Weekly Wrap Up – 12 December 2025
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A few weeks ago, a defence official was widely mocked after asking that footage of evidence before a parliamentary inquiry not be shared on social media. While the request was rejected, it spoke to the often-brutal questioning witnesses can face before parliamentary committees.
Fast forward to this week, and executives from the leading AI companies appeared before Parliament’s AI inquiry. This included OpenAI, whose AI agents recently gained unauthorised access to both Federal and State Government websites. Despite this, much of the usual sting that defines these hearings was noticeably absent. Why? Because Australia is desperate to attract investment in AI infrastructure which could also train frontier models locally.
The benefits are obvious: billions in Australian data centre investment, along with the jobs that come with that. Beyond this, it also gives Australia greater influence over the AI stack. As such, in exchange for our infrastructure, the Government is exploring commitments from AI companies, including access to computing capacity for researchers, start-ups, and other institutions.
The main hurdle remains Australia’s copyright laws, with frontier labs seeking greater flexibility to train models on copyrighted material through measures such as an opt-out system. This would align Australia more closely with the permissive US approach but shift the burden to creators to object. The Albanese Government must therefore balance legal certainty for AI companies with creative industry interests, potentially through collective licensing and remuneration schemes or direct agreements with rights holders.
Then there is the question of transparency and how unauthorised access and data breaches are reported. Both OpenAI and Anthropic support stronger disclosure requirements, with Californian regulations cited as a potential reference point.
Also notable was Firmus’ absence. Ahead of its proposed IPO, the company cancelled its appearance after a disastrous week of news and withdrew its float by Friday. Given Firmus has been positioned as a major beneficiary of the AI boom, having attracted investment from the likes of NVIDIA, its difficulties raise questions about the commercial foundations of Australia’s AI industry.
Finally, with Federal Parliament returning next week, we’ll be watching how newly elected Greens leader David Shoebridge gets along with the people he has publicly stated he wants to replace.
Top Talking Points
Pre-COP31 Meetings: Anthony Albanese and Chris Bowen attended pre-COP talks in Fiji and Tuvalu, focused on climate ambition, clean energy, oceans and finance.
Treasurer Travel: Jim Chalmers visited Japan to deepen trade, investment and economic security ties, launch a Finance Ministerial Dialogue, and meet with major Japanese investors who collectively manage around $4 trillion in assets.
Artificial Intelligence Public Hearings: Public hearings on artificial intelligence continued this week, with OpenAI, Anthropic, Microsoft and Google among those who appeared.
Polling: RedBridge polling shows One Nation leading on 29 per cent, ahead of Labor on 28 per cent and the Coalition on 21 per cent.
NSW Shadow Ministerial Reshuffle: Opposition Leader Kellie Sloane reshuffled her Shadow Ministry, elevating Susan Carter and Adam Crouch, while reallocating energy, environment, digital and state portfolios.
Making headlines this week
Coalition Immigration Policy
Victorian Pre-election Commitments
With Victoria’s 28 November state election approaching, the major parties and One Nation have begun announcing their election commitments. One Nation launched its campaign promising to scrap the Suburban Rail Loop and redirect funding towards Airport Rail and the Melton Line, alongside a crime package proposing more police, an AI policing support system and lowering the age of criminal responsibility to 10. Meanwhile, Premier Ben Carroll announced a re-elected Labor Government would unwind land tax increases, while Opposition Leader Jess Wilson outlined a plan to shift thousands of public hospital patients into the private system for elective surgery in a bid to reduce waiting times and hospital pressure.
Things to watch
12 October, the Federal Parliament will sit.
12 October, Peter Tinley will address the National Press Club, discussing national preparedness.
13 October, the New South Wales Parliament will sit.
13–14 October, the AFR will host the Energy and Climate Summit in Sydney.
14 October, Madeleine King will address the National Press Club, discussing the Government’s critical minerals strategy.
15 October, the ABS will release Labour Force data.
15 October, Anika Wells will address the National Press Club, discussing the Digital Duty of Care.
Treasury and Finance
Jim Chalmers indicated that the Mid-Year Economic and Fiscal Outlook (MYEFO), expected in mid-December, will be tight. The Treasurer said it will include a savings package but did not confirm whether MYEFO will include additional cost of living measures. Despite global uncertainty, he downplayed the likelihood of a recession.
The RBA released a summary of submissions to the Review of Payments System Regulation Issues Paper. Stakeholders highlighted competition, least-cost routing, mobile wallet fees, BNPL surcharging, payment-system resilience and barriers to account-to-account payments.
AFCA identified 63 systemic issues affecting 390,724 consumers and small businesses, with $1.2 million secured in refunds and financial remediation. Key themes included weaknesses in remediation, data integrity, exception management and information sharing.
DFAT and Defence
Penny Wong welcomed Nepali Foreign Minister Shisir Khanal in Melbourne to discuss Nepal’s recovery and rebuilding following the devastating floods and ongoing efforts to seek information about missing Australians. After the meeting, the Federal Government will provide an additional $15 million to support Nepal’s recovery.
The Federal Government will invest $3 million through the Climate Infrastructure for Resilient Coastlines and Riverbanks project to help Pacific Island nations strengthen communities and infrastructure against climate change impacts.
Australia received a second tranche of HIMARS launchers from the United States two years ahead of schedule, supporting plans for up to 90 launchers across two Army regiments and forming part of a broader $37 billion investment in long-range strike capabilities.
Resources, Energy, and Agriculture
Tim Ayres awarded $12.3 million to six quantum technology projects under the Critical Technologies Challenge Program, supporting applications across energy, health, biosecurity, and logistics.
Construction commenced on Arafura Rare Earths’ Nolans Project, backed by $1.2 billion in Australian Government support alongside international financing. The project is expected to supply an estimated 4–5 per cent of global rare earths demand.
The New South Wales Government is reviewing the High Court’s Mount Pleasant decision, while stressing the mine can continue operating until 2032. It said the ruling concerns the 2022 expansion assessment and does not prevent the project from being reconsidered.
Infrastructure, Housing, Communications, and Transport
The ACTU and leading Australian AI research institutes called for a Sovereign AI Coordination Vehicle, a proposed not-for-profit body to coordinate investment in Australian-controlled compute, data infrastructure, workforce development and locally developed AI models.
The Federal and New South Wales governments will jointly invest $1.74 billion to upgrade key regional freight corridors between Newcastle and Dubbo, Muswellbrook and Armidale, and Euston and Tocumwal. The projects are expected to improve road safety, strengthen freight networks and support more than 1,000 jobs.
Following considerable community interest, the New South Wales Government extended consultation on the proposed Woollahra and Edgecliff rezoning by three weeks to 30 October. The proposal could deliver up to 9,400 homes and 1,000 jobs, alongside new community areas and affordable housing.
Health, Education, and Employment
Sam Rae announced that personal care services under the Support at Home program will be fully funded from 1 October for almost 400,000 older Australians. A $1 billion investment backs the measure and aims to reduce costs while supporting independent living.
Julian Hill announced further reforms to strengthen the integrity of the student visa system, including tighter settings for onshore applications, family members and provider transfers. A new transfer stream will commence from 1 July 2027 to further restrict movement into lower-level courses.
The Federal Government will invest up to $136 million through the Medical Research Future Fund to support clinical trials for rare cancers, rare diseases and other unmet health needs, with a focus on improving access to evidence-based treatments and care.