SBS Our House

For Australian politics in 2025, it was a year of predictable policies - and shock results. That included the May election that saw Labor win back government in a landslide, and two separate party leaders - Peter Dutton and Adam Bandt - lose their seats. We back at the year in Canberra.

Treasurer Jim Chalmers has unveiled a mid-year budget update marked by fiscal restraint, highlighting a $5.4 billion improvement to the deficit alongside critical new funding for the CSIRO and community security. However, the outlook remains fraught as rising inflation threatens real wage growth and persistent spending pressures in childcare and the NDIS continue to squeeze the bottom line.

Top security officials from the United States and Australia have met in Washington, confirming that the AUKUS security pact is moving "full steam ahead," despite the Pentagon's five-month review of the deal remaining secret. Both nations emphasised increased defence spending, critical minerals cooperation, and greater burden-sharing from allies to confront growing Indo-Pacific tensions.

After five years of review, the government has struck a deal with the Greens to pass the largest reforms to Australia’s environmental laws in 26 years, which includes new environmental standards, protections for native forests, and the effective end of fast-tracked approvals for coal and gas projects. Despite these wins, the deal faces criticism from environmental experts.

The Australian Senate descended into chaos as One Nation leader Pauline Hanson wore a black burqa into the chamber, prompting immediate condemnation from Muslim Senators and a forceful intervention by Foreign Minister Penny Wong. Following the rejection of her motion to ban the burqa, Ms. Hanson's stunt, which she claimed was about "protecting national security," was decried as racist and disrespectful to people of faith, ultimately leading to her suspension from the Senate.