Albanese and Dutton have just gained something they both desperately need

Anthony Albanese and Peter Dutton have just gained something they both need in the fight for the next election: more time.

Victory will go to the leader who uses it best.

The prime minister made the right decision on Friday night to go public with his plan for a federal budget on March 25 and an election in May. With a cyclone heading to the Queensland coast, it made no sense to call the election.

Prime Minister Anthony Albanese during a visit to the national situation room on Friday for a cyclone briefing.Credit: Alex Ellinghausen

The opposition leader is no worse off from this move. Dutton was not caught by surprise or thrown on the defensive. Nature forced Albanese to declare his intentions. The cyclone played havoc with the usual ploys a prime minister will use to keep the other side guessing.

What matters is that each leader has at least three more weeks to convince Australians he has the vision and guts to make households richer and the country stronger. We have three weeks until the budget, followed by at least five weeks of campaigning for an election on May 3 – or longer if polling day is May 10 or May 17. Based on what we know so far, both leaders will need every minute.

The country is in an economic holding pattern after the pandemic, yet there is no consensus on reform.

Productivity is woeful: the Reserve Bank thinks it shrank 1.9 per cent last year. Households are not wrong to feel they are falling behind: without a significant economic turnaround, living standards will decline.

One of the best measures of personal prosperity, real household disposable income per capita, was flat over the past year. It was, at least, up by 0.7 per cent in the quarterly results issued last week.

Which side has an answer? So far, neither. Labor offers platitudes, the Liberals offer complaints. Australia needs more ideas that will lift growth, add to household wealth and build a stronger nation. Where are they?

Australia also needs to toughen security when US President Donald Trump is weakening alliances that delivered decades of prosperity. China added urgency to that question by sending three ships around the Australian coast. Can the tax system sustain an increase in defence spending?

The March 25 budget forces attention on these questions. It gives Treasurer Jim Chalmers the chance to outline a coherent economic plan after the heavy Labor emphasis on spending policies so far this year. Whatever the merits of the $8.5 billion plan for Medicare, it does not expand the nation’s capacity to pay for essential services.

The budget also requires Dutton to address a glaring Coalition weakness: the absence of a compelling policy to lift growth. His most recent idea, a tax break on business lunches, was lightweight. Will he fill the vacuum in his budget reply on March 27?

While it is true that Dutton has made a bold move with his plan for nuclear power, the policy is plagued by doubts about the mammoth cost and lengthy building delays. Yes, the two major parties are vastly different on climate change. Neither energy plan, however, is a blueprint for productivity growth and economic revival.

So the election is a long way from being a contest of ideas.

Opinions differ on whether Albanese wanted a budget. He kept his options open, with tricky language at times, so the media speculation took off. In the end, his statement on Friday was completely in line with his stated plan from December. The problem? By waiting until Friday night to declare his intentions, he made it look like he was reluctant to issue a major economic statement.

Treasurer Jim Chalmers will now hand down a budget before the election.Credit: Louie Douvis

Could Labor have raced to victory by skipping the budget? The West Australian election at the weekend is, on paper, a good sign for Albanese. The state Labor machine demolished the Liberals in the Perth suburbs that overlap with key federal electorates, which means Albanese and his team are in a good position to hold their ground.

When Labor applies the state outcome to its federal calculations, it looks on track to retain Tangney and Pearce and is the favourite in the new seat of Bullwinkel.

But history shows that Australians can reward one side of politics in their state and sweep another to victory in Canberra. The most powerful factors in the federal campaign, at this stage, are the gains for the Liberals on the east coast.

Crucially, the state result does not reveal how voters rate Albanese and Dutton on the national challenges that lie ahead. Only the federal result can do that.

This is the advantage of a March 25 federal budget. It should force a national reckoning on the problems before our eyes. It may not do this, of course, but Albanese and Dutton should not be given any excuses for missing the moment.

The two leaders have gained more time. They should use it well.

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