The 2026 political year in Australia has already delivered unexpected developments. Labor successfully passed changes to negative gearing and the capital gains tax discount, policies they had previously ruled out. Meanwhile, the Liberal Party changed leaders again, and One Nation has experienced a surge in support across multiple polls.
Key Political Developments
Political editor Tom McIlroy spoke with press gallery colleagues Michelle Grattan, chief political correspondent at The Conversation, and Melissa Clarke, political correspondent with ABC Radio National, to discuss their report card on the year so far and the political contests to watch in the second half of the year.
According to Grattan and Clarke, the passage of negative gearing and capital gains tax reforms marked a significant shift for Labor, which had previously opposed such changes. The reforms were passed after a deal with the Greens.
Liberal Leadership and One Nation Rise
The Liberal Party installed Angus Taylor as leader in an effort to save the Coalition. However, with One Nation rising in the polls, questions remain about whether Taylor is leading the party to disaster. The surge in support for One Nation has been attributed to voter dissatisfaction with the major parties.
Grattan noted, "The political landscape has shifted dramatically, and the second half of the year will be crucial for all parties." Clarke added, "One Nation's rise is a clear signal that many voters are looking for alternatives."
Outlook for the Second Half
As the year progresses, key contests to watch include by-elections and the ongoing debate over economic policy. Both major parties face challenges in maintaining voter support amid changing political dynamics.
