It’s been a busy – and revealing – week in Australian politics, especially on the economic and industrial front.
The Productivity Commission has set the agenda ahead of Treasurer Jim Chalmers’ Economic Roundtable later this month. In its first and second interim reports, the Commission laid down bold ideas – proposing a net cashflow tax to encourage investment, slashing the corporate tax rate to 20 per cent for firms under $1 billion turnover, and lowering the Safeguard Mechanism threshold to capture more industrial polluters. It’s a policy wish list focused on economic efficiency – ambitious, but politically sensitive.
For his part, Chalmers is keeping things a little more grounded. Despite pressure for wholesale reform, following moves by Anthony Albanese, the Treasurer has begun to temper expectations for the Roundtable, signalling a shift away from sweeping tax overhauls toward more traditional deregulation. By framing the Roundtable as a move towards practical progress, the Treasurer is giving a nod to business fatigue with bureaucracy and a desire to sidestep potential political hurdles.
Meanwhile, a $135 million support package for Nyrstar’s Port Pirie and Hobart smelters could be the first real litmus test of the Future Made in Australia agenda. With the McKell Institute highlighting China’s distortion of global critical mineral markets and supply chains through government subsidies, the Albanese government is being pushed to act – not just talk – on safeguarding Australia’s sovereign capability. In its Securing Sovereign Capacity report, the McKell Institute warns that if Australia doesn’t protect its downstream processing and critical minerals infrastructure, it risks becoming a quarry for the world, rather than a high-value player in the Asia Pacific.
Following its first Parliamentary fortnight, this week’s developments hint at a government caught between its reformist ambitions and political realities – trying to walk the tightrope between market confidence, national interest, and emerging global economic headwinds.
Top talking points
Productivity Inquiries: The Productivity Commission released the second and third of its five interim reports ahead of the Economic Reform Roundtable (ERR).
Economic Reform Roundtable: Jim Chalmers tempered[paywall] expectations ahead of the ERR, shifting the focus away from wholesale tax reforms and toward deregulation.
Pro-Palestine March: Prominent Labor figures Ed Husic, Bob Carr, and Senator Tony Sheldon attended[paywall] the historic rally across Sydney Harbour Bridge.
Nyrstar Bailout: The Federal, South Australian, and Tasmanian governments committed $135 million to support Nyrstar’s critical mineral smelters in Port Pirie and Hobart.
Tasmanian Election: Liberal Leader Jeremy Rockliff was reappointed Premier of Tasmania. Parliament will return on 19 August, where Rockliff is likely to face another no-confidence motion, opening the door to negotiations with the crossbench.
Making headlines this week
Japanese Stealth Frigates
Victoria Work from Home Policy
Victorian Premier Jacinta Allan has proposed new legislation that would give employees the legal right to work from home at least two days per week, where their role permits. The policy would apply to both public and private sector workers, aiming to improve work–life balance, reduce commuting, and support carers and people with disabilities. Employers would need valid operational reasons to deny requests. The Victorian Department of Premier and Cabinet will lead consultations with unions, businesses, and industry groups. If passed, Victoria will become the first state in Australia to legislate remote work rights.
Things to watch
11 August: CEDA will host a productivity growth discussion in Canberra with Andrew Leigh.
11 August: The Productivity Commission will publish its fourth interim report on workforce development.
12 August: The Victorian and Western Australian Parliaments will sit. 
12 August: CEDA will host PC Commissioners Barry Sterland and Martin Stokie to discuss Australia’s net zero transition.
13 August: The ABS will publish Wage Price Index data.
13 August: The Productivity Commission will publish its final interim report on the care economy.
14 August: The ABS will publish Building Approval and Labour Force Data.
ASX Blunder, Banking Competition and Household Spending
The ASX paused[PDF] trading on TPG Telecom shares after an ASX officer incorrectly linked Infomedia’s announcement that private equity group TPG Capital Asia would acquire 100 per cent of its shares to TPG Telecom. On the same day, ASIC announced it is in the final stages of considering a listing market application from Cboe Global Markets.
