The Teals Just Became the Thing They Swore They'd Never Be

An episode of Dan's Rabbit Holes

The teals built their whole brand on not being a party — then formed one, at the exact moment the two-party system is cracking at both ends and One Nation is polling ahead of Labor.

Published · By Dan Walter

Transcript

Sam: Picture this. A political party launches in Sydney. It has two members of parliament, a nice wholesome name, a platform nobody could possibly object to — and no leader. On purpose.

Alex: And the two people launching it built their entire careers, their entire brand, on one promise: that they would never, ever do this. They would never become a party.

Sam: So either this is the smartest move in Australian politics in twenty years, or it's the moment they sign their own death warrant.

Alex: And here's the unsettling part. History says it's almost certainly one or the other. There is barely any middle ground. You either become Emmanuel Macron — a standing start to running the whole country in fourteen months — or you become a party I'll bet most people have completely forgotten existed, that held the balance of power for thirty years and then destroyed itself with a single, sensible decision.

Sam: Okay. That is the hook. I'm in.

Alex: Welcome to Dan's Rabbit Holes — the show where Dan takes the one thing he can't stop thinking about that week and chases it all the way to the bottom. I'm Alex.

Sam: And I'm Sam. And this week the rabbit hole is a small piece of Australian news that turns out to be a window onto how democracies actually come apart.

Alex: That's the frame, and I want to be honest about why this one is worth your time. On the surface it's tiny. Two MPs, a launch, some speeches. But underneath it is a genuinely deep question about politics everywhere: can the political centre — the moderate, sensible middle — ever turn itself into something permanent? Or is the centre, by its very nature, the one thing in politics you can't institutionalise?

Sam: So here's where we're going. We'll get into who these people actually are and where they came from — which is a better story than the label suggests. We'll hit the boring-sounding law that I'd argue is the real reason this is happening at all. And then the fun part: we'll go looking at the two ghosts haunting this whole project. One from Australia's own past, one from France. Because the centre has tried this before, and the results could not be more opposite.

Alex: And the question hanging over all of it — the one we'll keep coming back to — is whether you can build a machine to represent people whose whole reason for trusting you is that you're not a machine.

Sam: And I want to flag why this is even worth an hour, because on paper it's nothing. A small party launch.

Alex: It's worth chasing precisely because it's a clean, live window onto something much bigger and much harder to see — how a settled party system actually comes apart, what rises up to replace it, and why the rules of the game decide the outcome as much as the voters do. A country's party system is, when you strip it back, the machine that converts what voters want into who actually governs them. And Australia's machine is visibly malfunctioning right now. So watching a new part try to bolt itself on tells you how the whole thing works.

Sam: If you're enjoying Rabbit Holes, by the way — follow the show wherever you're listening. It's one tap, it's free, and it means the next one just turns up. Right. Let's start with the strangest thing about this moment, which is the timing.

Alex: So the two-party system in Australia — Labor on one side, the Liberal-National Coalition on the other — has run that country for about a century. And right now it is breaking at both ends at the same time. And almost nobody is describing it that way.

Sam: Both ends meaning what, exactly?

Alex: Start with the right. In the middle of June 2026, a Roy Morgan poll put Pauline Hanson's One Nation — a far-right minor party — on a thirty-one and a half percent primary vote.

Sam: Wait. Primary vote. That's first-choice support, before any preferences shuffle around?

Alex: Exactly. First choice. Thirty-one and a half percent. That's ahead of Labor, who were on twenty-seven. And it is more than ten points clear of the Liberal-National Coalition, who had cratered to seventeen and a half.

Sam: Hang on — so the far-right party that everyone treated as a punchline for, what, twenty-five years —

Alex: A quarter of a century as a joke, yes.

Sam: — is now the single biggest political force in the country on first preferences. And the conservative party that basically governed Australia for most of the last seventy years is in third place.

Alex: Third. And to put an exclamation mark on it: in December 2025, one of the Nationals' best-known politicians, Barnaby Joyce, just walked across and joined One Nation. The insurgents aren't knocking on the door anymore. They're inside the house.

Sam: That's the right end coming apart. What's the other end?

