Weekly Wrap Up – 12 December 2025
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Australia is finding itself at the intersection of trade, technology and geopolitics once again. Policy decisions made in Canberra, ensuring the sustainability of Australian journalism, are reverberating across Silicon Valley and Washington, at the same time as the US President names a new US Ambassador to Australia.
A big focus for the Government this week was the move on the News Bargaining Incentive (NBI). Daniel Mulino opened consultation on legislation which would establish the NBI, a scheme designed to force major digital platforms, including Meta, TikTok and Google, to negotiate commercial deals with Australian media outlets or face a 2.25 per cent levy on local revenue. While proponents argue it will redirect revenue to ensure viability of the sector and public interest journalism, tech companies have criticised the “discriminatory tax on US digital services”. Indeed, the dispute has spilled into international diplomacy, with the White House labelling the proposal “foreign extortion” and warning of trade tensions, highlighting how quickly a domestic digital policy impacts broader US-Australia economic relations.
That backdrop is sharpening as Donald Trump nominated Republican former congressman David Brat as US Ambassador to Australia, filling the role that has been vacant since late 2024. This pick is seen to signal a harder-edged, ideologically driven approach to diplomacy. Reporting suggests Brat’s appointment could inject fresh friction into already sensitive debates around tech regulation, trade fairness and perceived digital taxation, particularly given his alignment with the White House, which is increasingly vocal about protecting American technology firms abroad.
At the same time, domestic economic pressures are intensifying. Data released by the ABS shows annual inflation has climbed to 4.6 per cent, largely driven by a global fuel crisis. This comes ahead of next week’s RBA Monetary Policy Board meeting. Jim Chalmers has warned these pressures will persist and complicate the 2026–27 Budget. This leaves Chalmers navigating a narrow path: preparing a budget that addresses cost of living concerns, while managing growing inflation.
Combined with the ongoing fuel crisis, these dynamics point to a defining moment: Australia balancing its most critical alliance with the United States while simultaneously defending the viability of its domestic media ecosystem. The challenge is no longer siloed domestic reform but managing overlapping geopolitical, economic and technological pressures at once, and doing so without missteps in an increasingly contested global environment.
Stay tuned.
Making headlines this week
Fuel Security Updates
Japan’s “Iron Lady” Down Under
The visit of Japanese Prime Minister Sanae Takaichi to Australia next week is expected to place energy and fuel security at the centre of bilateral talks, with discussions set to focus on LNG supply stability and broader regional cooperation. The two countries’ energy interdependence is strong; Australia remains a major LNG exporter to Japan, while Japan supplies a significant share of Australia’s refined fuels, including diesel. The visit is being framed as a key diplomatic moment seeking to strengthen Australia–Japan strategic alignment, as energy competition intensifies across the region. Domestic policy settings remain under scrutiny, as Anthony Albanese has ruled out a new windfall tax and a 25 per cent sales tax on gas exports ahead of the 2026–27 Federal Budget. Following Takaichi’s visit, the Greens-led Senate Select Committee on the Taxation of Gas Resources will release its final report.
Things to watch
2 May, the Nepean State by-election will be held in Victoria.
3 May, Prime Minister of Japan Sanae Takaichi will visit Australia to discuss regional energy and defence security.
4 May, the RBA Monetary Policy Board will convene.
4 May, the ABS will release Building Approvals data.
5 May, Jaclyn Symes will deliver the 2026-27 Victorian Budget.
6 May, Amanda Lacaze will address the National Press Club, discussing rare earths.
7 May, the AFR will host the Digital Economy Forum in Sydney.
7 May, the ABS will release International Trade in Goods data.
7 May, the Select Committee on the Taxation of Gas Resources will release a final report following its Committee hearings.
7 May, Luci Ellis, Jo Masters & Aruna Sathanapally will address the National Press Club for the Women in Economics Network Pre-Budget Address.
