Welcome to the first edition of GRACosway’s Weekly Wrap Up for 2025 and with it, a refreshed look. It was time – our Friday political digest has been going for more than a decade, providing a recap of the week’s key political and policy developments that matter for business.
February means holidays are well and truly over, we’re back at the office and the kids are back at school. The same can be said for our federal politicians who returned to Canberra.
With a federal election on the horizon, the Government narrowed its focus to passing key pieces of outstanding legislation, such as tax offsets for critical minerals production and electoral donation reforms.
We also witnessed a rare display of bipartisanship in an election year, with both the Prime Minister and Opposition Leader calling for Australia to be exempted from the new Trump Administration’s aluminium and steel tariffs. Though an exemption remains uncertain, perhaps the old maxim of politics stopping at the water’s edge still has some truth to it.
Next week we’ll see the Reserve Bank hand down its cash rate decision where a cut is anticipated. Whatever the outcome, the political implications will be significant.
Top talking points
🏛️ Closing the Gap Statement: Prime Minister Anthony Albanese delivered the 2025 Closing the Gap Statement in Parliament.
💰 $573.3 million Women’s Health Investment: The Federal Government announced a major funding boost for women’s healthcare.
🏡 Student Debt & Home Loans: Financial regulators will no longer consider HECS-HELP debt when assessing mortgage applications.
🍷 Independents at The Lodge: Prime Minister Albanese hosted key independents at The Lodge as speculation over a hung parliament continues.
🗳️ Victorian By-Elections: The Liberal Party won Prahran, while Werribee remains too close to call after Victoria’s by-elections held on Saturday 8 February.
Making headlines this week
Parliament returns
With a federal election looming, Parliament sat this week in what could be its final session before voters head to the polls, unless the Albanese Government moves forward with the March Federal Budget, which currently forecasts a $26.9 billion deficit.
Determined to clear its legislative agenda, the Government passed the Future Made in Australia Bill 2024, which introduces tax offsets for critical minerals and hydrogen production. The Bill passed both houses following a deal with the Greens.
A bipartisan agreement with the Coalition delivered electoral law reforms, introducing an $800,000 spending cap per candidate, limits on single-electorate spending, and stricter donor disclosure rules. The Greens and Independents criticised the changes, arguing they give major parties an unfair advantage over independent candidates.
Trump tariffs
Australia faced its first major trade clash with the Trump Administration over a proposed 25 per cent tariff on steel and aluminium exports, a move that could have major economic consequences. In 2023, Australia exported AU$377 million worth of these metals to the US making the stakes for local producers significant.
The Prime Minister raised the issue directly with President Trump, who promised to give “great consideration” to Australia’s request for an exemption. President Trump pointed to America’s trade surplus with Australia as a potential factor in the decision and offered a personal endorsement of the PM, calling him “a very fine man.”
In a rare bipartisan move, Opposition Leader Peter Dutton also called for an exemption, warning the tariffs could “damage the US-Australia relationship.” With no exemption secured, the tariffs remain a looming uncertainty for Australian exporters, who now await the outcome of high-level negotiations.
Things to watch
🎤 Leaders Hit the Road: Anthony Albanese and Peter Dutton will be stepping up their travel and engagements, focusing on key marginal seats ahead of the upcoming election.
💰 RBA Rate Decision: The Reserve Bank of Australia will announce its first cash rate decision of 2025, with a rate cut widely expected amid cost of living pressures.
🗳️ WA Election Campaign Heats Up: Polling suggests the Cook Labor Government is on track for re-election, though the Liberals may gain ground.
📅 State Parliaments Return: QLD, NSW, VIC, and SA parliaments resume next week.
Economic updates and fiscal policies
The big four banks have agreed to keep regional branches open until at least 31 July 2027 under a deal with Australia Post, ensuring continued banking access for rural communities. Meanwhile, new reforms will streamline entry into financial advice, requiring only a bachelor’s degree in any discipline plus minimum financial study requirements.
ASIC has opened consultation on new Buy Now, Pay Later regulations with feedback due by 7 March. Meanwhile scam losses reportedly fell 33 per cent in 2024, driven by new bank fraud protections and tougher anti-scam measures, including the introduction of mandatory industry codes and a National Anti-Scam Centre to disrupt fraudulent activity.
Defence and trade
Australia’s trade ties with the UAE took a step forward, with the Joint Standing Committee on Treaties recommending ratification of the Australia-UAE Comprehensive Economic Partnership Agreement. Meanwhile, 210 Australian companies now have access to UK and US defence markets under new AUKUS trade reforms.
Strengthening Australia’s military capabilities remains a key focus. This week, the eighth Projects of Concern Summit focused on improving the sustainment of the Collins-class submarines, ensuring they remain operational for years to come. Meanwhile, the Australian Army is set to acquire 14 multi-mission phased array radars under a $272 million investment aimed at enhancing long-range fire capabilities.
Disaster relief, energy investment and industry challenges
A $100 million grant package has been announced to support flood-affected primary producers, small businesses, and not-for-profits in North Queensland, to provide relief to communities still recovering from recent disasters. In the agriculture sector, a $13 million investment will go toward the Improved Access to Agricultural and Veterinary Chemicals program, helping farmers access essential chemicals and veterinary medicines more efficiently.
Energy investment is also a focus, with $1 billion allocated to the Energy Security Corporation to drive private-sector partnerships and strengthen New South Wales’ clean energy transition.
Meanwhile, the future of Whyalla Steelworks is under scrutiny as GFG Alliance faces pressure over unpaid royalties owed to the South Australian Government. Premier Peter Malinauskas has called the situation a “national interest question”, raising concerns about the long-term viability of the site.
Infrastructure, transport and communications
Victoria’s Suburban Rail Loop is set to receive a $2.2 billion investment, supporting one of the state’s largest public transport projects. Meanwhile, uncertainty surrounds the future of regional airline Rex, with the Government open to acquiring the carrier if a private buyer is not secured by June.
In media and technology, Georgina Somerset has been appointed as ABC Deputy Chair for a six-month term, while Chinese AI app DeepSeek has been banned from all Federal Government devices due to security and privacy concerns.
At the state level, New South Wales has announced Camperdown as the first site for its build-to-rent housing plan, part of a $450 million initiative to provide subsidised rental housing for essential workers.
Health and education priorities
A $842 million funding agreement will expand First Nations health and community services, representing Australia’s largest investment in remote healthcare. Announced in Alice Springs last week, the funding aims to improve access to essential services for First Nations communities.
Additional support has been allocated to early intervention programs addressing violence against women and children. No to Violence will receive $1.89 million for the Men’s Referral Service and Brief Intervention Service, while Lifeline Australia has been allocated $800,000 for MensLine Australia.
Medical research also remains a focus, with a $20 million investment supporting childhood brain cancer research. Meanwhile, the release of Australia’s National Framework for Genomics in Cancer Control sets a direction for personalised cancer care and improved patient outcomes.
In case you missed it...
President Trump when asked about Australia’s request for an exemption from steel and aluminium tariffs: