CONTESTED GROUND: Budget backlash – has Australia lost its political middle ground?

CONTESTED GROUND: Budget backlash – has Australia lost its political middle ground?

July 1, 2026 · 37 min

About this episode

The episode discusses Australia's political landscape amidst a populist surge and the implications of the federal budget on public trust and social tensions.

As Australia faces a populist political surge and the established political parties continue to lose ground, can Australia's "sensible" centre hold, or will decades of failed policies, broken promises and declining economic opportunities finally come home to roost? In a departure from its usual international focus, Contested Ground turns to domestic tensions sparked by the federal budget. The hosts argue that this has become a sustained point of public frustration rather than a short-term political issue. Hosts Phil Tarrant and Major General (Ret'd) Dr Marcus Thompson question whether Australia is moving away from its traditional "sensible centre" towards greater political polarisation. A central theme of the discussion is the declining level of trust between Australians and the political class. Dr Thompson argues that governments increasingly risk creating division through policies and political strategies that focus on wedge issues rather than building consensus. The conversation references debates, including the Voice referendum and responses to international crises, as examples of issues that have contributed to heightened social tension. The discussion also turns to housing…

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