Federal Election 2025: Cost of living, climate & trust to shape Australia’s future

From the editor’s desk

As Australia approaches the 2025 federal election, the political mood across the country is marked by anxiety, fatigue, and an increasing demand for effective leadership. Voters are feeling the weight of rising living expenses, are concerned about how the country is responding to climate change, and are questioning how well political institutions are serving them. Against this backdrop, the major parties are preparing to campaign in a volatile and highly competitive environment, where the electorate is more informed— and more frustrated—than ever before.

Cost of living: The defining concern

More than any other issue, the rising cost of living is dominating political conversations.

Australians are feeling the pinch in every aspect of daily life—whether it's paying for groceries, covering electricity bills, or meeting rent or mortgage payments. Inflation may have eased from its post-COVID peak, but price pressures remain stubborn in key sectors, especially housing and utilities.

The current Labor government has introduced targeted relief measures such as electricity rebates and tax cuts aimed at low- and middle-income earners. However, for many voters, these steps have not been enough. Some see them as band-aid solutions rather than long-term strategies to curb inflation and lift wages.

The Coalition, led by Peter Dutton, is banking on this discontent. Promising to restore economic discipline, the opposition has criticized the government’s spending and debt levels. Yet, the Coalition itself still faces questions about credibility, especially among voters in urban and suburban areas where the 2022 "teal wave" took a toll on its traditional support base.

Whoever can present a clear, compassionate, and believable plan to ease economic pressures is likely to gain traction, particularly in the crucial outersuburban and regional swing seats.

Energy & climate policy: The balancing act

Australia’s shift toward renewable energy has been steady, but not without controversy. The federal government has set a national target of reducing emissions by 43% by 2030, alongside a suite of investments in solar, wind, and battery storage. These steps have been welcomed by many, especially younger voters and those in urban centres, but there is growing concern that progress is too slow—and that fossil fuel industries are still receiving government backing.

The Greens and independent MPs are using this opening to push for more aggressive emissions cuts and a ban on new coal and gas projects. In inner-city electorates, especially in Sydney, Melbourne, and Brisbane, climate-focused candidates could again challenge Labor and Liberal candidates alike.

Meanwhile, the Coalition is pitching nuclear energy as part of its long-term solution, arguing that renewables alone can’t deliver reliable baseload power.

Critics say this is a distraction from immediate energy needs and question the economic and environmental viability of nuclear in Australia.

Climate change remains a deeply emotional issue for many voters, particularly those living in areas affected by bushfires, floods, and heatwaves. For both major parties, managing this issue will require more than policies—it will require leadership, conviction, and public trust.

National security & strategic positioning

Foreign policy is emerging as a more significant theme in 2025 than in past elections. The AUKUS agreement, which includes plans to acquire nuclear-powered submarines, reflects growing concern over regional security in the Indo-Pacific. Bipartisan support exists for greater defence spending, but questions are being raised about whether the public fully understands the scale and purpose of these commitments. China’s presence in the Pacific, ongoing trade tensions, and Australia’s relationships with its allies will all feed into the election narrative.

The government has attempted to strike a careful diplomatic balance—rebuilding relations with Beijing while strengthening ties with Washington and regional neighbours. Dutton, known for his more hardline stance in previous portfolios, may adopt a more aggressive tone on defence and border protection, but this could be a double-edged sword in multicultural electorates.

Housing pressure & the struggle for stability

Access to affordable housing remains one of the most urgent and deeply felt concerns for Australians, especially young people. Rental shortages, rising property prices, and homelessness are now issues across the country—not just in the major cities.

Labor’s Housing Australia Future Fund was one of its flagship policies in 2022, but many argue it has not delivered results at the pace required. The Greens have consistently pushed for greater federal investment in social housing and rent controls, which resonates with young urban voters and lower-income renters. With home ownership feeling out of reach for many younger Australians, this issue could drive support toward minor parties and independents—unless the major parties can deliver strong and specific commitments on housing.

Indigenous recognition & reconciliation

The failed 2023 Voice to Parliament referendum left deep divisions in the national conversation around Indigenous recognition. The Labor government, which supported the referendum, now faces the challenge of showing meaningful progress in Indigenous health, education, and community empowerment, despite the setback.

For many First Nations Australians and their allies, there’s a sense that symbolic gestures must now give way to tangible action. For the Coalition, which opposed the Voice, the focus has shifted to localised and “practical” outcomes—but it will need to outline what that means in real terms.

This issue may not dominate the headlines during the campaign, but it will influence how Indigenous communities engage with the political process and whether younger voters continue to demand more inclusive national policies.

Trust, independents & the new political order

The 2022 election marked a turning point in Australian politics with the election of several independent MPs in traditionally safe Liberal seats. Many of these “teal” independents ran on platforms of climate action, government integrity, and gender equality. Their strong performance reflected a growing appetite for candidates who speak directly to local concerns, outside of the party machine.

Heading into 2025, these independents will be under pressure to prove that they can deliver. At the same time, more communities are showing interest in running grassroots campaigns, challenging the idea that power only flows through the two-party system.

Whether it’s over transparency, integrity, or accountability, the electorate is demanding more honesty and less spin. The 2025 federal election will not simply decide who forms the next government. It will offer Australians a choice between competing visions for the economy, the environment, and the role of government itself. Labor will ask for more time to complete its reforms, promising steady leadership and social investment. The Coalition will offer a return to economic conservatism and stronger national defence. The Greens and independents will advocate for deeper structural change, especially on climate and integrity.