POWER REBATES CURB PRICES; STUDENT CAPS
Energy rebates dampen inflation surge
Government-funded energy rebates have helped to curb the annual inflation rate for July, according to latest official figures. The Consumer Price Index indicator recorded a 3.5 per cent rise in July, down from 3.8 per cent in June, with the rebates contributing to a 6.4 per cent fall in electricity prices for the month (and a 5.1 per cent drop for the full 12 months). But the Australian Bureau of Statistics noted that underlying annual inflation – which reduces the impact of irregular or temporary price changes – was 3.8 per cent. Increases in the annual cost of housing (four per cent) and insurance (6.4 per cent) continue to hamper efforts to get inflation back within the 2-3 per cent band.
Clare announces levels for new international student caps
Federal Education Minister Jason Clare has announced the level of caps to be imposed on the number of international students enrolled in Australia’s tertiary education sector. Subject to the passage of legislation, the Federal Government proposes to set a national planning level for new international student commencements of 270,000 for calendar year 2025. Mr Clare said that for publicly-funded universities the reforms would result in about 145,000 new international student commencements in 2025, or about the same as 2023 levels. And for the vocational education sector, the reforms would result in about 95,000 new international student commencements. Some exemptions from the new limits will apply, including to students from the Pacific and from Timor-Leste. According to the Federal Department of Education, there were 717,587 international students studying in Australia for the January-May 2024 period, up 18 per cent on the same period in 2023.
Private capital investment going backwards
Ahead of this week's release of economic growth figures, the Australian Bureau of Statistics has revealed that total private new capital expenditure fell by 2.2 per cent over the June quarter, and rose by just 0.3 per cent over the year. Private investment fell, seasonally adjusted, in both buildings and structures, and in equipment, plant and machinery, in the last quarter. The ABS reported wide disparity between the states and territories, with total new capital expenditure receding in both Victoria and New South Wales over the quarter and annually, but rising in the Northern Territory by 23.5 per cent quarterly and 32.4 per cent for the 12 months.
Trained workers needed for WA-based submarine program
Prime Minister Anthony Albanese is ramping up a program to train around 200 young workers to support the Submarine Rotational Force based in Western Australia. While visiting WA, the PM and Defence Minister Richard Marles said the Australian Submarine Corporation needed about 200 additional entry-level personnel across high-priority disciplines and trades essential to the nuclear-powered submarine enterprise. The program seeks to attract graduates, apprentices and trainees in areas such as span fabrication and machining, engineering and project management, and supply chains and operations qualifications. Mr Albanese said the nuclear-powered submarine program was expected to create around 20,000 high-skilled jobs for decades to come, with about 3,000 in WA.
Project delays a risk to electricity supply, says regulator
Australia’s statutory energy market operator has again warned that slippage in the delivery of new generation, storage and transmission projects will undermine future electricity supply. The Australian Energy Market Operator (AEMO) also says any earlier withdrawal of existing capacity would deteriorate the outlook for reliability of the electricity system. In its Electricity Statement of Opportunities, AEMO highlighted higher reliability risks in Victoria, NSW and South Australia from this coming summer. It said that a total of around 5.7 gigawatts of developments had been added in the last year, comprising new batteries, and large-scale solar, wind, and hydrogen generation.
Corporate guidelines on combating foreign bribery
Attorney-General Mark Dreyfus has released guidance to assist corporations in preventing the practice of foreign bribery. Earlier this year the Crimes Legislation Amendment (Combating Foreign Bribery) Act came into force, with a new corporate offence of failing to prevent foreign bribery. The guidance outlines the steps in establishing an effective anti-bribery compliance program, including fostering a control environment, assessing risk and reporting foreign bribery.