This week the dust began to settle on the Albanese Government’s emphatic election victory.
At the time of writing the Government had been returned with 93 seats which may grow as final seats are called. The process of forming a new cabinet began, with the left and right factions meeting to determine who would be put forward to the Prime Minister. Senior right-wing figures Mark Dreyfus and Ed Husic were removed from the ministry to make way for Sam Rae and Daniel Mulino. These moves sparked controversy, with Husic in particular publicly voicing discontent.
Renewal is critical for any returning government. Few are likely to shed tears for the NSW Right’s factional loss; after all, it practically invented the concept. Despite public statements to the contrary, Husic’s demotion was as a result of the NSW Right losing a quota in the ministry, which shifted to the Victorian Right.
The first Ministry of the 48th Parliament was unveiled with some targeted reshuffles, though little in the way of dramatic or unforced changes. Anne Aly made history as the first Muslim woman appointed to Cabinet. Michelle Rowland was rewarded for her steady hand in communications with a promotion to Attorney-General. Tanya Plibersek was moved, perhaps sideways or diagonally down, to the Social Services portfolio. Murray Watt takes on Environment, while Anika Wells steps into Communications.
As for the Coalition, there are few words that adequately capture the post-May 3 landscape. “Existential crisis” might come closest. The once self-described “natural party of government” now clings to fewer than 45 seats, barely a third of the lower house, and at the time of writing cannot confidently claim any safe metropolitan seat. Despite early celebrations that they may be successful in the seats of Goldstein and Bradfield – the only two bright spots in an otherwise terrible, horrible, no good, very bad day – remain on a knife edge, with absentee and declaration votes threatening to flip them to the Teals.
In a tightly contested leadership vote, Sussan Ley edged out Angus Taylor by four votes to become the first woman to lead the Liberal Party. Circumspection on her future as leader is important, as the party’s updated rules make any leadership challenges very difficult. However, Ley faces the enormous task of unifying a fractured party and addressing structural issues that have been building for more than a decade. A day earlier, the Nationals re-elected David Littleproud as leader, fending off a challenge from Senator Matt Canavan, while Kevin Hogan was chosen as deputy leader.
Meanwhile, following Adam Bandt’s shock election defeat, Senator Larissa Waters secured the Greens leadership after prevailing over Senators Sarah Hanson-Young and Mehreen Faruqi.
Making headlines this week
Cabinet additions and shifts
Beyond the headline reshuffles, Amanda Rishworth has taken over Employment and Workplace Relations. Tim Ayres has been promoted to Cabinet as Minister for Industry and Innovation, further strengthening Labor’s industrial policy bench. A full list of ministerial appointments is available on the Prime Minister’s website.
Deputy leadership outcomes
Following the Liberal leadership vote, Ted O’Brien was elected deputy leader, defeating Phillip Thompson 38 votes to 16. In the Nationals, Kevin Hogan replaced Perin Davey as deputy leader after her loss at the election.
Greens leadership context
While Larissa Waters’ leadership win was confirmed[paywall], discussions ahead of the vote had floated a co-leadership model involving Sarah Hanson-Young and Mehreen Faruqi. Waters’ win marked a clear return back to a singular leadership approach for the party.
Things to watch
📅 Parliaments back in session: Queensland, Western Australia, and the Northern Territory Parliaments are scheduled to sit next week as legislative business resumes across the states and territories.
💰 Victorian Budget incoming: Victorian Treasurer Jaclyn Symes will hand down the 2025/26 state budget on 20 May, with expectations of a focus on spending restraint and public sector reform.
🏠 Housing spotlight: CEDA will host housing crisis discussions in South Australia and Tasmania, bringing together policymakers and industry to address one of the country’s most pressing issues.
⛏️ Resources on the agenda: The Australian Financial Review’s Mining Summit will take place in Perth on 21 May, with industry leaders expected to focus on investment, regulation, and global demand trends.
ASIC action and workers comp reform
ASIC has launched legal action against Macquarie Securities, alleging the misreporting of up to $1.5 billion in short sale trades between 2009 and 2024, which may have distorted market data by an average of 12 per cent. This marks the fourth enforcement action taken against Macquarie in just over a year.
New South Wales Treasurer Daniel Mookhey has released an Exposure Draft Bill proposing reforms to the state’s workers compensation system. The changes aim to address the low return-to-work rates for psychological injuries, currently just 50 per cent within a year, compared to 95 per cent for physical injuries. Without reform, employer premiums are projected to increase by 36 per cent over the next three years.
MH17 ruling and Australian casualties in Ukraine
The International Civil Aviation Organisation (ICAO) has formally found Russia responsible for the downing of Malaysian Airlines flight MH17 in 2014, which killed 298 people including 38 Australians. Russia continues to deny involvement and withdrew from negotiations in 2020.
Minister for Foreign Affairs Penny Wong has also responded to reports of the feared death of Australian Ukrainian Foreign Legion volunteer Caleb List. The news follows the confirmed death of Australian bomb disposal expert and former soldier Nick Parsons near Izyum in eastern Ukraine last week.
Resources, energy and industry updates
The Queensland Government has appointed Wayne Pennell as the state’s new Mining and Resources Coroner. Based in Mackay, the role will involve investigating incidents across mining facilities and delivering safety recommendations to support improved standards.
In the energy sector, the New South Wales Government has awarded access rights to ten projects within the Central-West Orana Renewable Energy Zone. Together, the projects represent 7.15 gigawatts of energy and storage capacity, projected to power 2.7 million homes by 2031.
In the Northern Territory, the latest Budget includes[PDF] $181.3 million in funding for regional roads, primarily to support roads-to-gas infrastructure. It also established the Office of the Territory Coordinator, a new body tasked with accelerating investment and streamlining major project approvals.
Meanwhile, the Clean Energy Council has confirmed that Chief Executive Kane Thornton will step down on 1 August after 15 years with the organisation, including a decade as CEO. A national search for his successor is now underway.
Infrastructure, housing and transport policy
The New South Wales Government has formally responded to the recent Parliamentary Inquiry into e-scooters and e-bikes, with Transport Minister John Graham committing to introduce legislation in the coming months to regulate their use across the state.
In Victoria, ahead of next week’s state budget, Premier Jacinta Allan has announced a $5 billion transport investment. The funding includes $727 million for the Metro Tunnel and nearly $99 million to expand train services across the state.
In planning and housing, the South Australian Government has adopted the Future Living Code Amendment following a 2024 consultation process. Meanwhile, the Victorian Government has committed $61 million to extend stamp duty concessions on off-the-plan apartments, townhouses and units for a further 12 months.
Education and health investment
The Queensland Government has announced new measures aimed at easing the administrative load on teachers. These include faster recruitment pathways and updated communication guidelines to help ensure parent-teacher interactions occur within school hours.
In health, the New South Wales Government has confirmed that the $138 million redevelopment of Cessnock Hospital will proceed, with construction expected to begin in the coming months. An additional $90 million has been allocated to establish birthing and maternity services at the new Rouse Hill Hospital, building on a prior $120 million commitment from the Albanese Government.
In case you missed it...
📺Anthony Albanese officially sworn in for a second term.