2 August 2024
Highlights
- The Reserve Bank of Australia (RBA) left the cash rate unchanged at 4.35 per cent. Treasurer Jim Chalmers welcomed the RBA’s decision which “comes at a time of moderating underlying inflation, market volatility, and global economy uncertainty.”
- The Federal Government announced a 15 per cent pay rise over the next two years for Early Childhood Education and Care workers as a cost-of-living measure worth $3.6 billion. The rise is contingent on early education providers limiting fee increases.
- Treasurer Jim Chalmers unveiled reforms to the Petroleum Resource Rent Tax, which are expected to increase tax receipts by $2.4 billion over the forward estimates from 2023-24.
- Minister for Financial Services Stephen Jones addressed the Committee for Economic Development of Australia, outlining the Government’s plan to extend the Consumer Data Right to non-bank lending sectors and simplify the system to focus on high priority use cases, including home loans, energy, and small business accounting.
- Ahead of the QLD election in October, Premier Steven Miles pledged that a re-elected Labor Government would establish state-owned petrol stations and impose controls on fuel prices to address cost-of-living concerns.
Prime Minister travels to Garma Festival
Prime Minister Anthony Albanese and Minister for Indigenous Australians Malarndirri McCarthy travelled to Arnhem Land in the Northern Territory to attend the Garma Festival. The visit comes nearly ten months since the Voice to Parliament referendum.
Acknowledging the defeat of the Yes campaign, the Prime Minister reaffirmed his commitment to improving the lives of Aboriginal and Torres Strait Islander peoples. “I am here because my optimism for a better future still burns”, the Prime Minister said. Mr Albanese also announced a $20 million partnership with the NT Government and Yothu Yindi Foundation to establish an educational facility to provide on-Country learning from early childhood to the tertiary and vocational level.
Asked on ABC’s Insiders about the Federal Government’s ongoing commitment to the Uluru Statement from the Heart, the Prime Minister responded that “it hasn’t changed.” However, he confirmed that a national treaty between First Nations people and the Federal Government will not be pursued and will continue to be implemented at a state and territory level. The Prime Minister also inferred that a national Makarrata Commission for truth-telling – as called for in the Uluru Statement – will not be established, and that the Federal Government will continue to engage with First Nations people via other forums.
National Terrorism Threat Level raised
The Federal Government raised the National Terrorism Threat Level from ‘possible’ to ‘probable’. Responding to the decision, Prime Minister Anthony Albanese said the Federal Government’s “first priority is the safety and security of Australians.” Mr Albanese revealed that while the raising of the threat level does not mean there is an imminent risk of danger to the community, there are indications that “more Australians are embracing a more diverse range of extreme ideologies.”
The Prime Minister and the Director-General of Security Mike Burgess pointed to factors such as political polarisation, extremist material content online, the conflict in Gaza, and misinformation as key drivers of the deteriorating security landscape. Asked how the public should react to the decision, Mr Burgess emphasised that Australians “should be aware, but not afraid.”
AUSMIN Consultations
Deputy Prime Minister Richard Marles and Minister for Foreign Affairs Penny Wong travelled to the United States (US) to meet with their counterparts Secretary of State Antony Blinken and Secretary of Defense Lloyd Austin as part of the annual Australia-United States Ministerial Consultations (AUSMIN). Talks ranged from global geopolitical matters, defence interoperability, and cooperation on climate change, as well as updating the AUKUS agreement to allow for the transfer of naval nuclear material to Australia from the UK and US.
To promote closer people-to-people ties, the countries signed an agreement which will expedite travel and immigration processes for Australians travelling to America from 2025 under the Global Entry program. Australia also joined the US’ Landsat Next satellite program, aimed at supporting mining exploration and monitoring the Earth’s environment through satellite observations. Geoscience Australia will receive $207.4 million over four years as part of the program.
In a joint statement, the leaders committed to strengthen bilateral cooperation in the Indo-Pacific, accelerate action on climate change, and promote economic resilience. Following AUSMIN, Deputy Prime Minister Marles visited Canada for talks with Canadian Minister of National Defence Bill Blair while Minister Wong travelled to Fiji for the Pacific Islands Forum (PIF) Foreign Ministers Meeting.
Looking ahead
The Federal, NSW, VIC, WA, and TAS (Legislative Council only) Parliaments will sit next week.
Finance
Federal Developments
Attorney-General Mark Dreyfus
addressed the 2024 Australian Dialogue on Bribery and Corruption. The Attorney-General discussed Australia’s inward-reaching integrity reform agenda including: the National Anti-Corruption Commission; the Open Government Partnership; and public sector whistleblower reforms. He also highlighted initiatives to combat foreign bribery, such as the Regional Capability Framework, the anti money laundering and counter-terrorism financing reforms, and the Bribery Prevention Network.
The Australian Bureau of Statistics (ABS)
revealed that for the June 2024 quarter, all household types recorded an increase in cost-of-living costs. The increases ranged from 1.2 percent to 1.4 percent depending on the different spending patterns of each household, although the main contributors were consistent across all household types, consisting of insurance and financial services (including mortgage interest charges), as well as food and non-alcoholic beverages.
The Australian Securities and Investments Commission (ASIC)
released its Report 789 Review of simplified liquidations: 2021 – 2023 (REP 789) revealing that less than one in ten liquidators have adopted a simplified liquidation process, despite the 2021 reforms to streamline creditors’ voluntary liquidations (CVLs). Following the release of the REP 789 report, ASIC will
host round table discussions with those who have adopted the new streamlined CVL process to reflect on the changes.
