26 July 2024

Highlights

• The Labor Party leads the Coalition 51-49 on a two-party preferred (2PP) basis while Anthony Albanese remains preferred Prime Minister over Peter Dutton, according to the latest Newspoll. Conversely, a poll published by Freshwater Strategy has the Coalition leading Labor 51- 49 on a 2PP basis.
• Minister for Home Affairs Clare O’Neil highlighted that events such as the global IT outage caused by American cyber security company CrowdStrike demonstrated the “vulnerabilities” of an interconnected global economy.
• Labour force data released by the Australian Bureau of Statistics shows the unemployment rate rose to 4.1 per cent in June.
• Minister for Foreign Affairs Penny Wong confirmed the imposition of Magnitsky-style sanctions on seven Israeli individuals and one entity in response to violence in the West Bank. The Minister reiterated Australia’s commitment to peace between Israel and Palestine.
• Minister for Sport Anika Wells travelled to Paris for key meetings ahead of the 2024 Olympic Games, including the Commonwealth Sports Ministers Meeting and the UNESCO Change the Game sport conference.
• Former NSW Premier Gladys Berejiklian lost her legal challenge to the Independent Commission Against Corruption’s finding that she had engaged in “serious corrupt conduct.”

Federal Cabinet resignations

Prime Minister Anthony Albanese confirmed the resignation of Minister for Skills and Training Brendan O’Connor and Minister for Indigenous Australians Linda Burney from Cabinet. Both Minister O’Connor and Minister Burney will retire from politics at the next election.

Mr Albanese described Minister O’Connor’s contribution to the skills and training portfolio as “instrumental” and acknowledged key policy achievements under his tenure, including the National Skills Agreement and fee-free TAFE. Similarly, the Prime Minister labelled Minister Burney as someone “who brightened every room” and paid tribute to her contribution to the lives of Indigenous Australians through her advocacy on the Voice referendum and other initiatives. The retirements also mean the Labor Party will seek new candidates in the electorates of Gorton in VIC and Barton in NSW, held by the ALP on margins of 10 per cent and 15 per cent respectively.

The announcement paves the way for a Cabinet reshuffle, expected to be revealed on Sunday 28 July, which will be the first reshuffle of the Albanese Government.

Reaction to President Biden’s withdrawal

Following President Biden’s announcement that he would not seek a second term as President of the United States, Prime Minister Anthony Albanese paid tribute to his close ally and friend. “He is someone who, in January, will be able to retire from public life with an extraordinary record”, Mr Albanese said.

The Prime Minister and President Biden had their first leader-to-leader engagement in the days following the May 2022 election at the Quad Leaders’ Summit in Tokyo. Since then, both leaders have made a number of significant announcements relating to cooperation on climate change, critical minerals, cyber resilience, and deference interoperability. Notably, the Prime Minister and the President finalised the optimal pathway for AUKUS in San Diego in March 2023.

Looking Ahead

The VIC and TAS (House of Assembly only) Parliaments will sit next week while Budget estimates continue in QLD and the ACT.

FINANCE

Federal Developments

The Federal Government released exposure draft legislation containing reforms to Australia’s merger and acquisitions regime. The reforms would replace the current approach with a new merger approval and notification system overseen by the Australian Competition and Consumer Commission (ACCC). Subject to parliamentary passage, the regime would commence on 1 January 2026. Consultation closes on 15 August.

Treasurer Jim Chalmers opened consultation on reforms to capital gains tax (CGT) rules for foreign residents. The first proposal includes increasing the foreign resident capital gains withholding rate for certain assets from 12.5 per cent to 15 per cent and removing the $750,000 transaction threshold altogether. The second proposal includes broadening assets that are subject to CGT, amending the point-in-time principal asset test, and changing notification rules to the Australian Taxation Office. Consultations close on 5 August and 20 August respectively.

Minister for Small Business Julie Collins released the exposure draft regulations aimed at improving payment timeframes for small businesses. The 2024 Draft Payment Times Reporting Rules would support legislation passed earlier this month that aims to increase reporting requirements for larger businesses to ensure greater accountability. Consultation will close on 19 August with reforms set to commence in September.

The ACCC published an issues paper for the tenth and final report of the Digital Platform Services Inquiry. The consultation seeks feedback on recent international legislative developments and their impact on competition and consumers, major developments and key trends, and emerging competition and consumer issues relating to digital platform services. Submissions close 23 August.

FOREIGN AFFAIRS, DEFENCE AND TRADE

Federal Developments

Australian Navy Chief Vice Admiral Mark Hammond AO RAN welcomed Naval Chiefs from the United Kingdom and the US in Perth for the Indian Ocean Defence and Security 2024 Conference. The three naval chiefs toured HMAS Stirling and signed a Statement of Intent for Lethality which documents the three navies’ collective commitment to the enhanced lethality of their surface combatant and submarine fleets.

