Albanese Government Faces Challenges on Three Key Issues

Analysis of the current situation

By Michelle Grattan

The Conversation

Topic: Federal Government

Friday, 19 June 2026, at 5:44 am

The Albanese government is facing difficulties with three main issues.

The government is only a little over a year into its second term, and Pauline Hanson is causing problems in politics, so the Albanese government is having trouble with three important issues: budget tax reforms, controlling the National Disability Insurance Scheme, and the sensitive topic of migration.

On Thursday, the government announced changes to its tax plan worth $475 million, which has not been made into law yet.

The government is trying to make the tax law easier to pass by talking to stakeholders and making some changes before the Senate looks at it.

Prime Minister Anthony Albanese and Jim Chalmers had a news conference on Thursday, showing that they are listening to feedback.

Some changes will be added to the law that the Senate will look at soon, while others will be done later.

The government says its changes mean all small businesses can get tax breaks.

The government is also making special rules for new businesses that are innovative.

The government wants to stop people from being scared about a 'death tax' by not taxing trusts that are left in wills.

The government will change its tax law to make it clearer and give the treasurer less power.

The government wants to pass its tax law and its NDIS reform law in the next two weeks before the winter break.

The government is looking to the Greens to help pass the tax reforms and to the Coalition to help with the NDIS law.

There was talk of the opposition and the Greens working together to delay the tax and NDIS laws, but that seems unlikely now.

The NDIS law will make the scheme more restricted, with costs only going up 2% each year for the next four years.

The government says its NDIS law will stop fraud and make it clearer who can get help.

Critics say the law will hurt vulnerable people.

The states are not happy about the government's plan to cut back on the NDIS, and they are not taking on enough responsibility.

Senator Jordon Steele-John wants to protect NDIS funding.

The government is also having trouble with the NDIS because of sad stories from people who will be hurt by the cuts.

The government expects a long campaign to change its mind on the NDIS, but if it gives in, it might not meet its financial targets.

The NDIS reform is a big part of the budget's savings, and if it fails, it will have serious consequences.

The government hopes to pass the NDIS law soon, but it might have to accept a longer inquiry.

The government has talked to small businesses and startups about its tax plan.

The government also needs to reform migration, which is a big task.

On Thursday, the latest migration numbers were released, showing 301,000 people moved to Australia in 2025.

The government knows it needs to reduce migration, and the opposition wants to cut it too.

Reducing migration is complicated because it affects the economy, jobs, and industries.

There are many jobs that Australians won't do, so migrants are needed.

Construction and agriculture need migrant workers.

The government is trying to reduce student numbers, but this hurts universities and the economy.

The government's priorities on migration are different from the opposition's, but it's still a difficult task.

Michelle Grattan is a professor and chief political correspondent.

Friday, 19 June 2026, at 5:44 am

Friday, 19 June 2026, at 6:21 am

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