Alex: The other end is the one we're really here for. A cluster of wealthy, professional, climate-focused independents — the ones the media nicknamed "the teals" — have just done the exact thing they always swore they'd never do. On the 25th of June 2026, two of them, Zali Steggall and Allegra Spender, announced they're forming a party. It's called Community Strong Australia, and it is pitched squarely at the political centre — at all the people who feel, in their words, "politically homeless."

Sam: And that's the genuinely weird part, right? Because look at the two ends together. At the exact moment the populist right is proving how devastatingly powerful a disciplined party machine can be —

Alex: — the centrists are betting they can build a party whose entire selling point was never being a party. It's almost a paradox. And that is the deepest bet you can make in democratic politics, which is why history really does offer only those two outcomes. Get the formula right, you get Macron — nothing to total dominance in a single election cycle. Get it wrong, you get the Australian Democrats — three decades of influence, then self-destruction over one compromise.

Sam: And we're going to figure out which one they're trying to be.

Alex: Which one they're trying to be — and, more importantly, whether the system they're operating in even allows the good outcome to happen. And I want to name the deepest version of the bet, because it's almost philosophical. The centre is the hardest thing in all of politics to institutionalise. Think about why. The far right has anger to organise around. The left has a project to organise around. The centre's only real asset is a feeling — the voter's belief that it is not a machine, not a tribe, not running an angle. And the act of building a party is precisely the machine-building that destroys that feeling.

Sam: So the thing they need to do to compete is the exact thing that kills what makes them worth voting for.

Alex: That's the bet in one sentence. Hold that, because it turns out the machinery matters more than anything they actually believe.

Sam: Okay, so before we get to the two ghosts, I need the basics. What is a "teal"? Because I keep hearing it like it's a party, and you're telling me it isn't.

Alex: It isn't. And the label genuinely hides the mechanics, so let's pull it apart. "Teal" started as a media nickname, coined in 2022 for a group of independents who flipped safe Liberal seats. The colour is the giveaway — teal is Liberal blue blended with environmental green.

Sam: Blue plus green. So the name itself is saying: these are former Liberal voters who care about the climate.

Alex: That's exactly the read. It was such a thing that the Macquarie Dictionary made "teal" its Word of the Year that November. But here's what matters — the thing the nickname describes is actually older and more interesting than the 2022 wave. The real origin isn't a colour. It's a model. And it starts in 2013, in a rural seat in Victoria called Indi.

Sam: Rural. Not the wealthy-city-suburb stereotype I had in my head at all.

Alex: Right, and that's the point — the stereotype is the end product, not the origin. A group of locals in Indi were fed up with their sitting Liberal MP. So they built something they called "Voices for Indi." Kitchen-table meetings. Volunteer-run. The whole idea was to pick a credible local candidate and run a genuine community campaign — not a top-down operation with orders coming from party headquarters.

Sam: So think of it almost like... open-source politics? Instead of a party machine choosing a candidate and pushing them down onto the electorate, the electorate organises itself from the bottom up and pushes a candidate up.

Alex: That's a really good way to put it. Bottom-up instead of top-down. And it worked. Their candidate, Cathy McGowan, won the seat. And then here's the detail that tells you it was a method and not a fluke: when McGowan retired in 2019, she handed the seat to another independent, Helen Haines — the first time in Australian history one independent directly succeeded another.

Sam: Oh, that's the tell. Anyone can win once on charisma. Handing it cleanly to the next person means there's a machine underneath — just not the kind we usually mean by "machine."

Alex: Precisely. The thing underneath the teals isn't a charismatic leader. It's a replicable method for organising a community against a major party in its own heartland. And in 2022, that method went national — with serious money behind it.

Sam: How national are we talking?

Alex: In one night, six sitting Liberals lost their seats to community independents. Allegra Spender in Wentworth. Monique Ryan in Kooyong. Zoe Daniel, Kate Chaney, Sophie Scamps, Kylea Tink. And the scalp that defined the whole night was Ryan's — she beat Josh Frydenberg, who was the sitting federal treasurer.

Sam: The treasurer lost his own seat?

Alex: First treasurer to lose his own seat since 1931. And Steggall — one of the two now launching the party — she'd shown the way back in 2019 when she took the seat of Warringah off a former prime minister, Tony Abbott.

