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Highlights

• Labor and the Coalition are 50-50 on a two-party preferred basis, while Anthony Albanese remains preferred Prime Minister over Peter Dutton, according to the latest Newspoll.
• The Reserve Bank of Australia held the cash rate at 4.35 per cent, stating that underlying inflation is still too high and the economic outlook remains uncertain.
• The Federal Government announced a $1 billion election pledge to implement a three-day guarantee for universal access to childcare and establish more early education providers in outer suburban and regional areas.
• Environment Ministers from all states and territories, except QLD, agreed to various reforms to Australia’s circular economy framework, PFAS regulations, and waste management priorities.
• Manager of Opposition Business Paul Fletcher announced he will not contest the seat of Bradfield at the next election after 15 years in federal politics.

Coalition’s nuclear costings

The Coalition unveiled their costings to develop a full-scale civil nuclear industry to support Australia’s transition to net-zero to 2050, if elected to Government. It follows their announcement in June this year to introduce nuclear energy into Australia’s electricity grid by constructing nuclear power plants in seven locations across Australia.

Under the Coalition’s nuclear plan, approximately $325 billion over 25 years would be spent on constructing nuclear energy infrastructure with the aim of supplying up to 38 per cent of Australia’s energy needs by 2050. Renewable energy would account for 54 per cent of electricity generation and 8 per cent would be originate from gas and storage. Opposition Leader Peter Dutton also claimed that the Coalition’s plan would be $263 billion or around 40 per cent cheaper than the Labor Party’s “renewables only” energy policy. This is based on modelling conducted and published by consultancy firm Frontier Economics.

It comes as the CSIRO, Australia’s peak scientific body, released its draft 2024-25 GenCost report which suggested that nuclear energy presented “no unique cost advantage” over other sources of electricity generation. Minister for Climate Change and Energy Chris Bowen labelled the plan a “fantasy.”

Antisemitism taskforce

The Federal Government will move to establish a new competition regime for digital platforms aimed at bolstering competition online. In a speech to the McKell Institute, Assistant Treasurer and Minister for Financial Services Stephen Jones revealed that the Australian Competition and Consumer Commission (ACCC) will oversee a new framework that targets anti-competitive practices in the digital economy with penalties of up to $50 million or 30 per cent of a company’s turnover for non-compliance.

He provided examples of big tech platforms such as Google and Apple preferencing their own products or forcing consumers to buy a product in order to use another product. Online app marketplaces and advertising tech services will be the Government’s initial focus.

News media bargaining incentive reforms

Prime Minister Anthony Albanese and Minister for Communications Michelle Rowland unveiled the News Media Bargaining Incentive, designed to compel platforms to enter into commercial deals with Australian news publishers or pay a fixed charge. The initiative targets companies with Australian revenues exceeding $250 million, including Meta, ByteDance (TikTok), and Google, regardless of whether they host news content on their platforms.

The reform builds on the News Media Bargaining Code, introduced by the former Morrison Government, that mandated tech companies pay news publishers for content on their platforms. However, under the existing arrangement, tech giants can avoid compensating local publishers by removing news content, as Meta resorted to in 2021.  The new scheme closes that loophole.

A consultation paper giving effect to the policy is expected to be introduced in early 2025, followed by draft legislation.

Looking ahead

No parliaments will sit next week.

Finance

Federal Developments

The Australian Securities and Investments Commission announced it will sue Regional Express Holdings Limited (Rex) and four of its Directors, alleging misleading and deceptive conduct and breaches of continuous disclosure obligations.

Labour force data released by the Australian Bureau of Statistics showed the seasonally adjusted unemployment rate fell by 0.2 percentage points to 3.9 per cent in November. The data was welcomed by Treasurer Jim Chalmers, stating these numbers alongside rising wages demonstrate “[the Government’s] policies are helping achieve a soft landing in our economy”.

The Australian Competition and Consumer Commission released a draft determination, proposing to authorise collaboration on cash-in-transit services. This would permit the Australian Banking Association; major banks, retailers and supermarkets; Australia Post; and other relevant industry stakeholders to collaborate to guarantee the ongoing provision of cash-in-transit services. The consultation period will close on 7 February 2025.

State Developments

The Victorian Government released its Economic Growth Statement, reporting that business investment increased by 6.6 per cent in 2023-24. Regulation for businesses will be reduced by $500 million by 2030, the number of regulators in the State will be halved by 2030, and the Environmental Effects Statement process will be expedited to take no longer than 18 months. A Premier’s Business Council was also established, to be chaired by Ahmed Fahour, CEO of Gurner Group and former CEO of Australia Post, NAB, and Latitude Financial Services.

Foreign Affairs, Defence and Trade

Federal Developments

Prime Minister Anthony Albanese and the Prime Minister of Papua New Guinea (PNG) James Marape announced a partnership with the Australian Rugby League Commission to establish a PNG based National Rugby League team. Australia will invest AU$600 million over ten years to establish a team in Port Moresby, set to compete from 2028. In return, PNG signed a pact affirming Australia as its primary security partner.

