Weekly Wrap Up – 12 December 2025
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Artificial intelligence has simmered on the Government’s agenda for years. This week, the Prime Minister moved to take control of the debate.
With AI set to be key to Australia’s economic future, in a landmark speech on Wednesday, Mr Albanese sought to outline the important benefits of embracing the technology while also acknowledging its risks to our national sovereignty, public trust, and intellectual property. Rather than leaving the debate to Silicon Valley, the Prime Minister placed AI under the authority of his own department, announcing a new ‘Office of AI’, set to design new mandatory standards. This approach was described by the Prime Minister as a “world-leading national framework” through which Australia will seek to attract investment from the major hyperscalers, while also setting the rules for how they operate locally.
At the heart of that vision is an attempt to balance the opportunities AI presents, while also responding to growing public concern over the rapid expansion of data centres. While the Government is continuing to fast-track investment, it is also proposing a new set of obligations governing where large facilities can be built, how much water they consume, how efficiently they use energy and how they connect to the electricity grid.
Under the proposed new standards, large operators would be required to help fund new generation capacity, pay the full cost of connecting to the grid and minimise impacts on surrounding communities, including pressure on housing and local infrastructure. These measures mark a significant shift towards a more interventionist approach to AI policy.
Copyright protection is emerging as the other major front in the debate. The Prime Minister drew a firm line against AI companies that train models using Australian books, journalism, music and art without permission or compensation. He argued that creative work remains the property of its creators and is not free fuel for algorithms. The commitment has been welcomed by much of Australia’s creative sector, but significant questions remain about how protections will be enforced and whether artists and creators will have a meaningful voice as the new Office of AI develops the rules.
This week’s announcement is unlikely to settle the debate on AI policy but reflects an attempt to balance competing stakeholder perspectives on AI adoption while addressing concerns around sovereign capability, workforce impacts, and Australia’s economic future.
Top talking points
Australian American Leadership Dialogue: Peter Khalil represented the Government at the Australian American Leadership Dialogue, meeting with US administration officials to discuss bilateral defence cooperation and reaffirm Australia’s commitment to AUKUS.
Royal Commission on Antisemitism and Social Cohesion: Senior representatives from five universities appeared before the Royal Commission as it examines institutional responses to antisemitism and the safety of Jewish students and staff.
Telstra Senate Inquiry: Telstra will appear before the urgent Triple Zero Senate Inquiry this afternoon. The Inquiry will examine last week’s network outage, its public impact, and whether underinvestment and industry self-regulation contributed.
Polling: Resolve polling shows One Nation’s primary vote has fallen to 26 per cent, while the Coalition has risen to 23 per cent. Labor remains steady at 28 per cent, with support for Anthony Albanese increasing to 33 per cent.
Western Australian Reshuffle: Following Paul Papalia’s retirement, Premier Roger Cook assumed the Defence Industries, Tourism, Trade and Investment portfolios, while reshuffling State Development, Mines, Transport, Emergency Services, Corrective Services and Preventative Health portfolios.
Making headlines this week
AI the Australian Way
Education Ministers Meeting
Jason Clare convened State and Territory Education Ministers in Sydney on Wednesday to discuss a broad range of national reforms spanning school education, early childhood services, student wellbeing and social cohesion. Ministers received an update on the Antisemitism Education Taskforce, noting progress across key areas including teacher training, university accountability, curriculum review and new resources through the Social Cohesion Education Hub. Ministers agreed to explore establishing an Early Education and Care Commission to strengthen safety, quality and workforce planning, alongside further reforms supported by almost $500 million of funding to improve child safety standards. This includes mandatory training, stronger regulatory powers and enhanced provider accountability. Ministers also reviewed progress under the Better and Fairer Schools Agreement, considered a proposed Teaching and Learning Commission, reaffirmed support for NAPLAN reforms, and discussed progress in response to the Anti-Bullying Rapid Review.
Things to watch
APRA and ASIC Expectations, Non-bank Lending, and Superannuation Developments
Jim Chalmers issued new Statements of Expectations for APRA and ASIC, calling on the regulators to support economic growth and productivity. Chalmers said the statements reflect priorities from the Economic Reform Roundtable, including driving productivity, unlocking investment and supporting economic growth.
Non-bank lenders are now required to share product data through Consumer Data Right (CDR), including information on interest rates, fees, charges and eligibility criteria. The expansion builds on the CDR’s rollout from major banks in 2020 and its extension to additional sectors, including energy.
The AFR hosted a superannuation roundtable attended by Anthony Albanese, superannuation CEOs and banking leaders, focusing on the sector’s role in Australia’s economy. Albanese described superannuation funds as a “national asset” and highlighted their contribution to investment and economic growth.
Indonesian Engagement and Passenger Card Updates
Matt Thistlethwaite travelled to Indonesia to launch Katalis 2.0, a new program designed to maximise the benefits of the Indonesia-Australia Comprehensive Economic Partnership Agreement.
The Federal Government introduced the Australian Travel Declaration, a digital alternative to paper incoming passenger cards, which will be progressively rolled out across international airports and seaports over the next 12–18 months.
Critical Minerals and Renewable Energy Moves
Madeleine King announced support for Alcoa’s Wagerup critical minerals project in Western Australia. The project will establish domestic gallium production to support advanced manufacturing, semiconductor and defence industries.
Tim Ayres and Tasmanian Premier Jeremy Rockliff issued a joint statement expressing disappointment over the closure of Liberty Bell Bay, Australia’s only commercial ferroalloy smelter, which produces ferromanganese and silicomanganese for steelmaking.
AEMO and CSIRO released the final 2025–26 GenCost report, finding solar and onshore wind remain the lowest-cost foundation for Australia’s future electricity system. The report also reaffirmed that renewable energy remains the most cost-competitive option over the long term.
Online Safety, Communications, and Sydney Metro Updates
eSafety’s latest transparency report identified “significant gaps” in how major online platforms are tackling child sexual exploitation and abuse, particularly sexual extortion. Shortcomings in technology that detects coercive behaviour were highlighted as a key issue.
The South Australian Government announced it will introduce legislation to ban domestic violence perpetrators and sex offenders from dating apps. Under the proposed legislation, offenders would be barred from online dating platforms for at least 10 years and face jail time for breaches.
In New South Wales, Metro trains completed successful end-to-end trial journeys between Bankstown and Tallawong, marking the final testing phase before the Southwest Metro opens later this year following regulatory approvals.
Higher Education, Rural Aged Care, and Industrial Action
Higher education providers are now required to report annually against the new University Governance Principles. This includes publishing key governance information, adopting new definitions of antisemitism, Islamophobia, and other forms of racism, and strengthening complaints processes.
Sam Rae announced an additional $300 million in funding to support rural and remote aged care providers under the Support at Home program. Funding aims to support service delivery, strengthen workforce sustainability, and improve access to in-home care for older Australians in regional and remote communities.
Victorian public-school teachers will undertake a statewide 24-hour strike on 23 July after negotiations with the Victorian Government stalled. The industrial action follows the rejection of a proposed agreement that included pay increases of up to 32 per cent over four years.
In case you missed it...
AI ‘the Australian way’