After one of the shortest-ever political separations, the Liberals and Nationals have called a truce and renewed their Coalition agreement. This was followed by the release of the new Coalition Shadow Ministry – containing a few surprise appointments but characterised by its profile omissions.
The drama kicked off when Nationals Leader David Littleproud made a bold play for the Deputy Opposition Leadership role and reportedly insisted that Nationals frontbenchers be permitted to vote against Coalition policies – something he has subsequently denied. This potential challenge to party discipline sparked a fierce backlash from Liberal MPs, who accused Littleproud of undermining the Coalition’s unity following their election defeat.
After days of high-stakes negotiations, a truce was struck, paving the way for the Coalition to reunite. However, some undercurrents of dissatisfaction remain. Within Nationals ranks, some have begun questioning Littleproud’s leadership, calling for renewed unity under different leadership.
For those who cherish our Westminster system, the real question is this: can this patched-up Coalition deliver a credible, united front against the Albanese Government? Unity is more than optics – and voters will be looking for a clear, compelling policy alternative, especially if the Liberals are to win back those metropolitan seats lost at the previous two elections.
Watch this space.
Top talking points
🏦 RBA diplomacy: RBA Governor Michele Bullock visited the Bank’s China Office in Beijing, meeting with senior financial officials to strengthen economic ties.
📈 Inflation eases: ABS data showed monthly CPI rose 2.4 per cent in the 12 months to April, a slight easing in inflationary pressure.
🛢️ North West Shelf gas extension approved: The government approved Woodside Energy’s proposal to extend the life of the North West Shelf gas facility beyond 2030, sparking fresh debate over Australia’s energy transition.
🗳️ Bradfield heads to recount: With Liberal candidate Gisele Kapterian leading teal independent Nicolette Boele by just 14 votes, the seat of Bradfield will go to an automatic recount, to be conducted by the AEC.
🏇 Rosehill redevelopment blocked: The Australian Turf Club voted down the proposed $5 billion sale of Rosehill Racecourse to the New South Wales Government, halting plans for major urban renewal on the site.
Making headlines this week
Coalition shadow ministry reshuffle
The Coalition unveiled its new shadow ministry this week, featuring several notable changes. Ted O’Brien has been appointed Shadow Treasurer, with Angus Taylor moved to Defence and Michaelia Cash taking on Foreign Affairs. Andrew Hastie has been shifted to Home Affairs, while Jacinta Nampijinpa Price now holds the Defence Industry portfolio.
The reshuffle also saw some high-profile exits, with Jane Hume dropped from the frontbench and former leaders Michael McCormack and Barnaby Joyce also moved aside.
Healthscope enters receivership
Healthscope, Australia’s second-largest private hospital operator, entered receivership[paywall] on 26 May after failing to meet its $1.6 billion debt obligations. The collapse followed a period of financial strain, including high acquisition costs, rising interest rates, and operational challenges at key sites such as Northern Beaches Hospital.
Lenders withdrew support after the company breached lease agreements, triggering the appointment of McGrathNicol as receivers. The following day, the Albanese Government ruled out a taxpayer-funded bailout, instead backing an orderly transition to a new operator.
Things to watch
🏛️ Parliaments return: The New South Wales, South Australia and Tasmania parliaments will sit next week.
🤖 AFR AI Summit: The AFR’s AI Summit will take place in Sydney on 3 June, with a focus on innovation, regulation and economic opportunity.
💼 Fair Work Commission: The Annual Wage Review decision will be handed down on 3 June.
📊 ABS national accounts: Australia’s national accounts for the March quarter will be released on 4 June.
💰 South Australian Budget: The South Australian Government will deliver its 2025–26 Budget on 5 June.
💳 RBA Payments Board: The RBA’s Payments System Board will meet on 5 June to discuss oversight of Australia’s payments infrastructure.
Treasury and superannuation
Treasurer Jim Chalmers has launched a new online portal to streamline foreign investment processes. The platform allows investors to submit proposals, pay fees and track application outcomes in one place.
Meanwhile, APRA released its March superannuation statistics, showing a 0.8 per cent decline in total assets to $4.1 trillion. Despite the quarterly dip, super funds recorded a modest 5.9 per cent return over the past year.
Foreign affairs, defence and investment
US firm Cerberus Capital Management has expressed[paywall] interest in acquiring the lease to Darwin Port, currently held by Chinese company Landbridge. The move follows a bipartisan election commitment by both major parties to terminate the 99-year lease, and aligns with the Prime Minister’s recent comments that the port should ultimately return to Australian control.
The federal government has awarded 58 grants worth $16.5 million to more than 50 businesses to support defence exports, workforce skilling, and sovereign industry capability.
On the investment front, the Queensland Government has issued a euro-denominated benchmark bond. Treasurer David Janetzki said the move reaffirms Queensland’s low-risk profile for international investors.
Resources and energy projects
The Australian Renewable Energy Agency (ARENA) has announced $4.4 million in funding to South32 for a pre-feasibility study into steam electrification at the Worsley Alumina Refinery. The project is part of the $400 million Industrial Transformation Stream and will assess four options for decarbonising steam production.
Queensland will open nine new areas for gas exploration across the Cooper/Eromanga and Bowen/Surat Basins, targeting both conventional and unconventional gas. A three-month Land Release Review is also underway, aimed at improving the land release and tender process.
In South Australia, the Government is calling for exploration bids in the Otway and Polda Basins following geological research suggesting potential for gas, petroleum and hydrogen. Applications close on 31 October.
Infrastructure, transport and planning
Ahead of the 2025–26 state budget, the South Australian Government has committed to matching the Commonwealth’s $125 million investment to remove the Curtis Road level crossing in Munno Para.
New South Wales has commissioned an independent review into last week’s overhead wiring incident that disrupted Sydney trains. Led by Dr Kerry Schott AO, the review will examine the cause, passenger impact and infrastructure planning.
Victoria has designated six areas in Melbourne’s western suburbs as No-Truck Zones, following the completion of the West Gate Tunnel. The zones are intended to improve road safety and amenity, and follow trial regulations first introduced in 2022.
Tasmania has extended its Urban Growth Boundary, unlocking 615 hectares of land for up to 10,000 new homes. In New South Wales, 14 housing projects have been declared State Significant Developments, potentially delivering over 5,200 new homes if approved.
Health, employment and education
More than 1.5 million Australians have now received care through Medicare Urgent Care Clinics, helping to ease demand on emergency departments. The Albanese Government plans to open another 50 clinics in 2025–26, expanding the network to 137.
In a move to expand access to care, GPs in New South Wales are now authorised to diagnose and treat ADHD, creating new demand for diagnostic tools and digital health platforms. Meanwhile, Queensland nurses have voted[paywall] to strike for the first time in two decades, citing broken wage commitments from the state government.
Workplace compensation laws in New South Wales have been amended to allow claims for psychological injuries, including bullying, excessive workloads, and workplace harassment.
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