Sam: Okay so these are not minor scalps. These are giant-killers. But what do they actually stand for? Because "blue plus green" tells me a vibe, not a platform.

Alex: And the platform is the whole point, because it's an unusual combination. On climate, on integrity — meaning anti-corruption — and on gender equality, they sit centre-left. They campaigned hard for the Yes side in the 2023 Voice referendum, for a federal anti-corruption commission, for serious emissions targets. But on economics, they're conservative. Fiscally cautious, pro-market, comfortable with business.

Sam: So... let me see if I've got this. They're progressive on climate and integrity, but careful with money and friendly to business. That's not a weird in-between mush — that's actually a really specific spot. That's, like, the Liberal Party from twenty years ago.

Alex: You've just landed exactly where the analysis lands. That is precisely the political space the modern Liberal Party vacated when it moved to the right on climate and culture. Which is why the teals win in exactly one kind of seat — wealthy, educated, urban electorates full of people who used to vote Liberal and just can't stomach it anymore.

Sam: They're the Liberal Party the Liberal Party stopped being.

Alex: That's the line. They are, in a real sense, a captured constituency in search of a vehicle. The 2022 win proved the constituency exists. And then the 2025 election proved it could actually last — which matters, because a one-off protest vote and a durable bloc are completely different things.

Sam: How did 2025 prove it could last?

Alex: They mostly held. Across the board, the teals kept their seats — and one of them, Nicolette Boele, even added a new one, a blue-ribbon seat called Bradfield, the kind of rock-solid Liberal heartland that's supposed to be unwinnable. Only one teal seat, Goldstein, slipped back to the Liberals. So this wasn't a sugar high from one angry election. The constituency turned up twice.

Sam: So they've got a proven, repeatable base. And that's exactly what tempts you to formalise it.

Alex: Right — and that's the question that's hung over them ever since, the one they just answered. Do you stay a loose federation of independents and keep the purity? Or do you finally build the machine and get the firepower? They chose the machine. And now we have to figure out whether that was the smart call or the fatal one.

Sam: So they chose: build the machine. And the obvious reason is the one you already gave me — the right is melting down, the pile of "politically homeless" voters is growing, the centre makes its move. Is that it?

Alex: That's true. But I'd call that the soft reason. It's the reason that fits neatly in a headline. The hard reason — the one I think actually forced their hand — is a piece of legislation almost nobody outside politics noticed.

Sam: A law. Okay, talk me into caring about an electoral funding law, because my eyes are already glazing.

Alex: Stay with me, because this is where it gets genuinely sharp. In late 2024, the Labor government passed the biggest overhaul of Australia's electoral funding rules in decades. And on paper it does sensible things — caps on donations, faster disclosure. Reasonable-sounding reform. But buried in the structure is a single number that completely changes the game for independents. From the next election, a single candidate can spend roughly eight hundred thousand dollars in their own electorate. That's the cap. A registered political party, on the other hand, can spend up to about ninety million dollars nationally.

Sam: Eight hundred thousand for an independent. Ninety million for a party.

Alex: And here's the part that really stings. The party can move that ninety million around. It can pour resources into whichever single seat is suddenly under threat.

Sam: Oh. Oh, that's brutal. So let me make sure I see the trap. The exact thing that made the teals work — a well-funded independent outspending a lazy, complacent major party in one seat — that's the thing the law just capped.

Alex: Capped it. At eight hundred grand.

Sam: While handing the major parties a national war chest more than a hundred times bigger that they can aim at any teal seat they want, one at a time.

Alex: You've got it completely. The crossbenchers called the reform a "stitch-up." And whatever you think of its democratic merits — and there are real arguments it cleans up donations — the competitive effect is just plain. It punishes the independent and it rewards the party. The fundraising vehicle that bankrolled the original teal wave — it had moved around six million dollars to independents in 2022 — it literally cannot legally make up that gap anymore.

Sam: So this party isn't only idealism. It's... what, financial self-defence?

Alex: I'd go further — it's regulatory arbitrage. Think of it like tax law. If the government changes the rules so that one legal structure is suddenly far cheaper than another, rational people restructure. The law made being a party structurally cheaper than being an independent — so the rational independent becomes a party. That's the unglamorous engine humming under this very idealistic launch.

