When the going gets tough, the tough get going. I am all in.
In the shifting currents of Australian political life, opposition leader Angus Taylor has openly signaled a willingness to court One Nation's preferences — a threshold once treated as uncrossable by mainstream conservatives — as the Coalition calculates what alliances electoral survival may require. Simultaneously, Victorian Premier Jacinta Allan faces the twin pressures of internal party doubt and a coarsening public discourse, while economists at NAB quietly revise their forecasts to reflect an economy slowing faster than anticipated, with interest rate relief now not expected until mid-2027. These threads — of political realignment, leadership fragility, and household financial strain — are not separate stories but facets of a single anxious moment in Australian public life.
- Taylor's public embrace of potential One Nation preference deals marks a rare breach of the unspoken boundary that has long separated mainstream conservatism from Hanson's far-right movement.
- One Nation's rising poll numbers are cannibalizing votes from both major parties, forcing Coalition strategists to choose between ideological distance and electoral arithmetic.
- Victorian Premier Allan is fighting on two fronts simultaneously — dismissing internal Labor leadership murmurs as 'navel gazing' while condemning AI-generated sexist billboards targeting her as a symptom of a broader cultural rot.
- NAB has pushed its forecast for the next RBA rate cut to June 2027, as banks tighten lending to property investors ahead of capital gains and negative gearing reforms, shrinking borrowing capacity by roughly 20 percent.
- Consumer confidence has cratered back toward 50-year lows, with just 4.5 percent of households nominating real estate as the wisest place for savings — the lowest figure since the survey began in 1974.
- For ordinary Australians, cost-of-living relief that briefly appeared after the fuel excise cut has reversed sharply, and no clear path out of the financial squeeze is visible on the near horizon.
On a Tuesday morning in early June, Angus Taylor stepped before journalists and said what Australian opposition leaders rarely say aloud. Asked about preference arrangements with Pauline Hanson's One Nation, he indicated the Coalition would work with the far-right party to remove Labor from government. When pressed for specifics, he doubled down: the Coalition would work with 'whoever we can' to defeat what he called a 'toxic Labor government.' The comments were notable not for what they revealed about backroom dealing — preference arrangements are a quiet constant in Australian politics — but for the public candor. One Nation's support had been climbing in recent polls, eating into the Coalition's own vote share, and Taylor appeared to be signaling that electoral survival had recalibrated the calculus.
In Victoria, Premier Jacinta Allan was navigating her own turbulence. Labor MPs had begun circulating leadership concerns late the previous week, reviving spill speculation despite the absence of a clear alternative. At a press conference flanked by nurses, Allan dismissed the internal chatter as 'navel gazing' and insisted Victorians needed practical help, not party drama. When asked directly whether any MPs had requested she step down, she said no, and added: 'When the going gets tough, the tough get going. I am all in.'
Allan also addressed a truck-mounted billboard featuring AI-generated images of her alongside the phrase 'ditch the witch.' When Pauline Hanson told her to 'suck it up, sweetheart,' Allan's response was pointed: 'Pauline Hanson chooses to barrack for the bullies. I choose to fight them.' Both Julia Gillard and Prime Minister Albanese publicly condemned the billboard, and Allan said Gillard's response 'made my heart sing.' She framed her pushback not merely as self-defence but as a message to young girls about what ought to be considered normal.
Beyond the political theater, the economic picture was darkening. NAB chief economist Sally Auld revised the bank's forecast, now predicting the Reserve Bank's next move would be a rate cut — but not until June 2027, reflecting a sharper-than-expected slowdown in early 2026. Banks had already begun tightening lending to property investors ahead of the government's planned capital gains tax and negative gearing changes, cutting borrowing capacity by around 20 percent. Since investors account for roughly 40 cents of every dollar of mortgage lending, the aggregate drag on the economy was substantial.
Consumer sentiment told the same story. Westpac's monthly survey showed household confidence sliding back toward 50-year lows. Just 4.5 percent of respondents nominated real estate as the wisest place for savings — the lowest reading since the survey began in 1974, against a long-run average of 24 percent. Cost-of-living pressures, briefly eased by the fuel excise cut, had returned sharply. Eighty-five percent of consumers viewed inflation news negatively, and around 70 percent felt the same about budget and tax announcements. For most Australians, the financial squeeze was tightening again, and relief remained a distant and uncertain prospect.
On a Tuesday morning in early June, Angus Taylor stood before journalists and opened a door that Australian politics had kept mostly closed. The opposition leader, responding to questions about preference-swapping arrangements with Pauline Hanson's One Nation party, suggested the Coalition would be willing to work with the far-right outfit to unseat the Labor government. His language was blunt: Australians had "had enough of this rotten Labor government," he said, and the Coalition would "work with others to get rid of" it. When pressed on whether that meant One Nation specifically, Taylor doubled down, saying the Coalition would work with "whoever we can" to defeat what he called a "toxic Labor government."
