PM DISPELS US TRADE RISK; WAGES COOL

PM relaxed on US trade threat

Prime Minister Anthony Albanese has played down fears that Australian exports will suffer under the trade agenda of US President-elect Donald Trump. In a radio interview before leaving for the Asia-Pacific Economic Co-operation forum, the PM said he had pointed out that the US enjoyed a trade surplus with Australia, during a call to Mr Trump. The PM said it was in the interests of the US to trade fairly with Australia, and that the US was already a major investor in Australia. Mr Albanese said Australia was trusted as a “middle power”, and while it had an alliance with the US, China was its major trading partner. Figures from the Department of Foreign Affairs and Trade show that in 2023, the value of Australian exports to the US was A$33.6 billion, but it imported A$65 billion worth of goods and services from the US.

Wages up 3.5 per cent, but growth slowing

Wages have increased annually by 3.5 per cent seasonally-adjusted over the past 12 months, but the pace of wage growth has slowed, according to latest figures for the September quarter. The Australian Bureau of Statistics’ wage price index shows that public sector wages rose by 3.7 per cent annually, outstripping 3.5 per cent growth in the private sector. Wages in the utilities sector (electricity, gas, water and waste services) recorded the highest wage growth, of five per cent over the 12 months, ahead of education and training (4.4 per cent). On a regional basis, Tasmania (four per cent) recorded the highest annual wages growth, and the Northern Territory (three per cent) the lowest. Annual wages growth has slowed since peaking at 4.3 per cent in December last year. At a rate of 3.5 per cent, annual wages growth matches the latest rate of underlying inflation.

Japan to join US Marines exercises in northern Australia

Defence Ministers from the US, Japan and Australia have formally committed to tri-lateral defence exercises out of Darwin and in the Indo-Pacific, with the admission of Japan. A meeting of defence ministers from the three nations held in Darwin announced that Japanese forces would join with the Australian Defence Force in exercises conducted by US Marines in northern Australia next year. A joint statement issued by Defence Minister Richard Marles, Lloyd Austin of the US and Japan’s Nakatani Gen also reaffirmed Australia’s participation next year in joint US-Japan exercises, such as Exercise Orient Shield. The three nations also reaffirmed their commitment to trilateral intelligence, surveillance and reconnaissance co-operation in the Indo-Pacific.

Reforms to Federal political donations regime

Legislation to reform the system of political donations for Australian elections is due to be introduced into Federal Parliament this week. Special Minister of State Don Farrell said the reforms would cap campaign spending, limit the “disproportionate influence” of big donors, and stop the “arms race” of donation drives and endless fundraising. The proposed reforms included increased transparency of donations above $1,000, regular and accelerated disclosure, and real-time reporting of donations during election periods. Senator Farrell said the reforms would not take effect until the election after next; he said the government had acted on the recommendations on the Parliamentary Joint Standing Committee on Electoral Matters.

New push to lift national work productivity

Treasurer Jim Chalmers will charge the Productivity Commission (PC) to undertake a series of five inquiries to identify reforms to lift Australia’s declining level of economic productivity. In a speech to an economic forum, Dr Chalmers said productivity growth in Australia in the last full decade was the slowest in 60 years, with Treasury’s assumption of long-run annual growth cut to 1.2 per cent. The Treasurer said the PC inquiry would focus on five pillars of productivity: economic resilience, investment in data and digital infrastructure, a skilled and adaptable workforce, a sustainable and productive care economy, and net zero transformation. Dr Chalmers said lower productivity was partly linked to more people working in services industries, where productivity typically grew more slowly, as Australians earned more and lived longer, healthier lives.

ACCC to examine potential NDIS pricing breaches

A taskforce established to investigate higher prices and services charged through the National Disability Insurance Scheme (NDIS) has received almost 3,000 complaints, according to the Federal Government. NDIS Minister Bill Shorten said the national taskforce was targeting predatory providers and businesses who operated under the $42 billion scheme. He said almost 2,500 of the complaints focused on matters related to pricing, with more than 140 businesses referred to the Australian Competition and Consumer Commission (ACCC) relating to potential misconduct under Australian consumer law. The taskforce, which comprises two NDIS bodies and the ACCC, was established in December 2023.