Weekly Wrap Up – 12 December 2025
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Following months of debate, Australia’s approach to artificial intelligence came to a head this week as Prime Minister Anthony Albanese convened National Cabinet seeking agreement on a national framework. While Wednesday’s meeting did not resolve all outstanding issues, leaders agreed that one thing was clear, Australia cannot succeed with eight different sets of rules.
The Prime Minister kicked off the week with a speech to the Business Council of Australia, where he sought to elevate the debate on AI beyond tech policy and data centres, instead framing it as a question of Australia’s future prosperity, productivity and sovereignty. The message was simple: the AI race is underway, and Australia cannot afford to watch from the sidelines.
Following pushback from Queensland and the Northern Territory, particularly around renewable energy requirements for new facilities, Albanese was forced to temper his ambitions for a national AI and data centre framework. By the end of the meeting, Albanese had secured what he described as a “common position”, but one that appears considerably more flexible than the Commonwealth’s original proposal, with further detail on energy requirements still to be worked through.
The Prime Minister’s repeated references to “social licence” this week were telling. The Government wants investment, but only if communities believe the benefits outweigh the costs. The Prime Minister’s next challenge will be convincing Australians that data centres powering the next wave of economic growth will not drive up power bills, strain water supplies or leave local communities behind.
With inflation and cost of living pressures having dominated his prime ministership thus far, this week felt like the clearest indication yet that the Prime Minister wants to shift the national conversation from managing today’s challenges to building tomorrow’s economy. The politics of that transition may prove just as complex as the technology itself.
Making headlines this week
National Cabinet tackles AI, biosecurity and energy security
GST Debate Intensifies
Debate over the future of Western Australia’s GST arrangements intensified following the Productivity Commission’s interim report which found that the 2018 reforms have “largely not achieved their intent” and cost taxpayers almost $23 billion. While the Commission recommended the arrangements be wound back, the Prime Minister used a series of appearances in Western Australia to unequivocally rule out any changes, insisting the 75-cent GST floor would remain in place, arguing Western Australia deserves its “fair share” as a major driver of the national economy. The Commission subsequently defended its analysis amid criticism from both the Prime Minister and Western Australian Premier Roger Cook, warning attacks on its integrity risk undermining confidence in independent policy institutions.
Things to watch
31 August, the ABS will release Business Indicators data.
1 September, the ABS will release Building Approvals data.
2 September, Chanel Contos will address the National Press Club to discuss algorithmic harms and online radicalisation.
2 September, the ABS will release Australian National Accounts data.
Regulatory priorities and Future Fund Developments
ASIC released its 2026-27 Corporate Plan, setting out a regulatory agenda focused on consumer protection, market integrity, responsible innovation and reducing unnecessary compliance burdens. Priority areas include oversight of artificial intelligence and strengthening accountability for superannuation trustees. ASIC Chair Sarah Court said the regulator will be “easier to deal with” for compliant businesses and “harder to avoid” for those causing harm.
APRA and ASIC urged financial market participants to proactively identify and manage risks associated with frontier artificial intelligence. The warning follows a series of industry roundtables that highlighted the importance of strong cyber security fundamentals, clear incident response frameworks and industry-led collaboration.
Jim Chalmers welcomed the Future Fund’s 14.8 per cent return for 2025-26, up from 12.2 per cent the previous year. The Government also acknowledged the contribution of Future Fund CEO Dr Raphael Arndt, who announced he will depart after almost two decades with the organisation.
Regional engagement and Diplomatic Appointments
Richard Marles and Penny Wong hosted their Indonesian counterparts for the 10th Australia-Indonesia Foreign and Defence Ministers’ Meeting. Discussions focused on defence cooperation, regional security, economic ties and development priorities.
Penny Wong announced three appointments to the Centre for Australia-India Relations Advisory Board, including AirTrunk founder and CEO Robin Khuda, Adarsh Australia Director Faz Pollard, and UNSW Professor Veena Sahajwalla AO.
Federal Labor MP Luke Gosling stood aside as Special Envoy for Defence, Veterans’ Affairs and Northern Australia following charges relating to assault and an alleged breach of bail.
Energy transition and critical minerals investment gather pace
Chris Bowen hosted his Chinese counterpart for the 10th Australia-China Ministerial Dialogue on Climate Change, with discussions focused on energy security, electrification, emissions reduction and net zero opportunities. Both countries agreed to strengthen cooperation ahead of COP31 and continue to collaborate on emissions accounting and climate adaptation initiatives.
Madeleine King and Tim Ayres marked the commencement of the Alcoa-Sojitz Gallium Recovery Project in Western Australia, a key investment aimed at strengthening critical mineral supply chains. Once operational, the facility is expected to produce up to 10 per cent of global gallium supply.
AEMO’s 2026 Electricity Statement of Opportunities found electricity reliability will increasingly depend on new generation, storage, and transmission projects being delivered on time as coal-fired power retires and demand grows. The report also forecasts that data centre electricity consumption will increase sevenfold over the next decade.
Housing, digital regulation and net zero developments
Clare O’Neil announced a $120 million investment from the National Reconstruction Fund will go towards a new advanced housing manufacturing facility in Western Australia, alongside contributions from Wesfarmers and the State Government. The facility is expected to produce more than 2,000 modular apartments annually, helping accelerate housing supply and reduce construction costs.
The Senate Standing Committees on Environment and Communications recommended the Online Safety Amendment (Strengthening Enforcement for the Social Media Minimum Age) Bill 2026 be passed, noting stronger enforcement powers are necessary for the eSafety Commissioner. The Committee also noted concerns around age assurance and unintended consequences should be assessed through the legislation’s independent review.
Catherine King released the Maritime Emissions Reduction National Action Plan, outlining measures to reduce emissions across Australia’s shipping and port sectors while maintaining competitiveness. Priorities include cleaner port infrastructure, support for emerging maritime technologies and strengthening workforce capability.
Preventive health, construction reform and women’s health in focus
Rebecca White convened a clinical roundtable as part of the Ministerial Expert Panel on Women’s Health, bringing together clinicians and researchers to examine women’s experiences of cardiovascular disease and inform future policy and health system reforms.
Amanda Rishworth launched consultation on proposed construction standards seeking to improve productivity, project delivery, workforce outcomes and industry performance. The reforms form part of the National Construction Industry Forum’s ‘Blueprint for the Future’, with the intention to establish clearer expectations and behavioural standards across the construction sector.
The New South Wales Government confirmed the NSW Preventive Health Summit will be held in Parramatta from 7-9 October. Discussions will focus on chronic disease prevention, mental health, healthy ageing and health equity. The outcomes are expected to support future policy development.
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