2025 Federal election: Australia’s moment of reckoning

From the editor’s desk

Australia’s 2025 federal election arrives at a moment of rare national urgency. This is not merely another political contest — it is a pivotal test of the country’s ability to confront deep-rooted challenges and reimagine its future. The cost of living continues to stretch household budgets, with housing prices, rents, utility bills, and essential goods putting growing strain on middle- and low-income families. For many people in Australia, wage growth has failed to keep pace with inflation, leaving them anxious about the future. While temporary relief measures have been introduced, the sense that deeper structural reforms are needed has only intensified. This election takes place in an era where affordability, healthcare access, and job security are increasingly out of reach for younger Australians. Regional communities, too, feel left behind by centralised policymaking and demand more targeted development and support. Whoever leads the next government will face the enormous task of restoring public confidence in the capacity of politics to deliver real, lasting change.

Economic transformation also looms large. Australia’s prosperity has long been built on resource exports and strong trade links. But the global economy is undergoing fundamental shifts, driven by the digital revolution, artificial intelligence, and a race toward low-emission industries.

Australia cannot afford to lag behind. The next government must lay the groundwork for a more resilient, diverse, and future-facing economy — one that creates highquality jobs while aligning with the country’s climate responsibilities. That brings climate policy to the fore. As climate-related disasters grow in frequency and severity, public support for urgent action has never been higher. The transition to renewable energy is no longer an ideological debate — it is an economic and environmental imperative. The challenge lies not only in accelerating this transition but in doing so equitably, ensuring that communities dependent on fossil fuel industries are supported through the change.

Globally, Australia faces a complex and unstable environment. Tensions in the Indo-Pacific have sharpened, and relations with major powers require careful, consistent diplomacy. Defence planning, cybersecurity, and foreign engagement are now central to national policy. With growing uncertainty over regional security and supply chain vulnerabilities, the country’s foreign affairs will need a steady, strategic hand. Adding to the complexity is the evolving nature of Australia's democracy itself. In recent years, trust in political institutions has declined, fuelled by dissatisfaction with party politics and a growing appetite for independent voices. The rise of communitybacked independents and minor parties suggests a shifting political culture — one in which voters seek greater accountability, transparency, and responsiveness.

This election also follows a national reckoning on issues of identity and inclusion. The 2023 referendum on an Indigenous Voice to Parliament revealed not only political fault lines but deeper questions about how the country acknowledges its past and commits to reconciliation. These issues are not going away, and the next government must find ways to move forward with integrity and unity.

The political choices before the electorate are wide-ranging.

The Australian Labor Party has campaigned on stability, social investment, and environmental targets. The Liberal-National Coalition promises stricter economic discipline, stronger border controls, and a renewed focus on traditional values and energy reliability. The Greens are calling for sweeping reforms, especially around climate and social equity. Independents and other emerging voices continue to press for cleaner politics and local priorities.

Yet beyond policy specifics, this election asks something more fundamental: What kind of nation does Australia want to be in the face of accelerating change? Will it double down on the familiar, or will it adapt to the shifting tides of technology, climate, and global politics?

The 2025 federal election may well be remembered as a watershed moment. It challenges voters not only to select representatives but to express a national vision — one that is clear-eyed about the world’s uncertainties, ambitious in its hopes, and courageous in its choices. Australia must now decide how boldly it is willing to step forward.