Highlights

• Treasurer Jim Chalmers and Minister for Finance Katy Gallagher delivered the Mid-Year Economic and Fiscal Outlook (MYEFO), revealing a forecasted $26.9 billion deficit for this financial year. Read GRACosway’s detailed overview of MYEFO here.
• Prime Minister Anthony Albanese confirmed the repatriation of five Australian members of the ‘Bali Nine’ from Indonesian prison after successful negotiations with new Indonesian President Prabowo Subianto.
• Treasurer Jim Chalmers appointed six new members to the Reserve Bank of Australia’s (RBA) Monetary Policy and Governance Boards. The appointments follow the passage of legislative reforms to the RBA in late November.
• Minister for Industry and Science Ed Husic announced the development of a National Artificial Intelligence (AI) Capability Plan, expected to be released by the end of 2025.
• The Hon Tim Pallas announced his resignation as Treasurer of Victoria, Minister for Industrial Relations and Minister for Economic Growth, as well as the Member for Werribee after 18 years in politics. The Hon Jaclyn Symes was appointed his successor.

VIC Government CFMEU Response

VIC Premier Jacinta Allan released the Government’s response to the final report of the state’s independent investigation into its relationships with construction unions. The investigation was spurred by allegations that the construction and general division of the Construction, Forestry & Maritime Employees Union (CFMEU) had engaged in corrupt and criminal activities.

The Government accepted all eight of the Report’s recommendations in principle or in full. Greg Wilson, Acting Commissioner of the Victorian Public Sector Commission, led the review. It confirms that organised crime figures and bikies had infiltrated the CFMEU.

While the Review identified that the most relevant changes to the CFMEU are the responsibility of the Commonwealth, the Victorian Government will pursue its measures to improve culture and transparency within the sector. These include establishing a complaints referral body to triage complaints relating to Victorian Government construction sites; consulting on measures to strengthen the Labour Hire Authority’s (LHA) regulatory powers; and strengthening labour hire laws by establishing a “fit and proper person” test for senior positions within the sector.

Government Responses to Islamophobia

Several senior federal and state parliamentarians condemned Islamophobic graffiti in Western Sydney, with the NSW Police confirming they have launched a formal investigation. The incident comes as domestic tensions over the Israel-Hamas conflict continue to rise domestically with political leaders calling for unity.

In his first interview as Special Envoy to Combat Islamophobia, Aftab Malik called Islamophobia a “hidden cancer.” Likewise, NSW Premier Chris Minns emphasised that “division and conflict around the world cannot be allowed to be imported onto the streets of Sydney.” Other religious bodies such as the NSW Jewish Board of Deputies and the Australian National Imams Council condemned the incident. Other states have also committed to implementing further measures to restore social cohesion, including Victoria which announced it will ban the use of terrorist symbols in public, among other things.

Looking Ahead

No parliaments will sit next week.

Finance

Federal Developments

Treasurer Jim Chalmers published the 2024‑25 Tax Expenditures and Insights Statement, reflecting policy decisions included in the 2024‑25 MYEFO. Treasury is reviewing 48 tax concessions, particularly concessions on superannuation, as the combined estimate of aggregate revenue forgone for concessional taxation of superannuation contributions and earnings amounted to over $55 billion for this financial year.
 
The Australian Securities and Investments Commission announced it will sue HSBC Australia, alleging it failed to protect its customers from scammers. This legal action relates to approximately 950 reports of unauthorised transactions alleging customer’s loss of roughly $23 million.
 

State Developments

VIC Treasurer Tim Pallas handed down the 2024-25 Budget Update. The State’s deficit has increased by $1.4 billion this financial year since the May 2024 Budget, attributed by the Treasurer to additional funding allocations for the State’s hospitals. The Update also announced the creation of a new Emergency Services and Volunteers Fund to replace the Fire Services Levy, the removal of the $100 car registration discount for electric vehicles, and an increase in the congestion levy rate as a revenue-raising measure.
 
The SA Government delivered its 2024-25 Mid-Year Budget Review (MYBR), reporting an estimated $201 million operating surplus in 2024-25. It is expected that net debt will rise to $46 billion by the end of the forward estimates, due to advancing spending on the Torrens to Darlington tunnels project. The Government committed $672.5 million over four years towards the public health system and $365.6 million for critical water and wastewater infrastructure.
 
The NSW Government released its Half-Yearly Review, stating it is “broadly in line with Budget expectations.” The Review reports a projected deficit of $4.98 billion in 2024-25, up from $3.6 billion in the Budget, driven by increased expenses for insurance and compensation schemes, higher interest expenses on borrowings, and a decline in State taxation revenue receipts.

Foreign Affairs, Defence and Trade

Federal Developments

Minister for Foreign Affairs Penny Wong and Minister for Defence Richard Marles travelled to the UK for the Australia-UK Ministerial Consultations with their UK counterparts. Discussions focused on the AUKUS agreement, strategic challenges in the Indo-Pacific region, and ongoing conflicts in Ukraine and the Middle East.
 
