DEFENCE FIRMS ADD $12B; US MINERALS LIFT

Defence industry a $12 billion economic contributor

Australia’s defence industry contributed almost $12 billion (by gross value added, or GVA) to the national economy in 2023-24, according to latest official figures. The estimates published by the Australian Bureau of Statistics reveal a 12.4 per cent increase in defence’s gross value-added contribution, on the previous year. Almost 70,000 people were employed in the 5,539 Australian businesses of the defence industry, up 9.1 per cent on 2022-23. Of the industry sectors, professional, scientific and technical services, manufacturing, and construction comprised about 75 per cent of defence GVA. New South Wales, Victoria and South Australia were the largest contributors by state or territory.

US ramps up security for critical minerals, rare earths

US President Donald Trump has moved to strengthen security of supply of critical minerals and rare earths, citing the need to protect the nation’s manufacturing and defence industrial base. Mr Trump’s Executive Order seeks to investigate whether imports of processed critical minerals and their derivatives threatened national security. The President said processed critical minerals and their derivative products were foundational to military and energy infrastructure, advanced defence systems and technologies. US manufacturing and defence industrial bases remained dependent on foreign sources for processed critical mineral products; the President claimed that major global producers of processed critical minerals had exploited their supply chain dominance to distort world markets. He said over-reliance on a small number of geographic regions amplified the risks posed by geopolitical instability and regional disruptions. In his Executive Order, the President cited the US list of 50 critical minerals and 17 rare earths.

Tax revenue up by 6.1 per cent across all governments

Australians were taxed a total of more than $800 billion across all three levels of government in 2023-24, up by $46 billion or 6.1 per cent higher on the previous year. Federal government taxation accounted for almost $650 billion of tax revenue, up by 5.1 per cent, according to the Australian Bureau of Statistics. State and territory revenue of $130.5 billion rose by 11.6 per cent, but the level of annual increase ranged from 0.9 per cent in the Australian Capital Territory to 14.2 per cent in Victoria. The level of total taxation revenue hit 30 per cent of gross domestic product, up from 29.4 per cent the previous year and from 27.8 per cent of GDP in 2019-20.

Labor moves to protect penalty rates in legislation

Labor has pledged to enshrine penalty rates in law, in a move to preserve weekend penalty rates for workers. In an election policy announcement, Employment and Workplace Relations Minister Murray Watt said a re-elected Labor government would legislate to protect penalty rates in awards. He said that employer groups had applied to the Fair Work Commission to cut penalty rates of lower-paid workers from awards, which he said would reduce the overall income of workers by thousands of dollars each year.

Coalition pledges new tax breaks for small business

Two new tax incentives to encourage new enterprises and to support technology investment have been promised by the Coalition as it targets the votes of small and family businesses. Leader Peter Dutton said the Coalition’s ‘Entrepreneurship Accelerator’ would support newly-incorporated businesses for the first three years of their operation with a tax offset, starting at 75 per cent of their first $100,000 of taxable income. It would also provide for a $2,000 tax deduction on tech upgrades of $4,000 or more.

Jobless rates vary widely across nation

Australia’s rate of unemployment has edged up, from 4.0 per cent to 4.1 per cent seasonally adjusted, but the latest monthly jobless rate varies widely across the nation. Australian Bureau of Statistics figures for March show that while Victoria recorded the highest rate of unemployment, at 4.4 per cent, the Australian Capital Territory recorded an unemployment rate of just 2.8 per cent. Western Australia, Tasmania, Queensland, the ACT and the Northern Territory all posted unemployment figures lower than four per cent.