Weekly Wrap Up – 12 December 2025
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This week has been dominated by the release of the 2026–27 Budget, the Albanese Government’s first since their emphatic re-election in 2025. The Government’s reforms to Australia’s capital gains tax discount and negative gearing settings reflect an acknowledgement of the quiet but unmistakable generational realignment in Australian politics. Millennials and Gen Z now outnumber Baby Boomers, a shift that is shaping the Government’s political and policy decisions.
Jim Chalmers framed the Budget around “intergenerational fairness”, responding to today’s economic realities: persistent housing stress, subdued real wage growth, and rising support for One Nation. The Government’s move to recalibrate property taxation settings has received mixed reviews. Critics argue the changes amount to a reversal of earlier election commitments and risk undermining trust. The Coalition has branded the changes as “broken promises” and questioned whether they will materially improve housing affordability and supply. In his Budget Reply speech, Angus Taylor sought to position the Coalition as a pro-investment alternative, criticising the changes as measures that would discourage investment and constrain housing supply. However, the Government’s defence is that incrementalism has failed: without structural intervention, home ownership will remain out of reach for younger cohorts, who are already shut out of asset accumulation.
In parallel, Parliament saw the introduction of the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026, signalling an effort to shore up long-term fiscal sustainability. The Government quietly tabled its much-anticipated response to the late Peta Murphy’s gambling reform report and response to the ‘State of Diabetes Mellitus in Australia’ report. Both reports reinforced perceptions that the Government is managing pressures reactively rather than setting a clear reform agenda as it relates to preventative health.
On many fronts, the week reflects a deeper political recalibration. The central question is no longer simply how Australia grows, but how voters perceive their futures in an increasingly uncertain world. As the Government advances its intergenerational narrative, the Opposition has sought to reframe the contest around aspiration and economic mobility. The underlying tension continues: a country quietly renegotiating its social contract as electoral power tilts steadily toward the young and the disaffected.
Things to watch
Parliament Returns: Both houses of Parliament reconvened following the April Parliamentary Recess.
2026-27 Federal Budget: Jim Chalmers handed down the 2026-27 Federal Budget. You can read GRACosway’s comprehensive analysis of the Budget here and here.
National Press Club: Jim Chalmers addressed the National Press Club, discussing the 2026-27 Federal Budget.
Senate Update: Former Jacqui Lambie Network Senator and Independent Tammy Tyrrell joined the Labor Party, increasing the Government’s numbers in the Senate to 30.
Murphy Report: The Government tabled its response to the Murphy Report, reiterating measures already announced to address gambling harm rather than responding to recommendations individually.
Data Centre Inquiry: The Senate referred an inquiry into data centres to the Environment and Communications References Committee, chaired by Greens Senator Sarah Hanson-Young.
Making headlines this week
Opposition Budget Reply
Farrer By-Election
One Nation’s David Farley won the Farrer by-election, marking the first time the seat has not been represented by the Coalition. Farley defeated independent candidate Michelle Milthorpe 57 per cent to 43 per cent on a two-candidate preferred basis. The Liberal Party experienced a significant collapse in support, suffering significantly, winning only 12 per cent of the primary vote, down 31 per cent since the 2025 Federal Election. This reflects growing dissatisfaction among regional voters over cost-of-living pressures, energy policy and political leadership. Angus Taylor acknowledged the Coalition needed to “take our medicine” in response to the result, while Pauline Hanson described the win as evidence that her party was “here for the long haul”. The result highlights deepening frustration with the major parties and the growing appeal of populist alternatives in regional Australia.
Things to watch
16 May, the Stafford by-election in Queensland will be 
21 May, the ABS will Regulation Roadmap, APRA Consultation, and Payday Super Regulation Report Developments
The Council of Financial Regulators released its Better Regulation Roadmap, setting out an agenda to streamline financial regulation and improve data collection and information sharing across agencies more effectively.
APRA opened consultation on a draft licensing framework for Authorised Deposit-taking Institutions, proposing updates to licensing criteria and guidance. Submissions close on 31 July.
The Senate Economics Legislation Committee released its report on the Payday Super Regulations, expressing strong support for the reforms, including extending superannuation payments to employees under 18 years of age nationally.
Financial Sanctions, Review Response, and Bilateral Defence Cooperation Updates
Penny Wong imposed further targeted financial sanctions and travel bans on seven Iranian individuals and four entities in response to the regime’s ongoing humanitarian crisis and destabilisation of the region. This adds to the existing 230 sanctions from the Government.
The Federal Government welcomed the findings of the 2025 independent review of the Woomera Prohibited Area coexistence framework, accepting 17 recommendations in full and a further two in principle. These recommendations will inform the remaking of the Woomera Prohibited Area Rule 2014, which seeks to balance the interests of all Defence, economic and cultural users.
First Assistant Secretary International Policy Bernard Philip led the Australian delegation at the 10th Australia–India Defence Policy Talks in New Delhi. Both sides welcomed continued progress in bilateral defence cooperation and broader strategic engagement.
Fertiliser Imports, Gas Updates, and Fracking Moves
The Federal Government secured 90,000 tonnes of agricultural grade urea through EFA-backed partnerships with CSBP and Incitec Pivot. They have also announced $7.5 billion for the establishment of a Fuel and Fertiliser Security Facility and a Fertiliser Supply Working Group to facilitate communication between industry and government.
Madeleine King confirmed the Federal Government will not activate gas export controls for winter 2026 after receiving assurances from exporters that sufficient domestic supply will be available, with east coast gas storage facilities currently at or near full capacity.
The South Australian Government announced plans to introduce legislation to lift the state’s moratorium on fracking in the South East. It is argued that the move is necessary to strengthen future domestic gas supply and energy security.
Leadership Appointments and State Planning Updates
Catherine King announced the appointment of Greg Hughes to the Board of the Civil Aviation Safety Authority, alongside the re-appointment of Pip Spence as Chief Executive Officer, reinforcing continuity in aviation safety leadership and regulatory oversight.
Anika Wells confirmed the appointment of Jane Palfreyman as Managing Director of SBS for a five-year term, supporting ongoing governance and strategic direction for the national multicultural broadcaster.
The New South Wales Government’s Housing Delivery Authority released its 12-month review, leading to updated expression of interest criteria for housing proposals aimed at improving project assessment efficiency and delivery outcomes.
Building on these reforms, the New South Wales Government also announced two new planning pathways – the expanded complying development pathway and a targeted assessment pathway – designed to accelerate approval timelines for low-rise residential developments.
NDIS, Diabetes Report, and University Reform Developments
Mark Butler introduced the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill. The Bill will amend scheme eligibility, strengthen fraud controls, update governance arrangements, and streamline administration of the scheme.
The Federal Government responded to the report on The State of Diabetes Mellitus in Australia in 2024. Its focus is on increasing awareness about diabetes, improving care, expanding access to GLP-1 medicines through the PBS, rather than limiting junk food advertising and introducing a sugar tax.
The Australian Tertiary Education Commission will provide advice to the Government on Australian universities’ research specialisation ability, in efforts to address the increasing number of ‘broad-based universities’ across the nation.