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Highlights

• Labor and the Coalition are tied 50-50 on a two party preferred basis while Anthony Albanese remains preferred Prime Minister over Peter Dutton, according to the latest Newspoll.
• The Department of Climate Change, Energy, the Environment and Water opened consultation on proposed reforms to Australia’s national packaging regulations.
• Qatar Airways announced its intention to purchase a 25 per cent stake in Virgin Australia. The transaction will require Foreign Investment Review Board approval with competition in the aviation sector likely to be a key consideration.
• The Federal Government appointed Aftab Malik as Special Envoy to Combat Islamophobia in Australia. The appointment comes amidst escalating hostilities in the Middle East, with Minister for Foreign Affairs Penny Wong calling on Australian citizens to evacuate the region.
• Queensland Governor Dr Jeannette Young dissolved^[PDF]
  State Parliament, officially commencing the State’s Election campaign. Read GRACosway’s detailed insights here.

Government crackdown on ‘shrinkflation’

The Federal Government is ramping up pressure on price-setting practices of supermarket retailers as part of its broader cost-of-living agenda. With the release of the Australian Competition and Consumer Commission’s (ACCC) Interim Report, concerns have been raised on all sides of politics over matters such as discounting practices, loyalty programs, and retailer relationships with suppliers. The Federal Government announced an additional $30 million to the ACCC “to conduct more investigations and enforcement in the supermarket and retail sectors.”

The Federal Government announced reforms aimed at reducing the prevalence of ‘shrinkflation’ in shopping aisles. Shrinkflation is the practice of reducing the size of a product while continuing to offer it at the same price. Proposed reforms, which will be consulted on with the industry in the coming months, include expanding products under the Unit Pricing Code, addressing measurement inconsistencies, and increasing the readability of pricing displays.

The ACCC’s final report for the supermarkets inquiry is due by February 2025. 

Budget Outcome

Treasurer Jim Chalmers and Minister for Finance Katy Gallagher delivered the Final Budget Outcome for 2023-24, confirming a $15.8 billion surplus. It marks the first time since 2007-08 that a Federal Government has delivered two consecutive surpluses.

The surplus, which is larger than original forecasts, was attributed to lower government spending as opposed to higher tax receipts. The Treasurer predicted that growth of spending on programs such as the National Disability Insurance Scheme and aged care, coupled with lingering inflation in the global economy, will lead to a deteriorated fiscal position at the end of this financial year, in which a $28.3 billion deficit is forecast. 

Looking ahead

Only the Federal Parliament will sit next week.

Finance

Federal Developments

The Federal Court dismissed the Australia and New Zealand Banking Group’s (ANZ) appeal against the judgment that it had breached disclosure laws in 2015 regarding a $2.5 billion institutional share placement. The initial judgment imposed a penalty of $900,000 on ANZ for failing to meet its continuous disclosure obligations to the Australian Securities Exchange.

The Australia Institute released a report revealing that fourteen major superannuation funds had invested approximately $3.4 billion in nuclear weapon companies in 2023. Superannuation funds including Uni Super and HESTA both invested over $200 million, and Australian Super invested $1.5 billion in companies that produce controversial weapons. Hostplus has excluded nuclear weapons from its portfolio since the end of 2021.

The Federal Government extended the Responsible Lending Obligations (RLOs) exemption which allows small businesses to access loans and credit without being assessed against the RLO. The National Consumer Credit Consumer Credit Protection will be amended to extend the exemption for an additional two years. The Australian Banking Association welcomed the RLO exemption extension, stating that it is critical in supporting small businesses.

Foreign Affairs, Defence and Trade

Federal Developments

Minister for Defence Richard Marles travelled to New Zealand to participate in the 2024 South Pacific Defence Ministers’ Meeting. Leaders discussed initiatives to improve military-to-military cooperation in the Pacific. Minister Marles also held bilateral meetings with Pacific counterparts including Pacific Islands Forum Secretary General Baron Waqa.

