AUSTRALIA – POLITICS AND GOVERNMENT

PM rejects cost-of-living comparison with Trudeau

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Original article by Andrew Tillett
The Australian Financial Review – Page: 5 : 8-Jan-25

Prime Minister Anthony Albanese has praised his outgoing Canadian counterpart Justin Trudeau following the latter’s resignation after nine years in office. Albanese says Trudeau has had a good relationship with Australia under both the current Labor government and its Coalition predecessor. However, Albanese has downplayed concerns that factors which contributed to Trudeau’s departure – such as cost-of-living pressures, high inflation and immigration – could affect his own election prospects in 2025. He notes that Trudeau is the leader of a long-term government; Albanese is nearing the end of his first term in office.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, CANADA. OFFICE OF THE PRIME MINISTER

Labor faces $7.4b wages black hole

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Original article by Michael Read
The Australian Financial Review – Page: 1 & 4 : 8-Jan-25

The federal public service wages bill increased by 11.7 per cent in 2023-24, due to wage rises and the addition of about 15,000 new staffers. The Treasury’s forecasts suggest that the public service wages bill is set to increase by another 10.8 per cent in 2023-24; however, the federal government’s recent mid-year budget update assumes that annual growth in the public services wages bill will then remain flat at $30 billion for the following three financial years. This forecast is at odds with the government’s latest enterprise agreement for public servants, which featured a pay rise of 11.2 per cent over the three years to March 2026.

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AUSTRALIA. DEPT OF THE TREASURY

Dutton, PM spar over power prices

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Original article by Greg Brown, Michael McKenna
The Australian – Page: 1 & 2 : 8-Jan-25

Prime Minister Anthony Albanese visited Cairns on Tuesday, as part of a tour of regional Queensland. He contended that Opposition leader Peter Dutton is not interested in capitalising on the job opportunities that will arise from the transition to net-zero emissions, arguing that he has a plan to stop investment in Australia rather than a plan for the future. Building seven nuclear power stations is a key element of the Coalition’s energy policy, and Dutton contends that nuclear power will be one-third of the current cost of electricity in Australia. He adds that Albanese is a "desperate prime minister" leading a "desperate government with no vision for the future". Dutton notes that Albanese has admitted that he has broken an election promise of a $275 reduction in households’ electricity bills by 2025.

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AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, LIBERAL PARTY OF AUSTRALIA

PM’s green tape tangle for miners

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Original article by Noah Yim, Brad Thompson
The Australian – Page: 1 & 4 : 8-Jan-25

The Minerals Council of Australia has expressed concern about key elements of the federal government’s proposed critical minerals production tax incentive scheme. The MCA contends that the ‘community benefit principles’ requirement of the tax incentive would create uncertainty for the nation’s critical minerals industry, which is already facing strong global competition. The government estimates that the tax incentive will cost about $7bn over a decade, but create secure jobs in Australia and diversify global supply chains by processing critical minerals onshore rather than exporting the raw materials overseas.

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MINERALS COUNCIL OF AUSTRALIA

Record insolvencies tarnish Chalmers’ spin

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Original article by Geoff Chambers
The Australian – Page: 1 & 4 : 18-Dec-24

Data from the Australian Securities & Investments Commission undermines the federal government’s economic credentials. The figures show that 12,405 businesses were declared insolvent in the first 11 months of 2024. This includes a record 1,442 business failures in November, which is 62 per cent higher year-on-year. Nearly 26,000 businesses have collapsed since Labor won the May 2022 federal election; Deputy Opposition Leader Sussan Ley notes that this is approximately the same as the number of additional public servants Labor has hired since it took office. Separate data shows that the number of welfare recipients has risen by about 83,000 year-on-year.