Taylor's comments marked a significant shift in tone for the Coalition. While preference deals happen quietly in Australian politics, a senior opposition leader publicly musing about working with One Nation—a party long treated as beyond the pale by mainstream conservatives—suggested something had changed in the political calculus. The backdrop was clear: One Nation's support had been rising in recent polls, and the Coalition was watching its own vote being cannibalized by Hanson's party. If the math of electoral survival meant working together, Taylor seemed to be signaling, then the Coalition was open to it.
Meanwhile, in Victoria, Premier Jacinta Allan was fighting her own battle. Labor MPs had begun circulating concerns about her leadership late the previous week, reviving talk of a possible spill despite the party's apparent inability to coalesce around an alternative. Allan had weak personal ratings, and One Nation was eating into Labor's vote share alongside its traditional targets on the right. At a press conference on Tuesday, flanked by nurses, Allan dismissed the leadership chatter as "navel gazing" at a time when Victorians were drowning in cost-of-living pressures. "People are looking for help," she said, and internal party drama was not it. When asked directly if any MPs had asked her to step down, she said no. "When the going gets tough, the tough get going," she added. "I am all in."
Allan also addressed a truck-mounted billboard that had circulated in recent days, featuring AI-generated images of her alongside the phrase "ditch the witch." Pauline Hanson, when asked about it, had told Allan to "suck it up, sweetheart." The premier's response was sharper. "Pauline Hanson chooses to barrack for the bullies," Allan said. "I choose to fight them." She spoke at length about her commitment to calling out sexism, noting that it was not just a matter of defending herself but of ensuring young girls did not grow up thinking such material was normal. Julia Gillard had publicly condemned the billboard, as had Prime Minister Anthony Albanese, and Allan said seeing Gillard's response "made my heart sing."
Beyond the political theater, economic headwinds were intensifying. The National Australia Bank revised its interest rate forecast, with chief economist Sally Auld now predicting the Reserve Bank's next move would be downward—but not until June 2027. The shift reflected a sharper-than-expected economic slowdown in early 2026. Banks had already begun tightening lending to property investors in response to the government's planned changes to capital gains tax and negative gearing, slashing borrowing capacity by roughly 20 percent. Since investors account for about 40 cents of every dollar of mortgage lending, the aggregate effect was substantial. Homebuilding might represent only 5 percent of GDP, but the knock-on effects to the broader economy could be much larger.
Consumer sentiment had collapsed. Westpac's latest monthly survey showed household confidence sliding back to around 50-year lows. When asked where the wisest place for savings was, just 4.5 percent of respondents said real estate—the lowest share since the survey began in 1974, compared to a long-term average of 24 percent. The shift reflected a combination of falling property prices in some markets, expected interest rate rises, and the major tax policy changes announced in the federal budget. Cost-of-living pressures, which had eased temporarily after the fuel excise cut, had roared back with what one economist called "a vengeance." Eighty-five percent of consumers viewed news about inflation as negative, and about 70 percent felt the same way about budget and taxation announcements. For ordinary Australians, the financial squeeze was tightening again, and there was no clear relief in sight.
Citas Notables
Australians have had enough of this rotten Labor government that's taking this country in the wrong direction. We'll work with others to get rid of this rotten Labor government.— Angus Taylor, opposition leader
Pauline Hanson chooses to barrack for the bullies. I choose to fight them.— Jacinta Allan, Victorian Premier
La Conversación del Hearth Otra perspectiva de la historia
Why does Taylor's willingness to work with One Nation matter so much? Preference deals happen all the time in Australian politics.
Because he said it out loud. Preference swaps usually happen in backrooms, negotiated quietly by party operatives. A major opposition leader publicly signaling openness to One Nation changes the conversation—it legitimizes the partnership, makes it seem inevitable rather than distasteful.
And One Nation is rising because of cost of living?
Partly. One Nation has always fed on economic anxiety and cultural grievance. Right now, both are running high. Voters are scared about mortgages and rent. One Nation offers simple answers and someone to blame. The Coalition and Labor are both bleeding votes to them.
So Allan's problem is that her own party is fracturing while she's also losing ground to One Nation?
Exactly. She's got MPs whispering about leadership challenges, her personal ratings are weak, and One Nation is taking slices from Labor's base. She's trying to stay focused on policy—the car registration discount, cheap public transport—but it's hard to talk about solutions when your own party is questioning whether you should be leading it.
The billboard with "ditch the witch"—was that One Nation?
The source doesn't say who created it, but Hanson's response—telling Allan to "suck it up"—suggests One Nation wasn't bothered by it. Allan's point was broader: she's calling out sexism in politics, and she's not going to let it slide just because it's uncomfortable to talk about.
And the economy is actually getting worse, not better?
The slowdown is sharper than expected. Banks are already tightening credit to investors. Consumer confidence is at 50-year lows. People thought the fuel excise cut would help, but cost of living pressures came roaring back. The RBA won't cut rates until mid-2027 at the earliest. For ordinary people, that means a long wait for relief.
So we're looking at a government under siege from multiple directions—internally fractured, losing votes to One Nation, and presiding over an economy that's getting tighter?
That's the picture. And the opposition is signaling it's willing to make deals with anyone to capitalize on it.