EDITORS’ NOTE: Both major political parties have made numerous election commitments. This document outlines those most pertinent to our members. Current as of 23 April 2025.

Overview
The upcoming federal election in Australia represents a pivotal opportunity for voters to influence how the nation will address domestic issues and build resilience amidst unfolding global uncertainty. The cost-of-living crisis, marked by inflation, housing affordability constraints, and stagnant real wage growth, as well as the anticipated disruption in international trade and foreign relations resulting from US President Donald Trump’s America First Policy, are shaping the platforms of both the incumbent Australian Labor Party, led by Prime Minister the Hon Anthony Albanese MP, and the Liberal-National Coalition, headed by Opposition Leader the Hon Peter Dutton MP. 

Australia remains a significant player in the global economy, ranked 8th among 38 OECD countries in terms of real GDP per capita (CIA, 2024) and 13th most competitive nation based on economic performance, government and business efficiency, and infrastructure (IMD World Competitiveness Center, 2024). Key sectors that contribute to the economy include health and services, mining, finance, construction, and manufacturing. Resource-based commodities such as critical minerals dominate Australia’s exports, which are traded with major destinations including China, Japan, Korea, India, and the US

While Australia’s current inflation rate of 2.5% marks a significant decline compared to previous years (peaking at 7.8% in December 2022), services inflation remains high due to increasing price of rents, medical, hospital, and insurance services (Australian Bureau of Statistics, 2024). The economy is forecast to grow by 1.5%, unemployment to remain low at 4.25%, and federal government net debt to steady between 21 and 24% of GDP (Commonwealth of Australia, 2025). Given the moderate economic growth projections, with global market disruptions and geopolitical tensions looming in the backdrop on the eve of the federal election, Treasurer the Hon Dr Jim Chalmers MP delivered the 2025-2026 Federal Budget driven mainly by more big-ticket public spending commitments. 


Labor promises targeted measures to relieve financial pressure on households, including personal income tax cuts, energy bill reliefs, expansion of Medicare benefits and investments in health services, new transport infrastructure, and fiscal incentives for priority investments such as low-emission manufacturing, clean technology, and renewable energy. 

In his response to Labor’s proposed budget, the Hon Peter Dutton MP outlined alternative measures to address the cost-of-living crisis, such as halving the fuel excise tax for 12 months, cutting wasteful spending including workforce reduction in federal government, curbing permanent migration by 25%, pursuing a nuclear energy program, and mandating gas supply reserves for domestic use. On 23 April, the Hon Peter Dutton MP also pledged to invest over $21 billion to take Defence spending as a share of GDP to 2.5% within 5 years.

The Labor Party's victory in the 2022 election marked its return to federal government leadership for the first time since 2013. Despite the strong historical trend in Australia of incumbent parties securing a second term, opinion polls suggest that the upcoming election will be highly competitive between Labor and the Coalition. Over the past year, incumbent leaders worldwide have encountered difficulties in maintaining their positions of power due to analogous economic challenges.

The complexity of issues that may impact the federal election outcome is anticipated to result in a hung parliament, where no party commands a majority of the lower house seats.

A hung parliament is expected to involve concessions and compromises, not only on domestic policy, but also on Australia’s ability to navigate its relationships with partners and allies abroad, including the US. Independent and minor parties, such as the Teals and the Greens, with their strong climate and progressive policies, could be highly influential in the next government, if there is a hung parliament. Meanwhile, leadership in the states and territories is also crucial in harmonising policy and implementing the next government’s agenda. The Northern Territory, Queensland and Tasmania are led by the Coalition, while Labor holds the Australian Capital Territory, New South Wales, South Australia, Victoria, and Western Australia. 

Independent and minor parties, such as the Teals and the Greens, with their strong climate and progressive policies, could be highly influential in the next government, if there is a hung parliament. In light of shifting global dynamics, Teal candidates have raised concerns about Australia’s $368 billion commitment to acquire new submarines from the US under the AUKUS agreement. 

