GOVERNMENT SPENDING POLICY – AUSTRALIA

Nyrstar to get $135 million bailout for struggling smelters

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Original article by
abc.net.au – Page: Online : 6-Aug-25

Nyrstar Australia has welcomed the $135m joint federal and state rescue package for its smelters in Port Pirie and Hobart. The federal government will contribute $57.5m, while the South Australian and Tasmanian governments will provide $55m and $22.5m respectively. Nyrstar will use the taxpayer funding to undertake feasibility studies into the production of critical metals, including antimony and bismuth at the Port Pirie lead smelter and germanium and indium at the Hobart zinc smelter. A pilot plant at Port Pirie will be able to produce up to half a tonne of antimony each day.

CORPORATES
NYRSTAR AUSTRALIA PTY LTD

A culture of dependency has taken root

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Original article by John Kehoe
The Australian Financial Review – Page: 3 : 23-Jul-25

Research by the Centre for Independent Studies shows that more than 50 per cent of Australian voters now rely on federal or state governments for most of their income. This includes public sector workers, welfare recipients and people who receive subsidies of some kind. Robert Carling from the think tank says this dependence presents a major challenge for politicians who might attempt to reduce government spending. Analysis shows that total federal and state government spending has increased to 39 per cent of GDP; this is its highest level since the end of the second world war, and compares with about 35 per cent of GDP prior to the global financial crisis in 2008.

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THE CENTRE FOR INDEPENDENT STUDIES LIMITED

Non-market job boom a drag on productivity

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Original article by John Kehoe
The Australian Financial Review – Page: 4 : 16-Jul-25

The Department of Employment & Workplace Relations has warned that a rapidly expanding ‘non-market sector’ presents a challenge for the federal government. The department’s briefing for incoming Employment Minister Amanda Rishworth also notes that overall productivity growth has been impacted by the non-market sector’s increasing share of the economy. This sector includes the health care and social assistance, education and training and public administration and safety industries; it includes both public and private service providers that receive government funding. Four out of five jobs created in the last two years have been in this sector, including the National Disability Insurance Scheme.

CORPORATES
AUSTRALIA. DEPT OF EMPLOYMENT AND WORKPLACE RELATIONS

PM blowing up our defence hopes

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Original article by Ben Packham
The Australian – Page: 1 & 4 : 1-Jul-25

The federal government struck a deal with the Biden administration in 2024 to purchase $7bn worth of guided missiles for its fleet of warships. However, the deal has yet to receive final approval from the White House, and there are fears that the Trump administration could redirect the consignment of missiles to a US ally that is willing to meet its demands regarding defence spending. Prime Minister Anthony Albanese is continuing to resist pressure from the US to increase defence expenditure to 3.5 per cent of GDP; he is adamant that the government will stick with its target of just 2.3 per cent by 2033.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT

Budget faces $9b hit from NDIS delays

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Original article by Michael Read
The Australian Financial Review – Page: 1 & 4 : 12-Jun-25

The federal government’s budget papers in March showed that it is targeting $19bn worth of savings related to the National Disability Insurance Scheme over the next four years. However, some $8.8bn of these savings are now in doubt, which will jeopardise the government’s goal of restricting growth in the NDIS to just eight per cent a year from mid-2026. Its annual growth rose to 20 per cent in 2022, prompting former NDIS minister Bill Shorten to commission a review of the scheme; amongst other things, it recommended the introduction of ‘foundational supports’.

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Climate change spend surges to $9bn a year

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Original article by Matthew Cranston
The Australian – Page: 1 & 5 : 4-Jun-25

Analysis by the Institute for Public Affairs shows that the federal government’s spending on climate change and net zero policies has increased by 400 per cent since it took office in May 2022. Labor allocated more than $9bn to such initiatives in its pre-election budget in March, compared with just $1.7bn in the former Coalition government’s last budget in March 2022. This compares with the $600m that was spent on climate change and net zero programs a decade ago. The IPA’s chief economist Adam Creighton says that despite the big increase in spending on net zero, the government’s own figures show that Australia’s carbon emissions have fallen by just 2.8 per cent compared with 2005 levels.

CORPORATES
INSTITUTE OF PUBLIC AFFAIRS LIMITED, AUSTRALIAN LABOR PARTY

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

Chalmers stakes future on staying AAA

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Original article by Greg Brown, Matthew Cranston
The Australian – Page: 1 & 6 : 30-Apr-25

Treasurer Jim Chalmers has downplayed concerns that Australia’s coveted ‘AAA’ credit rating may be downgraded. S&P Global has warned of this possibility due to election campaign promises and the growing use of so-called ‘off-budget’ spending. Chalmers says the federal govermment respects the global ratings agency and concedes that its "opinion matters". However, he adds that Labor’s "responsible economic management" means there would be no reason for a credit rating downgrade if it retains office on Saturday. The Australian Chamber of Commerce & Industry’s CEO Andrew McKellar says the S&P report is a "wake-up call" for both of the major political parties, and that budget repair must be a priority for the next government.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, S&P GLOBAL INCORPORATED, AUSTRALIAN CHAMBER OF COMMERCE AND INDUSTRY

PM scores AAA for denial

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Original article by Greg Brown, Matthew Cranston
The Australian – Page: 1 & 6 : 29-Apr-25

S&P Global has warned that Australia’s coveted ‘AAA’ credit rating is at risk due to the erosion of "sound fiscal management". The firm has raised concern about how the major political parties will fund their election promises if they win the election on 3 May, noting that the budget deficit could widen if the election promises are not funded via revenue or cost savings. S&P also expressed concern about the growing use of so-called ‘off-budget’ spending. However, Prime Minister Anthony Albanese has rejected suggestions that Australia could face a credit rating downgrade, while Treasurer Jim Chalmers says Opposition leader Peter Dutton and the Coalition are the biggest risk to the nation’s credit rating.

CORPORATES
S&P GLOBAL RATINGS, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE TREASURY

Taylor vows costings will beat Labor’s

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 15-Apr-25

Shadow treasurer Angus Taylor says the Coalition will not adopt Labor’s policy that would involve an optional $1,000 tax deduction for work-related expenses, which is slated to cost $2.4 billion over four years. Taylor says this is because the Coalition’s election spending promises that aim to ease cost-of-living measures are temporary ones, whereas he says Labor is focused on recurrent spending, and that the Coalition’s costings will result in a stronger bottom line than under Labor because of their temporary nature. His comments were echoed by Opposition Leader Peter Dutton on Monday, who likened the Coalition’s temporary measures to the government assistance that was issued during the pandemic.

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AUSTRALIAN LABOR PARTY