With O Week done and dusted, the government moved to pass its flagship election promise to slash student debt by 20 per cent (more details on this below). Elsewhere, internal party tensions simmered, and economic reform discussions entered the mix.
Barnaby Joyce this week announced his decision to introduce a Private Member’s Bill seeking to repeal Australia’s legislated commitment to achieving net zero by 2050. This move is at odds with Sussan Ley’s commitment to reassess the Coalition’s climate and energy policies following its thumping at the federal election. Moreover, moderate Liberal insiders warn that abandoning net zero risks further alienating urban and moderate voters in key marginal seats. Meanwhile, Ley also faced an early challenge from Liberal Senator Sarah Henderson who sought to amend the government’s Cutting Student Debt by 20 Per Cent Bill 2025 by capping HECS debt indexation to 3 per cent. These early leadership tests could be a sign of things to come for Ley.
On the economic front, the Productivity Commission (PC) released its first interim report ahead of Treasurer Jim Chalmers’ upcoming Economic Reform Roundtable this month. With Commission Chair Danielle Wood set to attend, the report offers a preview of the recommendations and policy settings the PC plans to present at the Roundtable. The interim report – focused on creating a more dynamic and resilient Australian economy – is the first of five slated to be published in the coming weeks. The interim report made six policy recommendations, including to lower the corporate tax rate to boost investment, introducing a net cashflow tax, and maintaining higher rates for large corporations.
With the first two parliamentary sitting weeks now wrapped, the government has achieved some early wins while also laying the ground work for its post-election legislative agenda. The coming weeks will be ones to watch as the government refines its post-election mandate and the Opposition tests its footing, while also seeking to secure its own.
Top talking points
⚖️Net Zero Commitment Challenge: A Bill has been introduced seeking to abolish Australia’s legislated commitment to achieve net zero greenhouse gas emissions by 2050.
📈Economic Reform Insights: The Productivity Commission released the first of its five interim reports ahead of the Economic Reform Roundtable.
🪑Committee Leadership Restructure: Changes to parliamentary committees have opened leadership positions to crossbench members, marking a departure from traditional bipartisan leadership models.
🕊️Palestinian Statehood: Australia joined an international statement calling for an immediate ceasefire in Gaza, condemning settlement expansion, and expressing support for a two-State solution.
🔋Renewables Subsidy: The Capacity Investment Scheme will be expanded by 25 per for new renewable energy generation and storage projects.
Making headlines this week
Parliament Update
The Albanese Government sought to legislate two major pieces of legislation tied to its election commitments. The Protecting Penalty and Overtime Rates Bill 2025 introduced by Amanda Rishworth seeks to eliminate the Fair Work Commission’s power to reduce penalty rates from awards. If passed, the legislation would safeguard overtime and weekend pay for approximately two million workers across various industries. Additionally, the Cutting Student Debt by 20 Per Cent Bill 2025 passed both houses this week which will see approximately $16 billion in financial relief provided to around three million Australians, easing the burden on graduates and making higher education more accessible.
Social Media Ban Update
YouTube has been added to the upcoming nationwide ban on social media access for children under 16 years, reversing an earlier exemption, effective December 2025. This shift follows recommendations made by the eSafety Commissioner, which highlighted YouTube’s prominent role in exposing minors to harmful and inappropriate content.
Under the new regulations, platforms that fail to implement and take reasonable steps to enforce age verification measures will face substantial penalties, with fines reaching up to $49.5 million. This expanded ban applies to a broad range of age-restricted social media services, including Facebook, Instagram, Snapchat, TikTok, X, YouTube, and others.
Things to watch
📘 3 August, the Productivity Commission will publish its second interim report on the transition to net zero.
🏛️ 5 August, the NSW and QLD Parliaments will sit.
🗣️ 6 August, CEDA will host a productivity growth discussion in Sydney and another with Assistant Minister to the Prime Minister, the Hon. Patrick Gorman, in Perth.
🎤 6 August, Race Discrimination Commissioner Giridharan Sivaraman will speak at the National Press Club about racial inequality in Australia.
