SYDNEY — Australian Prime Minister Anthony Albanese announced on Friday (March 28) that the country will hold a national election on May 3, marking the start of a five-week campaign largely centered on cost-of-living concerns. Albanese's Labour Party secured a majority in the 2022 federal election, but recent opinion polls indicate a tight race between Labour and the opposition Liberal-National coalition, once votes from minor parties are factored in.

"Our government has tackled global challenges the Australian way—supporting those under financial strain while investing in the future," Albanese stated at a press conference. "Thanks to the strength and resilience of our people, Australia is making progress. Now, on May 3, you decide the path forward." Earlier in the day, Albanese sought approval from Governor-General Sam Mostyn to officially call the election. Under Australia's constitution, the governor-general, who represents Britain’s King Charles, must grant formal consent for the election. With a three-year parliamentary term limit, the latest possible election date is May 17.

A Competitive Campaign Ahead: In recent months, Albanese has introduced several initiatives aimed at benefiting families and businesses, including tax cuts in the latest budget. However, with the cost of living emerging as a key issue, the campaign is expected to be fiercely contested. On Friday, Albanese accused the opposition coalition of planning to scrap government programs and reverse the new tax cuts passed by parliament earlier in the week.

With a close election outcome possible, no single party or coalition may secure a majority, potentially leading to reliance on smaller parties to form a government. Albanese, a veteran Labour politician who grew up in public housing, initially enjoyed strong public support but has seen his popularity decline due to rising living costs and increasing interest rates. While inflation has recently fallen and the Reserve Bank of Australia cut interest rates in February for the first time in five years, these changes have not significantly boosted Albanese’s poll numbers.

His approval ratings, once well ahead of Liberal leader Peter Dutton, are now nearly equal. Dutton, a former police officer and ex-defense minister, has focused his campaign on the housing crisis, arguing that rising immigration has made homeownership unaffordable. He also supports nuclear power as an alternative to Labour’s renewable energy policies, which he claims have raised electricity costs for households and small businesses.

Both leaders have pledged an additional A$8.5 billion (S$7.2 billion) over four years to strengthen Australia's public healthcare system. Albanese, recalling his childhood experience of growing up with a single mother on a disability pension, warned that the opposition could weaken Medicare, reviving concerns from the 2016 election. However, Dutton has assured that he will match Labour’s plan to increase Medicare funding for doctors' visits.

Foreign Policy and Trade Relations in Focus: Another key campaign issue is which leader is better suited to manage relations with US President Donald Trump, who previously imposed steel and aluminum tariffs affecting Australian exports. Trump is expected to introduce additional tariffs on trade partners in the coming week.

Albanese emphasized his government’s ongoing engagement with the Trump administration on trade issues, highlighting his direct phone calls with Trump and early diplomatic discussions between the two countries' defense and foreign ministers. Without explicitly naming Trump, Albanese accused Dutton of adopting Trump-style policies, including proposed public sector job cuts. "There are ideas borrowed from elsewhere—we need to stick to the Australian way," he asserted.

Disclaimer: This image is taken from Reuters.