WONG DEFENDS CHINA STANCE; GST SIDESTEP
China driving Australian economic prosperity, says Wong
Foreign Affairs Minister Penny Wong says China’s economic growth has been a driver of Australian prosperity, but in its China relationship, the Albanese government would co-operate where it could and disagree where it must. In an address to the National Press Club, Senator Wong said the reality was that China was the world’s second largest economy, representing 18 per cent of world GDP. Even with increased diversification, she said, China would remain Australia’s largest trading partner for “the foreseeable future”, and a valuable source of foreign investment, where “it meets our national interests.” Senator Wong said Australia need not waste energy with shock or outrage at China seeking to maximise its advantage, such as in its domestic industry policy, its international investment, and in access to its markets.
Export hopes for resumption of barley trade
Meanwhile, Penny Wong joined Trade Minister Don Farrell and Agriculture Minister Murray Watt in announcing that China had agreed to review the level of import duties imposed on Australian barley, over a three-month period. Senator Wong said that in return, Australia had agreed to temporarily suspend its pursuit of the trade dispute through the World Trade Organisation. She said she expected China would follow a similar process on the barriers to Australian wine. Senator Farrell said that since 2020, China’s 80.5 per cent duties on Australian barley had effectively blocked exports to that market, worth about $916 million in 2018-19.
Treasurer again rules out GST rise
Treasurer Jim Chalmers says the Federal Government will not be increasing the rate of the goods and services tax to address budget shortfalls. Dr Chalmers told a media interview that taxation in multinational activity and in superannuation were the places to “advance an agenda” to make the budget more sustainable over time. The Treasurer also flagged discussions through National Cabinet on the funding of services between state and federal governments, given that there were no state or territory elections for the next year. Ahead of the May 9 Federal Budget, Dr Chalmers said there was an “appetite in Australia” to address budget spending, and that he was encouraged by the level of public understanding about the budget pressures.
International student arrivals well below pre-Covid levels
Higher education institutions welcomed more than 142,000 international students to start the new tertiary year in February, according to official figures. The Australian Bureau of Statistics said the 2023 influx was an increase of more than 93,000 students on February 2022, but still 22 per cent lower than pre-Covid levels of early 2019. Meanwhile, Australia’s monthly levels of between 1-1.3 million in both international arrivals and departures were still lower than figures of early 2017, and well short of the two million mark in each-way traffic recorded in the months before the Covid-19 pandemic.
Bowen talks up hydrogen industry surge
Energy and Climate Change Minister Chris Bowen has spruiked the growth of the hydrogen industry in Australia, with a doubling of the number of green hydrogen projects to 100 in 2022. Releasing the annual State of Hydrogen report, Mr Bowen said Australia had around 40 per cent of all announced global hydrogen projects, with a pipeline valued from $230 billion to $300 billion. Domestic industry was advancing hydrogen as a chemical feedstock and for export to generate electricity. Mr Bowen said Australia’s hydrogen industry could generate $50 billion in additional gross domestic product by 2050, with potentially up to 16,000 jobs created in regional areas such as the Queensland central coast, the Hunter Valley, the Pilbara, Port Bonython and Bell Bay.
Jobless figures low and steady
Australia’s unemployment rate has remained at 3.5 per cent, with the strong employment market maintaining pressure on labour supply costs. On a seasonally-adjusted basis, ABS figures show that the jobless rate in March varied widely across the nation, from 2.8 per cent in the Australian Capital Territory to four per cent in Tasmania. Underemployment – which represents people in the workforce who wanted to work more hours – was recorded nationally at 6.2 per cent in March, ranging from 3.7 per cent in the Northern Territory to 7.4 per cent in Tasmania.