Prime Minister Anthony Albanese signed the Nauru-Australia Treaty in Canberra alongside the President of Nauru, His Excellency David Waiau Ranibok Adeang. The Treaty aims to build the Australia-Nauru bilateral relationship with a focus on economic and security cooperation. It was also announced that the Commonwealth Bank of Australia will provide banking services in Nauru following the departure of Bendigo Bank. 

Deputy Prime Minister Richard Marles and Minister for Defence Personnel Matt Keogh announced that a new training facility at HMAS Stirling in Western Australia is being constructed. The $200m facility aims to support the upskilling of Australia’s submariner workforce and is a major milestone for the AUKUS agreement.

Deputy Prime Minister Richard Marles and Minister for Defence Industry and Capability Delivery Pat Conroy announced the acquisition of Tomahawk cruise missiles for the Royal Australian Navy with a $1.3bn investment by the Albanese Government. Australia is now one of only three countries with the capability to both acquire and deploy Tomahawk cruise missiles, which have an extended range of 2,500 km.

Environment, Resources, Energy and Agriculture

Federal Developments 

The Federal Government declared the Bass Strait offshore wind zone, anticipated to support the generation of 20 GW of energy. Located 30 km off Tasmania’s north coast, the zone spans 7,100 km², 30 per cent smaller than the original proposal. Applications for feasibility licences are open until 12 March 2025.

The Federal Government announced Daryl Quinlivan AO as the new Chair of the Murray–Darling Basin Authority Board. Mr Quinlivan, a former member of the Murray–Darling Basin Commission, Secretary of the former Department of Agriculture and NSW Agriculture Commissioner, and replaces Air Chief Marshal Sir Angus Houston AK, AFC on 23 December. Rene Woods will remain on the Authority’s board, with Susan Madden to be replaced by Allison Mudford.

The Federal Government announced that the Clean Energy Finance Corporation will work with Resource Capital Funds (RCF) to support the critical mineral industry. The CEFC will invest US$75 million in RCF which will be deployed in lithium, nickel, and copper projects for batteries and transmissions.

State Developments 

The Victorian Government announced an expression of interest for a company to build the required onshore transmission infrastructure for the Gippsland offshore wind zone. The project is expected to create over 1400 jobs in 2027 with the infrastructure expected to be operational by 2030.

Infrastructure, Transport and Communications

Federal Developments

The Australian Communications and Media Authority (ACMA) fined Telstra $3 million for 473 breaches of emergency call rules during a Triple Zero outage in March. The disruption affected 127 emergency calls due to outdated backup phone data, though Telstra took action to rectify processes and apologised for the failure.

Minister for Communication Michelle Rowland announced funding to establish an SBS production hub in Western Sydney, supporting detailed planning and site selection for expanded services. The hub will include facilities for TV, radio, podcasting, and talent collaboration, with plans to produce 360 hours of Australian screen content and 1,440 hours of audio each year.

The National Transport Commission released Australia’s most comprehensive report on carbon dioxide emissions intensity of 17 million light vehicles. The report reveals that while emissions intensity for new vehicles sold in 2023 dropped by 5 per cent from 2022, Australia lags behind other developed nations in reducing emissions.

Prime Minister Anthony Albanese announced the opening of the METRONET Ellenbrook Line, Perth’s largest rail expansion in 16 years, connecting the north-eastern suburbs to the city in 30 minutes. The $1.65 billion project, jointly funded by WA and Federal Labor Governments, includes five new stations, capped fares, and enhanced bus services.

Health and Education

Federal Developments 

Minister for Health Mark Butler unveiled a $74.8 million investment to secure the future of the Royal Flying Doctor Service (RFDS). The three-year funding will enable the RFDS to expand its primary care, mental health and dental services to more remote communities across Australia. This investment is part of a long-term strategic partnership between the government and RFDS, extending until 2031-32.

Minister for Education Jason Clare and Minister for Financial Services Stephen Jones announced the implementation of $3 billion in student debt reductions. The Government has revised the indexation calculation for student debt, effective from June 1, 2023, capping the HELP indexation rate to the lower of the Consumer Price Index or the Wage Price Index.

The Australian Government expanded the Pharmaceutical Benefits Scheme to provide more affordable diabetes treatment for over 100,000 Australians with type 2 diabetes and cardiovascular risk. The new listing allows earlier access to important medications, reducing patient costs from over $600 to a maximum of $31.60 per script. This initiative addresses the growing prevalence of type 2 diabetes, which is associated with significant health complications and is currently diagnosed in approximately 125 new cases daily.

State Developments 

The VIC Government opened applications for the Mental Health Capital Renewal Fund to assist with upgrading mental health facilities across the state. This funding, which offers $10 million in grants up to $1 million, aims to enhance safety, service quality and patient experience in line with recommendations from the Royal Commission into Victoria’s Mental Health System.