Minister for Foreign Affairs Penny Wong ⁠met ^[paywall]
with Iran’s Ambassador to Australia Ahmad Sadeghi over comments he made in support of Hamas and Hezbollah. While condemning the comments, Minister Wong resisted calls from the Opposition to expel Mr Sadeghi over the comments. The Federal Government continues to condemn the action of Iran in relation to escalating hostilities in the Middle East. 

Minister for Trade and Tourism Don Farrell welcomed United Arab Emirates Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi to Australia. The Ministers met with Australia’s senior business leaders and confirmed arrangements for the signing of a trade agreement between Australia and the United Arab Emirates.

Environment, Resources and Energy

Federal Developments 

The Federal Government announced that six projects will receive funding to reduce sediment runoff into the Great Barrier Reef, with the projects anticipated to prevent over 130 kilotons of sediment entering the Reef. The funding is being delivered through the $200 million Landscape Repair Program, which forms part of the Government’s $1.2 billion investment to protect the Great Barrier Reef.

The Federal Government committed $9 million to a sustainable aviation fuel (SAF) project based in Townsville. The project will assess the viability of a commercial-scale alcohol-to-jet production facility as well as support the development of SAF and low-carbon liquid fuels.

State Developments

QLD Premier Steven Miles announced a re-elected Labor Government will establish a state-owned energy retailer which would compete with Ergon Energy, another state-owned energy retailer. Premier Miles also committed to an ‘energy price guarantee’ which would set the energy price at no higher than the national average default market offer.

The Victorian Government approved the Mortlake Energy Hub, to be located in Victoria’s Southwest. The $700 million project will be developed by BrightNight and will include a 360-megawatt solar energy facility with a 30-megawatt battery storage system.

Infrastructure, Transport and Communications

Federal Developments

The Australian Rail Track Corporation announced the completion of the Gap Bridge Replacement project in the Liverpool Plains region. The project, delivered in partnership with contractor John Holland, replaced the life-expired steel rail bridge at Werris Creek and delivered a new concrete ballast top structure, improving safety and reliability of the bridge for future operations.

Dredging commenced at Lumsden Point in the Port of Port Hedland, with approximately one million cubic metres of material to be removed over the next eight weeks. The dredging will create a deeper access channel, swing basin, and berth pockets to ensure the safe and efficient berthing of vessels at the new Lumsden Point facility.

The Federal Government announced the delivery of Round 2 of the Peri-Urban Mobile Program, under which $40.9 million in funding has been awarded to mobile carriers and tower companies for 47 projects that will deliver new or upgraded mobile phone infrastructure targeting mobile coverage and reception issues. The 47 projects are expected to provide improved coverage of 4G and 5G service to communities around Australia.

The Federal Government opened consultation on the need for a prominence framework for radio services on internet connected, voice-enabled smart speakers. The framework would seek to address issues impacting access to local radio services via smart speakers that make it difficult for radio broadcasters and audiences to connect. Consultation closes on 11 November.

Health and Education

Federal Developments 

Minister for Health Mark Butler announced the recipients of $50 million in health research funding to support the development of a multi-season flu vaccine, improved treatments for schizophrenia, and exploring the role of gut microorganisms in combating melanoma. The funding will be provided through the National Health and Medical Research Council’s 2024 Synergy Grant scheme.

Minister for Education Jason Clare announced a $70.9 million investment to bring nearly 1,500 new teachers from diverse backgrounds into the education sector, tripling the number of teachers entering into the High Achieving Teachers Program. From 2025, participants will be placed in schools with identified needs to address teacher shortages in both government and non-government schools.

Minister for the NDIS Bill Shorten released the finalised NDIS support list, detailing what NDIS participants can spend their funding on. The changes came into effect from 3 October with a one-year transition period to ensure participants are informed about the changes.

State Developments 

NSW Minister for Health Ryan Park confirmed the Government and the Nurses & Midwives’ Association accepted the Industrial Relations Commission’s recommendation for four weeks of intensive negotiations over a pay increase. In the interim, nurses will receive a 3 per cent wage increase, backdated to 1 July 2024, with no industrial action during the talks. Top of Form.