Labor avoids deep economic debate at national conference amid party unity

Labor’s triennial national conference, held in Adelaide, concluded this week with a heavy emphasis on internal unity and political discipline, consciously sidelining deep or contentious economic debates. While delegates gathered to set the party’s direction, the sessions regarding the economy notably avoided significant internal opposition, with amendments passing through the proceedings with minimal discussion.

This atmosphere of cohesion stands in stark contrast to warnings issued outside the party ranks. Bill Kelty, a veteran member of the party and a key figure in the economic reforms of the Hawke-Keating era, provided a critical assessment of the nation’s economic health. In written evidence submitted to a parliamentary committee, Kelty highlighted a concerning list of indicators: productivity growth remains the third lowest among OECD nations, investment levels are low, and per capita growth is non-existent. Furthermore, Kelty pointed to an underlying malaise characterised by rising government expenditure and a tax burden on working people that is climbing faster than wage growth.

Despite these external critiques, the conference floor remained focused on maintaining a unified front. Prime Minister Anthony Albanese addressed the assembly by acknowledging that many Australians feel the current economy is failing them, noting that the last decade of global shocks has left citizens feeling that their future prospects are secondary to immediate financial pressures. He reiterated that the government’s priority remains targeted, practical relief. Specifically, the Prime Minister announced an extension to the prac payment scheme for allied health students, a policy allocated $158 million for the 2026-27 to 2029-30 period. the government pledged to establish a new Fair Work Court, a measure intended to provide a faster and more cost-effective mechanism for workers to resolve disputes regarding underpayment.

Independent economist Saul Eslake observed that these developments reflect a broader shift in Labor’s governing philosophy. Eslake noted a trend toward a more interventionist stance, marking a departure from the economic principles that defined the Hawke-Keating years. He suggested the government is transitioning toward a European-style social security model—one that provides services to specific groups based on life stages or health needs rather than strictly adhering to traditional, means-tested cash payments. However, Eslake questioned the sustainability of this model, noting, But there is not much indication so far of any thinking of how [we] will pay for the expanding role of government, and observing that the party has yet to address the need for corresponding tax reforms.

Tensions did exist behind the scenes, particularly regarding resource taxation. Former minister Ed Husic advocated for a new gas tax, arguing that the party should seize this moment to capture greater returns for the public. The proposal did not reach the conference floor, as the government prioritized the perception of Australia as a stable and reliable partner for international energy investment, especially amid ongoing conflict in the Middle East. Treasurer Jim Chalmers confirmed that a gas tax remains off the agenda for the foreseeable future, stating that the government has more pressing priorities.

Instead of addressing these resource revenue debates, the party platform was updated to state:

"Labor will ensure that the Australian people receive a fairer return from their natural resources including through appropriate taxation arrangements, while securing Australia’s role as a reliable international energy supplier and investment partner".

The conference also served as a stage for political posturing against the rise of populist sentiments. Party figures, including the Prime Minister and Housing Minister Clare O’Neil, directed repeated criticism toward One Nation. Albanese described the opposition and One Nation as effectively operating as a coalition, dismissing their platform as being composed of personality clashes, policy confusion, conspiracy theories and candidate chaos.

Reflecting on the importance of maintaining order, South Australian Premier Peter Malinauskas noted: In an erratic world filled with ill discipline and division, we’ve been reminded this week of that time-honoured political truth: if you can’t govern your dog, you can’t govern the country.