ECONOMY ON A ROLL; CAPS ON ENERGY PRICES
Household spending driving economic growth
Australia’s economy has continued its growth path, with gross domestic product (GDP) rising 0.6 per cent in the September quarter, or 5.9 per cent over 12 months. The Australian Bureau of Statistics (ABS) said that an increase in household spending and private investment contributed to economic growth, but a rise in imports outstripped a rise in exports. Household saving rates also fell substantially, as spending recovered post-Covid lockdowns. The ABS also noted that compensation of employees rose 3.2 per cent in the quarter - the highest quarterly rise since December 2006. Meanwhile, Australia continues to post strong trade surpluses, with the ABS recording a seasonally adjusted surplus of $12.2 billion in October. While service imports have surpassed pre-Covid levels, exports of services remain around 16 per cent lower than in early 2020.
PM moves to cap wholesale gas, coal prices for energy price relief
Prime Minister Anthony Albanese has moved to take the heat off rising energy prices, announcing temporary price caps on the price of wholesale gas and coal. After meeting with National Cabinet, the PM unveiled measures that he said would reduce the impact of future gas and electricity prices next year by around $230 for the average family. The cap on gas prices applies to east coast gas producers while the cap on coal prices has been set with the Queensland and New South Wales governments. Mr Albanese also committed up to $1.5 billion towards an Energy Bill Relief Fund to assist eligible households and small businesses, with Federal contributions contingent on matching funding by the relevant state or territory. Federal Parliament is being recalled this week to debate the legislated package.
O’Neil launches national cyber security strategy
On the heels of two major data breaches in Australia, the Federal Government has unveiled a new cyber security strategy to improve national resilience to cyber threats and address the consequences of cyber incidents. Home Affairs and Cyber Security Minister Clare O’Neil said the 2023-2030 Australian Cyber Security Strategy’s priorities would include ensuring the resilience of critical infrastructure and government systems, strengthening international engagement and growing a national cyber workforce. Ms O’Neil has appointed an expert advisory board to drive the strategy, to be chaired by former Telstra CEO Andy Penn. Promoting the strategy at the National Press Club, the Minister also said she was proud of how Australia handled the recent Medibank cyber incident; she claimed Australia had “stood up to a bully and we won.”
Marles steps up defence exercises with US, Japan
Deputy PM and Defence Minister Richard Marles has announced that Australia would be escalating its cooperation with the US under the bilateral Force Posture Initiatives. Mr Marles flagged the expansion of rotational presence of US capabilities in Australia across air, land and maritime domains. Addressing a forum in Japan after visiting the US, the Deputy PM said Japan would also be invited to increase its participation in force posture initiatives in Australia. Mr Marles confirmed that in the first quarter of 2023, he would make public the Federal Government’s response to the Defence Strategic Review.
National standard planned for disaster risk in land use
After a year of extreme flooding across Australia, National Cabinet has resolved to develop a national standard that would consider disaster and climate risk as part of land use planning and building reform processes. Planning ministers in states and territories will report to National Cabinet next year, after First Ministers agreed that development on floodplains needed to end. National Cabinet also noted progress on reforms and improvements to disaster recovery funding arrangements, and requested Treasurers to consider ways to improve insurance affordability.
Business views sought on climate risk disclosure
Businesses are being asked to comment on plans to develop an Australian climate risk disclosure framework. The Federal Government has released a consultation paper on establishing a framework that it said would provide business and investors with the clarity and certainty needed to manage climate risk and invest in new opportunities. It said the framework would ensure that large business and financial institutions were providing more information and greater transparency on how they were responding to climate change and supporting a transition to net zero.