WAGES EDGE UP ON PRICES; AUKUS DEALS

Wages move ahead of annual inflation

Annual wage rises outpaced the rate of inflation over the 2023-24 year, increasing by 4.1 per cent, seasonally adjusted, according to official figures. The Australian Bureau of Statistics said the Wage Price Index rose by 0.8 per cent in the June quarter, with private sector wages rising by 0.7 per cent and the public sector by 0.9 per cent. Pay rises awarded in March to Australian Public Service employees contributed to the public sector wage growth. Tasmania recorded the highest 12-month wage growth, at 5.1 per cent, while Victoria recorded the lowest, at 3.3 per cent. Inflation as measured by the Consumer Price Index rose by 3.8 per cent over the 12 months to the end of June.

Green light to lift defence export controls

Australia has finalised agreement with the United States and the United Kingdom to establish a licence-free regime for defence exports under the AUKUS partnership. Through legislative and regulatory reforms in all countries, licensing requirements will be removed for most controlled goods, technologies and services exported, re-exported or transferred within AUKUS nations. Defence Minister Richard Marles said the export licence-free environment would expedite the delivery of high-end capabilities to the Australian Defence Force. Mr Marles said the agreement would eliminate around 900 export permits required under previous export controls from Australia to the US and the UK, valued at $5 billion per year. Licence-free trade would also apply to between 70-80 per cent of defence exports and defence trade from the US to Australia.

Parliament tables tri-nation agreement on nuclear submarines

Meanwhile, a three-nation agreement to support Australia’s capacity to build, operate and maintain a nuclear-powered submarine capability has been tabled in Federal Parliament. Richard Marles said the agreement would enable the United Kingdom and the United States to transfer submarine-specific material and equipment for the submarine program. The Deputy Prime Minister said the agreement expressly ruled out enrichment of uranium or reprocessing of spent nuclear fuel in Australia as part of AUKUS. In addition, Australia would manage all waste generated by its own Virginia class and SSN-AUKUS submarines.

Fee relief, student payments in universities legislation

Education Minister Jason Clare has formally provided the Federal Government’s legislative response to the review of universities, including major reforms to reduce student debt. In his second reading speech on the Universities Accord (Student Support and Other Measures) Bill, the Minister backdated fee relief for student support loans by replacing last year’s CPI indexation rate of 7.1 per cent with a lower wage price index rate of 3.2 per cent. Ongoing increases in student debt will be the lower of the two indexation rates. In addition, the Federal Government has proposed special financial support for students in teaching, nursing, midwifery and social work, while they undertake the practical component of their degree.

Jobless rate up in mixed results for states

Australia’s unemployment rate has increased slightly, from 4.1 per cent to 4.2 per cent in July, but jobless rates varied widely across the nation. According to the Australian Bureau of Statistics, Victoria recorded the highest rate of unemployment, at 4.6 per cent, seasonally adjusted, while Western Australia recorded the lowest, at 3.7 per cent. Australia’s most populous state, New South Wales, recorded an unemployment rate of four per cent. The national rate of underemployment – people who want to work more hours – eased to 6.3 per cent.

NZ in line for AUKUS technology role

Prime Minister Anthony Albanese has reaffirmed that New Zealand would be invited to join the second pillar of the AUKUS defence partnership. Addressing media after meeting with NZ PM Christopher Luxon, Mr Albanese said that like-minded countries such as NZ, and Japan, could participate in Pillar Two activities relating to technology and its application. There would also be opportunities for senior defence personnel from Australia and NZ to be embedded in each other’s defence forces. In addition, Mr Luxon told media that he had no concerns about the recruitment of New Zealanders into the Australian Defence Force, in the context of interoperability, collaboration and joint procurement.