Weekly Wrap Up – 12 December 2025
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As Canberra turns its attention to next week’s Intergenerational Report, the Government is seeking to shift the economic conversation from short-term pressures to Australia’s long-term economic outlook. Jim Chalmers has spent recent days preparing Labor MPs for a report expected to highlight the structural challenges facing the economy, including an ageing population, weaker productivity growth and growing fiscal pressures. At the same time, the Government is attempting to project a more optimistic fiscal outlook, with reports suggesting the federal debt is tracking more than $500 billion lower over the long term than forecast in 2023.
Yet productivity remains the key challenge. The Government continues to champion artificial intelligence, clean energy and Australia’s evolving economy as the foundations of future growth; however, growing concern within Labor ranks suggests many MPs remain concerned about stubborn inflation, interest rates and stagnant living standards. These concerns have been amplified by scrutiny of Treasury’s long-term productivity assumptions and questions over whether the Government’s existing reform agenda is sufficient to lift economic growth. Increasingly, the debate is shifting toward the cumulative impact of smaller reforms such as planning approvals, workforce participation, regulatory efficiency, housing supply and private investment, all of which are viewed by the Government as critical to improving productivity and easing cost of living pressures.
Migration has emerged as a central part of this broader economic narrative. Following weeks of internal cabinet debate, Tony Burke this week unveiled a significant migration overhaul aimed at reducing net overseas migration to approximately 225,000 by 2028. The package includes tighter restrictions on international students bringing family members, measures to curb visa hopping and visa overstays, changes to working holiday visas and stronger compliance activity. The reforms reflect growing community concern about housing affordability, infrastructure pressures and population growth, particularly as support for One Nation continues to rise.
Taken together, the Government is seeking to demonstrate it has a credible long-term economic plan while responding to voter concerns about their current living standards. As inflation, productivity, migration and housing become increasingly intertwined, economic management is likely to remain a defining political issue for the foreseeable future.
Making headlines this week
Labor’s Migration Strategy
Whyalla Wipeout
The Federal and South Australian Governments announced a $10 million support package after confirming efforts to restart the Whyalla Steelworks blast furnace have been unsuccessful. The package includes career planning, employment assistance, training and reskilling opportunities, financial guidance and wellbeing support for affected workers and their families, delivered through a new Whyalla Worker Transition Centre at TAFE SA. While blast furnace operations will cease, mining, port and other site activities will continue as the administrator-led sale process progresses. Both governments reaffirmed their commitment to securing a new owner capable of investing in Whyalla’s long-term future, supported by the previously announced $1.9 billion sovereign steel package. Workers’ wages and entitlements will continue to be supported during the administration and sale process.
Things to watch
21 September: The AFR will host the Cyber Summit 2026 in Sydney.
22 September: CEDA will host RBA Governor Michele Bullock to discuss inflation, interest rates and insights into Australia’s economic outlook.
23 September: Georgie Dent, CEO of The Parenthood, will address the National Press Club.
24 September: The ABS will release Labour Force data.
Treasury and Finance
Treasury opened a package of proposed tax reforms designed to encourage innovation and investment, including a new start-up investment concession, expanded venture capital tax incentives, and increased support for businesses undertaking R&D.
The ACCC granted authorisation for the Association of Superannuation Funds Australia and other designated participants to exchange and negotiate information through cyber and financial crime information sharing platforms. The grant is authorised for five years and seeks to better identify and respond to threats across the industry.
The Australian Banking Association updated industry guidelines for financial abuse. The guidelines expand support for vulnerable customers, including in First Nations communities and strengthen staff training and disclosure processes. Additionally, they recognise small business lending as a potential channel for financial abuse and introduce safeguards to examine genuine borrower benefit.
Defence and DFAT
Penny Wong joined ASEAN foreign ministers in reaffirming support for ASEAN centrality, a rules-based Indo-Pacific and peaceful dispute resolution, while committing to deeper Australia-ASEAN cooperation.
The Australian Defence Force released its 2025–26 workforce data, showing the ADF has reached its largest size in 25 years. Over 8,100 personnel enlisted during the year, the permanent full-time workforce exceeded 64,000 personnel, and the separation rate fell to 7.4 per cent.
US Republican Congressman Michael McCaul argued Australia should be open to the future rotation of nuclear-armed US submarines through Western Australia under AUKUS. The Government reiterated that any such activities would remain consistent with Australia’s sovereignty arrangements and obligations under the Treaty of Rarotonga.
Energy, Resources, and Agriculture
Chris Bowen announced a $30 million Launchpad program through ARENA to support early-stage clean energy startups. The program will provide funding for startups developing renewable technologies including solar, energy storage, renewable hydrogen, green metals and transport. Applications close on 28 October 2026.
The Albanese Government announced that New South Wales, Queensland and South Australia will all receive additional funding under the Social Housing Energy Performance Initiative to support energy upgrades for social housing. New South Wales will receive $145.3 million, Queensland will receive $97.1 million, and South Australia will benefit from $36.1 million. The upgrades will include measures such as solar, insulation, efficient hot water systems and electric appliances.
Rodney Henderson and Anna Shave were appointed to the National Reconstruction Fund Corporation Board for three-year terms. Daniel Petre AO and Kathryn Presser AM have also been reappointed for a further 12 months.
Infrastructure, Telecommunications, and Housing
Anika Wells opened consultation on the future delivery of free-to-air television as audiences increasingly shift online. The consultation will consider future technology options and the cost of maintaining traditional broadcast networks. Submissions close on 24 November.
The Government welcomed the findings of the mid-term review of the National Road Safety Strategy 2021–2030, which identified the need for better data, monitoring and coordination, with a continued focus on rural and regional road safety. The findings will inform the next National Road Safety Action Plan, due later this year.
The Victorian Government released Freight on Track: The Victorian Rail Freight Plan 2026–2036, a plan setting out measures to improve the capacity, resilience and efficiency of the state’s rail freight network while supporting lower emissions. The plan includes proposals for new facilities such as the Dandenong South Inland Freight Terminal.
Health, Employment and Labour
The Wage Justice for Early Childhood Education and Care Workers (Special Account) (Extending Support and Strengthening Safety) Bill 2026 passed Parliament. The Bill increases wages for early childhood educators by 15 per cent and introduces stronger safety and compliance requirements across the sector.
Trade apprenticeship completions rose 10 per cent in the year to March 2026, reaching their highest level in a decade, while commencements increased across key construction trades, highlighting continued growth in Australia’s skills pipeline.
The Private Health Insurance Amendment (Modernising the Private Health Insurance Rebate) Bill 2026 passed the House and was introduced to the Senate. The Bill would standardise the calculation of the private health insurance rebate by applying the same rebate percentage and methodology to people aged 65 years and over as those under 65.