Weekly Wrap Up – 12 December 2025
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This week offered a clear example of how the Government is advancing its agenda in a Parliament where negotiation is increasingly important. While the Government has a majority in the House of Representatives, it does not have a Senate majority and therefore needs the support of either the Coalition or the Greens to pass legislation. On two significant pieces of legislation – the NDIS reforms and gambling reforms – the Government failed to secure Greens support but ultimately negotiated deals with the Coalition to get both Bills through.
The NDIS Bill saw the Government agree to 63 amendments sought during negotiations with the Coalition, strengthening anti-fraud and enforcement powers, as well as protections for whistleblowers and high-support participants. The deal preserved the Government’s broader objective of tightening eligibility and curbing the scheme’s growth, while the Coalition used the negotiations to press for action on the so-called “widow tax” created by changes to negative gearing.
A similar dynamic played out on gambling reform. The Government secured Coalition support after agreeing to a single opt-out register for online wagering advertising, alongside tighter restrictions on inducements, promotions and advertising. The compromise got the legislation through, but it did not satisfy everyone: David Pocock and Greens MPs argued the reforms did not go far enough, while a pair of Coalition MPs crossed the floor.
Away from the parliamentary negotiations, Assistant Treasurer Daniel Mulino used his National Press Club address to put consumer protection and superannuation firmly on the agenda. His proposals respond to the Shield and First Guardian collapses with tougher oversight of managed investment schemes, stronger protections around financial advice and greater SMSF transparency.
The thread running through the week was clear: the Government can advance its agenda, but in the Senate, getting legislation over the line increasingly depends on who it chooses to negotiate with – and what it is prepared to concede.
Top talking points
Prime Minister of Thailand Visit: Anthony Albanese hosted Prime Minister of Thailand Anutin Charnvirakul. Australia and Thailand are progressing the implementation of the Thailand–Australia Free Trade Agreement.
Productivity Commission: The Commission’s interim report found the 2018 GST reforms have “largely not achieved their intent” and cost taxpayers almost $23 billion. It was noted that Western Australia was the only jurisdiction to benefit, and a return to the pre-2018 system was recommended.
National Press Club: Dr Daniel Mulino addressed the National Press Club, outlining reforms to strengthen the superannuation sector, specifically relating to consumer protections and financial advice
Polling: Resolve polling reported Labor leads in primary vote at 28 per cent, ahead of One Nation and the Coalition, who sit on 26 and 23 per cent respectively. Additionally, 54 per cent of respondents criticised the Government’s handling of immigration, whilst 57 per cent also state immigration levels are too high.
National gun buyback: New South Wales will be the first state to implement the national gun buyback scheme, commencing on 2 November. Federal and New South Wales governments will share costs to compensate owners for newly prohibited firearms.
Making headlines this week
Parliamentary Wrap
Data Centre Moves
While the Federal Government is working to develop its National AI Standards, state and territory governments are increasingly taking steps of their own to shape policy settings for AI and data centres.
At a meeting of Australian Water Ministers, minimum national requirements for data centres were agreed to, with the exception of Queensland. These relate to water efficiency, climate resilience, consumption reporting and contributions to water infrastructure costs. Ministers also agreed to the Australian principles for sustainable water use for AI and data centres, which will support the requirements and will now be considered by National Cabinet.
Tony Burke moved to refer a new inquiry into artificial intelligence to the Joint Select Committee on Artificial Intelligence. The inquiry will examine AI’s economic, sovereign capability, regulatory, workforce, safety and national security implications, with a report due by 30 November 2026. Separately, the Productivity Commission’s final report on National Water Reform, due by 28 February 2027, is expected to influence Australia’s water policy settings too.
