AUSTRALIA – POLITICS AND GOVERNMENT

No rush to strike a tariff deal with volatile Trump

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Original article by Cameron Stewart
The Australian – Page: 6 : 14-May-25

Australia is among more than 50 countries that hope to negotiate a better tariffs arrangement with the Trump administration in the wake of the global turmoil caused by the so-called ‘Liberation Day’ in early April. Australia failed to receive an exemption from the baseline tariff of 10 per cent and a tariff of 25 per cent on steel and aluminium exports, despite being one of the few countries that has a trade surplus with the US. However, government officials have indicated that Labor will adopt a "wait and see" approach, and assess the outcome of other countries’ negotiations with the US before seeking a deal on tariffs.

CORPORATES
UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, AUSTRALIAN LABOR PARTY

Ley puts tax, economic reform on to-do list

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Original article by John Kehoe
The Australian Financial Review – Page: 4 : 14-May-25

Federal Opposition leader Sussan Ley has indicated that all of the Coalition’s policies will be up for review in the wake of the election defeat on 3 May. This includes nuclear energy and the net zero emissions target of 2050. Ley added that economic and tax reform will be priorities for the Coalition; she also committed to consulting with her colleagues and the community in reviewing the Coalition’s policies. Robert Carling from the Centre for Independent Studies says the Coalition needs to abandon ‘populist’ policies. Ley has become the Liberal Party’s first female leader at federal level, after defeating Angus Taylor 29-25 in a party room vote on Tuesday. New deputy leader Ted O’Brien is expected to replace Taylor as shadow treasurer.

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LIBERAL PARTY OF AUSTRALIA, THE CENTRE FOR INDEPENDENT STUDIES LIMITED

Cabinet backs above-CPI wage rise for low paid

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Original article by Ewin Hannan
The Australian – Page: 5 : 14-May-25

The newly sworn-in cabinet ministers have approved the federal government’s submission to the Fair Work Commission’s annual wage review. The submission will argue the case for an "economically sustainable real wage increase" for workers on the minimum wage and industry award wages. The government has not specified a percentage increase, although it says this must be above the inflation rate. The budget papers in March had forecast an inflation rate of 2.5 per cent in 2024-25 and three per cent in 2025-26. The ACTU has called for a minimum wage rise of 4.5 per cent from 1 July.

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AUSTRALIA. FAIR WORK COMMISSION, ACTU

Unease stirs inside Labor on super tax

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 14-May-25

Treasurer Jim Chalmers has confirmed that the federal government intends to proceed with legislation to double the tax rate on superannuation balances exceeding $3m and introduce a tax on unrealised capital gains. Some Labor MPs have expressed concern about the proposed superannuation tax changes, noting that the reforms had generated a lot of negative feedback at polling booths on election day. Independent MP Allegra Spender says that although Labor now has a mandate for superannuation tax reform. she contends that it is "bad policy" and should be reconsidered.

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AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN LABOR PARTY

‘Extreme, divisive politics’: Greens’ near-total wipe-out

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Original article by Clare Armstrong
Herald Sun – Page: Online : 8-May-25

Sky News and the ABC have both declared that Labor’s Sarah Witty has won the seat of Melbourne, which Greens leader Adam Bandt has held since 2010. However, a Greens spokeswoman has stated that the minor party has yet not conceded defeat in the previously safe seat, arguing that "many thousands of votes" have not yet been counted. The Greens are hopeful that more than 15,000 absentee and declaration votes will favour Bandt. Commenting on Bandt’s defeat, a Labor source said "he’ll blame Labor, he’ll blame the Liberals, he’ll blame voters, but he’ll never blame himself". The Greens went into the federal election with four MPs in the lower house, but Stephen Bates and Max Chandler-Mather have also lost their seats and Elizabeth Warren-Brown’s seat of Ryan in Queensland is in doubt. Greens senators Sarah Hanson-Young and Mehreen Faruqi are believed to be the frontrunners to succeed Bandt.

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AUSTRALIAN GREENS, AUSTRALIAN LABOR PARTY

Liberal MPs urge unity leadership ticket as Abbott questions conviction

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Original article by Sarah Ison, Jack Quail
The Australian – Page: 5 : 8-May-25

Liberal Party insiders contend that an increasingly acrimonious leadership contest is undermining efforts to rebuild in the wake of Saturday’s election rout. Sussan Ley, Dan Tehan and Angus Taylor are expected to be in contention to succeed Peter Dutton as Opposition leader. Supporters of Ley have rejected claims that she has offered prime shadow cabinet portfolios in exchange for votes in a leadership ballot. A number of Liberal MPs have called for Ley and Tehan to run on a ‘unity ticket’, with some suggesting that the latter would garner enough support to be deputy leader but not enough to take the top job. Meanwhile, former prime minister Tony Abbott says the Liberals’ leadership has lacked "courage and conviction" in recent times.

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LIBERAL PARTY OF AUSTRALIA

Labor to push ahead on super tax

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Original article by Phillip Coorey, Sumeyya Ilanbey
The Australian Financial Review – Page: 1 & 4 : 8-May-25

The federal government has indicated that reducing the higher education debt of students and graduates by $16bn with be its first legislative priority for its second term in office. Labor has also reaffirmed its commitment to superannuation reform, including the controversial tax on unrealised capital gains. The reforms had been intended to take effect on 1 July but were rejected by the Senate earlier in 2025 due to opposition from a number of crossbenchers; however, they will be sidelined in the new Senate given that Labor and the Greens will have a majority in the upper house.

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AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS

Government debt could hit $1trn by September

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Original article by Michael Read
The Australian Financial Review – Page: 4 : 8-May-25

Data from the Australian Office of Financial Management shows that the federal government’s gross debt is currently about $929bn. Micaela Fuchila, the chief economist at investment bank Jarden, has forecast that the nation’s gross debt will reach $1trn in either September or October of this year. The Treasury in turn expects the government’s net debt – which excludes the value of financial assets such as the Future Fund – to reach $556bn by June. S&P Global recently warned that Australia’s coveted AAA credit rating may be at risk if federal election spending promises are funded via debt rather than revenue or cost savings.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY. OFFICE OF FINANCIAL MANAGEMENT, JARDEN AND COMPANY, S&P GLOBAL INCORPORATED

Liberals revolt over policy failures

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Original article by Sarah Ison, Jack Quail
The Australian – Page: 1 & 4 : 7-May-25

Sources within the Liberal Party have indicated that many of its policies were either not released or delayed for so long that they had no impact on the federal election. They include policies in key areas such as defence, taxation, education, health and the environment. Meanwhile, Sussan Ley is now widely regarded as the frontrunner to replace Peter Dutton as Opposition leader; advocates for Ley contend that she could boost support among female voters who have become disillusioned with the Liberal Party.

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LIBERAL PARTY OF AUSTRALIA

Albanese to dole out an extra ministry to the Left after landslide win

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Original article by David Crary, James Massola
The Age – Page: Online : 7-May-25

Labor’s expanded caucus is set to meet on Friday to decide which MPs and senators will be in the new ministry, although Prime Minister Anthony Albanese will allocate portfolios next week. Labor’s left faction is set to gain an additional seat in the ministry after gaining about 12 seats in the federal election, while the Victorian Right faction will also push for increased representation in the ministry. The Left faction is set to outnumber the Right in Labor’s caucus, which is set to increase to at least 110, compared with 103 before the election.

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AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET