To stay up to date on the latest political developments across the nation, subscribe to our free publication here.

We would appreciate your feedback. Please take a few minutes to complete our survey and help us improve future editions.

Highlights

• The Federal Government released its response to the Final Report of the Royal Commission into Defence and Veteran Suicide, agreeing or agreeing-in-principle to 104 of the 122 recommendations.
• Minister for Industry and Science Ed Husic and Minister for Education Jason Clare announced a Strategic Examination of Australia’s research and development policy settings. Tesla Chair Robyn Denholm will lead the Review’s independent expert panel.
• The Federal Government confirmed that China has lifted the remaining trade barriers on Australian red meat exports, valued at $2.2 billion in the 2023-24 financial year.
• Australia voted in favour of two United Nations resolutions calling on Israel to withdraw from Gaza and for a viable two-state solution to be implemented.
• Attorney-General Mark Dreyfus and Minister for Foreign Affairs Penny Wong released the Federal Government’s response to the statutory review of the Modern Slavery Act 2018. The Government agreed or agreed-in-principle to 25 of the 30 recommendations.

Slow economic growth

National Accounts data released by the Australian Bureau of Statistics (ABS) signalled weak growth for the Australian economy. Gross domestic product (GDP) rose by 0.3 per cent in the September quarter 2024 and 0.8 per cent since September 2023. Despite positive growth for 12 consecutive quarters, the ABS attributed the figures to increased Government expenditure and stronger public investment, which grew by 1.4 per cent and 6.3 per cent respectively. However, household spending remained flat while GDP per capita fell by 0.3 per cent, continuing its downward trajectory for the seventh consecutive quarter.

Reacting to the data, Treasurer Jim Chalmers stated that “our economy is growing but very slowly, weighed down by interest rates, cost of living pressures and global uncertainty.” The Treasurer also pointed to Government measures such as income tax cuts and energy rebates as key contributors to the “substantial progress” made in “the fight against inflation.” On the other hand, Shadow Treasurer described the data as reflecting “the pain Australian families are feeling” and blamed the Government for “sending our economy in the complete wrong direction.” The data comes ahead of the final cash rate decision of 2024 by the Reserve Bank of Australia scheduled for 10 December.

Digital Platforms Competition

The Federal Government will move to establish a new competition regime for digital platforms aimed at bolstering competition online. In a speech to the McKell Institute, Assistant Treasurer and Minister for Financial Services Stephen Jones revealed that the Australian Competition and Consumer Commission (ACCC) will oversee a new framework that targets anti-competitive practices in the digital economy with penalties of up to $50 million or 30 per cent of a company’s turnover for non-compliance.

He provided examples of big tech platforms such as Google and Apple preferencing their own products or forcing consumers to buy a product in order to use another product. Online app marketplaces and advertising tech services will be the Government’s initial focus.

Looking ahead

The QLD Parliament will sit next week.

Finance

Federal Developments

The Australian Bureau of Statistics (ABS) published data revealing that household spending rose 0.8 per cent in October 2024. This is a 2.8 per cent increase compared with October 2023. Spending increased across all nine categories, with the steepest increase in recreation and culture attributed to spending on major international music concerts and sporting events in 2025.

Assistant Treasurer and Minister for Financial Services Stephen Jones unveiled tranche two of the Deliver Better Financial Outcomes package.  Under tranche two, a new class of financial adviser will be established, the best interest duty will be modernised,  safe harbour steps will be abolished, and additional monitoring and supervision obligations on licensees will be implemented. Draft legislation will be released for stakeholder consultation in the new year.

The Australian Securities and Investments Commission (ASIC) opened consultation on how current financial product definitions apply to digital assets and related products and proposed updates of Information Sheet 225 Crypto Assets (INFO 225). The consultation period will close on 28 February 2025, with an updated INFO 225 to be published in mid-2025. Treasurer Jim Chalmers welcomed the consultation, stating it would inform legislation for “digital asset platform” and “payment stablecoin” reforms, set to be released in 2025.

