Weekly Wrap Up – 12 December 2025
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In his first week as Opposition Leader, Angus Taylor put his stamp on the Liberal Party and gave a strong indicator about the ideological and policy direction of the party.
Taylor unveiled a shadow ministry that favours the party’s conservative wing. Andrew Hastie returns to the frontbench with a focus on industry policy, while outspoken conservatives are restored to prominent portfolios after periods on the outer. The signal is clear: under Taylor, the Opposition will lean hard into immigration, defence, border protection, energy security, and a sharper, more combative critique of Labor on culture and “values”.
Just as significant are the economics. Tim Wilson takes on Treasury – a concession to the moderates – a move designed to sharpen the Coalition’s attack on cost of living and re-establish the Party’s economic credibility. Meanwhile, Jane Hume, elected deputy leader, looms large – a disciplined and media-savvy communicator tasked with prosecuting Labor on inflation, productivity and small business.
But every frontbench tells a story not only about who’s in – but who’s out. The dumping of the party’s first female parliamentary leader comes with risks. At a time when the Liberals are haemorrhaging support among women in metropolitan and Teal-held seats, the optics are stark. How this leadership change translates beyond the party room, particularly in inner-city electorates, is another question entirely.
The strategic dilemma is obvious. Does Taylor pitch back to disillusioned suburban and city voters – particularly women – who have drifted to independents and Labor? Or does he focus on stemming the bleed to Pauline Hanson and One Nation on the right, after she dismissed the Liberals as a “dead horse”?
The first real test for Taylor will be the by-election caused by Sussan Ley announcing she will leave parliament entirely. That race will be framed by many, including the government, as an early referendum on Taylor’s leadership. At a time when economic indicators are looking fraught for the government, the focus will remain on centre-right politics, giving the government the time to prepare for what appears to be a Federal Budget that focuses on economic reform.
Top talking points
Shadow Ministry: Angus Taylor reshuffles the Coalition’s shadow ministry, appointing Jane Hume, Andrew Hastie and Tim Wilson to key portfolio positions.
Health Premium Increase: Mark Butler approved a 4.4 per cent rise in private health insurance premiums, citing higher service costs.
Immigration Debate: Leaked Coalition draft policies propose comprehensive visa bans for people from declared “terrorist” regions.
Protest Restrictions: NSW lifts restrictions imposed during Israeli President Isaac Herzog’s recent visit.
Polling: Coalition support rises after the leadership change, though Labor maintains a 55–45 two-party-preferred lead.
Making headlines this week
Best Mates
ACCC Federal Court
The Federal Court held a hearing in the ACCC’s case against supermarket giant Coles, following the regulator’s decision to commence legal proceedings over alleged misleading discount practices. The ACCC claims the retailers promoted “illusory” discounts on hundreds of products, advertising price reductions that did not reflect genuine savings for consumers. According to the regulator, the pricing tactics may have created a false impression that shoppers were receiving meaningful discounts when the reference prices had been temporarily inflated or otherwise manipulated. The court confirmed that the ACCC is seeking “a significant penalty” if Coles is found to have breached Australian Consumer Law.
Things to watch
24 February, Assistant Minister for Science, Technology and the Digital Economy, Dr Andrew Charlton, will speak at the ABE Annual Forecasting Conference.
25 February, the ABS will release CPI data.
25 February, Scientia Professor Toby Walsh will address the National Press Club, discussing AI.
25 February, RBA Governor Michele Bullock will speak at the Melbourne University Faculty of Economics & Business Foundation Dinner.
Across next week, Senate committees will hold hearings into the Capital Gains Tax Discount and digital payment schemes and emerging technologies.
IMF Warning, ASIC Review, and Real Wages Decline Updates
The IMF’s latest Australian Consultation noted the economy has achieved a soft landing, supported by strong institutions and recovering private demand. It also recommended comprehensive tax and expenditure reforms to ensure long-term fiscal sustainability.
ASIC launched a review of financial advice licensees that use lead generation services, following concerns about potential consumer harm. The regulator may take enforcement action and will publish a list of businesses using lead generation to increase transparency.
The Wage Price Index rose 0.8 per cent in the December 2025 quarter and 3.4 per cent for the year, failing to keep pace with inflation and resulting in a fall in real wages. Meanwhile, the unemployment rate remained steady at 4.1 per cent in January.
AUKUS, Private Capital, and Ministerial Developments
The Federal Government will invest $3.9 billion as an initial down payment to deliver the new Submarine Construction Yard in Osborne, South Australia, with Australian Naval Infrastructure projecting total investment of around $30 billion over the coming decades.
The Federal Government is inviting proposals from Australia’s private capital market for potential co-investment in businesses developing advanced defence and dual-use capabilities, including cyber, artificial intelligence and autonomy, electronic warfare, quantum technologies, and undersea warfare.
Richard Marles travelled to Kiribati to meet President Taneti Maamau and attend an official state reception with senior ministers and officials, before visiting the Solomon Islands to meet Prime Minister Jeremiah Manele.
EPBC Act, Alcoa, and Whyalla Moves
Several provisions of the amended EPBC Act have now commenced, including stronger environmental protections, streamlined assessments and approvals, improved information sharing, and updated exemptions and permit processes, paving the way for the establishment of a new National Environmental Protection Agency.
As part of recent reforms to the EPBC Act, Alcoa will pay $55 million for unauthorised clearing in WA’s Northern Jarrah Forest between 2019 and 2025, with monitoring, conservation offsets, and an 18-month exemption during strategic assessment.
Tim Ayres and Peter Malinauskas announced that early works have begun on the Magnetite Expansion Project near Whyalla, supported by a $20 million joint government loan to secure long-term certainty for Whyalla Steelworks.
EV, High-Speed Rail, and National Media Literacy Strategy Updates
Catherine King published the first set of performance results from the New Vehicle Efficiency Standard, showing increased uptake of cleaner, more efficient vehicles in the Australian market.
Anthony Albanese indicated that an announcement on the proposed Sydney–Newcastle High Speed Rail project will be made in the coming weeks, with costs estimated at up to $90 billion.
Anika Wells released a tender to appoint a co-design partner to assist in the development of Australia’s first National Media Literacy Strategy, aimed at equipping Australians with the skills to navigate the opportunities and challenges of the digital world.
PBS, Early Learning, NSW Industrial Relations Moves
Mark Butler announced that cystic fibrosis medicine, Vanzacaftor with tezacaftor and with deutivacaftor, will be listed on the Pharmaceutical Benefits Scheme, improving treatment affordability for about 2,650 patients.
The Australian and Victorian Governments will invest a joint $170.1 million towards delivering early learning services across Victoria’s outer suburbs and regional areas, aiming to support the establishment of eleven early learning locations across the state.
In New South Wales, the Work Health and Safety Amendment (Digital Work Systems) Bill 2025 passed parliament, granting WHS entry permit holders the right to access and inspect digital systems where breaches are suspected. These inspection powers will only commence once industry-consulted guidelines are formally established.