Sam: And there's something a little bleak in that, isn't there. Because it means the most consequential move in Australian politics this year isn't some spontaneous burst of public will. It's a defensive reaction to rules the incumbents wrote.

Alex: That's the truth underneath it, and it's worth sitting with for a second, because it generalises. The rules of the game in any democracy are written by the people currently winning the game. So a huge amount of what looks like bold political strategy is actually just incumbents quietly tilting the board, and challengers scrambling to adapt to the tilt. The teals didn't wake up one morning and decide the centre needed a party. They were, in part, legislated into one.

Sam: Which is almost the opposite of the romantic story you'd tell about it. The romantic story is "brave independents unite to fix a broken system." The real story is "the system changed the price of independence and they did the maths."

Alex: Both can be true — there's genuine idealism in it too. But if you only hear the idealism, you miss the engine. And it sets up the contradiction at the absolute heart of this thing — the one they are, privately, terrified of.

Sam: Okay so before the break in my brain, let me recap where we are. We've got a two-party system cracking at both ends. We've got these giant-killer independents who are really the old Liberal Party in exile. And we've got a funding law that basically shoved them into becoming a party whether they wanted to or not. So now they're a party. What's the problem?

Alex: The problem is the thing that made them valuable in the first place. And the thing that stuck with me most in all of this is how clearly they see their own trap. Their entire electoral value proposition was: I am not a party. The pitch in 2022 was — I will not be whipped, I will not toe a party line, I will vote for what my community actually wants, not what some leader in Canberra tells me to.

Sam: So independence wasn't a feature of the product. Independence was the product.

Alex: That's exactly it. And the second you put the word "Party" on the letterhead, you hand your opponents the precise attack they've been throwing at you from day one — that you're a "fake independent." A bloc in disguise. The conservatives have said it for years. One senior Liberal accused them of trying to consign his party to permanent opposition. A former prime minister called them "anti-Liberal groupies." A party structure hands those critics the evidence.

Sam: And I can see why that attack is so dangerous specifically for them — because for most parties, "you're organised" is a compliment. For these guys it's the accusation.

Alex: That's exactly the inversion. If you accuse Labor of being a disciplined party, they say "yes, thank you." If you accuse the teals of being a disciplined party, you've just disproven their entire brand. The opponents even had the line ready — that the teals were really just their big funding vehicle, Climate 200, "in costume." A bloc pretending to be a bunch of individuals. The moment you register a party, you're handing that accusation a piece of paper that seems to prove it.

Sam: So how do you build a party that doesn't feel like a party?

Alex: Very, very carefully — and the design is genuinely clever. Community Strong Australia has no leader. And not by accident. Spender said flatly they won't even impose a leadership structure until there are at least ten MPs. Steggall waved off the whole leadership question as "a media construct of always thinking about leadership and power." And the constitution lets members vote however they like in parliament — with one single exception.

Sam: Which is?

Alex: Confidence and supply. The votes that decide who actually gets to govern, and whether the budget passes. On those, they hold together. On literally everything else, free votes.

Sam: Huh. So it's like... a co-working space, not a corporation? Everyone shares the office, the brand on the door, the receptionist — but you all run your own businesses and nobody tells anybody else what to do, except "we agree on who pays the rent."

Alex: That is a great analogy, and it's accurate. Shared resources, a registered name on the ballot, the legal status to spend like a party and run Senate candidates — but you keep your independence on the actual votes. They're trying to take only the scaffolding and leave the cage.

Sam: But — and I feel like this is the whole episode in one sentence — a party with no discipline has no power, and a party with discipline has no independence.

Alex: That's it. That's the high-wire act. And here's why it's so dangerous: pressure, in a hung parliament, isn't an occasional thing. Pressure is the entire job. The day they're first forced to choose between acting like a party and acting like independents is the day we find out if this clever design survives contact with reality. And to understand why everyone in Australian politics is quietly holding their breath about that day — we have to talk about a ghost.

Sam: A ghost. Okay. Set it up for me.

Alex: When the teals announced this, every veteran observer of Australian politics had the same involuntary, slightly haunted thought. And the thought has a name: the Australian Democrats.

