Young guns in Albanese's ministry jockey for position in reshuffle
With Labor struggling in the polls, ministers hungry to move up the food chain are positioning themselves for a second-term reshuffle.
Geoff Chambers - POLITICAL EDITOR
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Prime Minister Anthony Albanese, Treasurer Jim Chalmers, Assistant Minister for Science, Technology and the Digital Economy Andrew Charlton and Emergency Management and Regional Development Minister Kristy McBain.
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12:00AMOctober 17, 2026.
Updated 13 minutes ago
The stench of complacency in federal Labor ranks is undermining quality policy development and sharp political execution at a critical juncture in Anthony Albanese’s second term.
The cacophony of calls for a major economic policy pivot and ministerial renewal is growing louder amid a horror run of miscalculations that have sunk Labor to near-record Newspoll lows not observed since the chaotic years of the Gillard government.
After cleaning up blunders by prominent ministers including Treasurer Jim Chalmers and Home Affairs Minister Tony Burke, the Prime Minister is cracking the whip to get Labor ministers, MPs and staffers in shape for the political fight of their lives.
The PM is cracking the whip to get Labor ministers, MPs and staffers in shape. Picture: NewsWire / Martin Ollman
Low-level paranoia is creeping in across a government that won 94 lower house seats just 17 months ago. Labor MPs who won their seats from the Liberals and the Greens at the 2022 and 2025 federal elections are increasingly concerned they will be swept away by a rising tide of discontent at the 2028 election.
Labor’s polling plunge following the Bondi Beach terror attack last December and successive rate hikes this year, fuelled by high inflation and government spending, has instilled confusion in the minds of Albanese’s caucus.
With Labor MPs back in Canberra this week, Albanese reminded his troops they “aren’t even halfway through their second term”.
Government MPs are being told to stop obsessing about the next election. The message is: “Don’t be caught not seeing the forest for the trees.”
Albanese wants his team to rise above the day-to-day political cycle, which is currently dominated by One Nation, antipathy towards the major parties, and white-hot rage over rate hikes and cost-of-living pressures.
“The key is to not get spooked, keep cool, do the right thing, analyse things as they are, and not worry about a week or a fortnight,” says a source close to Albanese.
Albanese’s mob is being reassured that the schism on the conservative side of politics, the Greens’ dismal performance, and the federal compulsory preferential-voting system will ultimately favour Labor in its bid for a third term. A major assault against One Nation is also well-developed but being held back until closer to the next election.
Despite the positive spin, after almost 4½ years in government, Albanese is under pressure to usher in renewal in ALP ranks that would set up Labor for at least a decade in power. By 2028, the government’s Rudd/Gillard-era ministers will be in their late 50s, 60s and 70s.
Trade Minister Don Farrell will be 74, Albanese will be 65, Transport Minister Catherine King will be 62, Deputy Prime Minister Richard Marles will be 61, Foreign Affairs Minister Penny Wong will be 60, Social Services Minister Tanya Plibersek will be 59, Burke will be 59, Health Minister Mark Butler will be 58 and Climate Change and Energy Minister Chris Bowen will be 55.
Most of them would argue they have more to give, and say Donald Trump and Joe Biden were in their 70s when they won US presidential elections. But many have been in the federal parliament since the 1990s and 2000s, and Labor’s pursuit of younger voters may require passing the torch to the next generation.
The other matter, which isn’t publicly addressed, is whether underperforming Labor ministers should be demoted or sacked.
As the economy sinks faster than the Titanic, and the housing market falters at a blistering pace, the Albanese government has lost some of the energy and urgency of its first term.
Deluge of complaints
When Albanese arrived back in Australia following the pre-COP31 climate-change summit meetings in Fiji and Tuvalu earlier this month, a deluge of complaints was flooding in from industry chiefs, business owners and backbenchers over yet another bungle under Chalmers’ watch.
After recently intervening on Burke’s migration policy, Albanese and his senior advisers were shocked by an ATO decision to ban credit-card payments when business owners were being told to scrap surcharges and absorb costs. The ATO ban was ultimately stalled after Albanese and Chalmers held a snap Expenditure Review Committee of cabinet meeting last Friday.
Since the May 12 budget, Albanese has had to get involved on veterans’ affairs issues, Treasury legislation, migration policy, NDIS and private health insurance spending reforms, artificial intelligence, a digital duty of care bill, a gas reservation scheme, and manufacturing rescue packages.
