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Australia’s Labor faces ‘ugly news’ on economy after sweeping election win

New government must deal with a growing cost of living crisis, analysts say

Anthony Albanese’s Labor party was edging closer to securing a majority government on Sunday as the full extent of the losses suffered by Scott Morrison’s rightwing Coalition government in Australia’s federal election were laid bare.

Labor took the lead in a number of seats with tight margins including Bennelong, the Sydney seat once held by conservative Liberal party former prime minister John Howard. It also led in Boothby, which has been held by the Liberal party since 1949, a result that would push it closer to the 76 electorates needed to form a government without crossbench support.

Albanese’s supporters were euphoric on Saturday night after Morrison conceded defeat in an election that was fought over the economy and national security but swung to Labor and independents as a protest against the Coalition’s climate and social policies. However, the incoming government will have a tough task delivering on its election commitments to improve wage growth and productivity. 

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