Sam: I'll be honest, I've never heard of them.

Alex: Almost nobody under forty has, and that absence is the whole point of the story. Because for thirty years, they were the third force in Australian politics. In 1977, a moderate Liberal cabinet minister named Don Chipp quit — disgusted with both major parties — and founded a centrist party. And he gave it one of the great political slogans of all time. He said he was there to "keep the bastards honest."

Sam: That's a fantastic slogan.

Alex: It's perfect. And for three decades they did exactly that. They held the balance of power in the Senate almost continuously. At their peak around 2001, they had nine senators out of seventy-six. They were the sensible centre made flesh — socially progressive, economically moderate, a brake on whichever major party was in office.

Sam: Wait. Socially progressive, economically moderate, a check on the big two... that's —

Alex: Say it.

Sam: That's the teals. That is almost exactly the teal pitch.

Alex: Almost the identical political coordinates. Which is exactly why the ghost is so frightening. And then the Democrats died. And the way they died is, honestly, the single most important lesson in this entire story.

Sam: How does a party with thirty years of influence just... die?

Alex: In 1999, the Democrats' leader, a woman named Meg Lees, did a deal with the conservative Howard government to pass a new goods and services tax — a GST, a broad consumption tax — in return for some amendments.

Sam: And just so I'm clear — a GST, that's a tax on basically everything you buy. A big, broad, permanent change to how the whole country is taxed.

Alex: Right, it's a foundational economic reform — the kind of thing a government stakes its identity on. So it's not a minor bill. It was the Howard government's signature project, and the Democrats held the votes that decided whether it lived or died.

Sam: And that sounds... fine? That sounds like the job. You hold the balance of power, the government needs your votes, you extract some concessions and you let a major reform through. That's grown-up politics.

Alex: By every ordinary standard of governing, it was completely responsible. They didn't just wave it through, either — they used their leverage to win amendments first, which is textbook balance-of-power behaviour. Get concessions, let the reform pass, behave like adults. And it detonated the party.

Sam: Why? If it was a reasonable deal —

Alex: Because their voters hadn't elected them to be a partner to the major parties. Their voters elected them to be a check on the major parties. The whole brand — "keep the bastards honest" — was about standing outside the machine. And the moment Lees signed a deal to help the government pass its signature tax, in the eyes of their own supporters, they'd become the bastards.

Sam: Ohhh. So the deal didn't break a policy promise. It broke the identity. It broke the one thing the whole party was for.

Alex: That's the brutal, precise lesson. For a centrist party, the asset is not policy. The asset is credibility — the voter's belief that you are genuinely independent of the machine. And that asset can be destroyed by a single act of governing. The recriminations never stopped. Their vote collapsed across the 2004 and 2007 elections. All seven of their senators were wiped out. And in 2016 the party was formally deregistered for failing to keep even five hundred members.

Sam: From nine senators and the balance of power to legally not existing. Over one tax deal.

Alex: Over one responsible compromise. And now look back at Community Strong Australia's design — that "free vote on everything except confidence and supply." That is not a quirky structural choice. That is a direct, conscious attempt to inoculate against the Democrats' exact fate. They are trying to make it structurally impossible for any leader to ever sign a GST-style deal in the members' names.

Sam: Because no leader can bind them. There's no leader to do the binding.

Alex: Right. But here's the chilling symmetry, and it's the open question of the whole project. The Democrats had discipline, and the discipline is what killed them. The teals are trying to win with almost none. And the honest truth is — nobody knows if you can.

Sam: Okay, that's the graveyard. You promised me two ghosts though. You said get it right and you get Macron. So if the Democrats are the cautionary tale — what's the mirror image?

Alex: The mirror image is the case that says the exact opposite is possible. That a party built from absolutely nothing, planted right in the dead centre, can not only survive — it can sweep the entire board. And it happened, very recently, in France. April 2016. A former economy minister named Emmanuel Macron founds a movement. He calls it En Marche — "on the move" — and he describes it, very deliberately, as "neither right nor left." It has no seats in parliament. No machine. No history. Nothing.

Sam: So a genuine standing start. Zero.

