks to revise their forecasts, with ANZ now predicting the first rate cut as early as February 2025. Rate-cuts maybe capitalised by Albanese Government as a sign of sound economic management and may instil some confidence amongst undecided voters.
Despite this, the widespread expectation of a rate-cut complicates Australia’s current cost-of-living challenges as expansionary monetary policy could fuel further inflation. The market currently prices in a 73% probability of a rate cut to 4.1%, driven by easing inflation which dropped to 2.4% in the December 2024 quarter – the lowest since June 2020 (Lefort, 2025). However, these figures are still considerably higher than pre-pandemic levels and so a rate cut would only intensify cost-of-living challenges. Therefore, some economists like Associate Professor Sam Tsiaplias caution against premature rate reductions, despite the overall economic consensus suggesting the RBA will commence an easing cycle, with the exact timing and extent dependent on ongoing economic indicators (Lefort, 2025). Irrespective of the dissonance in expert opinions, voters increasingly perceive rate-cuts as a sign of relief against unaffordable mortgage and rent payments. They unlikely to consider the rippling expansionary impacts of a rate-cut and it remains to see how policy issues concerning housing affordability would be framed by major parties close to the campaigning cycle.
Crime Rates, Law and Order
Social issues are equally at play in the 2025 election as public anxiety regarding crime and safety has surged, with law and order becoming a major electoral concern. Roy Morgan (2025) reports that public support for “reducing crime and maintaining law and order” has jumped by 10 percentage points to 23%, the most significant increase for any issue. Despite this rising fear, official crime statistics present a dissonant picture. Simpson and Hurley (2024) note that overall crime in Australia has been declining since 2009, with violent offenses like attempted murders and armed robberies decreasing since 2004. While knives have been the most common weapon used in homicides since 2010, the perception of a growing knife crime epidemic appears to be more influenced by media coverage and political rhetoric than actual trends. In contrast, countries such as the UK and Canada have seen genuine increases in knife crime (Simpson & Hurley, 2024). Therefore, the dichotomy between crime statistics and voter perceptions being fuelled by media and political rhetoric is a more plausible explanation for crime being a major concern in the 2025 election.
Irrespective of crime statistics however, the political response to crime concerns has intensified between the major parties. Higgins (2025) highlights that Peter Dutton, and the Coalition are positioning themselves as the “tough on crime” party, advocating for harsher youth justice policies, especially in Queensland and the Northern Territory where crime is historically higher than other states. However, experts argue that punitive approaches are ineffective, as data shows detention does not reduce recidivism and disproportionately affects First Nations children (Higgins, 2025). Meanwhile, authorities are also confronting a rise in antisemitic attacks, with 166 reports since December 2024, including 15 serious incidents (Whiteman, 2025). Investigations suggest potential overseas funding, with the Australian Federal Police working alongside the Five Eyes intelligence alliance to determine any international links (Whiteman, 2025). In response, security has been tightened at Jewish sites, and authorities have adopted stronger measures to counter antisemitic hate crimes. Therefore, the rise in antisemitism coupled with Dutton’s crime political framing maybe another explanation behind the increasing concerns of voters regarding crime rates, law and order.
Immigration and Population Growth
Public concerns over immigration and population growth have also intensified, with Roy Morgan (2025) reporting an 8-percentage-point increase in Australians prioritising this issue in the 2025 Federal Election. This surge aligns with record-high immigration levels and ongoing housing affordability challenges fuelled by migrants. Nicholas (2025) highlights the complexity of public sentiment, noting that while 48% believe immigration levels are too high, there is strong opposition to reducing international student numbers certain of its potent impact in filling labour shortages. A recent survey also found that Australians largely support Pacific migration policies, with 68% favouring easier migration for climate-vulnerable Pacific Islanders over migration from other regions (Nicholas, 2025). These findings suggest that while immigration remains a divisive topic, there is broad recognition of its role in addressing shaping Australia’s workforce and commitment to humanitarian values.
As Australia approaches the 2025 federal election, immigration is becoming a focal point in political debates. Steyman (2024) reports that Opposition Leader Peter Dutton has pledged to cut migration to ease housing pressures, though experts caution against framing immigration as a scapegoat without addressing its economic implications. Meanwhile, workforce shortages remain a pressing concern, with HR leaders struggling to balance skills gaps and talent acquisition leading to questions regarding the effectiveness of migration at filling in labour shortages (Patten, 2025). Meanwhile, there are also concerns amongst conservative voters regarding the extent to which increasing multiculturalism fuelled by immigration may disorient with Australia’s national identity (Steyman, 2024). These concerns position immigration as a multidimensional issue intermingled with housing affordability, labour shortages and national identify making it a key issue in the 2025 election that must balance between the needs of various voting demographics.
The Environment and Climate Change
Finally, it comes down to environmental policies and climate change which unlike previous years demonstrate a mixed narrative. Public concern for environmental issues has declined, with Roy Morgan (2025) reporting a 9-percentage-point drop in the importance of “global warming and climate change,” now at 23%. This shift comes despite the Australian government’s continued commitment to ambitious climate targets. In contrast to Trump’s withdrawal of the US from the Paris Agreement, Climate Change and Energy Minister Chris Bowen reaffirmed Australia’s dedication towards the agreement, aiming for a 43% emissions reduction by 2030 and net zero by 2050 (Jervis-Bardy, 2025). Bowen emphasized that Australia’s climate policies are driven by national interests and economic opportunities rather than the actions of other nations. He highlighted the country’s progress in renewable energy and its ambition to become a clean energy leader. Additionally, Australia remains committed to international climate cooperation, including its bid to co-host COP31 with Pacific nations, stressing the urgency of collective global action to combat climate change (Jervis-Bardy, 2025).
Despite these commitments, environmental policy has become a contentious issue in the lead-up to the 2025 federal election. Ritchie et al. (2025) report that Prime Minister Anthony Albanese’s decision to abandon proposed reforms to Australia’s 25-year-old environmental laws has sparked criticism, particularly from environmental groups and the Greens. The reforms, originally recommended by the Samuel Review in 2020, aimed to establish national environmental standards under an independent regulator. Although 75% of Australians support stronger environmental protections, the government cited insufficient parliamentary support for the changes (Ritchie et al., 2025). Meanwhile, Opposition Leader Peter Dutton has argued that the proposed reforms would harm the economy showing no signs of support for environmental and climate change policies apart from ambitious vision for nuclear energy. Therefore, although voter sentiments for climate change may have declined, it still remains a key issue that would influence certain demographics who may prioritise their long-term vision for Australia over short-term reliefs.
Conclusion
The 2025 Australian federal election is shaping up to be defined by economic pressures, social anxieties, and shifting political narratives. Cost-of-living remains the dominant concern, with inflationary pressures, interest rate movements, and economic policies influencing voter sentiment. Crime and law enforcement debates, fuelled by political rhetoric and media coverage, are amplifying public fears, while immigration remains a contentious issue linked to housing affordability, labour shortages, and national identity. Meanwhile, climate change, though declining in perceived importance, continues to divide political parties, with Labor focusing on renewables and the Coalition promoting nuclear energy. The absence of clear, pragmatic solutions from major parties leaves voters facing a complex decision. With economic instability and social concerns at the forefront, the election will likely be determined by which party can best convince Australians of their ability to deliver real, tangible improvements to their daily lives.
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