Leadership in the states and territories will be crucial in harmonising policy and implementing the next government’s agenda. The Northern Territory, Queensland and Tasmania are led by the Coalition, while Labor holds the Australian Capital Territory, New South Wales, South Australia, Victoria, and Western Australia. 

The long history of economic ties and strategic cooperation with the US remains central to Australia and has endured regardless of who has been in power on either side of the Pacific, for more than a century. The current two-way trade and investment relationship between Australia and the US is valued at over $1.6 trillion. 

In the lead up to the federal election on 3 May 2025, AmCham is committed to keeping members informed about the potential changes in government policy and priorities, as communicated by the contending parties through their budget proposals, campaign speeches, and policy documents, that may impact doing business in the land down under – be it the promise for “building Australia’s future” or “getting Australia back on track.” 

Key Policies

1. Defence and National Security
2. Digital Technology and Innovation
3. Education and Training
4. Energy, Clean Technology, and Critical Minerals
5. Financial Services
6. Healthcare
7. Infrastructure
8. Manufacturing
9. Space
10. Trade and Investments
11. Taxes and Tariffs

Defence and National Security

Australia’s defence and national security industry continues to grow, driven by the evolving geopolitical situation in the Indo-Pacific region and the nation’s aspiration to strengthen sovereign capabilities. 

In 2022-2023, the industry contributed $10.6 billion or 0.44% to Australia’s gross value added, employed 64,100 persons, and engaged 5,544 Australian businesses (Australian Bureau of Statistics, 2024). 

Australia and the US maintain a deep and strong defence and security partnership as formalised in various agreements such as the Australia-US Defence Trade Cooperation Treaty, the Five Eyes intelligence partnership, the Quad, and AUKUS. These partnerships bring important commercial opportunities for both countries, with Australian companies having a presence in over 30 US states, and US defence firms including Boeing, Lockhead Martin, Northrop Grumman, Honeywell, and Raytheon serving as key contractors for major Australian defence projects (International Trade Administration, 2024).

The Labor Party and the Coalition recognise the need to strengthen the nation’s defence capabilities by increasing defence spending, partnering with the defence industry, and reforming procurement processes. Both parties put emphasis on the importance of AUKUS and on deepening strategic collaboration with allies and partners to ensure peace and security in the region. Labor pledges to continue equipment and military assistance to Ukraine while the Coalition commits to address antisemitism and revitalise engagement with Israel. 

Digital Technology and Innovation
Australia’s digital technology sector has rapidly grown, generating $167 billion in revenue which accounted for 8.5% of the country’s gross domestic product (GDP) in 2022 (Australian Trade and Investment Commission, 2023).

Australia’s digital infrastructure is among the most advanced worldwide – 3^rd in 5G connected devices per capita, 4^th in telecommunications investment, and more than 90% of its population having access to broadband. With an annual growth of 16%, the sector is projected to contribute $250 billion to the Australian economy by 2030, with strong local expertise in fintech, cyber security, quantum, digital games, business software, media and design, and the government’s ambitious plan to turbocharge government services through digitalisation (Australian Trade and Investment Commission, 2023).

US digital companies including Google, Amazon Web Services, Microsoft, and Salesforce are making significant investments in Australia, including in hyperscale cloud computing, AI and machine learning, cybersecurity, and health technology. Large US tech firms employ 102,000 Australians which account for 12% of the total tech workforce in the country (Tech Council of Australia; Accenture, 2023).

Labor’s digital transformation agenda is mainly focused on continuing the government’s investments in modernising delivery of public services and strengthening fraud detection capabilities.

Industry support committed by Labor is aimed towards agtech, quantum, robotics, and advanced manufacturing.

Labor also promises to pursue a whole-of-government approach to data policy and frameworks covering ethics, privacy, inclusion and accessibility, and safe use of emerging and critical technologies. Meanwhile, the Coalition commits to support private sector development in science, engineering, AI, blockchain, and advanced manufacturing, and plans to establish ecozones for high-tech industries around proposed nuclear power plant facilities.

