Weekly Wrap Up – 12 December 2025
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Weekly Wrap Up – 12 December 2025
Australian politics rarely lacks for noise, but this week had a little more resonance than usual.
The biggest ripple came from the visit of Canada’s Prime Minister, Mark Carney, who arrived in Canberra with the aura of a political rock star and the message he first delivered in his “rupture” speech at Davos earlier this year: the old international order has fractured, and middle powers will need to step up.
In speeches and joint appearances with Anthony Albanese – including a closely watched address at the Lowy Institute – Carney argued that countries like Australia and Canada must carve out greater “sovereignty” from dominant hegemons and work together more strategically. He cast the two nations as “strategic cousins”: democracies with enough economic weight, diplomatic credibility and defence capability to shape outcomes in an increasingly competitive world.
The timing sharpened the point. As the United States and Israel launched strikes on Iran and tensions rippled across the Middle East, the question of what influence countries like Australia can realistically exert felt less academic. Carney’s answer is deeper cooperation between middle powers – tighter trade links, closer defence coordination and a more assertive diplomatic posture. Whether that vision translates into substance remains to be seen. Admirers see the proposal as a pragmatic coalition for an unstable era; sceptics say it is more symbolism than actionable policy. Either way, it has injected fresh energy into a conversation Canberra has often approached cautiously.
Meanwhile, back on the domestic front, the Liberal Party’s post-election review is already causing turbulence – largely because parts of it leaked before the party could properly digest it. The report paints a harsh picture of the 2025 campaign under Peter Dutton, criticising a strategy many insiders describe as confused and reactive while highlighting deeper structural problems: weak connections with younger voters, an urban credibility gap, and persistent internal divisions.
For the new Opposition Leader, Angus Taylor, the timing is awkward. The review’s findings land just as he faces his first real leadership test: the upcoming by-election in the Division of Farrer, triggered by the resignation of his predecessor, Sussan Ley. What should be a safe Liberal territory is shaping up as a volatile contest. A strong community independent in Michelle Milthorpe and a surge from One Nation raise the prospect of an uncomfortable two-horse race that sidelines the Liberals altogether. The result will still be read as an early verdict on Taylor’s ability to steady the party – and begin the long process of rebuilding it.
Top talking points
Canadian Prime Minister: Mark Carney addressed Australia’s Parliament, discussing middle power diplomacy and the future of the global rules-based order.
Conflict with Iran: Anthony Albanese stated that Australia stands with the Iranian people in their struggle against an oppressive regime and supported the US’s efforts to prevent Iran from obtaining a nuclear weapon.
Liberal Party Election Review: The leaked review blamed the Party’s performance on Peter Dutton’s leadership, unpopular policies such as nuclear power, strategic missteps and poor voter appeal.
Private Members’ Business: Dr Sophie Scamps introduced legislation seeking to enforce transparent public appointments, while Dr Monique Ryan sought to elevate gambling as a public health issue.
Farrer By-election: Following the resignation of Sussan Ley, a by-election will be held in Farrer on 9 May.
Making headlines this week
Parliamentary Wrap
Cost of Living Concerns
Michele Bullock stated that the March Monetary Policy Board Meeting will be “live” for a possible interest rate increase, marking a shift from earlier messaging that may have favoured May. Bullock emphasised that the Board will actively consider tightening policy if inflation expectations look to be becoming unanchored, with inflation still elevated and the labour market tight. Bullock highlighted that recent geopolitical tensions in the Middle East – including US-Israeli strikes on Iran and resulting oil price spikes – could create persistent supply shocks that add to inflation pressures, though the full economic impact remains uncertain. Similarly, Jim Chalmers warned escalating Middle East conflict could significantly affect Australia through higher fuel prices, inflation and weaker global growth, noting that regulators – including the ACCC – will monitor petrol retailers to prevent price gouging. Financial markets have since responded by raising the odds of a March rate rise, with expectations for further tightening later in the year also increasing.
Things to watch
11 March, Allegra Spender will Economic Growth, Super Investment, Family and Domestic Violence Consultations Updates
Australia’s economy grew by 0.8 per cent in the December quarter and 2.6 per cent over the year, the strongest pace of annual growth in three years.
Australia and Canada’s major superannuation and pension funds signed the Canadian-Australian Pension Funds Investment Initiative, aiming to increase cross-border bilateral investment opportunities between the two countries.
Consultation commenced on reforms designed to prevent perpetrators of family and domestic violence from receiving the superannuation death benefits of their victims.
Parliamentary Joint Committee on Defence and Collins Class Submarine Sustainment Moves
Parliament passed legislation that establishes the Parliamentary Joint Committee on Defence. The new committee will allow Parliament to receive briefings and greater oversight on key defence matters.
Pat Conroy convened the fourth Product of Concern Summit in Canberra to support the sustainment and remediation of Australia’s Collins-class submarines. This remediation is being achieved through targeted workforce initiatives, process improvements, and productivity reform.
Critical Minerals, Gas, and Investment Approval Developments
Australia and Canada signed a suite of new critical minerals agreements during Mark Carney’s visit. The deals will bring Australia into the G7 critical minerals alliance as both countries look to diversify supply chains away from China and deepen strategic cooperation.
Madeleine King claimed that Australia’s gas supply remains stable despite disruptions in the Middle East, noting that LNG exports and domestic system capacity are not currently under pressure.
The New South Wales Government endorsed 14 renewable projects through the Investment Delivery Authority, valued at $34.4 billion in potential investment. All projects still require merit-based assessments and government approval before proceeding.
High Speed Rail Tenders and Bays West Precinct Updates
Catherine King released seven tenders for the development phase of the Newcastle–Sydney High Speed Rail project, supporting planning, environmental approvals, engineering design, and delivery.
The New South Wales Government announced a new housing precinct development set for Glebe Island, planning up to 8,500 homes around the upcoming Bays West Metro Station. The development is designed to help meet New South Wales’ target of 377,000 new homes by 2029.
Health, Early Childhood, Renewable Apprenticeships and Work from Home Moves
Mark Butler announced a $110 million investment over three years through a new Chronic Conditions Prevention and Integrated Care Grants Program. The funding will support prevention and coordination of care for people with multiple chronic conditions.
Mandatory childhood reforms have been implemented across Australia to strengthen safety in early education and care. These reforms include a new National Early Childhood Worker Register and compulsory child safety training.
17,000 apprentices have joined the New Energy Apprenticeship stream of the Key Apprenticeship Program, representing a growth in solar, automotive, and smart technology industries.
Jacinta Allan will introduce legislation amending the Equal Opportunity Act, enshrining the right to work from home to two days weekly. It is expected to be introduced in July, with the Premier signalling an implementation target of 1 September.