Minister for Foreign Affairs Penny Wong attended the Quad Foreign Ministers Meeting in Washington DC, meeting with counterparts from the United States, India, and Japan. Talks focused on regional security, maritime cooperation, and strengthening critical mineral supply chains, with discussions centring on the Indo-Pacific region. Although Wong reiterated Australia’s commitment to the AUKUS security pact, the visit comes amidst calls for Australia to raise its defence spending. Importantly, Wong also flagged President Trump’s interest in re-arranging a meeting with Anthony Albanese.
Back home, Treasurer Jim Chalmers invited public submissions ahead of the economic reform roundtable to be held in August. The consultation, open until 25 July, invites submissions on ways to improve productivity, economic resilience, and budget sustainability. Chalmers has already extended invitations to Productivity Commission Chair Danielle Wood, ACTU Secretary Sally McManus, BCA CEO Bran Black, and others. Although the roundtable is expected to bring together voices from across the political spectrum, comprising business, union, and departmental representatives, with Chalmers signalling that tax reform will be on his agenda at the roundtable. If past attempts are any guide, this may prove to be the first real test of the re-elected Albanese Government.
Following allegations of child sexual abuse by a staff member at a child care centre in Melbourne’s south-west, Victoria’s Premier Jacinta Allan announced the appointment of former South Australian Premier Jay Weatherill and Victorian Registration and Qualifications Authority Chair Pamela White to oversee an urgent review of the sector, with findings due by 15 August. Proposed reforms include a child care worker register, banning personal devices in centres, and tightening background checks. Federal Minister for Education Jason Clare stated that reforms to standardise Working with Children Checks (WWCCs) across the country “can’t happen soon enough”. The issue will be on the agenda of a meeting of attorneys-general next month, which will also consider implementation of real-time updates to WWCCs based on changes to criminal records.
Top talking points
🧭 Quad diplomacy: Penny Wong joined foreign ministers in Washington for Quad talks on regional security and supply chain resilience.
🚢 AUKUS reaffirmed: Vice Admiral Jonathan Mead restated Australia’s long-term commitment to the trilateral defence partnership.
📣 Economic reform agenda: Jim Chalmers opened submissions for the August roundtable on productivity and budget sustainability.
📊 NDIS warning: A Grattan Institute report says the scheme is growing beyond sustainable limits and needs stronger guardrails.
💰 Super reform flagged: ACTU’s Sally McManus backed[paywall] eventual indexation of super changes, supporting a longer-term phase-in.
Making headlines this week
China’s Ambassador weighs in
China’s Ambassador to Australia, Xiao Qian, used an op-ed in The Australian to push back[paywall] against what he called a “hyped up” China threat narrative. His remarks come in the wake of NATO leaders agreeing to increase defence spending to 5 per cent of GDP by 2035, a contrast to China’s own military spend, which he noted sits at around 1.5 per cent of GDP. The piece signals ongoing diplomatic messaging from Beijing as strategic tensions in the Indo-Pacific remain elevated.
News Bargaining Incentive flagged
Assistant Treasurer Daniel Mulino reiterated[paywall] that the proposed News Bargaining Incentive remains a key priority for the Albanese Government. He confirmed that a consultation paper will be released “soon,” with the policy aimed at ensuring digital platforms pay for news content. Mulino’s comments came shortly before Canada abandoned its digital services tax on major US tech firms in a bid to revive trade negotiations, a move watched closely by policymakers in Australia.
Things to watch
🏦 8 July, RBA Board meeting: The Reserve Bank Board will meet to consider the latest monetary policy settings.
🗣️ 9 July, National Press Club address: John Grimes, CEO of the Smart Energy Council, will speak on energy transition and policy certainty.
📊 9 July, ABS data release: The ABS will publish building approvals figures for May.
🏛 9 July, APRA Chair at AmCham: John Lonsdale will speak to regulators and industry at an American Chamber of Commerce event in Sydney.
⚡ 10 July, CEDA energy summit: WA Premier Roger Cook will deliver remarks on energy policy and economic transition.
Financial system reform and market oversight
From 1 July, new APRA risk standards came into effect, requiring banks, insurers and super funds to identify critical business services and ensure continuity during major disruptions. The same day also marked the start of Australia’s new merger control regime: while notification to the ACCC remains voluntary until 2026, businesses meeting certain thresholds are now encouraged to notify and seek approval ahead of acquisitions.
At the same time, consultation opened on the future of account-to-account payments, with the RBA and Treasury backing an industry-led process by Australian Payments Network and Australian Payments Plus. This follows the RBA’s risk assessment[PDF] of decommissioning the Bulk Electronic Clearing System. Separately, the ACCC authorised AusPayNet to coordinate the wind-down of the cheque system, with new cheque issuances to end by mid-2028 and full closure by late 2029.
Strategic consultations and regional defence partnerships
Defence has opened consultation on the proposed regulatory framework for Australia’s Naval Nuclear Power Safety Regulator, which will oversee safety and radiological protections as part of the AUKUS submarine program. Submissions are due by 30 July. In the region, Fijian Prime Minister Sitiveni Rabuka expressed[paywall] support for Australia’s defence recruitment initiative and flagged a forthcoming bilateral treaty, noting the agreement would target “neglected areas of development” and help counter regional instability.
Meanwhile, Export Finance Australia has announced a US$150 million loan facility to Austal to expand its shipbuilding capacity in the United States. The Albanese Government welcomed the investment, which will support contracts with the US Navy and Coast Guard and forms part of efforts to strengthen sovereign defence capability through international partnerships.
Energy market review and regional transition
The Federal Government has launched a comprehensive review of the gas market, consulting on the Domestic Gas Security Mechanism, Gas Market Code and Heads of Agreement with exporters. In New South Wales, Cameron O’Reilly has been appointed Chair of the new Energy Security Corporation, which will manage $1 billion in state-backed investment for large-scale storage and grid-enabling infrastructure.
Separately, the Queensland Government will expand its Minerals and Energy Academy to Mackay, Rockhampton and Townsville. The $2 million initiative aims to create training pathways for up to 10,000 students over the next three years.
Olympics funding, infrastructure governance and spectrum review
Federal and Queensland Governments have renegotiated the $3.4 billion federal funding commitment for the 2032 Brisbane Olympic Games, following the release of the state’s updated Delivery Plan. In Victoria, Merren McArthur has been appointed Chair of the Melbourne Airport Rail Link Steering Committee, a body formalised under a federal–state–airport agreement.
ACMA has also proposed to renew key spectrum licences, aiming to save $3.2 billion on renewals compared to their original cost. The licences support mobile networks, broadcast media and public transport communications.
Research funding, student support and training guidance
The Federal Government will invest $12 million through the Medical Research Future Fund to support 14 biotech and medtech companies developing treatments for conditions including heart disease, atrial fibrillation, stroke and diabetic kidney disease.
From 1 July 2025, eligible students in teaching, nursing, midwifery and social work will receive $331.65 per week during mandatory placements under the new Commonwealth Prac Payment.
Meanwhile, the Australian Skills Quality Authority has released new guidance for early childhood training providers, setting expectations for workplace assessments to improve consistency and quality in course delivery.
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📷 Soft power diplomacy? Wong’s gift to Rubio.
