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Anthony Albanese says the budget chaos caused by the war in Iran will not diminish his determination to establish a universal childcare system in Australia, describing meaningful improvements to the lives of average voters as the best way to fight rising rightwing populism and Pauline Hanson.

In an interview ahead of Sunday’s first anniversary of his landslide 3 May reelection, the prime minister told Guardian Australia he remained committed to delivering the major reform while in office, despite spending cuts coming in the budget hitting the national disability insurance scheme and public service departments.

Albanese has flagged universal childcare as part of his political legacy, possibly part of Labor’s policy promises for the 2028 election.

But he said the government was focused on delivery, a year into its second term.

“The fact that we’ve delivered on our commitments is about restoring trust in government, and the belief that the government will listen to people,” Albanese said.

“My government is focused on delivering what matters to Australians every day, and front and centre of that is cost-of-living measures. I think governments need to not stray from the central focus of making a positive difference to people’s lives.”

One Nation has a strong chance of winning next weekend’s Farrer byelection in a result that would fuel Hanson’s growing support and heighten the threat to the major parties from insurgent forces.

Labor has commissioned consulting giant Deloitte to help design a universal childcare system. Its two-year study of demand and costs is due to report by early 2027, more than a year before the next election, due by mid-2028.

Albanese said Labor’s changes to the childcare subsidy and the introduction of three-days guaranteed care for families were steps towards a fully universal system.

“I think universal, affordable childcare is an important objective to work towards,” he said.

Ahead of the budget, Albanese brushed off the risk of a backlash from trade unions and even some Labor MPs over his refusal to collect more tax from gas exporters benefiting from the global energy shock.

He labelled the campaign for a 25% tax rate on exports or a new windfall profits scheme as populist posturing, including from independents and the Greens, pointing out Labor made changes to the petroleum resource rent tax in its first term.

Critics argue the changes have done little to collect extra revenue.

“My job is to act in Australia’s national interest, and Australia’s national interest in May of 2026 is ensuring that there’s a supply of fuel here, because of the consequences we’re seeing with the pressures that are on.

“That is my priority.”

Defying polls showing Labor could slip into minority government, Albanese won 94 seats in the race against then Liberal leader, Peter Dutton. But the government has been buffeted by events at home and overseas ever since, including the Bondi terror attack, US President Donald Trump’s erratic leadership, the blockade of the strait of Hormuz, and urgent budget priorities, including curtailing rapid growth in the national disability insurance scheme.

The budget is shaping up as the most consequential since Labor was elected in 2022. The treasurer, Jim Chalmers, has promised ambitious reforms, with changes to negative gearing and the capital gains discount expected.

Albanese said resilience would be a key focus.

“One part of that is making more things here in Australia, making ourselves less vulnerable to international shocks and events,” he said.

“But resilience also means giving people a stake in the economy, so people feel like the economy works for them, rather than them just working for the economy. That is so important.”

He nominated industrial relations reforms, wage increases for aged care and childcare workers, income tax changes, cheaper medicines, free TAFE courses, household batteries, cuts to university debts, urgent care clinics and efforts to address housing shortages as key achievements.

“All of these measures are about giving people that sense … that they will be rewarded for their hard work and aspiration,” he said.

After receiving the interim report from the Bondi royal commission this week, Albanese called on holdout state governments to drop opposition to a national gun buy-back.

Amid growing anxiety about security, he has insisted the government is not facilitating the return of Australian women and children from north-east Syria.

Four Australian women and nine children linked to Islamic State fighters are currently attempting to return home. The prime minister has been challenged this week over his previous comments expressing sympathy for the children of fighters.

“I have never had any sympathy whatsoever for any of these people who’ve chosen to travel overseas to fight against Australia’s interests,” he said on Friday.

“I remain sympathetic towards the children who are victims of the actions of their parents.”

Albanese declined to say if the children should be separated from their parents.

“Australian citizens do have rights, and we will act within the law, but part of acting within the law is ensuring that people face the full force of the law,” he said.