NSW ON TRACK FOR SURPLUS; MIGRANT SURGE
NSW budgets for return to surplus
New South Wales Treasurer Daniel Mookhey has delivered the first state budget of the Minns Labor Government, projecting a $7.84 billion deficit for 2023-24 but a return to surplus in following years. NSW Budget Papers forecast a $844 million budget surplus in 2024-25, and $1.5 billion surpluses in each of the two successive years. In 2023-24, the NSW Government has committed to higher wages for public sector workers, including nurses, teachers and child protection workers, supported by the establishment of a $3.6 billion Essential Services Fund. A total of $3.2 billion has also been allocated to disaster relief and recovery programs. Net debt in Australia’s most populous state is forecast to rise from $92.6 billion this year to $113.5 billion in 2026-27, while economic growth is expected to slow as household consumption falls. Annual growth in government expenses and revenue is tipped to moderate to around 2.5 per cent, after double-digit percentage growth during Covid-19.
Immigration jump spurs leap in population
Australia has registered its highest annual population increase since 2008, jumping by more than 560,000 people or 2.2 per cent in the 12 months to March 2023. Population figures from the Australian Bureau of Statistics recorded a surge of 454,400 in net overseas migration, as the nation emerged fully from Covid-19 restrictions. Western Australia recorded the highest 12-month increase in population, at 2.8 per cent, while Tasmania (0.4 per cent) recorded the lowest rise of all states and territories. The strong population growth will place more pressure on housing stock and public infrastructure. At the end of March, Australia’s population was 26.47 million people.
New legislation to crack down on transfer of Defence secrets
The Albanese Government has introduced legislation to protect Australia’s national secrets and prevent the unwanted transfer of sensitive Defence information to unauthorised foreign militaries. Defence Minister Richard Marles said those Australians who worked in Defence and came into possession of national secrets had an enduring obligation to maintain those secrets beyond their Commonwealth employment. He said the Safeguarding Australia’s Military Secrets Bill would require certain former members of the Australian Defence Force and former Defence Australian public servants to obtain authorisation if they intended to work for a foreign military, foreign government or foreign government entity. Special authorisation would also be required for Australian citizens or permanent residents engaged in training with a foreign country that related to controlled military goods and to military tactics, techniques and procedures.
PM talks up hydrogen sector for energy, exports
Prime Minister Anthony Albanese has pumped up Australia’s hydrogen credentials, claiming that it had the largest pipeline of renewable hydrogen projects in the world. The PM told an energy forum in Sydney that his government’s $2 billion Hydrogen Headstart program would bridge the commercial gap for early projects, and support the path to export and manufacturing opportunities. Mr Albanese said that “pound for pound”, hydrogen contained almost three times as much energy as petroleum. He said that hydrogen could power vehicles, generate heat and electricity, and produce chemicals like ammonia that could be used as a zero-carbon fuel for shipping. But the Prime Minister acknowledged that it was critical to invest in transmission networks to lift access to, and the level of, renewable energy.
Farrell seeks to widen regional export market
Trade and Tourism Minister Don Farrell said increased trade into Southeast Asia would not replace the need for a trading relationship with China, as Australia sought to diversify its regional trade base. In a South Australian media interview, Senator Farrell said that Australia’s two-way trade with China over the last 12 months was almost $300 billion – more than all the trade it did with Japan, Korea, the US, Singapore, Germany, France and the UK combined. He said Australian trade was under-done in Southeast Asia, including with its closest neighbour, Indonesia, the growing economy of the Philippines, Thailand and Vietnam.
ASIC’s cyber warning for company directors
Australian Securities and Investments Commission (ASIC) head Joe Longo has raised the bar on company boards who fail to manage the risk of cyber-attacks. The ASIC Chair told an industry forum that the corporate regulator had often found a disconnect between several important elements, including boards’ oversight, assessment and control of cyber risk. There was also a disconnect in the management reporting of cyber risk to boards, and in managing identification and remediation of cyber risks. Mr Longo said ASIC expected directors to ensure their organisation’s risk management framework adequately addressed cyber security risk; failing to do so could mean failing to meet regulatory obligations, he said.