Education and Training
Australia’s education and training sector remains robust and dynamic, with education services accounting for $51 billion or 3% of the country’s GDP (Department of Education, 2025) and employing around 1,246,100 people or 8.6% of workers employed (Jobs and Skills Australia, 2024).

Among the country’s key export services, Australia’s education sector presents opportunities for US edtech firms in the areas of STEM education such as robotics, coding, innovative classroom resources, augmented reality, virtual reality, and gaming (International Trade Administration, 2024).

Australian and US academic institutions have a long history of collaboration in this sector with both countries being top destinations for outbound students – 12,000 American students in Australia per year, and 5,000 Australian students in the US annually (Australian Embassy and Consulates, 2024).

The Labor Party and the Coalition have committed to supporting the upskilling of the Australian workforce, with incentives and ambitious targets set for training and apprenticeship. While both parties place particular emphasis on building, construction, and advanced manufacturing, Labor mainstreams its clean energy agenda into its apprenticeship program.

The Coalition highlights the need for faith-based education and shares the same position with Labor to prioritise STEM in childhood education. Labor proposes to amend legislation to allow reduction in student debt while the Coalition plans to set stricter caps on international student numbers in the cities.

Energy, Clean Technology, and Critical Minerals
The growth in Australia’s energy, clean technology, and critical minerals sector is driven by global demand for resources and the Australian Government’s agenda towards climate action and sustainability. 

Australia’s electricity generation mix in 2023 reflects diverse fuel sources, with coal contributing 46%, followed by renewables at 35%, gas at 17%, and oil at 2% (Department of Climate Change, Energy, the Environment and Water, 2024). The share of renewables in the energy mix is rapidly increasing with major investments in solar and wind energy technology. 

In the critical minerals sector, Australia is among the global top five producers of iron ore, gold, zinc, nickel, cobalt, and the world’s largest producer of lithium (est. 468.1 million metric tons of lithium carbonate equivalent) (S&P Global, 2024). The US Energy Information Administration (EIA) forecasts that Australia will remain the largest producer of lithium in 2030 given brownfield expansions of major mines and several greenfield projects. The Australian Government aims to strengthen sovereign capability in critical minerals processing as outlined in the Critical Minerals Strategy 2023-2030.

The developments in these sectors provide immense opportunities for US companies, especially in terms of equipment exports, automation, exploration software, reinforcement technology, maintenance, and servicing (International Trade Administration, 2024).

The most notable distinction between the Labor Party and the Coalition is their approach to energy policy.  Labor’s energy and climate policy is foundational to its long-term plans as reflected in its Future Made in Australia agenda which outlines the nation’s transition to a net-zero economy. Labor plans to unlock additional funding for further integration of renewable energy into the grid and utilisation of low-emission technologies. On the other hand, the Coalition’s proposal is to introduce nuclear power into the energy mix and set a gas reserves mandate for domestic use. 

The Coalition commits to streamline regulatory processes for the mining and resources sector while Labor plans to continue the government’s funding support to facilitate the development of green metals. Labor also plans to strengthen measures to help industries manage their emissions while the Coalition vows to push back against mandatory emissions disclosure and financing based solely on environmental, social, and governance (ESG) frameworks. 

Financial Services
In Australia’s financial services industry, the fintech sector has experienced rapid growth in recent years. Going beyond traditional banking and financial services, the fintech offerings are robust in digital banking, payments, stored value, wealth and investment, data analytics, decentralised finance, blockchain and cryptocurrency (Gilbert + Tobin, 2024).
  

Valued at $45 billion (2.6% of GDP), the fintech sector presents promising opportunities to US companies to serve more than 67% of Australian adults who are active users of fintech products and leverage its strong links to the Asian market (Australian Trade and Investment Commission, 2025).

Both parties recognise Australia’s competitive advantage in the sector but differ in their policy approach to support further innovation. The Labor Party commits grants while also maintaining regulatory oversight and consumer protection mechanisms.

