The post-Howard identity of the Liberal party has failed to gel into a contemporary form. Now is the time for reflection

The Guardian

04-05-2025

It was a tall order for Peter Dutton to topple a first-term government – and so it proved. But first-term governments have often gone backwards.
The scale of the Labor victory highlights structural problems with the Liberals that have been papered over for years.
Dutton lost because of mixed messaging and not the medium.
Labor had done its best to lose the election over the last three years but came good at the right time when people were switched on and thinking about the election. Labor was well organised and coherent, their presentation firmly grounded in Labor values and appealed across various demographics.
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There was a clear choice and Australia opted for a version of relaxed and comfortable over a leap into the unknown. The risk of a prime minister Dutton was leveraged with none too subtle references to the 'Americanisation' of policies. Just as in Canada, the Trump factor played to the incumbent's strengths. All politics is local.
The danger for Labor now is hubris and overreach. In no small measure, this victory is thanks to their opponents' fumbles. If they think this victory is an endorsement of the status quo they are setting themselves up for a mighty fall. Labor does not have a proper mandate to grapple with the tough questions of economic reform and grand strategy in a world order that is changing rapidly. Australia cannot stand still.
Grievance politics was not enough to win. An opposition must have a clear and coherent plan that demonstrates they are ready to govern.
The polls over the preceding few years were a false dawn for Liberals. They were not an indicator of final voting intention but a snapshot of voter frustrations. Dutton amplified those frustrations and acted as if the deal was sealed before the campaign started.
As the election came into view, the scrutiny of the opposition increased, and things fell apart.
Matching your opponent's policies only works if you then move the agenda on to your preferred areas of battle, for the Liberals this has always been the economy and national security. They fluffed both. Too little too late on defence and mixed messages on the economy (higher deficits in the next two years and then budget improvement).
Now is the time for serious reflection.
When the Liberals lost in 2022 it was easy to pin it all on Scott Morrison who ran a very centralised operation.
The Abbot-Turnbull rivalry pitted the broad church of liberals and conservatives against itself. Longstanding differences over climate crippled the government.
The Morrison era moved somewhat on issues like net zero but was consumed by the urgency of dealing with a once-in-a-century pandemic. Necessary deficit spending in that era played into a public insouciance about debt and deficits.
The Coalition franchise has been very successful in winning elections but in a world of AI, changing geopolitical circumstances and wall-to-wall social media, there is room for adaptation. This can be done without abrogating long-held values and principles that can help us navigate the current trends. Liberals preserve the best of the past while adapting to the future.
The decision to target outer suburban and regional seats made sense, given Dutton's persona – but it conceded inner-city seats to the teals and other minor parties.
A broad church has an all-of-the-above seat strategy.
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The Menzies Liberals were not populists and would be bemused by the so-called culture wars. Menzian Liberals do not divide the electorate into us and them. No snide references to the elites v 'the real people'. We value education and science, and meritocracy based on having a fair go. Pragmatism and practicality are preferred to social experimentation and ideology.
Liberals eschew identity politics, considering people on their own merits rather than as part of a group, and upholding the rights of the individual in the face of the collective.
Economic populism or business bashing is also at odds with traditional Liberal equities around smaller government and lower taxes. The argument for these traditional policies is economic efficiency (a bigger pie that makes more fairness possible) and restraining the power of government over people. Effective competition policies are the best way to restrain the power of big business.
A further round of economic reforms in the Hawke-Keating and Howard-Costello mould has become increasingly urgent. Along with smart industrial policies to leverage sovereign capabilities in critical and emerging tech. But advocates need to stand up and explain why and how. It won't happen by itself.
Rational economic policies are entirely compatible with a strong social safety net that balances protection with incentives to self-improvement. Strong families and communities are part of that safety net. The social role of housing is an important priority given the fracturing between generations that we are witnessing in Australia.
On social cohesion, the Liberal creed used to be that the things that unite us are greater than those that divide. Social cohesion is not a function of enforcing conformity to a predetermined set of national characteristics.
In liberal democratic Australia, freedom to celebrate one's heritage, religion or beliefs is baked into our values. The only caveat is an overriding loyalty to Australian institutions like democracy and the rule of law that make this freedom possible. Rights and responsibilities in equal measure.
This second-term opposition should go back to first principles and build policy on those foundations, in tandem with keeping the government of the day accountable.
Listening to our fellow Australians, grappling with the complexity of demographic and social change in a way consistent with Menzian values will succeed if we do the hard work.
The countdown to the next election has begun.
Arthur Sinodinos is a former Australian ambassador to the US. He is the partner and chair of the Asia Group's Australia practice and was a former minister for industry, innovation and science