There was a brief pause from the focus on foreign affairs earlier this week with an RBA meeting afoot.
The saying goes that nothing in life is certain, and the RBA confirmed this with its decision to hold the cash rate at 3.85 per cent, bucking the almost universal expectations of a cut. Governor Michele Bullock cited ongoing inflation concerns and global uncertainties, including tensions stemming from US trade policies, as key factors in the decision. Following a recent push for transparency, the RBA Board published a non-identifying record of votes in its post-meeting statement, showing the decision was made six votes to three.
The foreign affairs reprieve was short-lived as attention quickly shifted to Prime Minister Albanese’s forthcoming visit to China, departing tomorrow.
While many punters enjoyed last Saturday night’s football, this one observed Prime Minister Anthony Albanese’s speech at the John Curtin Oration to mark the 80th anniversary of Prime Minister Curtin’s death. Mr Albanese drew parallels to Curtin’s leadership during World War II and his message was clear – while alliances matter, Australia must act decisively in its own interest.
The Prime Minister will visit China for almost a week, seeking to strengthen bilateral ties through trade, technology, and regional security opportunities. The trip comes against the backdrop of tension with the United States, following the latest tariff threats from President Trump on pharmaceutical and copper exports and demands to increase defence spending. We can expect to hear the Prime Minister say his oft-repeated mantra on China that we “cooperate where we can, disagree where we must, but engage in our national interest”.
More to come.
Top talking points
🗣️ John Curtin Oration: Prime Minister Albanese’s address emphasised Australia’s sovereignty and the importance of strengthening regional partnerships.
🛑 Anti-Hate Taskforce: Victorian Premier Jacinta Allan announced the taskforce will meet for the first time after an arson attack on a Melbourne synagogue.
💰 Interest Rate Decision: The RBA held the cash rate steady at 3.85 per cent.
👶 Childcare Reform: Opposition leader Sussan Ley pledged bipartisan support for childcare reform in response to allegations of child abuse at a Melbourne childcare centre.
🏉 Rugby Diplomacy: Prime Minister Albanese and Fijian Prime Minister Sitiveni Rabuka watched the Wallabies versus Fiji.
Making headlines this week
COP31 Climate Summit Bid
Chris Bowen travelled to the Pacific this week to advance Australia’s joint bid with Pacific Nations, to host the COP31 Climate Summit. During his visit, Bowen held high-level talks with leaders and counterparts in Tuvalu, Palau, Samoa, and the Republic of the Marshall Islands, focusing on regional climate priorities, adaptation funding, and securing unified support for the 2026 summit proposal.
Trump Pharmaceutical Tariff Threat
US President Donald Trump has threatened to impose a 200 per cent tariff on foreign pharmaceuticals and a 50 per cent tariff on copper, potentially impacting Australia’s $2 billion pharmaceutical exports annually. Treasurer Jim Chalmers expressed concern over these threats, affirming that Australia’s PBS remains non-negotiable despite the US pharmaceutical industry’s pressure to increase drug prices in Australia.
Things to watch
🌏 12 July, Prime Minister Albanese will travel to China.
📄 15 July, The RBA will release the Consultation Paper for the Review of Merchant Card Payment Costs and Surcharging will be published.
🎤 16 July, National Press Club Address, Dr. Ken Henry, Chair of the Australian Climate and Biodiversity Foundation, will speak on the net zero economy.
📊 17 July, ABS data release: The ABS will publish building activity and labour force data.
🌬️ 17 July, the Australia Wind Energy 2025 conference will be held in Melbourne.
🔋 17 July, the Australian Battery Recycling & Manufacturing Summit will be held in Sydney.
🗳️ 19 July, the 2025 Tasmanian State Election will be held.
Business turnover trends, Project Acacia and regulatory updates
The latest ABS data released indicates that monthly business turnover fell for the first time since October 2024, driven by declines in Australia’s manufacturing and retail trade sectors.
The RBA announced that Project Acacia, a collaboration between the RBA, ASIC, Treasury and DFCRC, has selected 24 use cases from industry participants to explore tokenised asset settlements in Australia. ASIC is providing regulatory relief to facilitate testing.
AFSA Chief Executive Tim Beresford addressed the FINSIA webinar, discussing personal insolvency trends, regulatory challenges, and emerging financial products. Beresford emphasised the importance of consumer protection and the need to adapt to evolving financial landscapes.
The ACCC has authorised the ASFI and industry participants to collaborate to design sustainable finance products for five years, aiming to enhance environmental and social outcomes.
ASEAN-Australia Foreign Ministers’ Meeting and Appointments
Penny Wong travelled to Malaysia to attend the annual ASEAN-Australia Foreign Ministers’ Meeting, East Asia Summit Foreign Ministers’ Meeting and the ASEAN Regional Forum. Wong reaffirmed Australia’s commitment to working with ASEAN on conflict prevention and support for rules-based trade.
Wong announced the appointment of Stephen Jones as Australia’s Ambassador and Permanent Representative to the OECD. Jones served as Assistant Treasurer and Minister for Financial Services in the Albanese Government’s previous term of Parliament.
Five career diplomats were appointed to head Australia’s posts in Copenhagen, Manila, Riyadh, Colombo and Ankara. These appointments aim to advance Australia’s interests and relationships with international partners overseas.
Smelter bailouts, DCCEEW Secretary and ARENA funding
Tim Ayres communicated that a deal to support the two Nyrstar smelters, located in Hobart and Port Pirie, was under serious consideration by the federal government. Ayres said that the government was “determined to secure a future for minerals processing here in Australia now, but also for our broader Future Made in Australia objectives”.
Mike Kaiser has been appointed as Secretary of DCCEEW. He previously served as Director General of the Department of Premier and Cabinet in Queensland and will serve a five-year term.
The Hunter Valley Hydrogen Hub will receive up to $432 million in funding under ARENA’s Hydrogen Headstart Program. The facility will produce renewable hydrogen, aiming to replace natural gas in Orica’s ammonia production process.
Transport and construction sector consultations and EV Grants
The federal government commenced consultations with the transport and construction sectors. Catherine King hosted two roundtables focused on identifying reforms to support the federal government’s productivity agenda.
The NSW government awarded $2.8 million in grants through the EV Kerbside Charging Grants program, aiming to support the installation of 549 new chargers on kerbsides and in public council car parks across 130 suburbs.
TGA consultation, palliative care funding, and NSW appointments
The TGA is consulting on additional safety measures for certain sunscreen ingredients, homosalate, oxybenzone, and benzophenone, following a review that indicates potential health risks, with submissions closing on 12 August.
In NSW, the government will invest $3 million towards palliative care services across south-western Sydney. This includes the construction of a new acute palliative care ward at Campbelltown Hospital and an increase in palliative care capacity at Camden Hospital.
Premier Chris Minns appointed Janet Schorer as the inaugural SafeWork NSW Commissioner. Schorer will lead SafeWork NSW, NSW’s workplace health and safety regulator.
In case you missed it...
📺 PM’s keynote speech