Why Labor LNP Deals Undermine Public Trust

By Denis Hay  

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Labor LNP deals often pass contested laws. Why not work with ethical Independents to help all Australians?

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Introduction – A Question of Ethics and Power

Why does the Labor Party – in complete control of the House of Representatives – repeatedly turn to the Liberal-National Coalition to push through highly contested legislation? These Labor LNP deals not only bypass the growing number of ethical, community-backed Independents, but often result in laws that undermine public interest.

Instead of collaborating with principled crossbenchers, Labor chooses the path of least resistance – one that prioritises political expedience over democratic transparency. It’s a path that reinforces neoliberal policy settings, leaving everyday Australians behind.

Labor LNP deals continue to shape key legislative outcomes. Whether it’s foreign policy, digital surveillance, or fossil fuel subsidies, major reforms often pass not through public debate, but through political alignment between the two dominant parties.

The Problem – Why Labor Seeks the LNP Over the Cross bench

Protecting Political Power, Not Public Interest

Labor fears genuine negotiation. Labor LNP deals avoid the demands of Independents and smaller parties like the Greens, who push for stronger environmental protections, equity, and public transparency – issues that challenge both corporate donors and political orthodoxy.

Shared Ideology and Surrender of Economic Power

On critical economic issues, Labor, and the LNP both support neoliberal policies – privatised infrastructure, fossil fuel subsidies, and false narratives about “budget repair.” At the heart of this lies a more profound issue: both major parties have ceded significant economic power to private banks and financial markets.

As one reader insightfully noted:

“For decades, governments have handed over increasing control of the money supply to private banks and so-called financial ‘markets,’ reducing their responsibility for economic planning and public investment. That shift – from public issuance to private credit creation – has been one of the great economic cons of the neoliberal era.”

This is the tragedy that Modern Monetary Theory (MMT) looks to correct. While MMT acknowledges that private banks create most of the money through lending, it demonstrates that governments, such as Australia, as currency issuers, retain full power to invest in public goods without needing to borrow from private institutions. They simply choose not to, due to donor pressure and ideological capture.

Labor LNP deals reinforce this cycle by maintaining the myth that “we can’t afford” to do better, when in fact, Australia’s monetary sovereignty says otherwise.

Contested Legislation Backed by Labor LNP Deals

1. Surveillance Expansion Bills

Labor supported the LNP’s Identify and Disrupt Bill (2021), granting the AFP invasive hacking powers. Civil liberty groups, including Digital Rights Watch and the Human Rights Law Centre, warned that this undermines privacy and due process. Labor LNP deals pushed the legislation through despite public concern.

2. AUKUS and Nuclear Submarine Secrecy

Bipartisan support enabled AUKUS to bypass public scrutiny, with the deal signed in secrecy and without parliamentary debate. The LNP and Labor blocked attempts by Independents like Andrew Wilkie and Zali Steggall to demand transparency and cost breakdowns.

3. Climate Inaction via Safeguard Mechanism

Labor’s Safeguard Mechanism reforms allow over 100 new fossil fuel projects to proceed. Labor LNP deals ensured the reforms passed without the meaningful climate conditions pushed by the Greens and Teal Independents.

4. Voter ID Laws

Labor refused to repeal controversial voter ID laws introduced by the LNP, despite warnings they could disenfranchise Indigenous and disadvantaged voters. Instead, both parties quietly let them stand.

5. Narrowing the Scope of the NACC

Labor and LNP MPs agreed to limit the powers of the new National Anti-Corruption Commission (NACC), shielding past misconduct from scrutiny – a move that drew criticism from transparency experts and crossbench MPs. This, too, was a product of Labor LNP deals.

Why It Hurts – The Cost of These Deals

Public Trust Is Eroded

Australians increasingly feel disenfranchised. When Labor LNP deals enable controversial laws to bypass debate, citizens lose faith in democracy’s ability to serve the people.

Progressive Reforms Get Blocked

Crossbenchers have proposed bold reforms, truth in political advertising, fossil fuel bans, and public housing investment. But Labor LNP deals consistently block these ideas in favour of corporate interests.

Australia’s Monetary Sovereignty Is Ignored

Both major parties perpetuate myths about deficits and budget “repair,” despite Australia issuing its own sovereign currency. Rather than invest boldly in people and the planet, Labor LNP deals result in privatisation and cuts.

The Solution – Work with Ethical Crossbenchers

The Crossbench Represents Real Australians

The rise of Independents and Greens reflects a public craving for honesty, sustainability, and long-term vision. These MPs advocate for the public, not donors. Breaking away from Labor LNP deals is key to restoring trust.

Public-First Policy Through Collaboration

Working with the crossbench has already yielded results:

• Helen Haines’ proposal for a strong federal anti-corruption commission laid the groundwork for the current NACC (National Anti-Corruption Commission).
• David Pocock’s negotiations added transparency to the budget process.

Rather than rely on Labor LNP deals, a collaborative parliament could deliver genuine outcomes for Australians.

Embrace Sovereign Solutions

Labor can use its currency-issuing capacity to fully fund healthcare, housing, and renewables, without austerity or privatisation. Ethical governance must reject the limitations imposed by Labor LNP deals.

Why This Matters

When Labor LNP deals are used to push through contested laws, they silence the democratic voices of millions who voted for reform-minded Independents and smaller parties. This normalises unethical governance and locks in donor-driven policymaking. Australia’s currency sovereignty empowers our government to act ethically and boldly in the best interests of the people.

❓Reader Engagement Question

Why do you think Labor chooses political convenience over ethical collaboration, and how can we shift this dynamic?

📌 Q&A Section

Q1: Does Labor really need the LNP to pass laws?

No. In many cases, Labor could pass legislation with the Greens and Independents if it chose to negotiate in good faith.

Q2: Why does bipartisan lawmaking matter?

When major parties collude, they bypass public scrutiny and often pass laws favouring corporate donors.

Q3: Are Independents and smaller parties effective?

Yes. Many have shaped key policies and held governments accountable on climate, corruption, and social justice.

Q4: Can Australia afford to govern differently?

Absolutely. As a sovereign currency issuer, Australia is not financially constrained like households or states.

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This article was originally published on Social Justice Australia

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