Minister for Defence Industry Pat Conroy announced the expansion of the Global Supply Chain (GSC) Program, which will see the number of major defence companies participating in the GSC program almost double from seven to 13. The GSC program expansion aims to deliver on the Government’s commitment to the Defence Industry Development Strategy and support Australian businesses integrate into global supply chains and diversify their revenue.

The Federal Government confirmed that the Royal Australian Navy (RAN) successfully tested its new Naval Strike Missile (NSM) during Exercise RIMPAC 2024 off the coast of Hawaii. The NSM is a replacement for the current Harpoon weapon system and aims to assist in achieving the objectives of the National Defence Strategy by enhancing the RAN’s lethal strike capabilities.

Minister for Multicultural Affairs Andrew Giles released the report of the Multicultural Framework Review, which assessed the shape of multiculturalism in Australia. The independent report makes 29 recommendations and calls for 10 of the recommendations to be actioned immediately. These include establishing a Multicultural Affairs Commission and standalone ministry for Multicultural Affairs, reviewing English language citizenship testing procedures, and boosting NAATI interpreter funding.

ENVIRONMENT, RESOURCES AND ENERGY

Federal Developments

The Federal and NT governments announced the acceleration of the delivery of renewable energy to the NT as part of the Rewiring the Nation program. $250 million through the Clean Energy and Finance Corporation will support transmission projects and strengthen the NT’s electricity grid. An agreement was also signed on the deployment of community-scale solar and rooftop solar.

Minister for Resources Madeleine King confirmed the finalisation of new exploration permits aimed at strengthening Australia’s gas supply. Permits which are set to be finalised include Esso and Beach Energy in the Otway and Sorrell Basins, while Chevron, INPEX, Melbana, and Woodside Energy are set to be granted permits to explore the west coast of Australia. The Minister also noted that 10 permits for carbon capture and storage will be finalised.

The Federal Government updated the Greenhouse and Energy Minimum Standards (GEMS) scheme. New standards will be set for washing machines and dishwashers and increased for TVs and computer monitors. Since the introduction of GEMS in 2014, it is estimated that 40 to 60 million tonnes of emissions have been avoided.

State Developments

The NSW Government opened the NSW Hydrogen Centre of Excellence. The $25 million centre will train and upskill plumbers and gas fitters to help support the shift to renewable energy. The centre will be built in partnership with the Plumbing Industry Climate Action Centre.

INFRASTRUCTURE, TRANSPORT AND COMMUNICATIONS

Federal Developments

eSafety Commissioner Julie Inman Grant issued legal notices to tech companies including Apple, Google and Meta, requiring them to report the measures they are undertaking to combat online child sexual abuse. The companies will have to report every six months for the next two years and the eSafety Commissioner will publish regular reports.

Minister for Northern Australia Madeleine King announced that the Government’s Northern Australian Infrastructure Facility (NAIF) reached $2 billion worth of investment. The NAIF aims to fund infrastructure projects across Northern Australia and is projected to improve economic opportunities and assist the nation’s transition to a net-zero economy.

Minister for Infrastructure, Transport, Regional Development and Local Government Catherine King announced the appointment of three Commissioners to the National Transport Commission. Ms Lorretta Lynch and Mr Michael Byrne will join as new Commissioners, while Mr Jon Whelan will also continue as Commissioner after an extension of his appointment for another full term.

State Developments

A joint statement between the Australian and Tasmanian governments revealed $12.5 million in funding to increase tourism to the North West Coast. The funding, wholly provided by the Federal Government, will go towards transforming the former Dismal Swamp site and will look to “attract an additional 10,000 visitors to the region each year”.

HEALTH AND EDUCATION

Federal Developments

Minister for Aged Care Anika Wells committed to investing $333.7 million to employ pharmacists to work on-site at community pharmacies and residential aged care homes. The initiative seeks to provide aged-care residents with accurate information about the safe and appropriate use of medicines while improving access to qualified pharmacists.

Minister for Education Jason Clare revealed a $77.6 million investment over five years in the non-government school sector. The investment seeks to deliver age-appropriate consent and respectful relationships education programs nationwide. This initiative is part of the First Action Plan under the National Plan to End Violence against Women and Children 2022-2032.

Assistant Minister for Health and Aged Care Ged Kearney announced a $67.2 million investment into mental health care for victims of family, domestic, and sexual violence. As part of the Supporting Recovery pilot trials, the investment will go to a new model of health care aimed at addressing long-term recovery and healing for trauma-related conditions. The pilot will be rolled out in six Primary Health Network regions across the country, including in NSW, VIC, QLD, WA, and the NT.

Assistant Minister for Indigenous Health Malarndirri McCarthy unveiled a $16.9 million over three year grant program aimed at improving cancer care for Aboriginal and Torres Strait Islander Australians. Administered by Cancer Australia, up to 20 partnerships will be established to deliver cancer care in Indigenous communities. Applications for the program close 23 October.

State Developments

The QLD Government unveiled a 10-year cancer strategy aimed at improving and upgrading cancer services across the state, supported by a $1.73 billion investment announced earlier this year. This announcement coincides with the ongoing work on the Queensland Cancer Centre, which is expected to open in 2028.