The inability of Chalmers to land Labor’s contentious second-term budget, which included hits on negative gearing, capital gains tax and trusts, has been the glaring failure for a government struggling with high inflation, rate hikes, rising unemployment, long-term deficits and a $1 trillion debt bill.
The inability of Chalmers to land Labor’s contentious second-term budget has been a glaring failure. Picture: NewsWire / Martin Ollman
“It is like Albanese gave Jim the rope and Jim just went too far with that budget. Why didn’t he just do negative gearing and stop at that? He couldn’t help himself and now he is paying the price,” a senior Labor operative tells Inquirer.
“At the end of the day, everyone knows that Anthony and his top people make the big calls and reserve the right to intervene on any issue. The powerbase is centralised and, unfortunately for Jim, he isn’t part of that central nerve system.”
Another Labor insider, who confirms tensions between the offices of the Prime Minister and Treasurer since the 2022 election, says Albanese and Chalmers “are not close mates and never will be … but work together closely and constructively where they need to”.
Australia’s second-longest serving prime minister John Howard this week explained why “a certain amount of constructive tension” between a treasurer and prime minister is important. Howard said without Peter Costello, who was never a close ally, his Coalition government “would never have paid off all that debt”.
The power imbalance between Albanese and Chalmers means the junior partner has been unable to wield the same influence as a Costello, Paul Keating or Wayne Swan.
Albanese is keenly aware that he must support generational renewal to give Labor its best shot of staying in power for as long as possible. A reshuffle would be linked to departures from parliament as long-term MPs announce their retirement from politics, or shift into other jobs to free up space on the ministerial wing’s blue carpet.
Andrew Charlton, who is leading Albanese’s artificial intelligence policy platform and was drafted by the Labor leader to be cabinet secretary after last year’s election, looms as a potential successor to his longtime rival Chalmers. A complication for the 48-year-old, who is the same age as Chalmers, is that his Sydney seat of Parramatta could prove tough to retain at the 2028 election.
Ministers hungry to move up the food chain include Communications Minister Anika Wells, 41, and Housing Minister Clare O’Neil, 46, who are considered close to Albanese and have worked to recover from respective travel expenses and immigration scandals. Workplace Relations Minister Amanda Rishworth, a protege of Farrell, and Perth MP Patrick Gorman, 41, are considered safe pairs of hands. Rishworth, 48, is the most experienced parliamentarian of the younger brigade.
Other MPs and ministers well-regarded by Albanese include Emergency Management and Regional Development Minister Kristy McBain, factional ally and NDIS Minister Jenny McAllister and Hunter MP Dan Repacholi, who will be at the forefront of Labor’s fight with One Nation in the NSW Hunter Valley region.
Albanese’s Praetorian Guard includes Butler, Wong, Finance Minister Katy Gallagher, Industry Minister Tim Ayres, Environment Minister Murray Watt and Defence Industry Minister Pat Conroy, all from the Left faction, along with NSW Right-faction acolyte Burke. Farrell and Marles, heads of the national Labor Right faction, provide key support for Albanese.
That leaves Chalmers as the odd man out.
Senior government sources say a move on Chalmers is improbable because the legacy of prime ministers and treasurers are bound together. The only scenario involving a Treasury portfolio change would be if Chalmers left on his own terms or agreed to shift roles following the next election. Either outcome is considered unlikely.
“Chalmers has been very disciplined. Even when it looks like he is being briefed against, he hasn’t lost control or spoken out publicly,” a Labor strategist says.
“Everyone wants him to succeed. He is a highly effective communicator. But he needs to start selling this budget and working on the next budget to give back to Australians who are pissed off with the government.”
‘Toughest period’
Albanese rules his cabinet and caucus with an iron fist. As one cabinet source put it this week: “The PM is the boss. We all know that. And if you make a mistake or don’t get it right, he can step in and intervene. He has earned that right.”
After leading Labor back to power in 2022, securing a historic landslide victory at last year’s federal election, trouncing the Greens and overseeing the collapse of the Coalition, Albanese’s internal authority is indisputable.
Few believed Albanese at the start of 2025 when he declared that he would win a majority victory and vanquish Peter Dutton. The self-described underdog is channelling that disbelief as fuel for a third election and a battle with One Nation.
“Pauline Hanson is the outsider, the person to support if you think the system isn’t working.” Picture: NewsWire / Martin Ollman
A senior government MP says ALP research into One Nation has identified two key points.
The first: “You can’t attack Pauline (Hanson) because they don’t give a shit whether she’s got detail or anything else … it’s just the vibe, almost. She’s the outsider, the person to support if you think the system isn’t working.”
