While both major parties are in campaign mode, the bean counters in Canberra are hard at work with Treasurer Jim Chalmers scrambling to prepare a budget he did not realistically expect to deliver.
In his hometown of Brisbane, Treasurer Chalmers delivered a pre-Budget address at the Queensland Media Club. Although no pre-Budget announcements were made, Treasurer Chalmers confirmed that Australia is back in the red with a budget deficit of $26.9 billion forecast for this financial year and the forward estimates.
While inflation is expected to continue on its downward trajectory, recent polling found that more than half of voters are blaming the Albanese Government for their rising power prices. We can expect cost of living relief to be front and centre in both the Treasurer’s Budget and Opposition Leader Peter Dutton’s Budget-in-Reply next week.
This follows Prime Minister Anthony Albanese’s major health policy announcement yesterday, which will see the cost of medicines on the Pharmaceutical Benefits Scheme decrease to $25, down from $31.60.
With election season in the air, get ready for Budget Bingo next week.
Top talking points
📊 Redbridge polling: Labor leads[Paywall]the Coalition 51-49 on a two-party preferred basis, but voters hold the Albanese Government responsible for rising household power bills.
💼 Industrial relations debate: ACTU President Michele O’Neil and ACCI CEO Andrew McKellar faced off[Video]at the National Press Club on workplace relations.
🌏 Australia-Canada relations: Prime Minister Anthony Albanese congratulated Mark Carney on becoming Canada’s new Prime Minister.
🚧 CFMEU scandal: The Coalition outlined plans to crack down on criminal behaviour in the construction industry.
🏛 NSW and WA ministerial reshuffles: Changes to ministerial teams were announced in both state governments, with new appointments and portfolio shifts in NSW and WA.
Making headlines this week
US trade tensions extend to beef and pharmaceuticals
The impact of US tariffs on Australian exports continues to grow, with concerns now extending beyond steel and aluminium to include beef and pharmaceuticals. The latest developments come after 25 per cent tariffs on Australian steel and aluminium imports took effect last week.
Trade Minister Don Farrell has expressed optimism and is advocating for exemptions from additional beef and pharmaceutical tariffs, with Australia offering guaranteed access to critical minerals as part of its case for relief. The discussions follow a recent meeting with US Trade Representative Jamieson Greer, where the broader US-Australia trade relationship was on the agenda.
ACCC Calls for Supermarket Reforms to Enhance Transparency and Fairness
The ACCC’s final report on the supermarket sector has outlined 20 recommendations to address concerns over competition and pricing transparency. Key proposals include:
🔹 Pricing transparency: Supermarkets should publish all prices online and notify consumers of product size reductions (“shrinkflation”).
🔹 Supplier protections: Stronger bargaining rules to prevent unfair negotiations with fresh produce suppliers.
🔹 Loyalty programs and rebates: Greater transparency on supermarket-funded promotions and supplier contributions.
Things to watch
📅 Budget Week begins: Federal Parliament returns on Tuesday, 25 March with the Federal Budget delivered at 7:30 pm. The Opposition’s Budget reply follows on Thursday, 27 March, with both sides expected to focus on cost of living relief.
🏛 State and territory parliaments sit: NSW and NT Parliaments will also be in session next week.
Foreign investment, superannuation reforms, and labour market trends
Treasury released updated guidance on foreign investment applications, aiming to simplify Australia’s foreign investment framework. The guidance includes additional details on investment rules for Build to Rent developments, new eligibility criteria for partial application fee refunds, and clarifications on tax agreements.
Consultation has also opened on draft legislation for the transition to payday super, which proposes changes to how certain superannuation products are advertised and how employees are onboarded. Submissions close on 11 April.
Meanwhile, the latest ABS Labour Force figures show the unemployment rate remained steady at 4.1 per cent in February.
Naval upgrades and defence contracts
Australia reaffirmed its support for Ukraine at a Coalition of the Willing meeting hosted by UK Prime Minister Keir Starmer, alongside leaders from Europe, Canada, New Zealand, and Ukrainian President Volodymyr Zelenskyy.
In defence, uncertainty surrounds[Paywall] the planned life-of-type extensions for the Navy’s Collins-class submarines, after reports that shipbuilding company ASC had not completed necessary preparations for upgrades due to begin in 2026. Meanwhile, a $400 million contract has been signed with Navantia Australia to provide engineering and design services for the Australian Navy.
Clean energy investment, Great Barrier Reef funding, and state energy measures
As part of broader efforts to support emissions reduction in heavy industry, $750 million has been allocated to support low emissions technology and innovation in metals development.
Elsewhere, $80 million has been committed to improving water quality flowing into the Great Barrier Reef, with funding directed toward wetlands restoration and urban waterway pollution reduction.
In state energy policy, the NSW Government has urged energy retailers to defer electricity bills and waive fees for northern NSW residents recovering from ex-Tropical Cyclone Alfred. Meanwhile, in Queensland, Australia’s first HW300 Highwall Miner has been deployed in the Bowen Basin, enhancing coal seam access and operational safety.
NBN board appointments, Brisbane Arena funding, and Melbourne Airport rail
Two new Non-Executive Directors have been appointed to the NBN board, with Mr Chum Darvall and Ms Jules Scarlett set to begin three-year terms this week, while Ms Pam Bains has been reappointed for a further two years.
In infrastructure, support has been pledged for the Brisbane Arena, with backing for the project linked to its potential as a world-class venue beyond the 2032 Olympic Games. The Brisbane 2032 delivery plan is set to be announced next week.
State and federal commitments have been reaffirmed to deliver the Melbourne Airport rail link, a project long debated as a critical piece of Victoria’s transport infrastructure.
Medical fee transparency, construction payment reforms, and school funding
A $7 million commitment has been made to revamp the Medical Costs Finder website, aiming to improve transparency around average doctors’ fees. Additionally, Professor Michael Kidd AO has been appointed as Australia’s next Chief Medical Officer, effective 1 June.
In employment, new measures to prevent phoenixing conduct in the construction sector have been announced, ensuring tradies and subcontractors are paid on time.
In education, a new school funding agreement has been signed between the Federal and Tasmanian Governments, following a similar deal with the ACT last week.
In case you missed it...
📺 Protesters disrupted Treasurer Chalmers’ pre-budget speech, calling for an end to new coal and gas projects before being removed by security: