GIG’S UP FOR PLATFORMS; ENERGY FEARS
Employee legislation to target gig economy, labour hire companies
Employment and Workplace Relations Minister Tony Burke has announced the introduction of legislation this week to crack down on underpayment of wages and tighten the definition of employees in the gig economy. In a speech to the National Press Club, Mr Burke said the Closing the Loopholes Bill would address issues relating to ‘permanent casual’ employees, and would abolish a loophole that allowed employers to vary wage rates under labour hire agreements. Under the legislation, Mr Burke said that realistically, food-delivery, rideshare and care economy digital platforms would be covered under the employee-like test. The legislation would include a provision for claiming for ‘unfair deactivation’ from a digital platform. The Minister said it had to be possible to have 21st century technology without having 19th century working conditions.
Inflation eases to below five per cent
Annual inflation has edged lower to 4.9 per cent in July, driven by lower automotive fuel prices, according to the Australian Bureau of Statistics. The Consumer Price Index monthly indicator for the 12 months to July fell from the 5.4 per cent recorded in June, continuing a falling trend since the 8.4 per cent inflation rate peaked in December last year. Despite the fall in the CPI indicator, electricity (15.7 per cent) and gas and other household fuels (13.9 per cent) still recorded annual rises well above the overall inflation rate over the 12 months to July.
RBA warns on energy transition risk to prices
Incoming Governor of the Reserve Bank of Australia, Michele Bullock, has warned of the potential inflationary risks as the nation transitions to renewable energy. In a speech given in her current role as deputy governor, Ms Bullock said the shutdown of coal-fired plants could put upward pressure on energy prices if it were not matched by renewables supply and storage. She said a large amount of investment was required to generate electricity from wind, solar and hydro energy, and in energy storage and other firming capacity, as well as investment to upgrade, extend and adapt the transmission network in Australia. In addition, Ms Bullock said the extent of investment required was uncertain because it depended on the pace and ambition of Australia’s transition path; costs for inputs could also change considerably over time.
Electricity supply on edge, says network regulator
Meanwhile, the Australian Energy Market Operator has forecast electricity reliability gaps over the next 10 years, with 62 per cent of the current coal generation fleet due to be retired by 2033. Issuing its 2023 Electricity Statement of Opportunities report, AEMO said it was critical that planned investments in transmission, generation and storage projects were urgently delivered. The statutory regulator warned of electricity reliability risks this summer in Victoria and South Australia, in New South Wales from 2025-26 and in Queensland from 2029-30. AEMO said that in the next 10 years, electricity consumption and peak demand were predicted to grow due to population growth and economic activity, as well as through increased electrification and fuel switching from other generation sources.
4,000 new university places to support AUKUS
Universities will be able to access 4,000 new Commonwealth-supported places to train graduates in the skills needed for the AUKUS defence program. Defence Minister Richard Marles and Education Minister Jason Clare said $128.5 million would be provided over four years to fund the extra places in engineering, mathematics, chemistry and physics. Of the 4,000 additional places, 800 will go to South Australian universities, to support the construction of the nuclear-powered submarines in Adelaide.
Private capital investment rolling ahead
Fears of a slowing economy in Australia are yet to be borne out in the level of business investment, with private new capital investment up almost 11 per cent in the 12 months to June. Figures from the ABS show that investment in buildings and structures rose 15 per cent, seasonally adjusted, over the financial year, and by 6.4 per cent in equipment, plant and machinery, with total new investment up 10.8 per cent (2.8 per cent in the June quarter). The ABS noted that increased investment reflected a further easing of supply chain disruptions, while some businesses had brought forward investment plans, ahead of the end of a temporary tax incentive on June 30.