In the immediate aftermath of the Federal Budget, our latest Mood of the Nation survey shows the Budget has fallen flat, even amongst younger Australians. Reaction across the country is more negative than positive, with Australians concerned about the future impact on them, their families and the country.
The report comes against a backdrop of pessimism, with 66% saying Australia is headed in the wrong direction. Negative emotions are at an equal high to April 2025, when concern about US tariffs and global economic shocks were running hot, and October 2023, in the aftermath of the Voice to Parliament referendum.
As a key feature of the Albanese Government’s Budget, tax reforms have dominated public debate. The report shows that views on proposed tax changes are finely balanced, with no clear consensus emerging; it’s likely opinion has not yet settled. This ignites a bigger challenge for both the Government and the Opposition to pitch their policies in the face of a seemingly frustrated electorate, disenchanted with the major political parties and sceptical of the ability of the budget to deliver the sort of gear shift many are seeking.
Looking ahead, the economic outlook remains negative, even as pessimism has moderated slightly in since a month ago when concern about the fuel crisis was sharper. The Budget appears to have done little to improve perceptions of the Federal Government’s performance, with just 28% of Australians rating performance as ‘good’ or better – unchanged from earlier in the year.
As the national outlook continues to worsen, cost of living remains the defining issue, with pressures deeply entrenched and continuing to dominate public concern. While fuel concerns have eased since April, attention has shifted back to housing affordability alongside continued rising concern about immigration and crime.
Two thirds now believe Australia is heading in the wrong direction – a shift that’s reflected in the broader national mood – while sentiment is worsening to record lows across New South Wales and Victoria and near record lows in South Australia. A record-equal 61% feel more negative than positive, compared to just 35% who feel more positive.
Reaction has been more negative than positive, with around four in ten Australians expecting a negative impact on their household. Despite being positioned as major beneficiaries of this Budget, just 19% of 18–34 year olds expect it to have a positive impact on themselves and their families.
Reactions to proposed changes to capital gains tax and negative gearing are mixed, with no clear consensus emerging. Support for CGT changes is evenly split, while negative gearing reforms attract slightly more support than opposition. However, in both cases a substantial minority remain neutral, suggesting many Australians are either unclear on the implications or have not yet formed firm views on these reforms.
While support remains strongest for renewable sources, coal-fired power, gas-fired power and fossil fuel-based hydrogen have all reached record high levels of support. Support for nuclear has edged up to an equal high. On the transition to renewables as a whole, just over half (52%) feel positively, with 27% negative, reflecting largely unchanged sentiment.
SEC Newgate has previously asked Australians which of the two primary parties, or ‘neither/someone else’, are the best to manage the cost of living. In response to the growth of ‘neither/someone else’ as a preferred option, a methodology change was made to include Pauline Hanson’s One Nation and The Greens in May.
While Labor is still considered the best party on this key measure, One Nation is in second place ahead of the Coalition, with The Greens trailing behind.
Contact us if you have any questions about the Mood of the Nation research report or if we can help you navigate community or stakeholder sentiment or expectations.
Peter Collingridge, Director, SEC Newgate Research – [email protected]
Sue Vercoe, Managing Partner, SEC Newgate Australia – [email protected]
Kieran Phillips, Associate Partner, SEC Newgate Australia – [email protected]
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