Weekly Wrap Up – 12 December 2025
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Jim Chalmers is heading into Budget week with reform on his mind. However, he will need to do so whilst also managing the ongoing threats to Australia’s fuel security. Following another National Cabinet meeting centred on Australia’s vulnerability to global supply shocks, Anthony Albanese unveiled a $10 billion Fuel Security and Resilience Package – a move that signals the crisis is no longer being treated as a temporary disruption, but as a defining economic and national security challenge.
At the heart of the package is a Government-owned fuel reserve of roughly 1 billion litres – the first of its kind since World War II. The Minimum Stockholding Obligation will be raised, expanding diesel and aviation fuel storage up to ~50 days, alongside stricter stockholding requirements for importers. A Fuel and Fertiliser Security Facility will also be stood up, providing financial support, in way of loans, equity, guarantees and insurance, to cultivate supply and storage. The Government is pitching the policy as a matter of “energy sovereignty”, but politically it also helps build a broader narrative of economic preparedness ahead of what is shaping up to be a difficult Budget.
And difficult it will be. With inflation climbing again and fuel prices continuing to flow through the economy, the RBA’s hand was forced, lifting the cash rate to 4.35 per cent – its third increase this year. With mortgage stress intensifying and consumer confidence weakening, Jim Chalmers is preparing voters for a Budget defined more by restraint and redistribution than big-spending generosity.
As Tuesday fast approaches, the phrase increasingly leading the agenda is “intergenerational equity”. In practical terms, that means younger Australians – locked out of housing and squeezed by rising living costs – are emerging as the Government’s key political constituency. Which is why tax reform is quickly becoming the story to watch. Expectations are mounting that changes to capital gains tax concessions, negative gearing, and discretionary trusts are edging closer to reality. Labor insiders are framing the reforms not as ideological warfare, but as structural repairs to a system widely seen to favour asset-rich older Australians.
This Budget is shaping less as a traditional cost of living package and more as an attempt to redraw the economic contract between generations – against the backdrop of voters increasingly anxious about Australia’s economic resilience.
Things to watch
National Cabinet Meeting: Anthony Albanese convened a National Cabinet meeting, announcing the Australian Fuel Security and Resilience package ahead of the Federal Budget.
Gas Reservation Scheme: Madeleine King committed to introducing a domestic gas reservation scheme, requiring exporters to set aside around 15–25 per cent of production for Australian users.
Cash Rate Decision: The RBA increased the cash rate by 25 basis points, raising the cash rate from 4.1 to 4.35 per cent.
Fiji Diplomacy: Penny Wong visited Fiji to advance the Vuvale Union, a major security and economic pact following the stalling of a similar deal with Vanuatu.
Polling Update: Redbridge Group/Accent Research polling shows an increase in the Prime Minister’s net approval rating, up 8 per cent, from minus 17 to minus 9 per cent. Labor’s primary vote slipped 1 point to 31 per cent, One Nation fell 2 points to 27 per cent, while the Coalition rose 5 points to 22 per cent.
Nepean By-election: Liberal candidate Anthony Marsh was elected Member for Nepean in the Victorian state by-election, defeating Independent Tracee Hutchison and One Nation’s Darren Hercus.
Making headlines this week
Energy, Defence, and Critical Minerals Diplomacy
EV Incentives Cut
Ahead of the 2026–27 Federal Budget, the Government is preparing to scale back its EV fringe benefits tax (FBT) concession, as the policy’s cost and distributional impacts come under scrutiny. Originally introduced to accelerate EV uptake and cut transport emissions, the exemption has proven far more popular than expected, with strong take-up – particularly through novated leasing – pushing its cost into the billions. Under the proposed changes, the full FBT exemption will remain until April 2027, then be limited to EVs under $75,000, with more expensive vehicles receiving only a partial discount. By 2029, all eligible EVs will receive a reduced 25 per cent concession. The reforms aim to better target affordable EVs and address concerns that the policy disproportionately benefits higher-income earners.
