Politics with Michelle Grattan: Paul Kelly on why Albanese is ‘misunderstood’ and Taylor needs to stay

Veteran political journalist Paul Kelly tells The Conversation Australia that the Liberal Party is in existential crisis—the worst he's witnessed in over fifty years covering politics. One Nation has surpassed the Liberals in some polling, drawing centre-right voters away. Kelly's diagnosis: the party must stick with leader Angus Taylor, despite calls for yet another leadership change. Switching leaders again, he argues, won't solve the core problem—and the Liberals have to unite behind someone if they hope to govern. He traces the origins of this crisis to Coalition governments from 2013 to 2022, which he says 'misread the country,' chopping policies and leaving voters confused about what the party stood for. As for One Nation, Kelly dismisses Pauline Hanson as unfit to govern—her policies are incoherent and would damage Australia's economy and international standing. Meanwhile, Prime Minister Anthony Albanese is widely misunderstood, Kelly argues; he's playing a deliberate long game aimed at a three-term Labor government. But trouble looms: Kelly predicts the next twelve months will bring stagnant wages, flat productivity, and slow growth that could severely test the Labor government's hold on power.

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