2 August 2024

Highlights

• In response to Rex Airlines entering voluntary administration, Transport Minister Catherine King reiterated the Federal Government’s commitment to regional aviation.
• The Federal Government and multiple state governments published their responses to the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, in which the majority of recommendations were accepted or accepted in-principle.
• Minister for Foreign Affairs Penny Wong travelled to Japan for the Quad Foreign Ministers’ Meeting, to the ASEAN-Australia Foreign Ministers’ Meeting in Laos, and a bilateral visit to the Republic of Korea.
• Assistant Treasurer and Minister for Financial Services Stephen Jones addressed the National Press Club, where he outlined the development of the Scams Code Framework for banks, telecommunications companies, and digital platforms.
• The fourth annual report on the National Agreement on Closing the Gap showed[PDF] that only five of 19 targets are “on track”, while four targets are “worsening”.

Federal Cabinet reshuffle

Following the resignations of Brendan O’Connor and Linda Burney from the Cabinet, Prime Minister Anthony Albanese announced a reshuffle of the Federal Ministry. This is the first reshuffle of the Albanese Government since being elected two years ago. The Prime Minister said the changes reflect “a team that is united, a team that is ambitious, a team that is absolutely focused on continuing to deliver and work for Australia.”

In the Cabinet, Hon Tony Burke MP became Minister for Home Affairs, Minister for Cyber Security, and Minister for Immigration and Multicultural Affairs while retaining the Arts portfolio. Senator Murray Watt replaced Mr Burke as the new Minister for Employment and Workplace Relations, while Hon Julie Collins MP assumed the Agriculture, Fisheries, and Forestry portfolio and held onto her Small Business responsibilities. Hon Clare O’Neil MP was moved to the Housing and Homelessness portfolios while Senator Malarndirri McCarthy was promoted to Cabinet as the new Minister for Indigenous Australians. Hon Pat Conroy MP was also promoted to Cabinet as Minister for Defence Industry and Capability Delivery and Minister for International Development and the Pacific.

In the outer Ministry, Andrew Giles replaced Mr O’Connor as the Minister for Skills and Training while Senator Jenny McAllister became the new Minister for Emergency Management and Minister for Cities. Several changes were also made to the Assistant Ministry while three ‘Special Envoys’ were created in the areas of Social Cohesion, Defence, and Cyber Security.

A swearing-in ceremony was held at Government House earlier this week.

Quarterly inflation figures

Consumer Price Index (CPI) data released by the Australian Bureau of Statistics showed that inflation rose by 1 per cent in the June quarter and 3.8 per cent over 12 months. The main drivers were pressures in the housing market, increases in the price of food and non-alcoholic beverages, and climbing transport costs. Importantly, annual underlying inflation – measured by excluding volatile price changes – fell for the sixth consecutive time to 3.9 per cent, down from 4.0 per cent the previous quarter.

Despite acknowledging that inflation remains “sticky and stubborn”, Treasurer Jim Chalmers reaffirmed the Government’s focus on “fighting inflation without crunching the economy.” The Treasurer said the data is not surprising given similar experiences overseas and pointed to factors such as geopolitical tensions and rises in oil prices as creating uncertainty in the global economy.

The data comes as the Board of the Reserve Bank of Australia (RBA) meets on 5-6 August, to make their decision on the cash rate.

Looking Ahead

The NSW, TAS, and WA (Legislative Assembly only) Parliaments will sit next week.

FINANCE

Federal Developments

Treasurer Jim Chalmers and Minister for Climate Change and Energy Chris Bowen hosted the 2+2 Climate and Finance meeting with New Zealand counterparts, Finance Minister Nicola Willis and Climate Change Minister Simon Watts. The Ministers agreed to strengthen trade and streamline investment in the energy transition.

ANZ Bank confirmed[PDF] it had completed its acquisition of Suncorp Bank, following]Queensland legislation to amend the State Financial Institutions and Metway Merger Amendment Act 2024 receiving Royal Assent.

Governor-General Sam Mostyn appointed Dr Caralee McLiesh PSM as the Auditor-General for Australia. Dr McLiesh has over 25 years’ experience in public service across government, international, not-for-profit and commercial sectors. She will commence a 10 year term on 4 November.

Dr Philip Williams AM was appointed as a Commissioner of the Australian Competition and Consumer Commission (ACCC). He holds experience in competition and regulatory matters as a former Professor of Law and Economics at the University of Melbourne and former executive chair of Frontier Economics. Dr Williams was appointed for a 5-year term, which commenced 27 June.

FOREIGN AFFAIRS, DEFENCE AND TRADE

Federal Developments

Prime Minister Anthony Albanese released a joint-statement with the Prime Ministers of Canada and New Zealand calling for “an urgent ceasefire” amidst escalating tensions between Israel and Hezbollah. The leaders described the situation in Gaza as “catastrophic” and reiterated their support for the ceasefire deal put forward by United States President Joe Biden.

