This week, the Prime Minister’s golden run continued. He was in Perth on Monday with Senator Dorinda Cox, formerly of the Greens and now Labor, announcing her defection. The smile on his face during the press conference reflected someone who couldn’t quite believe his streak of luck. This defection improves the government’s position in the Senate, with the Coalition and the Greens now requiring one crossbench vote to block any government-supported legislation. In theory, the government could pass legislation with full crossbench support, though what both Senators Hanson and Pocock might agree on is difficult to conceptualise.
Deputy Prime Minister Richard Marles appeared at the Shangri-La Dialogue in Singapore with a blunt and sharp message about the regional environment. His comments focused on the importance of tighter regional cooperation, greater transparency between partners and managing nuclear proliferation. This was followed by the Defence Minister of Papua New Guinea calling for a defence treaty, something Australian governments have pursued for years, with PNG.
Marles’ week on the world stage was slightly overshadowed by US Secretary of Defense Pete Hegseth calling for the Australian government to increase defence spending to 3.5 per cent “as soon as possible”, a target difficult to meet in the near term given organisational and budgetary constraints.
Meanwhile in Europe, Trade Minister Don Farrell breathed new life into the Australia-EU Free Trade Agreement talks. Agriculture and geographic indicators remain key sticking points, but Farrell struck an optimistic tone, insisting both sides are committed to sealing the deal. The stakes are high: Australia is looking to secure fresh trade routes and shore up resilience in an increasingly shaky global economy.
More to come.
Top talking points
🤝 Australia-EU Trade Negotiations: Don Farrell travelled to Europe to re-energise Australia-EU Free Trade Agreement talks, expressing cautious optimism on key sticking points.
🌏 Shangri-La Dialogue: Richard Marles addressed regional tensions and nuclear proliferation in Singapore, calling for deeper transparency and cooperation across the Indo-Pacific.
💵 Minimum Wage Increase: The Fair Work Commission confirmed[PDF] a 3.5 per cent rise in the national minimum wage, effective from 1 July.
🤝 Industrial Relations Consultations: The National Workplace Relations Consultative Council met with unions and employers to progress the government’s industrial relations commitments.
🏛 Cabinet Meets in Perth: Anthony Albanese convened a federal Cabinet meeting in Western Australia, joined by Premier Roger Cook.
Making headlines this week
A defection in the Senate
Senator Dorinda Cox’s move from the Greens to the Labor Party has sparked considerable controversy. She explained the switch as a better alignment with Labor’s values and policies. However, her departure is clouded by unresolved bullying allegations from her time with the Greens, with former staffers describing a toxic work environment. The move boosts the government’s Senate numbers from 28 to 29, though the Greens still hold the balance of power.
Super tax legislation faces Senate test
Debate continues over the government’s Better Targeted Superannuation Concessions legislation, which would double the tax rate on earnings from superannuation balances above $3 million. The Treasurer has reaffirmed the government’s position, arguing the measure is fair, modest and fiscally responsible. He confirmed that taxing unrealised gains will remain part of the Bill, and indicated there is little prospect of cross-party cooperation, stating he is “not convinced” the Coalition wishes to engage constructively.
The Shadow Treasurer formally declared the Coalition’s opposition during an address to the Property Council of Australia’s 2025 Property Leaders Summit, describing the tax as a “grave threat to retirement savings, investment, and the property market”. Meanwhile, the Greens have indicated they will support the legislation, though their economic spokesperson Senator Nick McKim is seeking a lower threshold and stronger integrity measures. With the Coalition opposed and Greens support confirmed, the Bill’s path to passage appears reliant on negotiations with the crossbench.
Things to watch
📣 10 June Prime Minister’s National Press Club Address: Mr Albanese will deliver a National Press Club address in Canberra, outlining the government’s post-election agenda and legislative priorities.
🗣️ 11 June EU Ambassador’s national address: European Union Ambassador Gabriele Visentin will speak on the EU’s role in global security, democracy and defence.
📊 11 June ABS release: Industrial disputes data for the March quarter will be published.
🏙 13 June CEDA Human Cities Summit: The summit will spotlight policy, planning and urban development challenges and solutions.
🗳 TBD Tasmanian political developments: Following a no-confidence vote in Premier Jeremy Rockliff, further developments are expected in the week ahead.
Private credit consultations and household finance data
ASIC has published over 50 public submissions in response to its discussion paper on public and private markets, with many calling for stronger oversight of private credit. The regulator plans to release proposed roadmaps in Q3 and Q4 this year.
Household spending rose 0.1 per cent in April, largely driven by increased spending on services such as health, recreation and dining. Spending on goods fell by 1.1 per cent, with declines across categories such as clothing and new vehicles.
Government finance data for the March quarter showed an improvement in the general government net operating balance. The deficit narrowed to $0.7 billion, an improvement of $2.9 billion compared to the previous quarter, despite a 3.0 per cent drop in taxation revenue.
Overseas visits and state trade updates
Australia will gift a Guardian-class patrol boat and hydrographic equipment to the Maldives as part of ongoing defence cooperation. The vessel, which is under construction, is expected to be delivered in 2026 and will support the country’s maritime monitoring efforts.
In New South Wales, the government signed a memorandum of understanding with Japan’s Urban Renaissance Agency to expand a housing and transport investment partnership. This follows a recent trade mission to South Korea and Japan, aligned with the NSW Trade and Investment Strategy 2035.
Emissions tracking, drought support and offshore wind feasibility
New data indicates Australia’s 2024 emissions are projected to be 27 per cent below 2005 levels, with industrial emissions also falling, a sign of growing investment in abatement technologies.
The federal government has extended the Future Drought Fund’s Communities Program, with $36 million in new support including $2 million for the Rural Financial Counselling Service.
Feasibility licences have been issued for offshore wind projects in the Bunbury Offshore Wind Zone. One project has progressed to a preliminary licence, and two others have been shortlisted.
Housing policy, appointments and tourism strategy
Assistant Minister Andrew Leigh addressed the Chifley Research Centre on the need for national planning reform to unlock housing supply.
NSW Fair Trading has appointed Angus Abadee as the state’s new Strata and Property Services Commissioner, with oversight of strata schemes, retirement communities and land lease housing.
Queensland has released its Destination 2045 tourism strategy, outlining six key priorities: events, connectivity, brand, eco-tourism, visitor experience and industry support.
Health services and early childhood infrastructure
The EmpowerHer Pathways project has launched in the Hunter region to help women access careers in sectors such as renewables and construction. A new Medicare Mental Health Centre has also opened in Birtinya, Queensland, part of a network of 61 centres being rolled out nationally.
In early childhood, Victoria has opened a new Early Parenting Centre in Hastings. South Australia has expanded its loan scheme for non-government schools by $171 million, supporting the rollout of universal three-year-old preschool from 2026.
In case you missed it...
📺 Senate reshuffle, party edition: Dorinda Cox crosses the chamber from Greens to Labor.