Weekly Wrap Up, September 19 2025
Fool me once, shame on you. Fool me twice… Prime Minister Albanese must be pondering whether the status credits have been worth the effort. In the past two weeks, Albanese has flown to both Vanuatu and PNG with the prospect of signing groundbreaking defence agreements with Pacific Island nations, only to have both stymied by local ‘concerns’. These local concerns are coloured by a gaze north and to the left, a little bit toward Beijing. While the Government has provided assurances that the deals will happen at some point in the distant future, the reality of the situation is that the Government has twice fallen at the final hurdle to secure an agreement with countries that should naturally and until recently sat firmly within Australia’s strategic orbit.
Questions within Government will rightly be asked as to the effectiveness of the approach to push back against China’s growing influence in the region, or whether a new tactic should be taken. While the Albanese Government should be celebrated for resetting Australia’s relationships with our near neighbours after multiple years of neglect, potential adversaries seem to be getting wiser, and Australia should too.
For the PM, next week the status credits will continue to rack up as he travels to the United States to address the UN General Assembly. During this trip, it has been confirmed that the PM will, for the first time, meet with the President of the United States. This meeting is more than a box ticking exercise, but is far short of the existential engagement that some are painting it as. The Government has done a good job of pre-positioning the meeting, including an announcement of an additional $12 billion into the Henderson Defence Precinct. Something missed in the noise of that announcement was the PM’s statement indicating that the United States would have access to maintain and sustain US flagged submarines – and presumably surface vessels – a key ask of the Trump administration. With a busy week ahead, the PM will be hoping to board QF1 comfortable in the knowledge that the alliance is secure.
Top talking points
Papua New Guinea Diplomacy: Australia and Papua New Guinea (PNG) failed to finalise a defence treaty, opting instead to sign a communique.
Opposition Leader Address: Sussan Ley addressed CEDA, calling for welfare reform and a review of Australia’s climate policy settings.
AUKUS Investment: Richard Marles committed an additional $12 billion to the Henderson Defence Precinct in Western Australia.
North West Shelf Extension: Woodside’s North West Shelf gas project received final federal approval, extending operations to 2070.
Kiama By-election: Labor’s candidate won the seat of Kiama, bolstering the Government’s numbers in the NSW Legislative Assembly.
Making headlines this week
Climate Policy Push
Coalition Divisions
Sussan Ley announced changes to her shadow ministry following the demotion of Senator Jacinta Nampijinpa Price, who faced backlash over controversial comments regarding Indian migration to Australia. As part of the reshuffle, Melissa Price was appointed to the defence industry portfolio, while Claire Chandler returned to the frontbench with responsibilities for science and cybersecurity. Meanwhile, Andrew Hastie publicly threatened to resign from the Coalition’s frontbench if the party supported the Government’s commitment to achieve net zero by 2050. Bowing to the pressure, Ley and her deputy Ted O’Brien swiftly announced their opposition to Labor’s 2035 emissions reduction targets.
Things to watch
21 September, Prime Minister Anthony Albanese and senior ministers will travel to the United States for the UN General Assembly.
22 September, RBA Governor Michele Bullock will appear before the House Standing Committee on Economics.
23 September, Prime Minister Anthony Albanese will attend a reception hosted by US President Donald Trump.
23 September, Queensland Premier David Crisafulli will address CEDA.
24 September, Macquarie Chief Shemara Wikramanayake will host a dinner with Prime Minister Anthony Albanese, Ambassador Kevin Rudd, and US businesses.
24 September, Dr Anna Cody will address the National Press Club.
24 September, the ABS will release the Monthly CPI and Construction activity data.
25 September, the ABS will release job vacancies and national accounts data.
Net Zero Modelling, Unemployment Figures, ANZ Misconduct and ASIC Updates
Treasury modelling reveals that a managed transition to net zero emissions could boost Australia’s economy by $2.2 trillion by 2050. The transition is expected to create 5.1 million new jobs and raise real GDP per capita by $36,000.
Australia’s unemployment rate remained steady at 4.2 per cent in August. However, the underemployment rate fell by 0.1 per cent to 5.7 per cent. Additionally, business turnover rose by 2.9 per cent in July, the largest rise since May 2022.
ANZ admitted to widespread misconduct, including unconscionable conduct in a $14 billion bond deal and charging fees to deceased customers. ASIC is seeking $240 million in penalties through the Federal Court.
Jim Chalmers announced[paywall] that ASIC Chairman Joe Longo will not seek reappointment when his current term ends in May 2026. The Albanese Government has now commenced a formal search process to identify a suitable replacement.
Dialogue, Committee Meetings, and Exports Initiative
The Ninth Australia–China High Level Dialogue was held in Beijing, bringing together representatives from government, industry, academia, media, health and the arts, along with former political leaders. Discussions centred on trade and investment, education, cultural ties, and international security.
The Seventh Australian-EU Joint Committee Meeting was held in Canberra to provide coordination under the 2022 Framework Agreement. Australia and the EU reaffirmed their commitment to cooperate on global security and economic challenges.
Don Farrell launched the $50 million Accessing New Markets Initiative, which will help businesses identify new partners and customers in priority export markets.
Offshore Wind, Green Iron and Queensland Mining Developments
Chris Bowen announced that research and demonstration licence application fees for offshore wind projects will be reduced from $300,000 to $20,000, while annual levies for feasibility, research, and demonstration licences will be waived.
Tim Ayres announced that applications for the National Development Stream of the $500 million Green Iron Investment Fund will open on 28 October 2025. The Green Iron Investment Fund aims to support private investment into green iron and build on other measures, including the Green Aluminium Production Credit.
The BHP Mitsubishi Alliance will mothball its Saraji South Mine in Dysart. The Alliance stated that 750 jobs will be cut, attributing the decision to market conditions and high coal mining royalties in Queensland.
Social Media, AI, and Planning Reform Updates
Anika Wells issued guidance for social media platforms ahead of the social media ban, outlining expectations for age verification, account removal, and complaint handling. The measures provide clearer rules for the industry while enhancing protections for children online.
Tim Ayres spoke at the National Tech Summit, calling for a coordinated national approach to AI. Investing in digital skills and ensuring the ethical development and deployment of AI were identified as priorities of the Albanese Government.
The New South Wales Government introduced the Planning System Reforms Bill 2025. The Bill establishes the Development Coordination Authority and enshrines the Housing Delivery Authority in legislation. The changes aim to reduce regulations, streamline approvals, and accelerate housing delivery.
Early Childhood Sector Reforms and Victoria-China Movements
The New South Wales Government introduced amendments to the Children (Education and Care Services National Law Application) Act 2010. The amendments include a legal obligation for the sector and regulator to put the rights and best interests of children above all else, provide greater power to the regulator, and increase penalties for all offences.
Victoria and China’s Ministry of Education signed a Memorandum of Understanding to establish the Education Working Group, which will meet annually to collaborate across schools, TAFEs, and universities between the two jurisdictions. This follows recent efforts by the Albanese Government to limit international student numbers.