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AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA

Chalmers to press on with super tax hike

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Original article by Jack Quail
The Australian – Page: 2 : 18-Dec-24

Treasurer Jim Chalmers says the federal government has no plans to tighten tax concessions, although it intends to proceed with its existing tax reform agenda. This includes legislation to double the tax rate on the earnings of superannuation funds whose balance exceeds $3m; the legislation has been stalled in the Senate amid a push by both the Greens and crossbenchers for amendments. Meanwhile, the Treasury’s annual Tax Expenditures and Insights Statement shows that superannuation tax concessions are expected to cost the federal budget about $55.2bn in 2024-25.

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AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN GREENS

Miners claim uranium ban negligent, nonsense policy

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Original article by Rosie Lewis
The Australian – Page: 5 : 17-Dec-24

Minerals Council of Australia CEO Tania Constable will appear before a parliamentary inquiry into nuclear power on Tuesday. Constable will argue that there is no scientific, technical or economic justification for retaining Australia’s long-standing legislative ban on nuclear energy. She will also contend that adding nuclear to the nation’s energy mix will be necessary in order to fully decarbonise the domestic economy by 2050. Electrical Trades Union organiser Simon Brezovnik has told the inquiry that nuclear energy is too expensive and high-risk.

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MINERALS COUNCIL OF AUSTRALIA, ELECTRICAL TRADES UNION

Roy Morgan Poll: Coalition boosts primary support and retains clear two-party preferred lead for Christmas: L-NP 52% cf. ALP 48%

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Original article by Roy Morgan
Market Research Update – Page: Online : 17-Dec-24

A Coalition Government, with a slim majority, would now win a Federal Election with the two-party preferred vote unchanged from last week: L-NP 52% cf. ALP 48%, the latest Roy Morgan survey finds. Primary support for the Coalition increased 3% to 41% – the highest since the last Federal Election and came at the expense of One Nation 5% (down 1.5%), and drops in support for the ALP 27.5% (down 0.5%), Greens 12.5% (down 0.5%), and Other Parties 3.5% (down 0.5%) which all lost support. Support for Independents remained steady at 10.5%. The rise in Coalition primary came after the RBA left interest rates unchanged and the Coalition outlined its energy plan to bring in nuclear power and lower energy costs.

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ROY MORGAN LIMITED, MORGAN POLL, LIBERAL PARTY OF AUSTRALIA, NATIONAL PARTY OF AUSTRALIA, AUSTRALIAN LABOR PARTY, ONE NATION PARTY, AUSTRALIAN GREENS

Chalmers’ budget update locks in extra $25bn of unavoidable expenditure

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Original article by Jack Quail, Geoff Chambers
The Australian – Page: 1 & 4 : 17-Dec-24

Treasurer Jim Chalmers says that although global economic volatility is weighing on the federal budget, Labor has delivered two surpluses and lower debt since taking office in May 2022. Meanwhile, the Mid-Year Economic and Fiscal Outlook on Wednesday will feature some $25.1bn worth of additional government spending; this will include $16.3bn for increased welfare payments, childcare subsidies and cost of living relief. The government describes this as ‘automatic spending increases’, while Finance Minister Katy Gallagher has flagged $8.8bn of ‘unavoidable spending’. Independent economic Chris Richardson refutes suggestions that some expenditure cannot be avoided.

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AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF FINANCE

Academic and banker to join RBA policy board

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Original article by Jack Quail
The Australian – Page: 4 : 17-Dec-24

Treasurer Jim Chalmers says the federal government undertook a "very robust and very consultative" process to select the members of the Reserve Bank of Australia’s two new boards. Professor Renee Fry-McKibbin and former Bendigo Bank CEO Marnie Baker will join four of the RBA’s current external board members on the new interest-rate setting board, which will also include governor Michele Bullock, deputy governor Andrew Hauser and Treasury secretary Steven Kennedy. Current board members Carol Schwartz and Elana Rubin will join the RBA’s governance board.

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RESERVE BANK OF AUSTRALIA, AUSTRALIA. DEPT OF THE TREASURY, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN