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Highlights

• Minister for Transport Catherine King released the Aviation White Paper which aims to enhance consumer rights and increase competition in Australia’s aviation market.
• The Federal Government released a consultation paper containing revised principles, reforms, and governance arrangements aimed at revitalising Australia’s National Competition Policy.
• Headline inflation fell from 3.8 per cent to 3.5 per cent in the 12 months to July 2024, according to data published by the Australian Bureau of Statistics. Treasurer Jim Chalmers described the news as “a promising result.”
• The Federal Government announced Abigail Bradshaw CSC as the new Director-General of the Australian Signals Directorate (ASD), starting from 6 September. Ms Bradshaw is currently the Head of the Australian Cyber Security Centre.
• Greens leader Adam Bandt unveiled the first measure of the party’s election platform, called the ‘Robin Hood Reforms’ in an address to the National Press Club. The measure includes a Big Corporations Tax of 40 per cent on “excessive profits.”

Pacific Islands Forum Leaders’ Meeting

Prime Minister Anthony Albanese travelled to Tonga for the Pacific Islands Forum (PIF) Leaders’ Meeting, the third of his prime ministership. Discussions ranged from regional security, and action on climate change, to cooperation on service delivery including health and education.

Of note, Pacific leaders unveiled and endorsed a Pacific Policy Initiative, which aims to boost security ties and police cooperation within the region. Under the Initiative, four regional police ‘Centres of Excellence’ will be established to develop policing capabilities while a multilateral Pacific Policy Support Group (PPSG) will be formed to respond to major emergencies, crises, or security incidents. Importantly for Australia, a Policing Development and Coordination Hub with modern training facilities will be created in Brisbane and will support PPSG deployments. Australia committed $400 million over five years to the Initiative with Prime Minister Anthony Albanese labelling the Initiative as “the Pacific family looking after our own security.”

On the sidelines of the Forum, the Prime Minister held a bilateral meeting with his Tongan counterpart the Hon Hu’akavameiliku to discuss progress on a new undersea telecommunications cable. He also announced the commencement of the Falepili Union – a treaty agreement with Tuvalu – alongside the island nation’s Prime Minister the Hon Feleti Teo OBE. In a joint statement, the leaders reaffirmed their commitment to resolving security matters in the Pacific through deeper and strengthened cooperation. 

Northern Territory election

The Country Liberal Party (CLP), led by Lia Finocchiaro, achieved a decisive victory in the NT election and will return to government after eight years in opposition. Based on the current count, the CLP has secured 16 seats in the 25-seat Northern Territory Legislative Assembly, representing a 17.7 per cent swing in the CLP’s favour. “We’ve heard loud and clear that Territorians want change, and the work starts today to deliver that,” Ms Finocchiaro said. She was sworn in as the Chief Minister of the NT earlier this week.

NT Labor leader Eva Lawler – who lost her seat of Drysdale – accepted responsibility for the defeat and said, “it has been an absolute privilege to be your Chief Minister…I am proud of the hard fight we have fought this campaign.” Labor currently has won four seats, down from 10, equating to a 10.7 per cent swing against the Party. It is unclear at this stage whether the Greens will secure a seat.

Key election issues included crime and cost of living. The territory election was marred by low voter turnout in remote electorates, which fell to less than 45 per cent of enrolled voters.  

Looking ahead

The ACT Parliament will sit next week while NSW Budget Estimates continue.

Finance

Federal Developments

The Australian Prudential Regulation Authority (APRA) published its 2024-25 Corporate Plan outlining its priorities to strengthen and stabilise Australia’s banks, superannuation trustees, and insurers over the forward estimates. The Corporate Plan also incorporates APRA’s annual policy and supervision priorities and as well as a new inclusion of data priorities.

Treasurer Jim Chalmers addressed Melbourne’s John Curtin Research Centre, outlining the Government’s vision for Australia’s artificial intelligence (AI) driven ‘fourth economy’, the renewable energy transformation, the care economy, and the importance of the Indo Pacific region. The Treasurer revealed that AI could contribute up to $4.4 trillion to the global economy by 2030; by 2050 Australia’s care economy could grow by over 50 per cent; and renewables could generate a proportion of GDP and 90 per cent of electricity globally.

The Federal Government nominated Rob Nicholl as the Executive Director at the World Bank Group, Nghi Luu as the Alternate Executive Director at the International Monetary Fund and Natalie Horvat as the Alternate Director at the European Bank for Reconstruction and Development. Chalmers also confirmed that the government would extend Katherine Tuck’s current term at the European Bank for Reconstruction and Development until 31 December 2024.

The Treasury finalised the details of its review of the small and medium-sized banking sectors to be conducted by the Council of Financial Regulators (CFR), in consultation with the ACCC. The review will examine the role and state of small and medium-sized banking sectors in providing competition, the regulatory and market trends affecting their competitiveness, as well as the current and potential future sources of and barriers to competition from these sectors. The CFR will provide a final report to government by 1 July 2025.

Foreign Affairs, Defence and Trade

Federal Developments

Deputy Prime Minister and Minister for Defence Richard Marles visited Indonesia to meet with President-elect and Indonesian Minister of Defence, Prabowo Subianto. During the visit, the Australia-Indonesia Defence Cooperation Agreement was signed at the National Military Academy of Indonesia. Discussions revolved around bilateral, regional, and global issues of shared strategic interest.

Minister for Defence Personnel Matt Keogh released the 2024 Defence Digital Strategy and Roadmap. The Strategy and Roadmap seeks to elevate Australia’s digital landscape and reinforce the critical role Australia’s digital capabilities play amidst growing strategic tensions.  Over the next ten years, $8.5 to $11 billion will be invested to uplift Australia’s digital capabilities as part of the Integrated Investment Program.

The Department of Defence announced Australia will assume command of the Combined Maritime Force’s Combined Task Force (CTF) 153 in October this year.  CTF 153 was established in April 2022 and focuses on international maritime security and capacity-building efforts in the Red Sea, Bab al-Mandeb, and Gulf of Aden. This will be the first time Australia has commanded CTF 153.

Environment, Resources and Energy

Federal Developments 

The Australian Energy Market Operator released the Electricity Statement of Opportunities (ESOO), which is a 10-year outlook of investment requirements to maintain reliability in the National Electricity Market (NEM). It reported the reliability outlook has improved since its last publication. AEMO has 5.7 gigawatts of newly advanced grid-scale generation and storage developments and 365km of new transmission developments on its radar from 2033-34.

The Federal Government released its response to the Climate Change Authority’s 2023 review of Australia’s Carbon Credit Scheme. The Government has agreed fully or in principle to 15 of the recommendations to ensure the Scheme’s ongoing integrity and increase participation.

The Federal Government announced Chief Scientist Cathy Foley AO PSM will lead an expert panel on methane reporting. The panel is seeking to ensure all reporting of methane and other greenhouse gases is accurate and transparent.

Minister for the Environment and Water Tanya Plibersek announced an extra $192 million for the Great Barrier Reef. The funding will look to support the replanting of wetlands, reduce nutrient pollution, and improve the quality of water flowing into the Reef. Programs will also support the reduction of invasive animals that damage soils and wetlands.

State Developments

The WA Government announced Horizon Power has signed an Indigenous Land Use Agreement with the Nyul Nyul people in the Kimberley. The agreement will allow Horizon Power access to a four-hectare site in Beagle Bay to develop a renewable energy system.

Infrastructure, Transport and Communications

Federal Developments

Minister for Northern Australia Madeleine King announced the Northern Australia Action Plan 2024–2029 at the Developing Northern Australia Conference in Karratha, Western Australia.

Minister for Transport and Infrastructure Catherine King confirmed Singapore Airlines as the first international airline to operate from the new Western Sydney Airport (WSA) when it opens. The arrangement between the Government and the airline will expand options for travel to Singapore, a major transport hub. WSA is scheduled to commence operations in 2026 with up to 80 per cent of the project completed so far.

The Transport Workers Union made an application to the Fair Work Commission for enforceable minimum standards for gig workers under the Fair Work Commission’s new Road Transport Advisory Group. The application is seeking minimum standards including minimum hourly rates, superannuation, safety training and notice of termination. Minister for Employment and Workplace Relations Murray Watt stated the Commissioner will undertake consultation before setting binding standards. 

State Developments 

Tasmania’s Deputy Premier Michael Ferguson resigned as Minister for Infrastructure. Ferguson attributed the decision to his handling of the acquisition of two new Spirit of Tasmania vessels, a project publicly criticised for being over budget and delayed. Ferguson retains Treasurer and Minister for Small Business and Consumer Affairs positions and handed the Infrastructure portfolio to Premier Jeremy Rockliff.

The High Speed Rail Authority will undertake geotechnical research, including the drilling of 27 boreholes between Newcastle and Sydney, to help inform new rail locations for the High-Speed Rail Network. The information will help determine the depth required for proposed rail tunnels and assess geological complexities in the area.

Health and Education

Federal Developments 

The Federal Government announced limits on new international student enrolments pending the passage of the Education Services for Overseas Students Amendment (Quality and Integrity) Bill 2024.  Under the limits, publicly funded university placements will be capped at 145,000, other non-university higher education will be capped at 30,000 and the vocational education and training (VET) sector will be capped at 95,000. The limits aim to ensure sustainable growth of international student numbers in Australia. If the legislation is passed, the caps will come into effect from 2025.

The Federal Government expanded the Pharmaceutical Benefits Scheme to cover trastuzumab deruxtecan for HER2-low unresectable or metastatic breast cancer, from 1 September. Under the new listing, eligible patients will pay a maximum of $31.60 per script or $7.70 with a concession card, compared to the previous cost of over $160,000 for a course of treatment.

Minister for the NDIS Bill Shorten announced Louise Glanville as the new Commissioner of the National Disability Insurance Scheme Quality and Safeguards Commission and Natalie Wade as Associate Commissioner. Ms Glanville and Ms Wade will commence their positions on 30 September. The Commission was established in 2019 to improve the quality and safety of services funded through the NDIS.

The Federal Government secured over 22 million IV fluid bags in collaboration with Baxter and a cross-jurisdictional Response Group to address global supply shortages. This initiative includes expanding local manufacturing capacity and coordinating efforts across states, territories, private hospitals, and primary care to manage the IV fluid supply in Australia over the next six months.