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In the lead up to the final sitting week of 2025, this week has been dominated by further Liberal Party divisions over climate policy. After a marathon five-hour Liberal Party room meeting, Opposition Leader Sussan Ley led the Liberal Party in formally abandoning Australia’s net zero by 2050 target, following the Nationals in reversing the long-standing commitment.
The decision marks a clear victory for the party’s conservative wing and a bruising loss for its moderates. A majority of the 49-member Liberal party room backed dropping the target, with only 17 supporting its retention and several remaining undecided. The outcome exposes deep ideological divisions within the Liberal Party and raises fresh questions about its strategy to win back the seats lost in the previous two elections.
Ley framed the shift as a return to “realistic” policy-making focused on energy reliability and cost-of-living pressures, arguing that symbolic targets had failed to resonate with voters. But moderates fear the move will further alienate urban Australians.
Holding only eight of Australia’s 89 metropolitan seats, the Coalition’s route to government mainly lies in recapturing inner-city and suburban electorates that prioritise climate action.
Anthony Albanese seized on the division, accusing the Opposition of “retreating from the future.” Still, the Liberals insist the change is about “honesty” and reconnecting with regional and outer-suburban Australia.
As Ley prepares to meet Nationals Leader David Littleproud ahead of a joint party-room meeting on Sunday, one thing is clear: the Coalition’s climate pivot has redrawn climate policy battle lines. The question remains whether this policy change will better enable the Coalition to refocus the debate on energy prices and a faltering transition, or whether they will once again be characterised by voters as climate deniers?
Top talking points
Coalition Net Zero: Following the Nationals’ decision to abandon its commitment to net zero by 2050, the Liberal Party also agreed to drop its commitment while remaining in the Paris Agreement.
Diplomatic Appointment: Former South Australian Premier Jay Weatherill was appointed Australia’s next High Commissioner to the United Kingdom.
Gender Quotas: A review of the Liberal Party’s election campaign, led by Nick Minchin and Pru Goward, is not expected to recommend[paywall] a strict gender quota system.
Polling: Support for Sussan Ley as preferred Prime Minister has risen[paywall] to 25 per cent, compared with Anthony Albanese’s 39 per cent. The Coalition’s primary vote has increased from 28 to 29 per cent, with Labor steady at 33 per cent and One Nation at 12 per cent.
Making headlines this week
NSW Housing Push
News Media Bargaining Incentive Developments
The Albanese Government is moving forward with the final design of its News Bargaining Incentive, opening consultation to update the News Media Bargaining Code established in 2021. The reform is designed to compel major digital platforms to strike commercial deals with local news publishers or face a levy. Initially delayed amid fears of trade retaliation from the Trump administration, the measure is now progressing toward implementation as US threats over the reform subside. The US trade regulator previously criticised the incentive and the broader Code in its Foreign Trade Barriers Report, accusing Australia of imposing a “financial penalty” on platforms that fail to negotiate with publishers.
Things to watch
17 November: The New South Wales, Western Australian and Queensland Parliaments will sit.
18 November: The Victorian Parliament will sit.
18 November: Andrew Leigh will deliver the keynote address at the AFSA Summit.
18 November: Michelle Manook, Chief Executive of FutureCoal, will address the National Press Club.
19 November: Hugh Marks, Managing Director of the ABC, will address the National Press Club of Australia.
19 November: The ABS will release wage price index data.
20 November: Murray Watt will address the Queensland Media Club to discuss ongoing reforms to the EPBC Act.
20 November: The Senate Environment and Communications Legislation Committee will begin its inquiry into the Environment Protection Reform Bill 2025 and six related bills.
20 November: The ABS will release labour force data.
ABS, ASIC and Financial Services Reform Updates
Unemployment fell to 4.3 per cent in October, down from 4.5 per cent in September. The number of employed people rose by 42,000, although part-time employment fell. Additionally, business turnover rose 0.5 per cent in September, driven by a 7 per cent increase in manufacturing, the highest on record.
ASIC’s enforcement priorities for 2026 include misleading pricing practices, private credit misconduct, financial reporting failures, and the handling of insurance claims and complaints. There will also be an increased focus on investigating the collapses of the Shield and First Guardian Master Funds.
At the ASFA Conference, Daniel Mulino announced the Government will focus on the retirement phase of superannuation, highlighting that the Delivering Better Financial Outcomes reforms will be prioritised and supported by enhanced regulation and guidance for retirees.
Indonesia, Military Exercises, and ASIO Developments
Anthony Albanese welcomed Indonesian President Prabowo Subianto for his first visit to Australia. Australia and Indonesia agreed to the substantive conclusion of a new bilateral Treaty on Common Security, establishing a framework for regular consultations to enhance collaboration.
Australia joined India, Japan, and the United States in Exercise Malabar, a major maritime activity aimed at improving interoperability among regional partners. The Royal Australian Navy’s ANZAC-class frigate HMAS Ballarat and a Royal Australian Air Force P-8A Poseidon maritime patrol aircraft took part in the exercise.
Following ASIO chief Mike Burgess’ accusation[paywall] of China organising state-sanctioned hackers to target Australia’s critical infrastructure systems, Beijing protested, calling it “disinformation”. Mike Burgess warned that hackers were probing Australia’s telecommunications, utilities, and financial systems nationwide.
Energy Policy, AER, and Plastics Moves
Sussan Ley released the Liberal Party’s energy and emissions plan, pledging to scrap Labor’s 2030 and 2050 targets, repeal the Climate Change Act, lift the nuclear moratorium, retain coal plants, introduce a gas reservation scheme, and adopt a “technology-agnostic” approach to emissions reduction.
The AER opened consultation to consolidate its four retail guidelines into a single, user friendly document. The review seeks to simplify obligations, improve communications, and enhance consumer outcomes, with feedback closing on 23 December.
Penny Sharpe unveiled the next stage of New South Wales’ Plastics Plan, introducing bans and redesigns for bottles, cups, condiment containers, takeaway packaging, and harmful additives by 2030, while also encouraging innovation, recycling improvements, and industry compliance measures.
Supermarkets, Rex and South West Metro Updates
Julie Collins announced $2 million in grants to support small suppliers counter supermarket power imbalances. The program will educate farmers and producers to negotiate fairer deals, following recommendations from the Food and Grocery Code of Conduct review.
Rex will resume operations on key regional routes after creditors approved the airline’s sale to Nasdaq-listed Air T. Catherine King endorsed the deal, stating that the government will provide an additional $60 million loan and restructure the company’s debt.
Chris Minns announced that testing for the Southwest Metro-line conversion project has commenced. Testing will reach speeds of up to 100 km/h, increasing from the previous low speed phase capped at 25 km/h.
NDIS, Community Services and Child Care System Developments
The NDIS Commission will be given the ability to ban operators who provide fraudulent advice and prevent dishonest providers from promoting their products or services. The government is facing pressure to reduce NDIS costs following reports[paywall] the NDIS workforce has doubled in size under Labor.
Specialist and community support services will receive $12 million in grants to expand their work with victims and survivors of child sexual abuse, as well as children who have displayed harmful sexual behaviours.
Jacinta Allan announced expanded powers aimed at enhancing the safety of the child care system. Key services will be consolidated under a single roof and managed by experts empowered to make decisions that prioritise child protection. This announcement follows Lizzie Blandthorn’s launch of an auditing program designed to detect and prevent the misuse of public funds in the kindergarten sector.