USA TOPS LEAD INVESTORS; ADF BONUS OFFER
US retains foreign investment lead in Australia
The United States remains easily the largest source for foreign investment in Australia, according to the Department of Treasury. Figures from the latest quarterly report on foreign investment show that the US accounted for almost $22 billion of approved commercial investment proposals by value in the final quarter of 2023-24, followed by Japan ($9.5 billion). Germany ($5.4 billion), France ($4.1 billion) and Singapore ($2.3 billion) made up the top five investment sources. Services was the largest target sector for proposed investment, with a total value of $27.3 billion, followed by commercial real estate, $12.7 billion. For the full year, the US accounted for $65.7 billion of the total $186.9 billion of commercial investment. A total 340 commercial investment proposals were approved in the quarter, with a value of $58.7 billion. Another report released by Treasury found that at the end of 2022-23, almost 13 per cent (47.5 million hectares) of agricultural land in Australia had a level of foreign ownership. China had the largest foreign share of foreign-held freehold and leasehold agricultural land, followed by the UK, Canada, the Netherlands and the US.
Extra bonus to keep ADF members
Australian Defence Force (ADF) personnel are being offered extra incentives to stay in uniform, as the Federal Government moves to fill force shortfalls and boost recruitment. Defence Minister Richard Marles said more than $600 million would be spent to extend and expand the Continuation Bonus for permanent members of the ADF, and to increase the ADF’s Operational Reserves by an additional 1,000 personnel. The bonus applies at two levels - to eligible, permanent members at minimum four years', and at minimum seven years’, service. Earlier this year, the then Chief of the Defence Force, General Angus Campbell, told a Senate Estimates hearing that the ADF was almost seven per cent, or 4,300 people, below its authorised strength.
Treasurer courts Japanese investment in critical minerals, renewables
Treasurer Jim Chalmers has rolled out the welcome mat for Japanese investment in Australia’s critical minerals and renewable energy sectors. Addressing a Japanese business forum in Canberra, Dr Chalmers said Japan produced around 10 per cent of the world’s semiconductors, 20 per cent of the lithium-ion batteries used in electric vehicles, and almost 50 per cent of the world’s industrial robots. Japan could unlock more of its capital into Australia’s resources sectors, while Australia could supply renewable energy to power Japanese industrial processes. The Treasurer also committed Australia to being a “responsible and reliable supplier” of energy, especially of liquefied natural gas (LNG), for which Japan was Australia’s biggest market.
Government spending boosting economic growth, says Treasury head
Federal Treasury Head Dr Steven Kennedy says that spending on public health and education have contributed strongly to economic growth, in the face of weaker household consumption and falling dwelling investment. Appearing before a Senate Estimates hearing, Dr Kennedy cited the contribution of spending in Medicare, the National Disability Insurance Scheme (NDIS) and the Pharmaceutical Benefits Scheme to the weaker-than-forecast economic growth of 1.4 per cent in 2023-24. Further, he said, state and territory governments had announced around $20 billion in new spending for 2024-25. The Treasury Secretary, however, urged bipartisan support to enable cost-saving reforms in the NDIS and in aged care. He said recent reform measures to the NDIS were expected to reduce scheme costs by around $60 billion over the next 10 years.
Public sector wages bill up by eight per cent
Public sector wages and salaries across the three tiers of government rose by eight per cent to $232 billion in 2023-24, according to official figures. The Australian Bureau of Statistics said the total public sector workforce increased by 3.6 per cent to 2.517 million people. At June 30, the Federal Government had 365,400 employees, or 15 per cent of the total public sector numbers, with a 10 per cent lift in its wages bill. A total 1.9 million people (77 per cent) were employed in state and territory governments, with wages and salaries rising by 7.6 per cent. Local government accounted for 213,500 employees (eight per cent), with a 7.3 per cent rise in total wages and salaries.
Trade surplus narrows as exports ease
Australia’s surplus in trade of international goods is continuing to shrink, falling to its lowest level in almost four years. ABS figures on international trade in goods show that in September, the seasonally adjusted balance in trade fell by 12.7 per cent, down to $4.6 billion, due mostly to falling exports of metal ores, minerals and coal. In June 2022, Australia recorded a trade surplus in international goods of $18.35 billion.