US STEEL CURB; CLAMPS ON POLL FINANCING
US slaps 25 per cent tariff on steel, aluminium imports
President Donald Trump has made good on his threat to impose a 25 per cent tariff on steel and aluminium imported into the US. The President’s Executive Order will apply on March 12 this year, including being extended to trading partners with whom the US previously had “alternative agreements”, such as Australia, the European Union, Japan and the United Kingdom. President Trump said imports of steel articles from these countries or blocs had increased as a share of total US steel imports, from 18.6 per cent in 2020 to 20.7 per cent in 2024. Prime Minister Anthony Albanese said, however, that in a conversation with the Oval Office, President Trump had given “a very clear signal” that an exemption from the tariff for Australia was “under great consideration.”
Electoral reforms to lift transparency, says Farrell
Special Minister of State Don Farrell says legislative changes to the nation’s electoral laws represented a “major breakthrough” in transparency. Senator Farrell said the reforms, which passed Federal Parliament last week, would require donors to disclose at a lower level of $5,000, while capping the amount of money that could be spent on a Lower House seat at $800,000. In a media interview, the Minister said it should not be the case that a candidate needed the backing of a millionaire or a billionaire to be elected to the Australian Parliament. Under the reforms, a party could not spend more than $90 million in an election, Senator Farrell said.
Crackdown on foreign buying of residential property
Foreign investors will be banned from buying established homes for at least two years, under moves announced by the Albanese Government. Treasurer Jim Chalmers and Housing Minister Clare O’Neil said foreign purchases of established homes would be outlawed from April 1 this year until March 31, 2027, when the ban would be reviewed. They said the ban would apply to temporary residents and foreign-owned companies, unless limited exceptions (such as contributing to a significant increase in housing supply) applied. Ms O’Neil said the Australian Taxation Office would receive extra resources to enforce the ban and enforce screening of foreign investors. The Government will also strengthen policing of foreign investors who 'land bank' vacant residential land.
HELP debt holders targeted under relaxed guidelines
Meanwhile, Treasurer Jim Chalmers has moved to intervene in the housing market to assist home buyers with student debts. Dr Chalmers said the Australian Prudential Regulation Authority and the Australian Securities and Investments Commission would update their guidance on the treatment of student debt in assessing loan serviceability. He said the two regulators’ interpretations of lending regulations and guidance may have contributed to creating barriers for young people in entering the housing market.
Critical minerals tax breaks now in law
Legislation to provide up to $7 billion in tax incentives for critical minerals production has passed Federal Parliament. Resources Minister Madeleine King said the tax incentives would provide a refundable tax credit on 10 per cent of eligible costs associated with the production of critical minerals and rare earths. She said that in addition to being used for solar panels and batteries, critical minerals and rare earths were vital to the defence industry. The tax incentives will be available for up to 10 years per project, for production between July 2027 and June 2040.
Review highlights falling R&D investment
A Federal Government review has found that overall business investment in Australian research and development had fallen by more than one-third since 2009. Industry and Science Minister Ed Husic said the review found that local investment in R&D was now only 1.66 per cent of gross domestic product, well below the OECD average of 2.7 per cent. The review’s discussion paper claimed that Australia ranked the lowest in the OECD for university-business collaboration. Mr Husic said that Australia was virtually giving away its science for free to other countries to exploit.