9 May, the Farrer Federal by-election will be held.
Financial Reporting and Emerging AI Threats
Katy Gallagher released the Federal Government’s Monthly Financial Statement for March 2026, reporting an underlying cash deficit of $30.4 billion for the 2025–26 financial year to 31 March 2026.
In a letter to industry, APRA urged banks, insurers and superannuation trustees to update their risk management practices to address emerging AI-related threats. It specifically referenced Anthropic’s Claude Mythos as an example of technology that could increase the speed and scale of cyber-attacks.
The Senate Economics Legislation Committee recommended that the Treasury Laws Amendment (Financial Reporting System Reform) Bill 2026 be passed. This would consolidate the Australian Accounting Standards Board, the Auditing and Assurance Standards Board and the Financial Reporting Council into a singular body named External Reporting Australia, seeking to streamline financial reporting oversight.
Ministerial Travel and Defence Procurement and Governance Updates
The Governor-General appointed Ms Meghan Quinn PSM as Secretary of the Department of Defence. Ms Quinn is the first woman to lead the Department and previously served as Secretary of the Department of Industry, Science and Resources, with earlier roles in Treasury and the Department of the Prime Minister and Cabinet.
Matt Thistlethwaite travelled to New York to lead Australia’s delegation to the 11th Review Conference of the Treaty on the Non-Proliferation of Nuclear Weapons at the United Nations. Matt Thistlethwaite also convened bilateral meetings with counterparts from Japan, the Republic of Korea and Vietnam, focusing on regional cooperation and sustaining the two-way flow of energy, fertiliser and other critical goods.
Richard Marles announced the Federal Government will invest $2.3 billion over the next decade in the High Mobility Artillery Rocket System and the Precision Strike Missile. The decision follows a competitive Defence evaluation process and is intended to enhance Australia’s long-range fires capability.
Environmental Approvals, Great Barrier Reef, and Gas Exploration
Anthony Albanese announced the Federal Government will provide more than $45 million over four years to encourage states and territories to sign bilateral agreements that streamline environmental approvals. The measure aims to reduce duplication in assessment processes and accelerate approvals for priority energy, housing, and resource projects.
Murray Watt announced $50 million in funding over five years through the Reefwise Wetlands Program. This seeks to restore coastal wetlands and improve water quality flowing into the Great Barrier Reef, including weed control, revegetation and habitat restoration.
The New South Wales Government opened two new areas for gas exploration for the first time in over a decade, in efforts to address forecast supply shortfalls. The move aims to secure energy, support grid stability during the renewable transition, and attract investment. Projects will be subject to strict environmental assessments and community consultation.
Westport Container Terminal, National Construction Code Consultation, and Opal Card Developments
Catherine King announced the Federal and Western Australian governments will jointly invest $1.1 billion to upgrade key road links to the proposed Westport container terminal in Kwinana. The investment is intended to improve freight efficiency and support trade growth, industrial development and long-term supply chain resilience in Western Australia.
Treasury released the interim report for the National Construction Code Modernisation Project, setting out five reforms that update the National Construction Code (NCC). Reforms are designed to simplify the NCC, encourage innovation in the building sector, and reduce compliance costs for industry.
The New South Wales Government announced an $820 million upgrade to the Opal transport ticketing system. This includes a new app, real-time updates on digital information screens for buses, and the rollout of a digital Opal card to improve convenience and system integration for public transport users.
AI, Early Childhood, and Hospital Ownership Changes
Amanda Rishworth addressed the AFR Workforce Summit, communicating that AI could lead to “cognitive overload and burnout” if deployed to increase workloads without adequate safeguards. The Minister urged businesses to actively monitor and manage emerging health and safety risks as AI adoption accelerates.
The Department of Education opened applications for subsidies to support early childhood education workers while they complete mandatory training requirements. Applications close on 3 July, with a second round expected later in the year, subject to funding availability.
The Northern Beaches Hospital in Sydney will return to public ownership following a $190 million acquisition by the New South Wales Government. The decision follows a fatal misdiagnosis of a two-year-old in 2024, with around 1,800 staff now transferred into NSW Health.