PM ASSURES ON GAS EXPORTS; CYBER UPGRADE
PM assures Japan on gas exports
Prime Minister Anthony Albanese has moved to quell concerns about Australia’s future gas exports to Japan, before meeting with new Japanese PM Shigeru Ishiba during the ASEAN Summit in Laos. Mr Albanese said Australia was a “reliable energy partner”, and would also be looking for new opportunities, including in hydrogen, which were canvassed in meetings with South Korean President Yoon Suk Yeol. Trade figures show that in calendar year 2022, Australia supplied 43 per cent of Japan’s Liquefied Natural Gas (LNG), worth almost A$40 billion.
Cyber security reforms beef up response obligations
Cyber Security and Home Affairs Minister Tony Burke has introduced legislation to create Australia’s first standalone Cyber Security Act, which will impose new conditions on business in identifying and responding to cyber threats. Mr Burke said the legislation would introduce mandatory ransomware reporting for certain businesses to report ransom payments, and mandate minimum cyber security standards for smart devices. Governments would also have powers to direct entities to address serious deficiencies within their risk management programs. The legislation also clarifies existing obligations relating to systems holding business-critical data. Mr Burke said the reforms would also expand government assistance measures to ensure it could step in as a last resort to manage the consequences of significant incidents.
New thresholds for business mergers
Treasurer Jim Chalmers has introduced legislation to reform Australia’s merger laws, which he says will deliver a faster, stronger, simpler, and more transparent merger approval system. Under the reforms, the Australian Competition and Consumer Commission (ACCC) will consider any merger if the Australian turnover of the combined businesses is above $200 million, or the business or assets being acquired has domestic turnover above $50 million or global transaction value above $250 million. The ACCC would also look at mergers where a business with turnover of more than $500 million was buying a smaller business of $10 million turnover or above. Thresholds would also apply to serial acquisitions over a three-year period.
China moves to lift lobster bans
China has continued its rollback of trade impediments imposed on Australian exports, moving to resume importation of Australian rock lobsters. After meeting with China’s Premier Li Qiang in Laos, Prime Minister Anthony Albanese said they had agreed to a timetable for the re-entry of live rock lobster by the end of this year. Mr Albanese said that since 2020, Australian rock lobsters had been effectively prevented from entering China’s market, worth more than $700 million in 2019. The decision on lobster exports followed China’s removal of trade impediments on almost $20 billion of Australian exports, including wine, barley, coal, cotton, and timber logs.
Budget in deficit, but tax revenues up
The Federal Government’s budget position is in deficit territory for the first two months of the financial year, with a $7 billion shortfall posted to the end of August. Figures released by the Department of Finance, however, show that the budget position was a $5.3 billion improvement on initial projections, with taxation revenue $4 billion higher than initial forecasts for the two-month period. A $28.3 billion budget deficit was projected in the 2024-25 Budget papers presented in May.
Early Budget preview for May election date
Budget Day in 2025 has been moved forward by six weeks to March 25, clearing the parliamentary timetable for the next Federal Election to be held in mid-May. The Department of Prime Minister and Cabinet has released the schedule of proposed parliamentary sittings for 2025, with Federal Parliament due to sit in the first two weeks of February, before resuming on the day of the proposed Budget. Western Australia is due to hold its next election on March 8 next year, so a federal election campaign would need to be held separately.