At the state level, New South Wales introduced a Data Centre Policy Framework to support investment while ensuring data centres contribute to associated energy, water and community infrastructure. The framework includes new Data Centre Guidelines, electricity network cost-recovery reforms and an IPART review of water pricing. Developers meeting the Guidelines’ six performance principles may access a streamlined 75-day planning assessment. NSW DCCEEW is also consulting on 10 electricity network reforms, with submissions closing 14 September 2026. Elsewhere, in Tasmania, the House of Assembly Government Administration Committee commenced an inquiry into AI Data Centres, with submissions closing on 21 September.
Things to watch
26 August, the ABS will release CPI and Construction Work Done data.
26 August, ASIC Chair Sarah Court will address CEDA in Sydney.
26 August, Universities Australia Chair Professor Carolyn Evans will address the National Press Club, discussing Australia’s university sector.
27 August, the ABS will release Private New Capital Expenditure and Expected Expenditure data.
Regulatory focus on foreign investment, AI risks and scams
Treasury opened consultation as part of its review of conditions attached to existing foreign investment approvals, including whether conditions duplicate other regulatory requirements or require modernisation.
APRA released its 2026–27 Corporate Plan, reaffirming its focus on financial system safety and stability while seeking to minimise unnecessary regulatory costs. A key priority for the year is strengthening regulated entities’ resilience to AI-enabled cyber threats.
ASIC is warning Australians that AI-generated investment opportunities may be scams, with fraudsters increasingly using generative AI to create convincing websites and fake celebrity or political endorsements.
Australia deepens regional defence ties and Japan cooperation
Richard Marles travelled to Papua New Guinea to meet Prime Minister Marape and Defence Minister Elias Kapavore. Discussions focused on strengthening defence cooperation and advancing implementation of the Pukpuk Treaty.
Marles also visited the Solomon Islands to meet Prime Minister Wale and senior ministers. During his visit, he also opened the Western Border Outpost in the Shortland Islands, which the Federal Government is investing more than $100 million in.
Pat Conroy announced the successful trial of the co-developed Boobook laser system by Australia and Japan, marking their first joint defence industry project. The project supports Australian manufacturing, with Mitsubishi Electric investing $70 million in a new facility.
Fuel, environment and grocery price politics
Chris Bowen released two consultation papers under the Government’s $14.8 billion Fuel Security and Resilience Package, covering strategic fuel reserves and development of a domestic low-carbon liquid fuels industry.
Murray Watt announced Australia’s first National Environmental Standards following the Samuel Review of the EPBC Act. The Standards cover Matters of National Environmental Significance, Environmental Offsets, Community Engagement, and Data and Information. Standards will apply to new state and territory bilateral agreements from next week, with broader application effective from 1 December 2026.
Sean Bell moved a motion to refer an inquiry into rising grocery prices to the Economics References Committee. The motion was defeated, with the Coalition, One Nation and several crossbench Senators supporting it, and Labor, the Greens and other crossbench Senators opposing it.
High-speed rail and sovereign AI capability advance
Catherine King announced a shortlist of three major construction consortia to help develop the Newcastle–Sydney high-speed rail route. The Government also selected global high-speed rail manufacturers and suppliers to help shape the trains and technology for the project, marking another step in its development.
In an address at ANU, Andrew Charlton argued Australia needs to build greater sovereign AI capability, warning that too much of the economic value generated by AI could flow offshore without stronger investment in local compute, infrastructure, skills and technology.
Aged care, universities and wages in focus
Mark Butler announced the Government will extend the Commonwealth Home Support Program to June 2029. This will provide certainty for 830,000 older Australians and 1,300 aged care providers, whilst also undertaking consultation on the program’s long-term future.
The Universities Accord (Opening the Doors of Opportunity) Bill passed the House of Representatives. The Bill aims to deliver $3.6 billion in additional university funding over the next decade and, subject to Senate passage, would establish a statutory framework for allocating international student numbers in line with the Government’s National Planning Level.
New ABS data shows wages rose 0.8 per cent in the June quarter and 3.2 per cent over the year, marking four consecutive years of nominal wage growth above 3 per cent. Real wages increased 0.2 per cent in the quarter but remained 0.8 per cent lower over the year, reflecting the continued impact of inflation.