The Coalition, on the other hand, plans to streamline regulation on the sector and support emerging technologies that enable the industry. Meanwhile, the Labor Party opposes early access of superannuation savings – a proposal by the Coalition to unlock up to $50,000 for home deposits.

Healthcare

Regarded as one of the best in the world, the Australian healthcare system is composed of public and private services supported by the country’s universal health insurance, Medicare. From 2022 to 2023, healthcare spending was estimated at $252.5 billion ($9,597/person) or almost 10% of Australia’s GDP, 70.8% of which was funded by the federal, state, and territory governments. 

In Australia, the healthcare sector employs approximately 2.3 million people, accounting for 15.6% of the workforce (Australian Institute of Health and Welfare, 2024). US companies have a significant presence in Australia’s health sector, especially in life sciences, biotechnology, therapeutics, digital health, and medical equipment. The US remains the top medical supplier to Australia, accounting for 31% of Australia’s imports in this sector.  Australia will continue to be among the largest markets for US medical exports as demand for healthcare continues to grow with its ageing population.

The healthcare agenda of both the Labor Party and the Coalition Party focus on enhancing Medicare benefits, growing the GP workforce through incentives, making mental health services accessible, investing in public hospitals in rural and densely populated communities, and keeping the price of pharmaceutical products low. Meanwhile, Labor plans to continue its current initiatives to expand digitalisation of public health services and health data management.

Infrastructure

The infrastructure industry accounted for 9.2% of Australia’s GDP and employed 1 million people in 2022-2023. In the same period, 56% of infrastructure engineering construction projects are attributed to transport infrastructure (Bureau of Infrastructure and Transport Research Economics, 2023). 

With many commercial opportunities in this sector, including partnerships with the government and local companies, US companies with engineering, procurement, and construction expertise can help address the growing demand for infrastructure in defence, buildings, utilities, and resources. 

In terms of infrastructure projects, both the Labor Party and the Coalition commit to invest in road, rail, water, irrigation, broadband and telecommunication infrastructure. The Coalition highlights the need to streamline regulatory requirements to accelerate infrastructure development.

Manufacturing

The manufacturing industry contributes 5.9% to Australia’s output, amounting to $30 billion in 2023 (Reserve Bank of Australia, 2025). 

The sector employed 904,000 people (6% of jobs) in 2023 and produced prime commodities such as food, beverages, tobacco, petroleum and chemicals, metal products, machinery and equipment, wood and timber products (AI Group Research and Economics, 2024).Manufacturing in Australia presents opportunities to US firms across all its sub-sectors, especially with respect to modernising the industry through digitalisation and advanced technologies. 

The Labor Party’s plan to supercharge Australia’s manufacturing sector is tied with its climate agenda, whereby programs focus on providing incentives to manufacturing of clean energy technologies and green metals, as well as supporting the sector in lowering their carbon footprint. 

The Coalition, on the other hand, plans to integrate high-tech manufacturing into the eco-zones to be built around nuclear power facilities. 

Space

Facilitated by government and industry investment, as well as international partnerships, the Australian space industry is projected to deliver an annual contribution of $12 billion to the GDP by 2030 (Australian Space Agency, 2019). The industry’s promising future is driven by Australia’s immense potential in launch services, Earth observation, robotics, satellite manufacturing, and defence applications. 

Leveraging the deep history of collaboration between Australia and the US, the industry offers strategic investment opportunities to US firms to capture the increasing demand for space-enabled services across the Asia Pacific region and globally. 

Historically, the Coalition has established the Australian Space Agency, launched a new partnership with the US which included Australia’s opportunity to join the Moon to Mars Program, and established the National Space Mission for Earth Observation (NSMEO). The NSMEO program was subsequently cancelled by the Labor Party.

Space was incorporated as one of the priority areas under the Labor Party’s National Reconstruction Fund and Industry Growth Program. Under the 2025-26 budget, Labor committed to assume liability for damages caused by launches approved under the Space (Launches and Returns) Act of 2018. 

