A new SEC Newgate Mood of the Nation survey, conducted between May 13 and 18, found that “pessimism about the country’s direction and negative mood has reached new highs”, while the federal budget “has fallen flat and eroded trust for some”.
Amid a growing backlash against key measures of Jim Chalmers’ fifth budget, the survey of 1210 voters across every state and territory revealed a record high 66 per cent of Australians believe the country is “heading in the wrong direction”.
Victoria and NSW, where elections will be held in November this year and March next year respectively, experienced the sharpest spikes in the number of voters who believe the nation’s biggest state economies are heading in the wrong direction.
For the first time, the Mood of the Nation survey included One Nation and the Greens alongside Labor and the Coalition when asking voters who they believed was the best party to manage the cost-of-living crisis. After plunging below the “Others” pile in February, Labor (23 per cent) holds a narrow lead over Pauline Hanson’s One Nation (20 per cent), Angus Taylor’s Coalition (17 per cent) and the Greens (9 per cent).
In the wake of the budget, Australians continue to hold negative views on both the short-term and long-term strength of the economy. A record 47 per cent of voters believe the economy will get worse over the next three years, while 60 per cent of voters fear the economy will get worse over three months and 12 months.
The top 10 unprompted concerns and priorities identified by voters were led by the cost of living (64 per cent), housing affordability (36 per cent), immigration and population (16 per cent), crime (16 per cent) and government performance (13 per cent).
“The national mood continues to worsen, with 61 per cent feeling more negative than positive – the highest level of pessimism since April 2025. Only 35 per cent are feeling more positive than negative at this time,” the SEC Newgate research analysis said.
The Albanese government continues to attract historically low levels of support, with just 28 per cent of voters rating its performance as excellent or good, compared with 46 per cent who rate federal Labor’s performance as poor or very poor.
Ahead of the November state election in Victoria, support for Premier Jacinta Allen’s Labor government has crashed to record lows, with only 19 per cent of voters rating its performance as good.
David Crisafulli’s Queensland LNP government recorded the biggest jump in support, with 47 per cent of voters rating its performance as good.
Voter reaction to last week’s budget was found to be “more negative than positive”, with around four in 10 Australians “expecting a negative impact on both the country and their household, compared to just 24 per cent and 14 per cent respectively who expect a positive impact”.
“Public opinion remains finely balanced when it comes to housing tax reforms. Reactions to proposed changes to capital gains tax and negative gearing are mixed, with no clear consensus emerging,” the analysis said.
“Support for CGT changes is evenly split (33 per cent support versus 32 per cent oppose), while negative gearing reforms attract slightly more support (37 per cent) than opposition (31 per cent).
“However, in both cases a substantial minority remain neutral, suggesting many Australians are either unclear on the implications or have not yet formed firm views on these reforms.”
Following the budget, 37 per cent of voters said their trust in the Albanese government had fallen compared with 49 per cent who said it stayed the same and 9 per cent who said it had increased.
The poll also found that 36 per cent of voters expect social cohesion to worsen over the next 12 months.
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