2023 Outlook Conference: Anthony Albanese says cost-of-living relief his top priority

Anthony Albanese says Australia can counter global uncertainty by investing in economic security and resilience at home.

In a major address to The Australian-Melbourne Institute Economic and Social Outlook conference, Anthony Albanese will also signal how he’ll frame the Coalition at the next election. Picture: NCA NewsWire / Martin Ollman

Anthony Albanese has vowed to shield Australians from the worst of a deteriorating global economy without resorting to protectionism, declaring his government’s agenda is being shaped by uncertainty overseas.

The Prime Minister will use a speech to The Australian-Melbourne Institute Economic and Social Outlook conference on Thursday to say Australia cannot isolate itself from global challenges but must invest in people and their aspirations to help meet them.

Halfway through his first term in government, Mr Albanese will label cost-of-living as his top priority while emphasising the importance of reducing inflation through targeted relief. His speech signals there will not be a big cash splash ahead of the next election, due in mid-2025.

Reflecting on the conference’s theme – a defining decade – Mr Albanese will say that, in the years ahead, Australia will have to look more and more beyond its borders.

“Our government’s approach is shaped by the inescapable fact that the global outlook is more uncertain now than when we came to office 18 months ago,” he will say, according to a preview of his speech.

“We can’t avoid that reality, nor can we frame a strategy only for best-case scenarios. We have to deal with the global economy as it is. But we did not pursue a surplus for the sake of it. We know a stronger budget position serves as an important buffer against international shocks and it helps put downward pressure on inflation.”

In the face of increasing hostility from business groups towards the government’s industrial relations reforms, Mr Albanese will recommit to closing loopholes around insecure work, revitalising bargaining and taking action on gender pay equity while pursuing safe and secure jobs and higher pay packets.

As well as remaining focused on short-term cost-of-living measures, Mr Albanese will ­emphasise the need to help Australians gain skills or retrain to equip the workforce for the ­future, saying the country can counter the uncertainty in the world by investing in economic security and strengthening resilience at home.

“After delivering the first budget surplus in 15 years, what happens in the world, affects us here in Australia,” he will say.

“We cannot isolate ourselves from the challenges and uncertainties we see around us. What we can do – what we must do – is invest in our nation’s capacity to meet them. Because being engaged in the global economy doesn’t mean outsourcing our destiny.

“It means backing our people, by helping with the cost-of-living and investing in the skills, knowledge and technology that our workers and businesses need to compete and succeed. It means strengthening our resilience and self-reliance, so we are better ­protected from future shocks and better positioned for future ­opportunities.”

On the eve of Mr Albanese’s long-awaited trip to China aimed at stabilising ties between the countries, the Prime Minister will defend his overseas travel and characterise it as the government looking to the future.

“It’s why I’m travelling to China this weekend, the next step in the patient, calibrated and deliberate approach we have taken to stabilising our relationship,” he will say. “It’s why our government is seeking to build on the tremendous competitive advantage Australia has in resources and critical minerals and convert that to a world-leading position in renewable energy, technology and advanced manufacturing.”

Hinting at the political attack Labor will use at the next election, Mr Albanese will say the government takes action while the Coalition says “no”, with the former making a positive difference and the latter espousing “relentless negativity”. It follows a significant loss for the Prime Minister when the voice referendum was defeated emphatically, 60-40 per cent, on October 14.