Alex: Zero. Fourteen months later, Macron is President of France. And his brand-new party — with a centrist ally — wins three hundred and fifty of the five hundred and seventy-seven seats in the National Assembly. An outright majority.

Sam: Fourteen months. From a guy with an idea and no party to running the country with a parliamentary majority.

Alex: And the positioning is the thing to notice, because it's pure teal. "Neither right nor left." He didn't try to win the left or win the right — he stood in the exact middle and said both old tribes have failed you, I'm the grown-up in the room. Sound familiar?

Sam: That's the teal pitch word for word. "Politically homeless." Come to the sensible centre.

Alex: Identical instinct. And the two parties that had alternated in power in France for sixty years — the Socialists and the Republicans — were smashed down to their worst results in the entire history of the Fifth Republic. Standing start to total dominance, in a single cycle.

Sam: Okay, but I have to ask the obvious thing. Why? Why does the centre explode into a landslide in France and decompose into a graveyard in Australia? Because if it's just "Macron was a genius," that doesn't travel — that doesn't tell the teals anything.

Alex: And that is exactly the right question, and the honest answer is not about genius at all. It's structural. And because it's structural, it travels. Here's the mechanism. France elects its president directly, in a two-round system. And that two-round system rewards a candidate who can position himself as the only sane option standing against the extremes.

Sam: Two rounds — so the first round everyone scatters across all the candidates, and the second round it's down to the final two, head to head?

Alex: Exactly. And in that final, head-to-head round, "I'm the reasonable centre, my opponent is the scary extreme" is an incredibly powerful place to stand. The system itself manufactures a megaphone for the centre. Australia has no president to elect. It has a strong two-party parliamentary tradition, and a compulsory preferential voting system that actually tends to herd voters back toward the major parties.

Sam: So the French machine has this one giant lever — the presidency — that lets you convert a national mood into national power in a single pull. And the Australian machine just... doesn't have that lever.

Alex: It doesn't exist there. Macron also caught a specific wave — a once-in-a-generation collapse of both established parties at the very same instant, which opened a vacuum a centrist could fill overnight. And here's the thing that should make the teals nervous in both directions: they are watching a slower-motion version of that exact same collapse. The Liberal vote has cratered. The vacuum is opening. But Australia's system gives them no presidential lever to convert it into a majority in one move. They have to do it seat by seat. The slow way.

Sam: Which is the exact same way the Democrats did it. And the exact pace at which one bad compromise can quietly undo years of work.

Alex: You just closed the loop perfectly. The takeaway isn't that the teals will be Macron or will be the Democrats. It's something deeper: the centre is uniquely, almost uniquely, sensitive to the rules of the system it's operating in. The identical political space produces a landslide in France and a graveyard in Australia — because of the machinery. Community Strong Australia is making a French-sized bet inside an Australian machine.

Sam: You said there were two ghosts, but that's three models now — Democrats, Macron, and you've got a glint in your eye about a third.

Alex: I do, because there's a third model that's actually closest to what the teals genuinely believe, and it matters because it proves this isn't some uniquely Australian fever dream. It's Switzerland. In the mid-2000s, a group of Swiss Greens in Zurich got frustrated with their own party drifting too far to the left. So in 2007 they broke away and founded the Green Liberal Party — the GLP.

Sam: Green Liberal. So, green on the environment, liberal on the economy. That's —

Alex: It's almost word-for-word the teal proposition. Take climate genuinely seriously — but reject the left's instinct to solve it by banning things and expanding the state. One political scientist summed the GLP up as "as green as the Greens" but "significantly less left-wing."

Sam: So their bet is that you don't have to choose. That you can care about the climate and like markets at the same time.

Alex: That's the core conviction — that ecology and the economy aren't enemies. That environmental protection can actually drive innovation and prosperity, if you pursue it through market incentives and technology rather than prohibitions. And if you swap the accent, that is the platform of every teal who has ever given a speech. Serious on climate, sober on spending, allergic to ideology at either pole.

Sam: So the green-liberal idea is real. It's not a fantasy. Someone's running it successfully.

Alex: The GLP has held seats in the Swiss federal parliament for years. The space is real and durable. But — and you can probably guess the but —

Sam: The machinery again.