As part of the examination into the small and medium-sized banking sector, the Council of Financial Regulators (CFR) released an Issues Paper, and are calling on stakeholders to share views through consultation. The CFR will consider the regulatory framework and its proportionality; banks’ funding arrangements; and issues related to banks’ ability to enter, scale, and exit the market. Consultation will close on 7 February 2025.

Foreign Affairs, Defence and Trade

Federal Developments

Minister for Foreign Affairs Penny Wong, Minister for Defence Richard Marles, and Minister for Trade and Tourism Don Farrell travelled to Singapore and met with Singaporean counterparts for the Singapore-Australia Joint Ministerial Committee. The Australia-Singapore Comprehensive Strategic Partnership was discussed, as well as bilateral defence, security, and trade and investment opportunities.

Minister Penny Wong travelled to Malaysia to attend the 6th Malaysia-Australia Annual Foreign Ministers’ Meeting. Bilateral opportunities to further Australia-Malaysia economic, defence, security and cultural ties were discussed. Along with Malaysian counterparts, Minister Wong reaffirmed Australia’s commitment to the Australia-Malysia Comprehensive Strategic Partnership.

Minister Penny Wong and Minister Richard Marles travelled to New Zealand for the second Australia-New Zealand Foreign and Defence Ministers’ Consultations where they met with New Zealand counterparts. Ongoing strategic challenges in the Asia-Pacific region as well as bilateral Australia and New Zealand trade and investment opportunities were discussed.

Minister for Defence Industry and Capability Delivery Pat Conroy announced that the Defence Industry Vendor Qualification program has awarded several contracts to HIFraser, Mack Valves, Bale Defence and STAUFF Corporation to manufacture US Navy valves and pipe fittings. The program aims to enable Australian businesses to export products and services to the AUKUS trilateral submarine industrial base.

Minister for Trade and Tourism Don Farrell announced that the Albanese government made its first investment as part of its $2bn Southeast Asian Investment Financing Facility. Australia approved a $75m investment into the Singaporean Government’s Financing Asia’s Transition Partnership initiative, which aims to support the region’s renewable energy transition.

The Australian Bureau of Statics released Australia’s current account figures. Australia recorded a current account deficit of $14.1bn, an increase of $2.2bn from the 2024 September quarter. Australian export of goods and services fell by 2.3 and 3.0 per cent respectively, with the decrease in export goods driven by decreased demand for Australian critical minerals.

Environment, Resources, Energy and Agriculture

Federal Developments 

The Federal Government awarded a $10 million grant to support Fortescue’s Fast Charger for Heavy Battery Electric Vehicles project at Christmas Creek mine in Western Australia. The project will enable the electrification of heavy haulage trucks on mine sites. The grant is the first to be awarded under the Industrial Transformation Stream of the Powering the Regions Fund.

Minister for the Environment Tanya Plibersek confirmed that she was “disappointed” that negotiations for a United Nations treaty to address plastic pollution broke down in South Korea. Minister Plibersek also reiterated that Australia will continue working with like-minded countries to ban problematic plastics and create universal standards to end plastic pollution by 2040.

The Federal Government announced funding for a series of soft plastic recycling projects in NSW. Six recycling projects have now been launched under the Recycling Modernisation Fund, with the two NSW facilities estimated to divert more than 12,000 tonnes of soft plastics from the state’s landfills.

The Greens announced they will call NewsCorp executives before the Greenwashing Inquiry following the publication of a week-long “special report” in NewsCorp dailies across the nation. The report was “proudly sponsored” by gas companies and contained several pieces not labelled as advertising claiming “gas can save us from summer blackouts” among other pieces questioning renewables and climate science. While future public hearing dates have not been announced, the inquiry is due to report in February 2025.

State Developments 

The Queensland Government confirmed that Japanese company ENOES will invest $200 million in a green hydrogen demonstration plant at Bulwer Island, set to commence production by 2026. The facility will produce 680 kilograms of hydrogen daily, utilising methylcyclohexane (MCH) as a hydrogen carrier.  ENEOS is partnering with Japanese and Queensland-based companies, supported by Japan’s Green Innovation Fund.

