IMF WARNS ON NDIS COSTS; EXPORT STARS
PM sidesteps on means test option for NDIS
Prime Minister Anthony Albanese has veered around suggestions that a means test or co-payment should be introduced to help rein in the costs of the National Disability Insurance Scheme (NDIS). The PM told a media interview that the Federal Government would consider ways to reduce some pressure on the Budget, saying the NDIS was not just a cost, but an investment in people, which also produced economic benefits. In a report on Australia issued last week, the International Monetary Fund noted that NDIS spending was projected to grow rapidly, from almost 1.25 per cent of GDP in 2021-22 to 2.4 per cent of GDP ($89 billion) by 2031-32, with a near-doubling in the number of participants. The IMF paper said a current review of the NDIS should inform policy options, including a “cost-sharing scheme or means testing, ensuring consistent and equitable access” to the program.
Exporters more resilient, pay higher wages - Farrell
Australian exporters added more than $646 billion to the national economy and employed around three million workers in 2020-21, according to an Austrade report. Releasing the inaugural Australian State of Exporters Report, Trade and Tourism Minister Don Farrell said that businesses trading overseas were more productive than non-exporters, more resilient and were more likely to survive Covid-19 disruptions. According to the report, the total value of goods and services exported in 2020-21 was $458.8 billion. Senator Farrell said 93 per cent of Australian exporters were small or medium-sized businesses, exporting to more than 230 international markets. He added that exporters created 14 per cent more employment and paid median wages 43 per cent higher compared to non-exporters.
Inflation the main target, says Chalmers
Treasurer Jim Chalmers says that inflation will remain the Federal Government’s main focus as it prepares for its second Budget in May. In an address to a think tank, Dr Chalmers said the main priorities would be to provide cost-of-living relief without adding to inflation, grow the economy, and repair the Budget. Measures would include bolstering national security and “taking some of the sting out of electricity bills.” Dr Chalmers also flagged releasing a Tax Expenditure Statement later this month.
Australia, UK step up defence moves on climate change
Defence and Foreign Ministers from Australia and the United Kingdom have agreed to commit to reducing and mitigating the climate impacts of their respective defence activities. The AUKMIN meeting proposed a meeting of senior defence officials to “identify meaningful action”, and committed to explore how both countries could better co-ordinate efforts to support the climate needs of partner countries in South-East Asia and the Pacific.
Retail trade falls for first time in 12 months
Retail turnover fell for the first time in 12 months during December 2022, in a potential sign of a weaker economy under rising interest rates. The Australian Bureau of Statistics said that retail trade in December dropped by 3.9 per cent, seasonally adjusted, on the previous month, with the largest falls in discretionary-related spending in department stores, household goods, and clothing and footwear. Monthly retail turnover fell most in Victoria and Western Australia (both falling 4.7 per cent); while there was a sharp monthly fall, retail trade nationally was still 7.5 per cent higher over the 12 months to December 2022.
New research seed fund to accelerate commercial projects
Industries and universities can benefit from up to $10 million in new Federal Government grants to invest in higher education research for identified commercial projects. Education Minister Jason Clare said the economic accelerator seed grants would be available for projects seeking to confirm proof-of-concept on research ideas pursuing a commercial outcome. Individual grants of up to $500,000 would be available for projects in two tranches, covering the priority areas of renewable and low-emission technology, medical sciences, resources and agriculture, and forestry and fisheries.