Weekly Wrap Up – 12 December 2025
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Two weeks after handing down the Federal Budget, Labor is facing what is quickly becoming the most difficult Budget to sell since 2014. The Coalition’s 2014 Budget was presented by Treasurer Joe Hockey as an exercise in fiscal repair, but voters heard unfairness and overreach. In 2026, Labor is arguing that its Budget is an exercise in intergenerational fairness and equity, but critics are increasingly framing it as an attack on aspiration.
With key measures due to commence from 1 July, the Government is attempting to push through legislation at speed. The signature tax bill introduced by the Treasurer is designed to progress the Budget’s revenue measures quickly and politically wedge the Coalition over tax cuts; a play from the 2025 pre-election Budget.
Major NDIS changes are also due to start on 1 July. However, what was meant to be an orderly bipartisan process is rapidly becoming a test of authority for the major parties. Coalition figures, including Melissa McIntosh, are openly questioning whether the Government’s reforms are being rushed without sufficient scrutiny, threatening to withdraw Opposition support unless the government agrees to further inquiry and negotiations. With the Greens poised to oppose the Bill in the Senate, the Government will need the Coalition’s support to secure passage.
Elsewhere, Senate Estimates provided the usual political theatre, as well as the backdrop for three significant resignations: Head of the NACC, Paul Brereton, the ABC’s Director of News, Justin Stevens, and KPMG CEO, Andrew Yates.
Beyond Parliament, the latest RedBridge and Accent Research polling continues to point to a fragmented electorate, with One Nation strengthening its position in outer-suburban and regional Australia at the expense of both major parties. On the progressive side, discussions surfaced between several Teal Independents about forming a formal party, driven in part by new political donation laws and staff allocations. Allegra Spender and Zali Steggall argue it would provide coherence and endurance, while others , such as Monique Ryan, warn it risks weakening the community-driven identity that underpins their appeal.
The week’s broader lesson is that once a Budget becomes defined by who loses, the merits of reform become much harder to prosecute. The question now is whether Labor will hold firm and weather the political storm or begin carving out concessions that weaken both the policy and the story behind it.
Making headlines this week
Post-Budget Reply Address
Start-Up Alarm
Anthony Albanese and Chris Bowen communicated that Australia has 43 days of petrol reserves, 38 days of diesel reserves and 31 days of jet fuel reserves – all higher than levels recorded when the conflict began in February. Albanese stated that diesel supplies, which had been a major concern for farmers and freight operators, had particularly improved. Chris Bowen also confirmed Australia secured 660,000 barrels of additional jet fuel from China following discussions between Chinese Premier Li Qiang and Penny Wong in a recent visit to Beijing. However, Albanese warned global instability could still place pressure on fuel prices and supply chains in the coming months, particularly if tensions in the Middle East continue to escalate or disrupt major international shipping routes.
Things to watch
2 June: The House of Representatives will sit and Budget Estimates will be held.
2 June: The AFR will host the AI Summit 2026 in Sydney.
2 June: Michael Liebreich will address the National Press Club, discussing the clean energy transition.
2 June: The ABS will release Business Indicators, Balance of Payments, and Building Approvals data.
3 June: Michael Wright and Alison Pennington will address the National Press Club, discussing Australia’s industrial challenges.
3 June: The ABS will release National Accounts data.
4 June: Tom Koutsantonis will hand down the 2026–27 South Australian State Budget.
5 June: The ABS will release Labour Account data.
Scam Prevention Framework, Treasury and APRA Updates
Daniel Mulino reiterated that banking, telecommunications, and digital platforms will be the first sectors designated under the Scams Prevention Framework, requiring entities to strengthen scam prevention and response measures before new regulations take effect on 31 May 2027. Treasury has released draft rules and (mandatory) sector codes for consultation.
Treasury opened consultation on the proposed 2026–27 Financial Institutions Supervisory Levies, which APRA collects to fund its operations and related costs incurred by the ATO and Treasury.
Following the Review into Small and Medium-Sized Banks, APRA outlined plans to introduce a three-tiered proportionality approach within its banking prudential framework.
Fertiliser, PFAS, and Defence Appointment Developments
Through Export Finance Australia, the Government has partnered with Incitec Pivot to support the purchase of two urea shipments from PT Pupuk, totalling around 80,250 tonnes. This included part of the 250,000 tonnes of agricultural-grade urea secured through the company.
Michelle Rowland launched legal action in the Federal Court of Australia over PFAS contamination at 28 Defence bases. More than $2 billion to recover environmental remediation, long-term management and associated clean-up costs is being sought.
Richard Marles announced the appointment of Alan Clements as CEO of CEA Technologies Pty Ltd for a five-year term. Clements previously held senior roles in the Royal Australian Air Force and defence industry, most recently with L3Harris Technologies.
Whyalla Steelworks, COP31, and Environmental Approvals Moves
The Federal and South Australian Governments shortlisted two final bidders for the sale of Whyalla Steelworks. Alongside a new owner, both governments will invest up to $1.9 billion to modernise the site into a low-emissions steelmaking facility.
Australia and Türkiye released a joint COP31 Presidency letter outlining shared priorities for the summit, with a focus on clean energy, resilient infrastructure and stronger global climate cooperation. Pacific nations will play a central role in shaping climate action planning.
Murray Watt announced the environmental approval for Blackbutt’s 400MW Tumuruu solar farm and 100MW battery project in Queensland, assessed in 19 days. The project is expected to power around 160,000 homes and cut emissions by up to 870,000 tonnes annually.
ANL Kokoda, AI, and New South Wales Updates
Catherine King announced the expansion of Australia’s strategic maritime capacity with the new ANL Kokoda, the first vessel in the Strategic Fleet initiative. The ship will strengthen supply chain resilience by supporting essential freight movements and improving access to critical goods during disruptions.
Australia and the UK agreed to deepen cooperation on AI safety and security through a new partnership, strengthening joint research, testing, and standards development. The initiative will support safer AI deployment and enhance coordination between regulators and national AI institutes.
The New South Wales Government established the Bays West Delivery Authority to accelerate development of Sydney’s newest suburb, coordinating planning, infrastructure and precinct delivery. The authority aims to fast-track housing, jobs and public spaces, transforming the former industrial area into a major urban hub.
Education Appointment, Workforce Australia Reform, and National Menopause Campaign Developments
Jason Clare appointed Professor Barney Glover to lead Australia’s Tertiary Education Commission, steering university reform, funding changes, and skills integration.
Amanda Rishworth announced reforms to Workforce Australia, introducing tailored support streams, personalised obligations, improved assessments, and targeted measures to better help jobseekers secure suitable employment.
Mark Butler announced Australia’s first national menopause campaign as part of the Government’s $792.9 million women’s health package.