The 2025 federal election was a significant victory for the Albanese Government and provides a clear mandate for action on issues central to Australia’s future prosperity, resilience and growth.
The government’s re-election was driven by winning urban seats across Sydney and other capital cities. Combined with the continued impact of the ‘Teal wave,’ the opposition has also experienced a significant reduction in the number of urban seats – with only 5-6 seats in Sydney, 3-4 in Melbourne, 2 in Brisbane, 1-3 in Perth and none in the other state and territory capitals. With an increasingly urban population, building a compelling case to urban Australia will be a critical task for all parties who hope to form government in the coming decades.
This new term of government comes at a time of great global uncertainty, a time that calls for courageous, compassionate and future-focused policy and direction setting. With an increased Labor majority, Australians have signalled clear directions – they are seeking certainty on our renewable energy transition and have little time for a culture war.
If the last parliament was dominated by inflation and cost of living, this term must also grapple with boosting productivity through investments in new urban industries, while continuing a focus on bringing housing access and affordability into line and accelerating the energy transition.
The Committee for Sydney calls on the federal government to redouble its focus on the vital role of cities in our national conversation and their contribution to economic opportunity, global connectivity, building and harnessing creativity – especially at a time when we have and must continue to signal stability to global investors and talent.
The Committee has six policy priority areas for the federal government:
A connected city
- Commit to and deliver high speed rail. The High Speed Rail Authority has submitted a business case to the federal government for the first stage connecting Sydney to Newcastle. This should be prioritised to realise the agglomeration benefits of the Sandstone Megaregion and to create more opportunities for connection between where people choose to live and work.
- Investing in urban public transport. The announcement prior to the election of a $1bn allocation for corridor reservation for South-West Metro is welcome – but much more will be needed to maintain a consistent infrastructure pipeline and continue to unlock opportunities for people across Sydney.
A city where density is done well
- Link housing growth with city-shaping transport infrastructure. Federal funding must reward integrated planning – where transport, housing and services are delivered together.
- Continue investing in the public and social infrastructure that supports higher density. Schools, health, parks, sports and cultural facilities, and transport must be funded as core enablers of livability and equity in growing urban areas.
- Set clear national targets for social and affordable housing to guide investment and accountability across all levels of government. These should be backed by long-term federal funding and embedded in housing and infrastructure agreements.
A city that is resilient to energy shocks and climate risks
- Beyond batteries. Sydneysiders should have access to affordable and reliable renewable energy – because that’s the cheapest and cleanest source. The federal government needs to work with states to set renewable energy generation and storage targets for cities, and with regulators, utilities and retailers to help enable those targets to be realised.
- Investing prior to disasters. A city where more disaster-related funding goes to adaptation and resilience instead of recovery and reconstruction only. A multi-hazard disaster adaptation plan for metropolitan Sydney will mean communities understand and plan for changing risk, land use responds to current and future hazards, and investments in green, blue and grey infrastructure work together to reduce risk to assets and livelihoods.
- Nature as an asset. Investing in biodiversity and nature repair in Sydney starts with including nature on our asset registers in the same way we do with streets, footpaths and drains. When nature is treated as an asset, the value to community mental and physical health, to stormwater reduction, and to heat mitigation, are considered at the same time as the costs to maintain and improve those assets. This leads to better decision making.
A city that is prosperous, innovative and focused on the future
- Investing in innovation and industry. Australia’s six largest cities account for nearly 70% of the country’s economy. We want to see the federal government accelerate its efforts in investing in innovation assets, deploying its Future Made in Australia and National Reconstruction Fund money into industries, businesses, institutions and infrastructure that will set up Sydney’s – and Australia’s – economy for the next 50 years.
- Align national and state industry priorities with targeted R&D investment. The Australian Government’s industry policy commitments exceed $30 billion in funding and present a significant opportunity for Australia’s R&D landscape. The federal government should work with state and territory governments to help inform their own industry priorities and ensure R&D funding opportunities help achieve both state and national objectives.
- Attracting talent and investment. Sydney has long been the beneficiary of international students and migrants drawn to our multicultural communities and world-leading universities. We want to see the importance of international students and talented people from across the world recognised as important to our economic development. Now is the time to also take advantage of talent flight from the USA as an immediate opportunity for Australia to boost its global talent.
A city that cares
- Recognise the care economy as essential national infrastructure. The federal government should embed care into national infrastructure and productivity strategies, and fund public transport links to childcare, aged care, health and disability services.
- Accelerate the roll-out of universal childcare, five days a week, by funding workforce development and service expansion while subsidising care for families. This includes targeted investment in childcare centres in fast-growing suburbs and near public transport to eliminate growing childcare deserts.
- More support for ageing in place by setting national design standards for more accessible housing, funding local health and care services, and improving mobility options. Older Australians need federal leadership to age safely and independently in their communities.
- Partner with states to deliver more housing for essential workers in transit-accessible locations. Federal funding programs like the HAFF and NHIF should prioritise projects that house care workers close to jobs and services.
A city on the world’s stage
- Strategic tax reform to support Australia’s cultural pipeline. Tax offsets for touring artists meeting minimum performance and expense criteria, and live venues based on operational expenses would deliver benefits far beyond the budget impacts. An exemption should also be provided for cultural prize money – while the ATO allows both artists and sportspeople to average their income over four years, it only allows sportspeople this vital exemption.