New report shows fixed, four-year federal terms delivers up to $93 billion
Australia moving to four-year federal terms with a fixed election date would deliver better governments and economic benefits of up to $93 billion over 20 years, according to a new report released today.
The report, by 4 Year Terms Australia, comes at a critical time, with a key parliamentary committee nearing the end of its keenly anticipated review into important electoral matters including the length of the federal parliamentary term.
Support for four-year terms crosses party lines, with Prime Minister Anthony Albanese joined by his predecessors John Howard and Malcolm Turnbull in supporting the extension. The move also has the support of key business figures including Commonwealth Bank CEO Matt Comyn.
Modelling by Mandala Partners and polling by JWS Research commissioned for the report found:
Australia is one of only three democracies out of 87 globally with a parliamentary term of three years or less.
Fixed, four-year terms would deliver $14–$26 billion through better government decisions, $62 billion in increased private-sector investment and $5 billion in lower election costs.
Only one in ten Australians prefer our current federal election cycle of a three-year term with the Prime Minister choosing the election date (JWS Research, 2026).
61% of voters support moving to a fixed election date, with only 22% supporting our current unfixed election date (JWS Research, 2026).
Across multiple surveys, 42–43% of Australians prefer four-year terms compared to 23–30% who are opposed (Australian Election Study 2025, McKinnon 2025, Resolve 2024).
A new public holiday wins over sceptics. Three in 10 voters who do not initially support four-year terms would switch to preferring four-year terms. This lifts support for four-year terms to 59%, a clear majority (JWS Research, 2026).
Increased government complexity is driving the need for a longer election cycle. The Federal Parliament passes ten times more legislation per term than it did at Federation.
Legislation is rushed. In the three months before an election, bills receive 45% less debate time in the Senate. Australia’s parliament sits less than half as many days per term as comparable systems such as Canada, the UK and Ireland.4 Year Terms Australia
“Australia's short parliamentary terms are a historical holdover,” says 4 Year Terms Australia Founder, Marty Gray.
“They were designed in 1901 to match colonial terms that no longer exist.Every state and territory has since moved to four-year terms and all except Tasmania have a fixed election date.”
“Australia is the only liberal democracy with a three-year term and gives voters short notice of the election date,” says Gray.
“Australia’s short election cycle means governments underperform and the private sector underinvests.”
“A fixed election date has widespread public and political support and should be legislated now. Moving to four-year terms requires a referendum. While passing a referendum is a huge task, an election long weekend could make it happen. Australia's short and variable election cycle means we spend nearly one third of our time in a lower productivity environment. Fixed, four-year terms would give businesses and government greater certainty to plan and invest.”
“Governments are 25% more likely to pursue meaningful reform outside of an election year. Business investment and economic certainty also drop as an election approaches.”
The report comes just weeks after the Labor Party National Conference included a commitment to “progress options for constitutional reforms including fixed, four-year terms of the House of Representatives and the Senate.” It is the first time Labor's policy platform has made an active commitment to progress both fixed and four-year terms as a stand-alone item.
Separately, the Joint Standing Committee on Electoral Matters is reviewing “the length of the parliamentary term; the potential for fixed terms”, with a final report due in November 2026.
Full report can be read here.