The second: “Hanson and One Nation are getting to the point where the party is being taken more seriously … and when people think it through, can she actually govern? Can One Nation govern? Are they capable of it?”
Another senior government source says the midway point of the second term was “always going to be our toughest period”.
“It will likely get tougher into next year. But we are very optimistic that we will stay the course and succeed. Australians will see that we are the only party that offers stable government.”
The Victorian and NSW state elections, to be held on November 28 and in March next year respectively, will likely deliver lower and upper house seats for One Nation.
Veteran ALP strategists, who are writing off the party’s chances in Victoria, believe NSW Labor Premier Chris Minns “will win and win comfortably because of optional preferential as much as anything else”.
Losses in NSW are expected to be countered by wins in Sydney seats including in Ryde, Drummoyne and Epping. The Greens-held seat of Balmain is also in the sights of Labor strategists.
“The threat of One Nation will drive people to us rather than the Greens in seats like Balmain,” a Labor source says.
On the recent Greens leadership change from Larissa Waters to David Shoebridge, a senior Labor source says they are not concerned about a party that “is crazy and obsessed with issues like Gaza”.
A senior Labor source said they are not concerned about a party that “is crazy”. Picture: NewsWire / Martin Ollman
“Shoebridge is an extremist. That’s just who they are. The leadership change will do nothing to grow their primary vote. It will actually hurt them because it will make it harder for legislation to pass because they’ll be ideological and more pure and just want to fight us,” the source says.
“Shoebridge’s rhetoric about wanting to replace the Labor Party … they’ve got one f..king seat. They’d have to win 75 more to form government. Shoebridge will have more cut-through than Larissa but it will be cut-through that appeals to people who are with them, who are rusted-on. And that partyroom – they completely hate each other.”
Global upheaval
Albanese will spend more time abroad before Christmas than he will at the despatch box in the House of Representatives. Over the next two months, the Prime Minister is expected to visit multiple countries and continents. He will travel to Turkey to make his first appearance at a UN COP climate change conference. There are also visits to China for the APEC summit, and Donald Trump’s home state of Florida for the G20 leaders’ summit.
The Commonwealth Heads of Government Meeting, to be attended by the King and British Prime Minister Andy Burnham, is being held in the tiny Caribbean nation of Antigua and Barbuda.
In contrast with the travel schedule, Albanese will front up for only eight more days of question time, with one lower house sitting week pencilled in later this month, and another in November.
The optics of Albanese’s travel itinerary at a time when the Reserve Bank board is expected to deliver at least two more rate hikes in coming months is not ideal. However, senior government sources say the international travel is critical at a time of global upheaval, headlined by the ongoing oil crisis and conflicts in the Middle East; pushback against the perils of artificial intelligence and data centres; the Russia-Ukraine war; supply-chain shifts; soft-power plays in the South Pacific; and rising military threats in the Indo-Pacific, including China’s anticipated move on Taiwan.
Mindful of legacy
Albanese, who some believe will seek an exit from politics ahead of the 2028 election if he struggles to recover in the polls, is determined to not abandon his beloved ALP and its fight with One Nation, the Coalition and Greens.
While some in Labor ranks feel the government must pivot back to the centre and reconnect with grumpy voters in Middle Australia, Albanese remains focused on locking in his left base.
In a speech to the Federation of Ethnic Communities’ Councils of Australia national conference on Thursday, Albanese said: “Anyone who can look in the rear-vision mirror and see a monoculture should really get themselves down to the nearest Specsavers.
“We have of course always been multicultural. And I’m really proud to lead a political party that has taken that into practice. You look at our caucus roll call, you don’t have to go past the letter A. You get Abdo, Albanese, Aly, Ambihaipahar, Ananda-Rajah, and then you get Ayres.
“What that does is reflect the fact that when I look at our government frontbench and our caucus, it looks like Australia.”
In the face of immigration crackdown calls from One Nation and the Coalition, Albanese is banking on a pro-immigration position to lock in multicultural and left-wing voters for Labor.
Some Labor figures are concerned that Albanese is underestimating the negative impacts of Chalmers’ budget in seats with aspirational, ethnic voters, including some who are turning to One Nation.
The other question being asked is: was the 2025 election result more about an anti-Coalition and anti-Dutton vote than Australians embracing Albanese personally and supporting Labor’s big-spending, economic, social and green energy agenda?
That verdict will be handed down in 2028.