Can Australia’s 2025 election solve these major issues faced by the country?

The 2025 federal elections are dominated by several issues which have been central to the campaigns of parties and voters who seek change in the policies and ultimately the society, as Australians head to the polls today (May 3). The main rivals - the incumbent Labor Party and the principal opposition Liberal Party - are locked in an intense contest.

Australian Prime Minister Anthony Albanese is confident of ensuring the return of Labor to power. But Liberal leader Peter Dutton is hoping to create history by becoming the first party to win the federal election after being in opposition for just one term since 1931.

Below are the major issues dominating the Australian Federal Election 2025.

Housing Affordability

With the average Australian house price reaching nine times the average household income by 2024, House affordability has become a critical issue in the nation’s political arena, especially among younger Australians and renters. 54% of voters want house prices to decrease over the next five years, and 72% of renters are looking for a change in the sector.

All parties have actively campaigned to fight this issue. Labor's flagship initiative is the $10 billion Housing Australia Future Fund, aiming to construct 30,000 affordable homes over five years. It also plans to build 1.2 million homes over the next five years and offers first-home buyers assistance through schemes like the First Home Buyer Deposit Scheme and the First Home Super Saver Scheme.

"I work a shift job as a fixed plant operator. I'm paid well, but I can't afford to save to buy a house," said Adam in south-west Western Australia, told ABC.

The Coalition proposes allowing first-home buyers to access up to $50,000 from their superannuation for home purchases and supports tax deductions for mortgage interest payments on newly built homes.

More comprehensive reforms, including the introduction of rent caps and the limitation of investor tax breaks like negative gearing, are also being discussed.

Cost of Living

Many Australians continue to feel the financial strain as inflation peaked at 7.8% in 2023, and while it has since decreased to 4.1%

Both major parties have proposed tax cuts to alleviate this pressure. Labor plans to reduce the lowest tax rate from 16% to 14% and provide $8.5 billion to enhance bulk billing access, along with major investments in housing affordability and renewable energy.

The Coalition counters with a 25-cent fuel excise cut, $1,200 in tax relief for low- and middle-income earners, superannuation access for home buyers, and a $331 billion plan for nuclear energy over 25 years.

Both major parties agree on extensive health spending, including matched investments in mental health and women's health.

With younger Australians now the majority of voters, there's mounting pressure for bold, lasting solutions, not just quick fixes.

Healthcare

Both major parties have pledged substantial investments in Medicare, including up to $9 billion in additional funding. Initiatives such as capping prescription costs at $25 and expanding telehealth services have been proposed.

"You want a government in power that is going to look after the people who look after society: nurses, police, firefighters," said Meg Southcombe, a university student, told ABC.

Foreign Policy

U.S. policies under President Trump have impacted Australia's foreign policy considerations. Both major parties support the AUKUS submarine deal and have pledged to increase defense spending.

Labor has taken a more moderate approach to international relations, while the Coalition has emphasized a stronger stance on national security.