Albanese Secures Health Deal Amid Political Turmoil as One Nation Surges in Polls

CANBERRA, 30 January 2026 – Prime Minister Anthony Albanese has clinched a landmark five-year hospital funding agreement with states and territories worth $25 billion, a major policy win that comes as new opinion polling reveals a dramatic political realignment with One Nation threatening to become the official opposition.

National Cabinet Breakthrough on Health

After protracted negotiations, National Cabinet has agreed to a $25 billion hospital funding package for the next five years. The deal, announced by Prime Minister Albanese in Sydney, represents a significant increase from the Commonwealth’s initial $23 billion offer. Mr Albanese hailed the agreement as “landmark” but cautioned that the federal government was “not an ATM,” emphasising the need for sustainable funding arrangements. The funding is expected to bolster emergency departments, elective surgery wait times, and overall hospital capacity across the nation.

Polling Points to Historic Political Shift

Multiple recent polls indicate a “game-changing surge” for Pauline Hanson’s One Nation, with the party’s primary vote climbing to levels that could see it overtake the fractured Coalition. Analysis suggests One Nation is now eyeing “official opposition” status, capitalising on voter dissatisfaction with the major parties. The surge comes amid internal turmoil within the Liberal-National Coalition, with leadership challenges and policy disagreements creating an opening for the populist right. Former Prime Minister Malcolm Turnbull has reportedly warned of “doom and gloom” from the Coalition’s drift to the right.

Cost-of-Living and Inflation Pressures Persist

The political manoeuvring occurs against a backdrop of persistent economic challenges. New inflation data released this week showed an “unwelcome but unsurprising” tick upwards, intensifying cost-of-living pressures for households. Treasurer Jim Chalmers acknowledged the figures but noted inflation remains well below its peak. The government faces pressure to extend cost-of-living relief measures, with some proposals suggesting a “polluter pays” levy on fossil fuels could fund further household assistance. Meanwhile, insurance costs have risen by 39 per cent, energy by 38 per cent, and rents continue to climb, putting mortgage holders under strain.

Key Developments at a Glance

Diplomatic and Domestic Agenda

Beyond the health deal, the Prime Minister has been active on multiple fronts. He recently returned from Dili, where he signed a “New Partnership for a New Era” with Timor-Leste, committing an additional $8 million in technical assistance. Domestically, Mr Albanese used Australia Day ceremonies to deliver a forceful message to new citizens about respecting democratic values, against a backdrop of isolated protests. His government also reiterated its determination to see Chinese control of the Darwin port lease end, urging “careful diplomacy” in negotiations with Beijing.

Frequently Asked Questions

What is the value of the new hospital funding deal?

The Commonwealth has reached a $25 billion agreement with states and territories to fund hospital services over the next five years, up from an initial offer of $23 billion.

Why is One Nation surging in the polls?

Poll analysts attribute One Nation’s rise to voter disillusionment with the major parties, the Coalition’s internal fragmentation and rightward shift, and heightened focus on issues like immigration and cost-of-living where the party has strong messaging.

What is the government’s response to rising inflation?

Treasurer Jim Chalmers has acknowledged the latest inflation data as a challenge but notes it remains below peak levels. The government states it will continue targeted cost-of-living relief while pursuing broader economic reforms to address productivity and global uncertainty.