Anthony Albanese wins landslide as Labor secures second term in Australia

Labor’s landslide victory gives Albanese a stronger mandate on foreign policy and economic reforms.

Australian Prime Minister Anthony Albanese takes the stage after winning the general election during the Labor Party's election night event in Sydney on May 3, 2025. Photo by Saeed Khan/AFP

By Anna Fadiah and Hayu Andini

Australian Prime Minister Anthony Albanese has secured a commanding second term in office after his Labor party scored a sweeping victory over the opposition Liberal party in the country’s general election. The result hands Albanese a strengthened mandate to implement foreign policy and domestic economic reforms, marking a pivotal moment in modern Australian politics.

The election outcome, which saw Labor clinch at least 86 seats by Sunday afternoon—well above the 76 needed for a majority—underscores a powerful shift in the political landscape. The result also places Albanese in the history books as the first Labor prime minister to win back-to-back elections since Bob Hawke in the 1980s.

Anthony Albanese wins landslide encapsulates a seismic shift not only in voter confidence but also in Australia’s regional posture and internal policy direction.

Foreign policy confidence grows as mandate expands

Analysts and political insiders agree that Albanese now enters his second term with greater freedom to act boldly on foreign affairs. The result is seen as a major endorsement of his international approach, which includes maintaining Australia’s strategic alignment with the United States while recalibrating economic relations with China.

Charles Edel, chair for Australia at the Center for Strategic & International Studies, remarked that the election marked a turning point in how Australians perceive global alliances. “There’s a growing scepticism toward the U.S. and a strengthened sense that Albanese’s instincts—especially on multilateralism—are correct,” he noted.

This sweeping victory follows similar developments abroad, including the recent Canadian election in which voters rejected the rightwing opposition—a development viewed by some as a broader international rebuke of U.S. President Donald Trump’s influence.

Domestic reform agenda now within reach

With his party enjoying a decisive majority, Albanese is poised to launch a raft of domestic reforms previously stalled by parliamentary gridlock. These include significant investments in healthcare, childcare, vocational education, and clean energy technologies. Analysts have dubbed the planned expenditures a “spendathon,” as the government prepares to funnel billions into boosting public services and easing cost-of-living pressures.

“This second term is meant to be the high point for any government,” said Nicholas Reece, Lord Mayor of Melbourne and former adviser to Prime Minister Julia Gillard. “Albanese now has not only a thumping majority but also a personal endorsement that allows him to move decisively.”

The economic reform agenda includes increased wages for care workers, rebates on electricity bills, and subsidies for home battery storage systems, as part of a broader clean energy push. Treasurer Jim Chalmers confirmed that while spending will increase in targeted areas, offsetting budget cuts will also be pursued to contain fiscal deficits.

Chalmers stressed the importance of tackling Australia's long-standing productivity issues. “We need to build resilience into our economy in an increasingly volatile global environment,” he said in a national interview on Sunday.

Shifting geopolitical dynamics shadow policy choices

Despite the domestic euphoria, Albanese’s second term begins against a backdrop of rising global tensions, particularly between the U.S. and China. Australia, a key U.S. ally in the Indo-Pacific, is simultaneously attempting to stabilize economic relations with China—its largest trading partner.

During his first term, Albanese succeeded in thawing diplomatic ties with Beijing, leading to the removal of tariffs on key Australian exports. The prime minister now faces the difficult balancing act of maintaining Australia’s commitments under the Aukus security pact with the U.S. and U.K., while protecting economic ties with China.

“I think what’s happening, particularly between the U.S. and China, casts a dark shadow over the global economy,” Chalmers acknowledged. “But Australia must remain pragmatic, focusing on resilience, self-reliance, and diplomacy.”

Opposition collapse clears path for Labor dominance

The Liberal party, led by Peter Dutton, suffered its worst election performance since its post–World War II founding. The party lost key urban battlegrounds in Melbourne, Perth, and Adelaide, failed to hold onto seats in its traditional stronghold of Queensland, and was entirely shut out in Tasmania.

Dutton’s decision to center his campaign on “anti-woke” rhetoric, government spending cuts, and public sector downsizing appeared to alienate voters, particularly in metropolitan areas. One of the party’s rising stars, 47-year-old ex-special forces soldier Keith Wolahan, lost his seat to a Labor challenger.

Wolahan later said the party needed a fundamental reassessment. “We must acknowledge the cities we live in now, not those we imagine or remember,” he told ABC.

Meanwhile, jubilant Labor supporters gathered in Sydney’s inner west to celebrate the historic victory. The area, where Albanese was raised, has long been a Labor stronghold. The festive mood stood in stark contrast to the geopolitical tensions and domestic policy challenges awaiting the prime minister in Canberra.

Deborah O’Neil, a Labor senator present at the celebrations, summed up the mood. “This isn’t just a win. It’s a statement. The people have made it clear they don’t trust the opposition, and they want action,” she said. “That’s a cake with icing. And sprinkles.”

Implications for global politics and trade

Albanese’s triumph, emphasized in global headlines as Anthony Albanese wins landslide, could ripple beyond Australia. It signals a growing appetite among Western electorates for progressive governance focused on inclusion, sustainability, and economic equity.

The result may also inform how international partners, including the United States and China, engage with Australia. With a renewed and reinforced government, Albanese is likely to be a more assertive voice in global forums, particularly on climate change, regional security, and economic cooperation.

As the Albanese government begins its second term, it does so with an unmatched level of public backing, a clear path for reform, and a complex set of global challenges. With confidence riding high and the opposition in disarray, the next few years will reveal whether this landslide victory can translate into lasting change.