Weekly Wrap Up – 12 December 2025
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Australia’s debate over artificial intelligence is increasingly shifting from a policy discussion to a political contest, with two parliamentary inquiries now examining AI, data centres and the regulatory settings that should govern the technology’s expansion. The bipartisan Joint Select Committee on Artificial Intelligence is set to hear directly from industry next week, including OpenAI Chief Strategy Officer Jason Kwon and representatives from Anthropic. With senior Coalition figures including Andrew Hastie, Aaron Violi and Jonno Duniam on the committee, the inquiry will be particularly important in testing the Coalition’s emerging approach to AI regulation, data sovereignty, copyright and workforce impacts.
The second of the two inquiries, the Greens-led Senate inquiry into AI and data centres chaired by Sarah Hanson-Young, is taking a different approach, with a stronger focus on the risks associated with major technology companies and the expansion of data centre infrastructure. OpenAI and Anthropic have both declined invitations to appear, potentially reinforcing scrutiny of the sector from the Greens.
The political backdrop is also shifting following David Shoebridge’s election as Greens leader. Shoebridge has signalled a more movement-driven and combative approach to politics, which could have implications for how the Greens negotiate with Labor on future technology reforms. With the Government requiring either Greens or Coalition support to pass legislation through the Senate, the significance of the inquiries may ultimately lie in what they reveal about the negotiating positions of both blocs ahead of future AI and data centre reforms.
Top Talking Points
Final Budget Outcome: Jim Chalmers and Katy Gallagher released the 2025-26 Final Budget Outcome, revealing a $6 billion improvement on the budget position forecast at the time of the 2025-26 Budget.
Public Hearings and AI: OpenAI Chief Strategy Officer Jason Kwon will travel from the US to appear before the Joint Select Committee on Artificial Intelligence in Sydney, while Anthropic is also set to appear. This follows both declining to appear before the Greens-led Senate inquiry into AI and data centres.
Consumer Price Index: Annual inflation rose from 3.5 per cent in July to 4.0 per cent in August, driven by housing and fuel costs.
Surcharge Bans: The Government’s nationwide ban on card payment surcharges came into effect on 1 October.
Polling: The latest Newspoll shows One Nation leading the primary vote in Queensland at 36 per cent and NSW at 31 per cent, while sitting one point behind Labor in both South Australia and Western Australia.
Making headlines this week
Reserve Bank Decision
Australian Greens Leadership
Australian Greens leader Larissa Waters stepped down to focus on her health, with David Shoebridge subsequently elected leader and Steph Hodgins-May as deputy. The leadership change is significant given the Government relies on either the Greens or the Coalition to pass legislation through the Senate, giving the party an important role in the Government’s legislative agenda. Under Waters, the Greens generally adopted a pragmatic negotiating approach with Labor. However, Shoebridge has signalled a stronger focus on growing party membership, advancing climate and economic reform, increasing returns from natural resource extraction, and distancing Australia from the US alliance.
Responding to the rise of One Nation, Shoebridge has also positioned the Greens as a broader progressive alternative to Labor, declaring the party intends to “replace Labor” rather than simply influence it. The change could therefore see the Greens adopt a more confrontational approach towards Labor, potentially complicating Senate negotiations on contentious legislation over the remainder of the term.
Things to watch
7 October: Father Paolo Benanti and Andrew Leigh will 
7 October: The ABS will Treasury and Finance
ASIC released its 2026-27 supervisory priorities, highlighting scrutiny of AI use in customer-facing banking, lender and broker conduct, superannuation advice fee deductions, retirement products, claims management, funeral insurance and life insurance service standards. The regulator will also focus on market integrity, innovation, infrastructure resilience, and supporting growth and competitiveness.
APRA proposed new measures to strengthen trustee investment governance and protect retirement savings, including limits on higher-risk investments, stronger management of investment conflicts, and enhanced governance capability and expertise requirements.
The Council of Australian Life Insurers responded to an independent review of the Life Insurance Code of Practice, committing to strengthen claims handling, improve support for customers experiencing mental ill-health, enhance accessibility for First Nations peoples, and increase independent oversight of future code reforms.
DFAT and Defence
Don Farrell travelled to the United States for the G20 Trade Ministerial Meeting, where discussions focused on supporting Australian exporters, strengthening the global trading system, and advancing implementation of the Australia-EU Free Trade Agreement with Maroš Šefčovič.
An Australian contingent, including HMAS Perth and Australian Defence Force personnel, deployed to the Philippines for an ASEAN-led maritime security exercise aimed at strengthening regional cooperation, interoperability and resilience.
Pat Conroy announced that at least two Arafura Class Offshore Patrol Vessels will be based at HMAS Cairns from 2027, supporting maritime patrol operations, regional engagement and the Government’s $250 million investment in expanding the naval base.
Resources, Energy, and Agriculture
The Energy Efficiency Council released its inaugural State Energy Performance Policy Scorecard, assessing state and territory policies supporting household energy efficiency, electrification and demand flexibility. The ACT ranked first overall, followed by Victoria and New South Wales.
NSW’s Waratah Super Battery is now fully operational, with capacity to deliver 850 MW and store 1,680 MWh of power. The Government says it can power up to 340,000 NSW households at peak demand and help maintain system security as more renewables enter the grid and coal-fired generators retire.
The Queensland Government called for an independent review of gas market conditions by the end of 2027 before legally binding obligations under the Federal Government’s proposed Domestic Gas Reservation Scheme commence in 2028. The Crisafulli Government warned the scheme could undermine investment, future gas supply and regional jobs, arguing it should focus more strongly on encouraging new production.
Infrastructure, Housing, Communications, and Transport
Anika Wells was named in TIME Magazine’s TIME100 Next 2026: The World’s Most Influential Rising Stars, recognising her role in championing Australia’s social media restrictions for children under 16. In a profile written by former Prime Minister Julia Gillard, Wells was credited with helping place Australia “at the centre of conversation on online safety, accountability, and the responsibilities of Big Tech.”
The Federal Government will invest over $35 million for eight urban precinct projects across Australia, including planning for an integrated transport hub around the new Keilor East station. The funding forms part of the $150 million urban Precincts and Partnerships Program.
The South Australian Royal Commission into AI commenced, with Premier Peter Malinauskas appointing former Federal Court Judge Dr Iain Ross AO to lead the inquiry alongside technology policy expert Kate Pounder and Stanford AI expert Professor Christopher Manning. The inquiry will examine AI’s economic and societal opportunities and risks, as well as the policy and legislative settings needed to support its safe and responsible use in South Australia
Health, Education, and Employment
Jason Clare addressed the Early Childhood Australia National Conference. His speech highlighted the Government’s 15 per cent educator pay rise, three-day Child Care Subsidy Guarantee, and plans for an Early Education and Care Commission and stronger safety standards.
Jenny McAllister announced the rollout of the Thriving Kids program, including a new Autism Helpline and Information and Resource Hub, while confirming NDIS access arrangements will remain unchanged until 2028.
Julian Hill confirmed the first use of the Government’s new course cancellation powers, warning international VET providers to maintain quality standards and ensuring students are protected from poor-quality courses and non-genuine providers.