The Council of Financial Regulators released its review of small and medium-sized bank competition. Treasurer Jim Chalmers accepted eight of the nine recommendations, which aim to create greater competition and grow the lending pool outside the big four banks. The recommendations include removing the requirement to automatically report certain breaches and simplifying compliance obligations for smaller banks.
Household spending rose by 0.5 per cent in June, following a 1 per cent rise in May. The rise was attributed to an increase in spending on food, new vehicles, and electronics.
ADF Developments and Trade Updates
Australian Defence Force recruitment has reached a 15-year high, with more than 7,000 personnel joining in the last financial year. The increase in recruitment has been attributed to recent retention and pay initiatives, relaxed medical requirements, expanded eligibility to applicants from New Zealand, Canada, the US, and the UK, and improved social media marketing.
The ADF has concluded its deployment of personnel to Papua New Guinea, as part of Exercise Pacific Partnership 2025. This US-led program consists of visits to Pacific nations by US Navy ships and military personnel from nine countries.
As part of Australia’s trade mission to Japan, twelve First Nations-owned businesses will travel to Osaka and Tokyo to coincide with Te Aratini Indigenous Peoples Week at the 2025 Osaka World Expo.
Tourism Australia launched its new $130 million campaign to encourage international travellers to book an Australian holiday. The second wave of Australia’s Come and Say G’day campaign has been released in China, with the new advertisement set to roll out progressively in other key markets before the end of the year.
Critical Minerals Support and Circular Economy Updates
The Federal Government announced a $135 million package to ‘modernise’ the Nyrstar smelters in Port Pirie and Hobart. The Port Pirie site will host the development of an Antimony Pilot Plant alongside a major maintenance project. This follows the release of a McKell Institute report arguing in favour of the need to safeguard Australia’s sovereign capabilities in the refined metals sector ahead of the Federal Government’s smelting roundtable.
The National Reconstruction Fund will invest $50 million of equity into Liontown Resources’ Kathleen Valley Lithium Operation. The equity investment is part of a $266 million institutional placement as part of the Federal Government’s Future Made in Australia agenda.
Murray Watt convened a recycling roundtable with industry, discussing Australia’s transition to a circular economy. Environment and industry groups issued a joint statement concerning Australia’s ambitions at the Global Plastics Treaty. In a statement, Murray Watt said the Federal Government is supportive of the treaty to end plastic pollution by 2040.
Productivity Commission Recommendations, NBN Updates and New South Wales Government Legislation
Ahead of the Economic Reform Roundtable, the Productivity Commission released its third Interim Report on data and digital technology, calling for light-touch regulation of AI, flexible data access for individuals and businesses, outcomes-based privacy compliance, and digital financial reporting.
NBN Co signed an agreement with Amazon’s Project Kuiper to deliver faster broadband to regional and remote areas via low-Earth orbit satellites. The new service will eventually replace Sky Muster and cover up to 300,000 homes and businesses. NBN Co will consult on the transition timing with retail partners and regional stakeholders.
The New South Wales Government will introduce legislation to expand image-based abuse laws, making it an offence to create or share sexually explicit deepfakes or audio without consent. The legislative changes bring New South Wales into line with other jurisdictions, where offenders face a maximum penalty of three years jail.
WWCC Taskforce, Workers Compensation and Pharmacy Updates
The Attorney General’s Department created[paywall] a specialist unit to work with State and Territory Governments on developing Australia’s first national Working With Children Check register, following revelations of abuse in the childcare sector.
The New South Wales Government introduced the Workers Compensation Legislation Amendment Bill 2025, aiming to address the rise in psychological injury claims and restore scheme sustainability. This follows a New South Wales Legislative Council inquiry into the Bill. Additionally, the New South Wales Government will invest $200.9 million over four years to expand Aboriginal-led early childhood education, delivering more than 15 new services, 870 preschool places, and increased access to public preschools.
Trained pharmacists in Western Australia will soon be able to diagnose and manage 17 common health conditions under the state’s expanded community pharmacy pilot. The program aims to improve primary care access and reduce pressure on GPs and hospitals.
In case you missed it...
📺 A Future Made in Australia or Bailouts?