State Developments
Victorian Assistant Treasurer Danny Pearson
announced the appointment of Gerard Brody as the new Chair of the Essential Services Commission. Mr Brody is a consumer rights lawyer and has previously been a director at the Energy and Water Ombudsman Victoria and has also held the position of CEO for the Consumer Action Law Centre providing advice and representation for vulnerable Victorians.
Federal, NSW, VIC, WA, and TAS (Legislative Council only) Parliaments will sit next week.
Foreign Affairs, Defence and Trade
Federal Developments
The Government
announced it will expedite the Australian Defence Force’s Ghost Shark program by jointly investing $20.1 million with Anduril Australia to build supply chain and manufacturing infrastructure. The program now aims to deliver an autonomous naval vehicle with intelligence, surveillance, reconnaissance and strike capabilities by 2025, which will be used by the Australian Navy and available in a commercial variant for international allies.
Minister for Defence Personnel Matt Keogh
confirmed the appointment of the new head of Defence Families of Australia, which has been upgraded to a full-time position. Ms Charlotte Webb will serve in the role, providing advice to the Government on Defence families’ needs and concerns, and contributing to the Government’s Defence Family Support Strategy.
Tourism Research Australia
released data from 2022-23 showcasing a 97 per cent growth in the economic value of tourism in regional areas across the nation. The data highlighted tourism industry growth in Kangaroo Island in SA, Phillip Island in Victoria, and the Whitsundays in Queensland, where tourism revenue accounted for 27, 18 and 12 per cent of each respective region’s local economy.
The Department of Foreign Affairs and Trade
increased its travel advice for Bangladesh to ‘do not travel’, in response to the ongoing protests and civil unrest present throughout the country. The Department issued a warning concerning the security situation and threat of terrorism in the country.
Environment, Resources and Energy
Federal Developments
Minister for the Environment Tanya Plibersek
approved the Central-West Orana Renewable Energy Zone transmission project in NSW. The project will add 4.5 gigawatts of new capacity into the network with the ability to power up to 1.8 million homes. The project received $490 million in finance under the Rewiring the Nation Fund.
The Federal Government
launched a 412 kWh battery storage system in Bondi, NSW in partnership with retailers Origin Energy and EnergyAustralia. The community battery is one of 400 being rolled out across Australia and will connect to rooftop solar. One in three Australian homes have solar panels however less than 1 in 40 have battery storage.
State Development
The Victorian Government
released The Transition Opportunities: Coal to Offshore Wind guide. The guide will help workers understand the similar skills and qualifications between industries and will support workers at the Yallourn power station to transition to working in offshore wind. The Victorian Energy Jobs Plan is set to be released in 2025.
Infrastructure, Transport and Communications
Federal Developments
The Federal Government
announced a new open tender process for a Slot Manager at the Sydney Airport, delivering on slot reforms announced in February. The new process will require applicants to showcase how they would transparently manage conflicts of interest. The announcement comes following recommendations from the Australian Competition and Consumer Commission and Harris Review.
Minister for Infrastructure Catherine King
addressed the Australian Constructors Association in Sydney and highlighted the Federal Government’s investment in pipeline infrastructure exceeding $120 billion. Minister King also discussed the recent issues with the CFMEU and the Government’s actions to address the misconduct, including appointing independent administrators to the union’s construction division.
State Developments
The NSW Government
initiated a parliamentary inquiry into harmful pornography, the first state to hold an inquiry into this topic. NSW Attorney General Michael Daley wrote to Chair of the Parliamentary Standing Committee on Social Issues Dr Sarah Kaine requesting the inquiry with the intention to inquire into the “full impacts of harmful pornography online” especially as it relates to young people.
Western Sydney International (Nancy-Bird Walton) Airport
opened consultation for two proposed flights paths. The proposed paths were developed following feedback from the Environmental Impact Statement (EIS). Community information and feedback sessions will be held both in person and online with a final EIS to be published later this year.
Health and Education
Federal Developments
The Federal Government
established the Medical Workforce Advisory Collaboration (MWAC), a new body to advise on medical workforce priorities including supply and demand, distribution, workforce capability, and support. The MWAC aims to guide the implementation of the Government’s workforce reviews and the ongoing execution of the National Medical Workforce Strategy 2021 to 2031. Membership includes health departments, specialist medical colleges, peak bodies and worker representatives.
Minister for Health and Aged Care Mark Butler
addressed the Australian Medical Association’s National Conference and praised recent achievements in health reform, such as increased Medicare rebates, new Medicare Urgent Care Clinics, and efforts against recreational vaping. He underscored the importance of continued cooperation and reform to strengthen Medicare and improve the health system.
The Federal Government
awarded eight new grants under the ‘Improving respite care for people with dementia and their carers’ program, supported by an additional $8 million investment. This investment aims to support families and unpaid carers by expanding access to innovative dementia-specific respite programs, education and services across NSW, ACT, QLD, and NT.
Assistant Minister for Health and Aged Care Ged Kearney
announced the establishment of the Climate and Health Expert Advisory Group, to provide advice on climate and health policies. The advisory group will also support the implementation of Australia’s first National Health and Climate Strategy that aims to minimise the health system’s climate impact and establish a high-quality net-zero health system.