Alex: The machinery again. Switzerland runs a proportional system, which makes comfortable room for a dozen parties to coexist. The same idea that becomes a stable, institutional party in Bern has to fight for its life as a quasi-party in Canberra. Same idea. Different machine. Different fate.

Sam: I'm starting to feel like the actual main character of this whole episode isn't the teals at all. It's the voting system.

Alex: Hold onto that, because now step all the way back, because there's a pattern here that should genuinely make you sit up. This is happening everywhere. Across the established democracies, the combined vote share of the traditional big-two governing parties has been falling for decades. Britain. Continental Europe. Now, visibly, Australia.

Sam: Give me a number that makes that real.

Alex: Here's the one that did it for me. In the Netherlands, the system has fragmented so far that after the 2025 election, the largest party — a centrist-liberal party called D66 — governs with twenty-six seats out of a hundred and fifty.

Sam: Twenty-six out of a hundred and fifty. So the winning party got... what, about one vote in six?

Alex: One vote in six, and it "won." That's how scattered it's become. Voters across the West are abandoning the old postwar centre-left and centre-right blocs and just splintering — some to populist insurgents, some to greens, some to brand-new centrist vehicles.

Sam: And that reframes the One Nation thing from the very start of the episode, doesn't it. My instinct is to file a far-right surge and a polite climate-centrist party as opposite phenomena — one's the scary thing, one's the nice thing.

Alex: And that instinct is exactly the trap. They feel like opposites. They're mechanically the same event — voters walking out of the two big tents, just through different exits. One Nation is the people leaving in anger. The teals are the people leaving in frustration. Different doors, same building, and the building is emptying out either way.

Sam: So Australia isn't the exception to the trend.

Alex: Australia is a late, vivid case of the trend. And this is the line I keep coming back to — the line that reframes the whole thing. The teal party and the One Nation surge are not opposite stories. Remember we started by saying the system is breaking at both ends? They are the same story — the slow disintegration of the two-party order — just told from its two opposite ends.

Sam: Okay. So that leaves the question that actually decides whether any of this is a good idea. Is it? Is a more fragmented parliament good or bad for a country? Should we even be cheering for another party?

Alex: And this is the part where I have to be honest and resist the easy answer, because both sides of this are genuinely true at the same time. Fragmentation is not free. The costs are real. When the vote splinters across many parties, single-party majority government becomes rare, and you get the European condition. Long coalition negotiations. Governments that are compromises of compromises. Accountability gets harder, because no single party owns the result — so when something goes wrong, everyone can point at everyone else. And there's a standing risk of outright paralysis.

Sam: So nobody can get blamed, which means nobody really has to deliver.

Alex: That's the danger. And the serious academic work on this — there's a body of research tracking the big-two vote share falling right across the Western democracies for decades — is fairly blunt. On balance, fragmentation has made governing in the West harder and less stable. The argument is that the old big-tent parties did something underrated: they did the messy work of forging a compromise internally, behind closed doors, and then handed voters one coherent program they could actually be held to. When those big tents collapse, that compromise-making doesn't vanish — it just moves out into public coalition haggling after the election, where it's slower, uglier, and far less accountable.

Sam: So the deal-making still happens, you just lose the part where anyone's responsible for the deal.

Alex: That's exactly it. The collapse of the big-tent parties has degraded these systems' ability to just decide things. A country that fragments doesn't automatically become more representative in any way that helps it. It can simply become harder to govern.

Sam: Okay, but I can feel the other shoe about to drop, because the teals are kind of the living counterargument, aren't they?

Alex: They're the living counterargument. Because a rigid two-party system has its own disease. It lets a major party take a safe seat for granted for decades. Ignore what its own voters actually think. Offer everyone a miserable take-it-or-leave-it binary. Remember — the teal seats weren't random. They were precisely the places where the Liberal Party had drifted away from its own voters on climate and integrity and just assumed those people had nowhere else to go.

Sam: And the teals proved they did have somewhere else to go.

Alex: They proved it. So in that light, fragmentation isn't decay — it's the market working. Think of the two-party system like a market with only two suppliers. When there are only two of you, you can both quietly get lazy, stop innovating, take your customers for granted — because where are they going to go? The moment a credible third option appears, that complacency suddenly costs you. Voters punish the parties that stopped listening, and force them to actually compete for ground they'd written off.