🏗️ 7 August, The ABS will publish building approval data.
🧠 8 August, the John Curtin Research Centre will host South Australian Premier Peter Malinauskas to discuss innovation.
Life Insurance Reform, ABS Statistics, Superannuation Misconduct
A ban on the use of genetic tests in life insurance underwriting is set to go ahead, following strong industry and bi-partisan support. The change, led by Labor MP Daniel Mulino, is aimed at improving fairness and reducing potential discrimination in personal insurance policies.
New figures from the ABS show headline inflation increased by 2.1 per cent across the June quarter, the lowest annual inflation rate since the March 2021 quarter. The easing inflationary pressure may influence upcoming decisions by the Reserve Bank.
ASIC Chair Joe Longo addressed the FSC Symposium, commenting on the rise in misconduct in the superannuation sector, with data showing a rise in customers being encouraged to move their superannuation against their own best interests. ASIC is calling for trustee due diligence and reform to its own data collection powers to align with global best practice.
Submarines Sustainment, UK-Australia Consultations, and UAE Updates
A Project of Concern Summit was held on the sustainment of Australia’s Collins Class submarines. The Federal Government has committed up to $5 billion to extend the life of the Collins class to ensure Australia has no gaps in its defence capabilities before acquiring nuclear-powered submarines from the US.
Australia and the United Kingdom reaffirmed and expanded their strategic partnership during ministerial talks in Sydney, agreeing to deepen cooperation in the Indo-Pacific, strengthen joint defence capabilities, and collaborate on trade, climate, and energy initiatives.
The Australia-United Arab Emirates Comprehensive Economic Partnership Agreement has now been legislated with over 99 per cent of Australian exports set to enter the UAE tariff free once in force.
CSIRO, Heatwaves, and US Beef Inquiry
The latest 2024-25 CSIRO GenCost report confirmed that, when accounting for firming and storage costs, renewable energy remains the lowest-cost new-build technology. The report also found that small modular nuclear remains the most expensive energy option.
Long-range marine heatwave outlooks will be made available for the 2025-26 summer. The outlooks will support the planning and sustainability of the aquaculture sector with the ability to better predict marine heatwaves. The announcement follows the ongoing algal bloom in South Australia.
A Nationals motion to establish an inquiry into the government’s decision to resume US beef imports was blocked after the Greens sided with the government to vote it down.
Infrastructure Commitments, Sydney Metro, and Queensland Construction Productivity Updates
The Federal and New South Wales Governments committed $600 million in major road projects across Western Sydney, including upgrades to the New Richmond Bridge and the Pitt Town Bypass to address traffic flow and support flood resilience in the region.
Parramatta is now connected to the Sydney Metro West tunnel system, aiming to support growth and transport connectivity across the Greater Sydney region. Once completed, the link will reduce travel times between Parramatta and the Sydney CBD.
In Queensland, an interim report from the QPC raised concerns over productivity declines in the building and construction sector, potentially impacting the delivery of Olympic infrastructure ahead of Brisbane 2032.
Non-Compete Clause Consultations, PBS Updates, and WWCC Reform
Treasury commenced consultation on a proposed ban of non-compete clauses in employment contracts, as well as no-poach and wage-fixing agreements. The ban would apply to employees under the high-income threshold and across all Fair Work instruments, with consultations closing on 5 September.
New legislation to cap PBS prescription costs to $25, while also freezing concession co-payments at $7.70 until 2030, has been introduced. This follows other recent measures, including 60 day prescriptions and changes to the PBS Safety Net.
The New South Wales Government will introduce legislation to make the Office of the Children’s Guardian the sole decision-maker for Working With Children Check (WWCC) and NDIS Worker Check reviews, removing NCAT appeals and closing loopholes that allowed high-risk individuals to gain clearance. It will also lead calls for a national WWCC register and implement broader child safety reforms, including a CCTV trial in early education settings.
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📺 Confirmed: Albo is Pro-wiggle