Weekly Wrap Up – 12 December 2025
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Ahead of Parliament’s return next week, the Prime Minister spent the past few days looking north and east, with the Pacific Islands Forum once again placing regional security, economic development and climate change firmly on the agenda. While cost of living pressures and productivity debates continue to dominate domestic politics, the Forum served as a reminder that Australia is navigating an increasingly complex environment beyond its own borders.
Despite proceedings being overshadowed by escalating tensions between China and Taiwan, Australia attempted to use the gathering to reinforce its position as the Pacific’s preferred partner. Most notably, the Government announced a headline $600 million package to combat drug trafficking, reflecting growing concern that the challenges facing the region now extend beyond traditional questions of defence.
While much of the discussion focused on security and strategic competition within the region, Australia and Pacific leaders also continued to prioritise climate change, ahead of the pre-COP later this year.
Meanwhile, back on home soil, concerns over the housing market downturn continue to grow. Economists have warned that national house prices could fall by 9 per cent or more from their peak as higher interest rates and the Government’s tax reforms weigh on demand. This resulted in the Treasurer conceding that the changes were one of a “number of reasons” for the fall in Australian house prices.
Making headlines this week
Privacy overhaul for digital platforms and AI
The Treasurer’s Op-ed
In an opinion piece ahead of the 2026 Intergenerational Report, Jim Chalmers argued that artificial intelligence will be a major driver of future productivity and economic growth. Chalmers said AI has the potential to lift living standards, create new industries and attract billions in investment. The Treasurer flagged AI’s expanded role in the forthcoming Intergenerational Report and reaffirmed the Government’s focus on encouraging adoption, boosting digital skills, attracting talent and supporting business investment.
Things to watch
7 September: The Federal Parliament will reconvene.
7 September: The AFR will host the 2026 Property Summit in Sydney.
8 September: The ABS will release Building Approvals data.
9 September: Santos CEO Kevin Gallagher will address the National Press Club, discussing Australia’s energy opportunity.
9 September: The ABS will release Industrial Disputes data.
10 September: Kevin Rudd will address the National Press Club, discussing Australia’s geopolitical environment.
RBA, APRA and AFCA Drive Financial System Reform
In its 2026/27 Corporate Plan, the RBA identified five strategic priorities, including modernising payment and banking services through enhanced technology infrastructure, cyber security capabilities, operational resilience and future-ready systems.
APRA found 12 of 547 superannuation products failed its annual performance assessment, including BUSSQ’s MySuper product, marking the first MySuper failure recorded since 2023.
When responding to a Senate inquiry into ASIC investigation and enforcement activities, the Federal Government flagged potential amendments to whistleblower protection laws, including the potential introduction of compensation arrangements for whistleblowers.
Following its designation under the Scams Prevention Framework, AFCA launched consultation on how it will manage scam-related complaints and disputes, providing consumers and stakeholders with an opportunity to shape the scheme’s future operation.
Defence, Humanitarian and Trade Engagement Efforts
The Prime Minister marked the 75th anniversary of the ANZUS Treaty, reaffirming its importance to Australia’s national security and ongoing defence cooperation with the United States and New Zealand.
Penny Wong announced Australia will deploy specialist drone operators and additional humanitarian assistance to support search and rescue efforts following catastrophic flooding in Nepal.
Don Farrell travelled to New Zealand to advance bilateral trade, investment and tourism priorities, and attended the Australia-New Zealand Leadership Forum to engage with business and government leaders.
Energy Security and Industrial Decarbonisation Initiatives
Madeleine King welcomed first gas flowing from the Beetaloo Basin to Darwin, describing the milestone as an important step towards strengthening national energy security, supporting future gas supply and boosting investment certainty.
Through the Future Made in Australia Innovation Fund, Chris Bowen announced a $26 million commitment to support Element Zero’s lower-emissions ironmaking pilot. The project will test an electrochemical process to convert Australian iron ore into high-purity iron without relying on coal.
The Queensland Government declared the proposed $3 billion North to East Australia Pipeline a Coordinated Project, triggering a whole-of-government assessment of the 899-kilometre pipeline linking the Beetaloo Basin to Queensland’s gas network.
Housing Delivery, Aviation Governance and Planning Reforms
Clare O’Neil announced the appointment of Ann Sherry AO as the Chair of Housing Australia. Alongside the announcement, the Minister endorsed 13 recommendations from an independent capability review aimed at strengthening the agency’s delivery focus, governance and organisational capability.
Catherine King appointed former Department Secretary David Fredericks as the new Deputy Chair of the Airservices Australia Board.
Sonya Kilkenny announced proposals to expand the fast-track planning pathway to developments of up to four homes on a single block, with applications to be assessed within 10 business days.
NDIS, Aged Care and University Reforms Move Forward
Mark Butler opened consultation on proposed changes to NDIS access arrangements, including how functional capacity is assessed, what evidence supports eligibility decisions, and the design of future access processes.
Sam Rae announced an increase to the AN-ACC funding price to $303.19 per resident per day from 1 October, boosting support for more than 200,000 older Australians in residential aged care.
The Senate Education and Employment Legislation Committee recommended passing the Universities Accord (Opening the Doors of Opportunity) Bill 2026, establishing a permanent international student allocation framework under the National Planning Level. Coalition Senators supported the measure, while the Greens raised concerns about ministerial discretion and oversight.