Weekly Wrap Up – 12 December 2025
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With only a handful of sitting weeks remaining before Parliament rises for the year, the Government is entering a critical period. Since the 2026-27 Budget, the political environment has been far more challenging than Labor would have anticipated. Cost of living pressures remain acute, inflation has moved back up to 4.3 per cent, and financial markets are now largely expecting the Reserve Bank to raise interest rates again when it meets next week.
Against that backdrop, Greens leader David Shoebridge used his first National Press Club address to unveil a proposal that may surprise some observers. While the Greens’ plan would still be funded through higher taxes on gas exports and resource profits, the centrepiece is a broad-based income tax cut, lifting the tax-free threshold from $18,200 to $26,000 and delivering up to $1,092 a year back to taxpayers.
Politically, the significance lies less in the policy itself and more in what it says about where the Greens see the electoral mood. Shoebridge appears to recognise that voters are increasingly focused on household budgets and take-home pay, not simply structural critiques of wealth and inequality. It is a notable attempt to position the Greens as a cost-of-living party as much as a climate and social justice movement. This positioning comes at a time when the Government is looking to tighten its belt and is damping expectations on its ability to deliver further tax cuts, whilst pointing to the inflationary impact of the Coalition and One Nation tax policies.
For Labor, the economic challenge is becoming more difficult. The Government continues to point to global instability, energy markets and international economic pressures as key drivers of inflation. While those factors are real, that argument risks losing traction as Australians continue to experience rising mortgage repayments, rents, insurance costs and grocery bills. Fairly or unfairly, voters tend to judge governments on the prices they see each week, not the causes outlined in Treasury briefings. With Parliament’s final sitting weeks approaching, expect a concerted effort from Labor to regain control of the narrative and finish the year on stronger political footing.
Top Talking Points
Dr Helen Haines: The Prime Minister and MP’s paid tribute to Helen Haines in Parliament on Monday.
National Press Club: Leader of the Australian Greens David Shoebridge addressed the National Press Club, where he outlined plans for higher mining taxes, renewable investment and economic reform.
Western Sydney International Airport: The Federal and New South Wales Governments officially opened Western Sydney International Airport, marking a major infrastructure milestone for Western Sydney.
Inflation data: Australia’s annual inflation rate increased from 4.0 per cent to 4.3 per cent in September. All four major banks expect the RBA to raise the official cash rate at its upcoming meeting on 3 November.
Polling: Guardian Essential polling shows Labor on 28 per cent, ahead of the Coalition on 23 per cent, while One Nation and the Greens sit at 28 per cent and 12 per cent respectively.
Making headlines this week
Senate Estimates
Parliamentary Wrap
The Government’s Online Safety Amendment (Digital Duty of Care) Bill 2026 passed the House with amendments this week, where the Prime Minister delivered a second reading speech arguing the reforms are the next step in holding digital platforms accountable for foreseeable harm and protecting children online. The Bill will now proceed to the Senate but remains subject to the Senate Environment and Communications Legislation Committee inquiry, which is due to report on 20 November. Labor will need the support of either the Opposition or the Greens to pass the legislation through the Senate. Separately, the Government secured House passage of the Domestic Gas Reservation Bill 2026, seeking to establish a national gas reservation framework. The legislation now moves to the Senate, where industry concerns over investment impacts and market intervention are expected to drive further scrutiny.
Things to watch
2 November, the ABS will release Building Approvals data.
3 November, the RBA Monetary Policy Board will convene to decide the official cash rate.
4 November, Peter Garrett and Admiral Chris Barrie will address the National Press Club, discussing AUKUS.
4 November, the ABS will release Selected Living Cost Indexes data.
5 November, CEDA will host Ryan Park for the Health Delivery NSW Conference.
Treasury and Finance
The Government introduced its next tranche of CGT reforms into the House under the Treasury Laws Amendment (Tax Reform No. 4) Bill 2026. The Bill establishes the Innovative Business CGT Concession, allowing eligible investors, founders and employees in innovative startups to retain access to the 50 per cent CGT discount.
Daniel Mulino announced a new Financial Innovation Committee will be established, bringing together nine industry leaders with representatives from Treasury, the RBA, APRA and ASIC. The forum will seek to strengthen collaboration between government, regulators and industry to identify and prioritise opportunities for financial innovation and improved policy, regulatory and market outcomes.
Treasury released the joint statement from the UK–Australia Joint Financial Regulatory Forum, with Australian officials highlighting increased regulatory focus on private markets, including private credit, superannuation investment in unlisted assets, and valuation and governance practices. The statement also covered proposals to strengthen data collection and regulatory visibility of the private credit sector.
Treasury opened consultation on measures to strengthen competition and productivity in the financial sector, including raising the covered bond issuance cap to improve banks’ access to lower-cost funding and streamlining Financial Accountability Regime reporting for smaller banks.
DFAT and Defence
Penny Wong travelled to the United States to attend the G20 and the Quad Foreign Ministers Meeting. Conversations centred on the conflict in the Middle East, including its disruption to global energy supplies and supply chains. Australia also joined the European Union-led ‘No Fees/No Tolls’ pledge opposing unlawful fees and tolls on international shipping.
Richard Marles travelled to the Philippines to represent Australia at the 13th Association of Southeast Asian Nations (ASEAN) Defence Ministers’ Meeting Plus, during which he met with counterparts to discuss shared challenges and opportunities for deepening defence cooperation.
The Federal Government introduced the Defence Legislation Amendment (Accelerating Capability and Protecting Bases) Bill 2026, which seeks to support faster development and testing of Defence capability with industry and trusted international partners, including to progress Pillars I and II of AUKUS. It also gives Defence enduring legislative authority to detect, track and act against drones over sensitive Defence sites.
Energy, Agriculture, and Resources
Madeleine King released an updated Critical Minerals Strategy aimed at strengthening Australia’s domestic processing capabilities, supply chain security, and international competitiveness. The strategy builds on the Critical Minerals Strategic Reserve to support investment in Australian rare earths, graphite and other critical minerals projects.
The Federal Government announced $180 million in conditional financing and investment for Astron Corporation’s Donald Mineral Sands Project in Victoria, alongside a US$41.1 million Export Finance Australia loan to Global Advanced Metals to support tantalum production.
The New South Wales Government launched Australia’s first Critical Minerals Skills Plan at the International Mining and Resources Conference in Sydney, outlining measures to strengthen workforce training and industry capabilities, and renewed its partnership with Japan’s JOGMEC.
Infrastructure, Transport, Housing and Communications
The Federal Government announced testing of a potential text-to-Triple Zero service, with Accenture Australia engaged to assess the safety and effectiveness of direct SMS access to emergency services. The work forms part of broader efforts to modernise Triple Zero and its regulatory framework.
The Federal Government launched a new Tech Reuse Charter, bringing together government and industry to support the reuse of technology and provide free devices to families and children in need.
Australia Post Group CEO Paul Graham announced he will be retiring at the end of this financial year. The Federal Government thanked Graham for his service, and noted they will be working closely with the Board to appoint the new leader.
Health, Education, and Employment
The Government has launched a new In Home Care (IHC) Quality and Safety Framework, comprising seven interrelated quality and safety areas and 40 operational requirements outlining provider responsibilities. The framework aims to strengthen service quality, consistency and child safety across the IHC sector.
The Government appointed Dr Graeme Innes AM as the new Chair of the National Disability Insurance Agency (NDIA) Board, following the resignation of Mr Kurt Fearnley AO. Dr Innes will start his new role on 17 December.
Jason Clare announced 624,590 Commonwealth Supported Places for universities next year, an increase of 23,000 from this year.