Minister for Defence Richard Marles and Minister for Defence Personnel Matt Keogh announced the Albanese Government will conduct a series of studies to gauge the future transport and infrastructure needs of HMAS Stirling in Rockingham, WA. As part of the AUKUS agreement, HMAS Stirling will rotationally host United States and United Kingdom submarines from 2027.
 
Minister for Defence Industry and Capability Delivery Pat Conroy announced that, following a recommendation from the Department of Defence, the Collins class submarine will be listed as a Product of Concern. A Product of Concern Summit will be held in early 2025 to develop a remediation plan to maintain the submarines until their withdrawal from service. The Royal Australian Navy’s Collins-class submarines are operating beyond their original design life. 

Environment, Resources, Energy and Agriculture

Federal Developments 

The Federal Government via the Australian Renewable Energy Agency (ARENA) is providing $14.1 million to develop sustainable aviation fuels (SAF). Ampol and GrainCorp both received funding for separate projects to develop renewable fuel alternatives. GrainCorp will investigate an oilseed crushing facility that will look to use canola oil as a feedstock input for SAF production. The facility could have the capacity to produce a minimum of 330kt per annum of canola oil.
 
The Federal Government announced the Torres Strait and Northern Peninsula Area Climate Resilience Grant Program. The program will support the Torres Strait and Northern Peninsula Area Climate Resilience Centre, along with regional organisations, to recruit local First Nations climate resilience officers.
 

State Developments 

The NSW Government announced a new planning pathway to fast-track temporary housing for major infrastructure project workers. Under the pathway, construction worker accommodation can be built in residential zones with streamlined approvals. This initiative is expected to help reduce strain on regional rental markets during construction phases.
 
The WA Government announced $75 million to support a pilot electric smelting furnace at Kwinana. The pilot in partnership with BlueScope, BHP, Rio Tinto and Woodside, will test the technology to produce iron without metallurgical coal. A final investment decision is expected in 2026 following a pre-feasibility phase.

Infrastructure, Transport and Communications

Federal Developments

Minister for Housing and Homelessness Clare O’Neill announced a new fast-tracked funding round for social housing projects under the Housing Australia Future Fund, in partnership with State and Territory Governments. This partnership will see $3 billion in further funding from the Housing Australia Future Fund committed to building up to 5,000 homes for the lowest-income Australians. 
 
The Australian Government launched the News Media Assistance Program (News MAP) which will invest $180.5 million to support public interest journalism, enhance media diversity, and sustain smaller news publishers. This includes $33 million for the Australian Associated Press newswire service and $116.7 million to support news organisations in delivering local news.
 
The Australian Broadcasting Corporation (ABC) Board unanimously appointed Hugh Marks as the new Managing Director, succeeding David Anderson. Mr Marks, the former CEO of Nine Entertainment, is known for overseeing the landmark merger of Nine and Fairfax Media. His five-year term will commence on 10 March 2025.
 
Minister for Communications Michelle Rowland announced the appointment of Dr. Nicholas Pappas AM to the Special Broadcasting Service (SBS) Board, replacing Peeyush Gupta AM. Recommended by an independent Nomination Panel, Dr Pappas brings extensive experience in law, culture, and sport, and has been a long-term advocate for multicultural Australia.

State Developments

The NSW Government confirmed an In Principle Agreement with private toll-road operators is expected to be completed by the end of the year. The agreement includes approaches to reform the pricing structure of the state’s tolling network and revising toll-road contracts. The Government’s approach is informed by the recommendations of the Final Report from the Independent Toll Review.

Health and Education

Federal Developments 

The Federal Government replaced Ministerial Direction 107 with Ministerial Direction 111, which prioritises visas for international students enrolled in regional and outer metropolitan higher educational institutions. The new direction, which came into effect immediately, comes as legislation to cap international students was blocked in the Parliament earlier this year
 
Minister for Health Mark Butler announced a $300 million investment to address pressing health challenges and support medical research. Funded via the National Health and Medical Research Council’s Ideas Grants scheme, the investment will support academic and medical researchers in developing ground-breaking treatments for a range of medical issues.
 
The Federal Government reached an agreement with Sanofi and the Pharmaceutical Benefits Advisory Committee (PBAC) to secure the listing of Dupixent on the Pharmaceutical Benefits Scheme (PBS). This will provide approximately 20,000 Australians living with severe eczema access to life-changing treatment at affordable PBS prices.
 
The Federal Government released the National Aboriginal and Torres Strait Islander Suicide Prevention Strategy 2025-2035. In line with Closing the Gap Target 14, the Strategy includes establishing numerous social and emotional wellbeing measures aimed at supporting First Nations Australians with mental health issues and related matters.
 
Minister for Aged Care Anika Wells announced the appointment of Liz Hefren-Webb as the new Aged Care Quality and Safety Commissioner. Ms Hefren-Webb has extensive career experience as a public servant, including particularly expertise in social and public policy development. She will commence in the role in January.