The Coalition does not appear to have made any recent proposals on space in the lead up to the 2025 election. 

Trade and Investments

International trade and foreign investment will remain important contributors to the Australian economy, driving innovation and prosperity across all sectors. In 2023, direct investment in Australia is valued at $1.18 trillion and Australia’s investments abroad account for $1.04 trillion. Australia’s main export commodities include critical minerals, gas, iron ore, coal, beef, wine, and wheat with US, China, Japan, Republic of Korea, and India as major trading partners (Australian Bureau of Statistics, 2024). With Australia’s strong economic ties to the US, American companies can capture trade and investment opportunities in key sectors such as energy, technology innovation, healthcare solutions, and defence. 

Both parties aim to expand markets to capture new opportunities, following President Trump’s announcement of sweeping new tariffs on 2 April 2025, a day he called “Liberation Day,” initially set to take effect on 5 April 2025.

In response, Prime Minister Anthony Albanese referred to Trump’s new tariffs as “not unexpected but totally unwarranted.” The prime minster said a reciprocal tariff to Australia would be 0% given the free trade agreement (FTA) between the two nations. Albanese said Australia would not retaliate and “join a race to the bottom which will lead to higher prices and slower growth.” Albanese also said the government would continue its constructive engagement with the US to resolve the issue, without having to resort to the FTA’s dispute resolution mechanism.

Opposition Leader the Hon Peter Dutton, MP asserted that Australia did not deserve the new tariff given the nation’s long history of a trusted relationship with the US. If elected as prime minister in the upcoming federal election, Dutton committed to normalising Australia’s trade relations with the US to help beef producers, strengthen manufacturing and industries, and increase employment in Australia. 

Labor has outlined additional measures to help Australian businesses expand their export markets and mitigate the impact of the new tariffs. These include additional funding to peak bodies, trade missions, zero-interest loans, intensified Buy Australia and anti-dumping campaigns, and a critical mineral reserves strategy.  The Coalition has expressed agreement to these proposals.

Both parties also refused to make any compromises on US grievances presented in the 2025 National Trade Estimate Report on Foreign Trade Barriers in defence of Australia’s national interests.

Taxes and Tariffs

As Australia remains committed to free trade, changes in the tariff’s regime of Australia’s key economic partners, including the US and China, may disrupt Australia’s trade and supply chains.  US President Trump invoked the national security provisions of the Trade Expansion Act of 1962 to impose 25% tariffs on all steel and aluminium imports to the US effective from 12 March 2025. The order also expanded coverage of the tariffs to include downstream steel and aluminium derivative products, which were initially exempted from the actions issued in 2020. 

Furthermore, Trump terminated all pre-existing alternative arrangements which carved out trading partners such as Australia from the previous tariff regime for steel and aluminium. Earlier this year, Trump did not grant Australia an exemption from the tariffs imposed on steel and aluminium despite extensive negotiation efforts by the Australian Government. The direct and indirect impact of tariffs imposed on all of Australia’s durable manufacturing goods, including steel and aluminium, is estimated to result in -0.1% change to real GDP by 2030 (The Treasury, 2025).

Australia has implemented Pillar Two of the Global Tax Deal, which applies to multinational companies with annual global revenue of EUR750 million or more, whereby a global minimum corporate tax rate of 15% is imposed on income arising in each of the jurisdictions where they operate. Meanwhile, in a presidential memorandum, US President Donald Trump declared that the Global Tax Deal has no force or effect within the United States unless approved by the US Congress.

In the lead-up to the elections, proposed policies by Labor commits to a personal income tax cut for low to medium wage earners, strengthening the ATO to enhance tax compliance of multinationals and large taxpayers, supporting small businesses, providing tax offsets for key industries, and abolishing tariffs on selected products.

The Coalition proposes to temporarily halve fuel excise tax as a cost-of-living relief and allow tax deduction of up to $20,000 for dining and entertainment expenses for eligible small businesses.