Australian PM Albanese gains popularity following big-spending budget: Survey

Australian Prime Minister Anthony Albanese has seen an increase in his personal approval ratings and improved support for his government after a high-spending budget aimed at alleviating cost-of-living pressures was released.

This surge comes while concerns from economists about potential inflationary impacts linger.

A recent Newspoll survey obtained by Bloomberg News indicates that support for Albanese’s centre-left Labour government has risen to 52 per cent on a two-party preferred basis, compared to the opposition Liberal-National Coalition’s 48 per cent.

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This is a slight improvement from the previous poll where Labour led by 51 per cent to 49 per cent.

Budget measures and public reaction

The boost in approval comes after Treasurer Jim Chalmers presented the budget on May 14, which included measures such as an A$300 ($201) rebate per household on power bills.

This budget is likely the last before the next election, due by May 2025.

Despite warnings from economists that increased spending could heighten inflation, the government has defended the budget as necessary and responsible.

Albanese’s personal approval rating has climbed to 47 per cent, equal to his disapproval rating, marking his best result since a dip in October following the defeat of the Indigenous Voice to Parliament referendum, which he had strongly supported.

Economic concerns and government defence

The budget projects a second consecutive surplus for the year ending June 30, before forecasting a return to deficits over the next four years due to increased government spending.

Economists have warned that this spending could worsen inflation, potentially leading the Reserve Bank of Australia to maintain higher interest rates for an extended period.

Albanese, however, remains confident that the budget will help reduce inflation while supporting households.

He told the Australian Broadcasting Corporation that the power bill rebates alone are expected to reduce the Consumer Price Index (CPI) by half a percentage point.

"One of the things that we were determined to do was to provide cost of living relief without putting pressure on inflation," he said.

Political implications

The Newspoll survey also revealed that 52 per cent of voters now prefer Albanese as prime minister over the centre-right opposition leader Peter Dutton, marking Albanese’s strongest performance since July 2023.

This increase in personal and governmental support could have significant implications for the upcoming election.

(With inputs from Bloomberg)