Sam: So the teals aren't really a threat to democracy — on this reading they're a correction to a duopoly that got fat and stopped listening.

Alex: That's the optimistic frame, and it's a genuinely strong one. A little competition at the edges is how a lazy duopoly gets disciplined. The Liberal Party ignored its own voters on climate for a decade because it assumed they had nowhere to go — and the teals were the bill arriving.

Sam: So which is it? Because you've just argued both sides equally well and I genuinely can't tell where you land.

Alex: And the honest verdict is that it depends on the one thing we keep returning to — the machinery. In a presidential, winner-takes-most system, a new centre party can convert that discontent into a real governing majority. That's Macron. In a proportional system, fragmentation is just the normal weather, and the institutions are built to coalition-build their way through it. That's Switzerland, that's the Netherlands. And Australia is the awkward in-between. A parliamentary system with strong two-party habits and a preferential vote that keeps tugging back toward the majors — now being asked to absorb a fragmentation it was never really built for.

Sam: So the real risk to the teals has nothing to do with their policies.

Alex: Nothing. Their policies are popular and basically unobjectionable. The risk is that the Australian machine may simply not have a stable resting place for a permanent third force in the middle. The Democrats found that out the hard way. The teals are betting the machine has changed enough — that the duopoly is weak enough now — that this time, finally, the centre can hold a seat at the table without being crushed against the majors or quietly swallowed by them.

Sam: Alright. Bring us home. If someone's been walking and listening to all of this — what do they actually take away?

Alex: Three things. One: the launch of Community Strong Australia looks like a small story — two MPs, a worthy name, no leader. It is actually a window onto the most important slow-motion change in Australian democracy. The two-party system that has organised the country for a century is coming apart, and it's coming apart at both ends at once — One Nation surging on the right, the teals forming up in the centre. Same disintegration, opposite ends.

Sam: Two?

Alex: Two: the centre is the single hardest position in politics to institutionalise. Because its only real asset is the voter's belief that it is not a machine — and building a machine is exactly what you have to do to compete. France shows that bet can produce a landslide. Australia's own history shows it can produce a graveyard. Switzerland shows the idea is genuinely real, but that it needs the right system to survive in. The teals are making a French-sized bet inside an Australian machine, with a structure consciously engineered to dodge the one mistake that killed the Democrats.

Sam: And three?

Alex: Three is the thing to actually watch. It is not their policies. It's the first time they're forced to choose between acting like a party and acting like independents. The first big confidence vote. The first tempting compromise. The first moment the machine demands a discipline the brand can't survive. That is the day we find out whether the centre, in a country built for two parties, can become something you can vote for and still trust.

Sam: And honestly, that's why this one was such a good rabbit hole. It starts as "two Australian MPs launch a party" and it ends up being about whether the moderate middle can exist anywhere, in any democracy, under the rules we've actually built.

Alex: That's the whole reason to chase a small story all the way down. You came for the teals. You leave understanding something about every democracy that's quietly falling apart at the same time — and the strange, unsentimental truth that the voting system decides as much as the voters do. I hope you come away from this seeing that picture a little more clearly than when we started.

Sam: One quick note, for full transparency — and we say this every time. This show is AI-generated. Dan builds his own custom stack of AI tools to chase the questions he can't stop thinking about, mostly so he can understand them properly himself — and he publishes the results for anyone who wants to come down the rabbit hole with him.

Alex: And before you go, one genuinely useful thing. If you got something out of this, follow Dan's Rabbit Holes — wherever you're listening right now, there's a follow or a plus button, it's one tap, and it's free. It does two things: the next rabbit hole just shows up for you automatically, and honestly, for a small independent show like this, a follow is the single biggest lever there is for helping more curious people find it. So if this was worth your time — go ahead and tap follow.

Sam: And one real ask from Dan himself. Tell us where to go next. What landed, what didn't, what's the thing you can't stop thinking about that you want chased all the way to the bottom? Because that genuinely decides what the next rabbit hole is. If anything here sparked a thought — a disagreement, a "but what about…" — drop a line to podcast@connectiveshift.com. Every message gets read.

Alex: We'll see you down the next one.