(Bloomberg) – Australian Prime Minister Anthony Albanese‘s personal approval rating rose and support for his government improved after last week’s budget, even as economists warned the spending measures could worsen inflationary pressures.
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Support for Albania’s centre-left Labor government rose to 52% on a two-party preference basis, while the opposition Liberal-National Coalition fell to 48%, a Newspoll survey showed. In an earlier poll, Labor was narrowly 51% ahead of 49%.
The prime minister’s personal approval rose to 47%, equal to his disapproval rating, which is his best showing since a dip in October after an Indigenous Voice to Parliament referendum he personally supported was defeated.
The poll comes after Treasurer Jim Chalmers outlined cost-of-living support for Australians in the May 14 budget, including a A$300 ($201) per household rebate on energy bills. The budget blueprint could be the last before the next elections, due in May 2025.
The budget showed a second consecutive surplus this year until June 30, before a rise in government spending pushes the budget back into deficit in the following four years.
Albanese and Chalmers have defended the budget as responsible and appropriate, even as economists warned that the increase in spending could further fuel inflation and force the Reserve Bank to keep interest rates high for longer.
Speaking to the Australian Broadcasting Corp. Albanese said on Monday that the budget would reduce inflation while providing support to households struggling with cost of living pressures.
He referred to Treasury estimates that the energy bill cuts would mechanically lower the CPI by half a percentage point.
“One of the things we were determined to do was ease the cost of living without putting pressure on inflation,” the Prime Minister said.
Newspoll also showed that 52% of voters preferred Albanians as prime minister over center-right opposition leader Peter Dutton, his strongest showing since July 2023.
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