New Liberal leader Angus Taylor has made improved living standards central to his pitch to become prime minister.
In his maiden press conference after being elected opposition leader on Friday, Taylor said: “I say to Australians, the first priority of the Liberal Party now under my leadership will be to restore our standard of living and protect our way of life.”
Most voters will welcome the sentiment; Taylor must not delay in presenting voters with detailed economic policies to match the rhetoric.
He takes on the Liberal leadership as the Albanese government confronts a list of tricky economic challenges. Damaging price pressures have re-emerged during the past six months; inflation is now running at 3.8 per cent, well above the Reserve Bank’s target band of 2 to 3 per cent.
The RBA has lifted rates once this year in a bid to end the inflationary surge and further increases are a strong possibility. This unwelcome news for millions of indebted households follows years of elevated public concern about the cost of living.
The May federal budget looms as a stern test for Treasurer Jim Chalmers.
There is a case to suggest government spending has played at least some role in the recent inflationary spike. Chalmers must ensure that the 2026 budget does not make the problem worse.
The government is also being pressured to boost productivity growth and to do more to address housing affordability. The budget, Chalmers’ fifth, is an obvious platform to unveil effective new solutions.
The Liberal Party is languishing in the polls, but the government’s economic problems present Taylor with a political opportunity. To make the most of it, he must move beyond hollow rhetoric.
At Friday’s press conference, Taylor repeatedly described the Albanese government as “rotten” and even said it was the “worst Labor government in Australian history”.
But vague attacks will not be sufficient to rebuild the opposition’s economic credibility.
The latest Resolve Political Monitor, published on Monday by this masthead, shows only 26 per cent of respondents believe the Liberal-National Coalition would be the best economic manager. That’s the same share as Labor, despite the government’s economic troubles.
The Coalition was also on par with Labor (on 26 per cent) for which party would perform best in managing government finances.
This underscores how nebulous criticism of Labor will be insufficient to rebuild the Liberal Party’s economic bona fides.
Taylor is often portrayed as a Liberal in the Howard-Costello tradition, but he should not dwell on the past. Economic conditions have shifted dramatically in the 30 years since the Howard government won office.
Unless Taylor can skilfully address contemporary economic challenges, he runs the risk of being branded yesterday’s man.
The thumping 34-17 victory over outgoing Liberal leader Sussan Ley in Friday’s party room ballot gives Taylor scope for bold action. He must now outline specific policies to achieve his promise to restore living standards.
The opposition leader needs a fresh and convincing economic plan, and fast.
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