Minister for Foreign Affairs Penny Wong announced the launch of a Cable Connectivity and Resilience Centre aimed at improving connectivity and digital economy growth across the Indo-Pacific. The Minister confirmed that $18 million will be invested through the Centre in technical assistance and training, information sharing between regional governments and industry, and developing policy and regulation for undersea cables.

Leader of the Opposition Peter Dutton visited Israel and met with Prime Minister Benjamin Netanyahu and other senior government representatives to discuss the nations’ bilateral security relationship. Mr Dutton also stressed the importance of collaborative trade, agricultural and technology relationships between Australia and Israel, and met with community members impacted by the October 7 attacks.

The Government announced it secured a four-year contract worth over $2.2 billion with ASC Pty Ltd to continue life-of-type extensions and sustained maintenance of Australia’s Collins class submarines in South Australia and Western Australia.

ENVIRONMENT, RESOURCES AND ENERGY

Federal Developments

Minister for Climate Change and Energy Chris Browen revealed an additional $20 million investment to expand rideshare provider Splend’s electric vehicle fleet. The Clean Energy Finance Corporation had already invested $20 million into Splend, which provides vehicles to drivers on rideshare platforms like Uber, boosting the company’s fleet by 500 EVs.

The Federal Government announced board appointments to the Australian Renewable Energy Agency (ARENA). Mr Justin Punch has been re-appointed as Chair and Ms Elizabeth O’Leary will continue in her role for a second term, while Ms Ruby Heard and Dr Dean Travers will be appointed to the board. Ms Heard is an electrical engineer and founding director of Alinga Energy Consulting, while Dr Travers is an experienced energy sector strategist who has worked globally on renewable energy projects for ENGIE.

State Developments

The Queensland Government announced the creation of a $30 million Mt Isa Acceleration Program, which is expected to create over 2,500 jobs over the next five years and unlock new supplies of copper, phosphate, and vanadium. The Eva Copper Mine, Paradise South Phosphate Mine, and Vecco Critical Minerals Project, all received funding.

The Federal and Northern Territory Governments agreed to jointly fund an energy and water efficiency project for remote social housing in the Territory. The $10 million project will seek to update the thermal performance and modernity of appliances in more than 600 homes.

INFRASTRUCTURE, TRANSPORT AND COMMUNICATIONS

Federal Developments

The Federal Government welcomed the signing of a Memorandum of Understanding (MOU) between Ampol, GrainCorp and IFM that seeks to establish Australia’s renewable fuels industry. The companies will attempt to accelerate the development and production of low-carbon liquid fuels, including sustainable aviation fuel and renewable diesel.

The Federal Government opened applications for the Thriving Suburbs Program to local governments and incorporated non-for-profit organisations. The $350 million initiative will provide grants from $500,000 to $15 million to enhance community infrastructure including parks, sporting clubs and libraries.

State Developments

The Federal and QLD governments announced the endorsement of the Moreton Bay Sports Centre, supported by a $205.5 million investment under the Minor Venues Program. The facility will be a key venue for the Brisbane 2032 Olympic and Paralympic Games, featuring 12 multi-sport courts and a 10,000-seat capacity. Appointments for the Managing Contractor are anticipated in November, with construction scheduled to take place between 2026 and 2028.

The NSW and SA Governments announced they will be co-hosting a Social Media Summit in Sydney and Adelaide on October 10 and 11, respectively. The event will bring together various stakeholders to explore the impact of social media on children, online safety, misinformation and disinformation, and the influence social media has on delivering government services. The summit aims to inform the design and delivery of new initiatives to tackle the challenges posed by social media.

HEALTH AND EDUCATION

Federal Developments

Minister for Health and Aged Care Mark Butler announced a $19 million investment in six research projects using mRNA technology to develop vaccines for cancer and urinary tract infections (UTI). The investment includes $1.8 million for the University of Technology Sydney to begin UTI vaccine trials, and $3.3 million for the University of Queensland to establish a facility in Brisbane for developing and testing mRNA cancer vaccines.

The Federal Government announced that the Pharmaceutical Benefits Scheme will now cover Trikafta (elexacaftor/tezacaftor/ivacaftor) for children aged 2 to 5 with cystic fibrosis, specifically those with the F508del mutation on the CFTR gene. This medication was previously made available for children aged 6 to 11 and is being expanded to improve accessibility and reduce costs for eligible families.

Minister for Education Jason Clare unveiled the Better and Fairer Schools Agreement (BFSA), a ten-year funding arrangement between the Federal, State and Territory governments. The BFSA includes various reforms and targets, such as improved wellbeing support for students and increasing the proportion of students attaining a year 12 certificate to 83.8 per cent by 2030. The Northern Territory became the first jurisdiction to sign the revised BFSA, with other jurisdictions expected to sign by September.

Minister for Sport Anika Wells attended UNESCO’s Change the Game Sport Conference and outlined the Government’s progress in women’s sports investments. Minister Wells highlighted the $85 million investment in the 2023 FIFA Women’s World Cup and the $200 million Play Our Way program, which supports the development of safe and welcoming amenities at sports clubs.