The key issues of federal election 2025 – and where Albanese and Dutton stand on them

These are the key issues the federal election will be fought on, and how Anthony Albanese and Peter Dutton will tackle them.

Soaring grocery prices, electricity bills and insurance costs, national security, a housing crisis, and health service pressures will be the defining issues of the 2025 election.

Anthony Albanese is sending Australians to the polls hoping they will vote based on who they think will provide a better future, while Coalition leader Peter Dutton wants people to consider if they’re better off after three years of Labor government.

Here is where the leaders stand on the issues that will dominate the campaign.

ENERGY 

The Coalition’s centrepiece policy to develop seven nuclear reactors across Australia by 2050 has created a stark contest to Labor’s renewables-led plan for the grid.

Mr Dutton has claimed modelling showing the capital cost of going nuclear would be 44 per cent less than the Albanese Government’s renewables, will translate into similar savings on electricity bills for consumers.

Though Labor has warned households would be a long way from seeing any financial impact given the first plant at best under the Coalition’s scheme would not be up and running for another decade.

Mr Albanese and his energy lieutenant Chris Bowen are instead aiming to have 82 per cent of the country’s power driven by sources like wind and solar by 2030.

Labor has also sweetened their policy offering with an immediate $150 rebate on power bills for households and small businesses before the end of the year.

The Coalition has said it won’t stand in the way of that policy, but they haven’t fully committed to implementing it itself.

Opposition leader Peter Dutton has gambled big on nuclear energy as a vote winner. Picture: NewsWire / Luis Enrique Ascui

HOUSING

Labor has set a goal to build 1.2 million new homes across Australia by 2029, by offering financial incentives to states and territories who hit their respective targets.

Their budget however revealed a miserly amount of progress had been made on that though – with 45,000 built in the first quarter of the accord.

Labor has added some more housing sweeteners in their budget – including $54m to pump up modular and prefabricated housing construction, as well as expanding their Help to Buy shared equity scheme.

Should the Albanese Government be given a second term, it has also planned to keep delivering cash to build 30,000 social and affordable homes through its $10 billion Housing Australia Future Fund (HAFF).

Labor has been slammed by the opposition for not completing a single home yet under the program, with funding only agreed on for 800 homes Australia wide, 18 months after the HAFF was legislated.

The Coalition are focused on Australians trying to break into the housing market, and are continuing their 2022 policy proposal of allowing first home buyers to take $50,000 from their superannuation to put toward a deposit.

Mr Dutton has also pledged $5bn to build critical infrastructure that would support the construction of 500,000 new homes over the next five years. 

The Coalition came out of the blocks with a two-year ban on foreign investors buying up existing Aussie homes, with Labor since matching the policy.

COST OF LIVING 

Three out of four Australians have designated cost of living as a major concern this election, according to a Redbridge poll conducted for News Corp in February.

Last year Mr Albanese braved breaking an election promise to reshape stage three tax cuts to funnel more money to low income earners, while Labor also pushed through a $300 electricity bill rebate – seemingly the only pause to otherwise soaring electricity costs.

He doubled down on that in the budget, introducing tax cuts which will equate to about $268 extra in Aussies’ hip pockets next year and $538 the year after.

Labor will also take policies to the election including cutting student loans and guaranteeing three days of childcare for preschool kids.

The Opposition leader will instead promise to slash the fuel excise in half for a year – in a move they say will save motorists $750 that year.

Mr Dutton has floated threatening insurance companies with divestiture should price hikes continue to impact Australians, and wants to rein in government spending by slashing some of the 36,000 public service jobs.

Prime Minister Anthony Albanese hopes he’s painted a compelling economic reason to vote for Labor. Picture: NewsWire / Martin Ollman

ECONOMY 

Mr Dutton has promised to curtail “union militancy” while permanently increasing the instant asset write-off for small businesses to $30,000.

The Coalition also has pledged the introduction of up to $20,000 in tax deductions for small businesses spending on company-related hospitality.

Meanwhile, Labor has pledged a ‘Future Made in Australia’ – aimed at pouring billions into domestic manufacturing.

In their budget they also pledged to ban non-compete clauses in low and medium income workers’ contracts, which they say will allow employees to jump to other better-paying jobs or allow them to create their own companies.

Other sweeteners – like a freeze on the draught beer excise for two years – have been made by Labor, with the Coalition rapidly following and matching the policy.

HEALTH

Labor, in 2025, has already stumped up some big cash for the health system, with an $8.5bn commitment to bump the bulk billing rate to 90 per cent.

The funding will also deliver 2000 new doctors per year by 2028.

The funding adds to a growing list of health investments including an extra $1.7 billion over a year to cover public hospitals across the country, in lieu of a longer-term deal with the states.

Mr Dutton has matched this commitment, and also promised to permanently increase the number of Medicare-subsidised psychology appointments to 20, from 10.

LAW AND ORDER

Labor got ahead of the Coalition, who pledged to bring in tougher laws to crackdown on anti-Semitism, by passing legislation following a spate of horror attacks including firebombings.

The Coalition and Labor in February united to pass an amendment to the government’s proposed hate crimes bill to add mandatory minimum sentencing for some terrorism offences and displaying hate symbols.

NATIONAL SECURITY

The re-election of Donald Trump in the US and a flotilla of Chinese warships meandering around Australia’s coastline has resulted in national security roaring back into contention as a key election issue.

It’s ground where Peter Dutton feels comfortable – with the Coalition already making a $3 billion pledge to buy a new fleet of F-35 fighter jets.

The Albanese Government plans to pump an extra $50 billion in defence over the next decade, while the Coalition claims it will outspend Labor on this front.

Whoever is the next Prime Minister will have to deal with the turbulent Trump – whose administration has now called on Australia to up its spending on defence to three per cent of gross domestic product, up from about two per cent currently.

Trump’s trade tariffs – which have already hit Australia in the steel and aluminium sectors – are also an ongoing economic threat.

Originally published as The key issues of federal election 2025 – and where Albanese and Dutton stand on them