2026-27 Victorian Budget
Jaclyn Symes handed down the Victorian Government’s 2026–27 Budget, prioritising public transport, health, and infrastructure ahead of the November 2026 election. Key measures include road repairs, transport subsidies, social housing expansion and funding for youth justice and child protection. You can read GRACosway’s full insights here.
Things to watch
9 May, the Farrer By-election will be held.
11 May, the ABS will release Building Approvals data.
12 May, Jim Chalmers will hand down the 2026–27 Federal Budget.
13 May, the ABS will release Wage Price Index and Lending Indicators data.
13 May, Jim Chalmers will address the National Press Club, delivering the Post-Budget Address.
Treasury and Payment System Consultation Updates
Treasury released the third Regulatory Initiatives Grid Report, centralising 89 government and regulator priorities for the financial sector over the next two years.
Treasury also opened consultation on reforms to the Data Standards Board, to strengthen the development and implementation of the Consumer Data Right and Digital ID frameworks, with submissions closing on 29 May.
The A2A Payments Roundtable opened consultation on its draft vision to secure long-term outcomes for Australia’s account-to-account payment system. Members include the RBA, Commonwealth Treasury, Australian Payments Network, and Australian Payments Plus, with submissions closing on 22 May.
Anti-Dumping, Project of Concern Summit, and Free Trade Moves
Don Farrell welcomed the conclusion of negotiations on Costa Rica’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Under the agreement, Costa Rica will eliminate 99.9 per cent of tariffs, including 15 per cent duties on Australian wine, lamb, sheep meat and premium beef.
Tim Ayres approved tariffs ranging from 38 to 82 per cent on Chinese hot-rolled coil steel imports, to protect Australian manufacturers from low-cost Asian competition. This follows the Anti-Dumping Commission’s finding that Chinese goods received unequal government subsidies.
Defence convened a Project of Concern Summit in Canberra for the Arafura-class Offshore Patrol Vessel program, bringing together senior government and industry representatives to address ongoing challenges and improve project delivery outcomes.
Offshore Gas, HSR Consultations, and State Energy Developments
The Federal and Victorian governments approved the development of the Annie gas field. This opens new exploration areas in Victoria and Tasmania to boost gas supply, ease shortages, and strengthen energy security.
FSANZ opened public consultation on mandatory Health Star Ratings for packaged foods in Australia and New Zealand, under the Food Standards Code. Submissions for the first consultation round will close on 21 June.
The New South Wales Government introduced the Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026. If passed, the Bill will fast-track priority renewable energy projects by streamlining project approvals while maintaining environmental and consultation requirements.
The Victorian Government announced it will co-fund a feasibility study with Viva Energy to explore expanding renewable diesel blend processing at the Geelong Refinery.
Inland Rail and Gambling Reform Updates
Catherine King confirmed that the Inland Rail project will no longer extend into Queensland as costs exceed $45 billion. Future investment will instead prioritise targeted upgrades to the existing national freight rail network to improve efficiency, reliability and freight capacity.
Following the announcement, Catherine King appointed Dr Collette Burke as Chair and Dr Sean Sweeney as CEO of Inland Rail, aiming to strengthen leadership as the project is refocused on Parkes.
Anika Wells confirmed the Government will table its response to the Murphy report next week and subsequently introduce legislation reforming gambling advertising. The Minister also outlined that consultation on these reforms has now commenced.
Cancer Centre, Construction Industry Standards, and Early Childhood Reform Developments
Mark Butler opened the Minderoo Children’s Comprehensive Cancer Centre in New South Wales. This $658 million project is designed to provide integrated, research-driven care for children and young people with cancer.
Amanda Rishworth has proposed new federal standards for the construction industry to improve productivity, safety, and lawful conduct on government-funded projects. These standards aim to strengthen workplace protections and address unlawful behaviour across the sector.
Jason Clare announced additional measures to strengthen safety in Australia’s childcare sector, including mandatory safety training, a national worker register, tougher compliance powers, stronger supervision standards, and greater transparency to improve accountability across services.