The Victorian Government announced the completion of the Rangebank battery. The 400MWh battery is located next to Cranbourne terminal station and has the storage capacity to power the equivalent of 80,000 homes. A further 11 utility-scale battery projects are under construction in Victoria. 

Infrastructure, Transport and Communications

Federal Developments

The Federal Government announced that a mandatory SMS Sender ID Register will be implemented in order to prevent scammers from impersonating trusted brands, reduce the impact of SMS scams, protect legitimate organisations, and improve public confidence in SMS communications. Administered by the Australian Communications and Media Authority (ACMA), the Register will require telecommunications providers to verify that messages sent under a brand name match a legitimate registered sender. 

Minister for Transport Catherine King confirmed that the Government is reviewing tender proposals for Australia’s new Strategic Fleet within the domestic maritime sector. The pilot aims to improve Australia’s sovereign maritime capabilities and support the maritime workforce, with three vessels available for requisition during emergencies like natural disasters or conflict. With the tender deadline now passed, proposals are now being evaluated through a competitive procurement process.

Minister for Transport Catherine King announced a review of the Australian Design Rules (ADRs), which regulate road vehicle standards, to identify and address regulatory barriers. The review aims to ensure that the ADRs align with international standards, with a focus on enhancing safety, emissions, and anti-theft measures. The review’s objective is to improve consumer choice, innovation, and to support the transition to a net-zero future.

State Developments

The NSW Government confirmed that James Sherrard has begun his role as NSW’s new Building Commissioner, leading the state’s first dedicated building and construction regulator. In his first week, he outlined priorities for industry oversight, including introducing reforms to improve regulation, productivity, and consumer protection, while increasing construction compliance.

Health and Education

Federal Developments 

Prime Minister Anthony Albanese announced the appointment of Michael Lye as the Secretary of the Department of Social Services. Mr Lye has extensive experience in public policy having served as a Deputy Secretary in the Department of Health and Aged Care. He will commence his five-year term on 11 December 2024. The Prime Minister thanked outgoing Secretary Ray Griggs AO CSC for his service.

Minister for Aged Care Anika Wells announced a $250 million investment through Round 2 of the Aged Care Capital Assistance Program to enhance aged care services in regional, rural and remote areas. The funding will support 52 infrastructure projects, delivering over 400 additional beds, and prioritise cultural care for older Aboriginal and Torres Strait Islander people, which will include a new 100-bed aged care home in Perth.

Minister for Health and Aged Care Mark Butler released the National Dementia Action Plan 2024-2034, outlining eight key actions to improve dementia awareness, reduce risks, and enhance care and support services over the next decade. Significant investments, including $101.4 million for complex care needs and $56.8 million to aid hospital-to-aged care transitions, underscore the government’s commitment to dementia care and fulfilling its global obligations under the WHO’s action plan.

Minister for Education Jason Clare revealed the expansion of ‘FEE-FREE Uni Ready’ courses, with 8,600 places to be offered in 2025 as part of a $158 million investment. This initiative, aligning with recommendations from the Universities Accord Final Report, aims to prepare individuals for university by bridging the gap between school or work and higher education.

State Developments 

Victorian Premier Jacinta Allan and Federal Minister for Health and Aged Care Mark Butler opened a mRNA vaccine and medicine manufacturing facility in Melbourne. The only facility of its kind in the Southern Hemisphere, the new Moderna operation is expected to create 500 jobs and will boost Australia’s mRNA supply chain manufacturing capability. The facility was jointly funded by the Victorian and Federal Governments.

Minister for Skills, TAFE and Tertiary Education Steve Whan announced the NSW Skills Plan, the first in over 15 years, to address critical workforce shortages and modernise vocational education. The Plan focuses on priority skills, regional needs and youth pathways while enhancing TAFE NSW and aligning with national priorities.