Category Archives: Australian economy

Australia to roll out new south-east Asia trade strategy to hedge against China

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Anthony Albanese is expected to announce the new economic blueprint during his trip to the Indonesian capital Jakarta

Anthony Albanese will fly to Jakarta this week to launch a major new strategy to deepen Australia’s trade and investment ties with south-east Asia and hedge against top trading partner China.

Despite China recently reopening the door to key Australian exports that it shunned at the height of diplomatic tensions in 2020, the Albanese government wants to diversify economic ties to reduce exposure to further political tumult.

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US clean energy drive fuels shortage of engineers in Australia

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Australia has to make the case it is an attractive place to live with a solid commitment to renewable energy to counter America’s Inflation Reduction Act, experts say

Australia’s rush to build renewable energy fast enough to replace ageing coal-fired power stations is being fettered by the US’s own clean energy push that is luring key talent, particularly engineers, industry officials say.

America’s Inflation Reduction Act (IRA), passed just over a year ago, will pour at least US$370bn (A$570bn) into clean energy programs. Groups such as the Clean Energy Council warn the program “has the potential to permanently tilt the scales toward the US and hamper our progress in Australia”.

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Australia news live: ‘maintain the love’, Noel Pearson says, rebutting John Howard’s no campaign message

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Prominent yes campaigner and Cape York leader ‘surprised’ by former PM’s message to ‘maintain the rage’. Follow the latest updates live

Jane Hume to vote no despite anticipated home state yes

Liberal senator Jane Hume appeared on the Today show earlier this morning, saying she would be voting no in the upcoming referendum on an Indigenous voice to parliament, however she conceded her home state of Victoria will likely vote yes.

My home state is probably where there’ll be a Yes. But the yes vote is very well resourced from corporates and individuals and that’ll be ramping up. I don’t think the No campaign can take anything for granted in these last few weeks.

That describes both the yes and the no case. They can make up their own mind.

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Australia’s gig economy workers set to benefit from minimum pay and protection against ‘unfair deactivation’

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Labor bill gives Fair Work Commission power to set minimum standards for hundreds of thousands of ‘employee-like workers’ on digital platforms

Gig economy workers in Australia including ride-share drivers and food delivery riders could soon benefit from minimum pay and protection against “unfair deactivation”.

Under a bill to be introduced by the Albanese government next week, the Fair Work Commission will be given the power to set minimum standards for hundreds of thousands of “employee-like workers” on digital platforms from 1 July 2024.

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Australia’s inflation rate eased to 4.9% in July, down from 5.4% in June

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Larger than expected fall reduces likelihood Reserve Bank of Australia will raise interest rates again

Australia’s inflation rate eased last month to its lowest level in 17 months, led by falling prices for fresh produce and automotive fuel, reducing the likelihood the Reserve Bank will need to raise interest rates again.

The consumer price index for July came in at an annual rate of 4.9%, the Australian Bureau of Statistics reported on Wednesday. That rate was slower than the 5.4% pace in June and compared with economists’ forecast for CPI to drop to 5.2%.

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Deloitte joins RBA in tipping 4.5% Australian jobless rate thanks to slow consumer spending

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Slowdown in household spending is finally flowing through to Australia’s jobs market, according to the latest forecasts from Deloitte Access Economics

Australia’s dream run with near record low unemployment is tipped to end due to weaker household consumption, with the jobless rate expected to increase from 3.7% to 4.5% by mid next year.

That is the conclusion of the latest Deloitte Access Economics employment forecasts, which attribute economic slowdown in part to the delayed effect of faster-than-expected rate rises by the Reserve Bank of Australia.

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Climate crisis to create ‘acute’ challenges for Australia’s economy, incoming RBA governor says

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Michele Bullock uses speech to detail how central bank is preparing for increased risk of extreme weather events

Global heating will present the Reserve Bank with “acute” challenges, including heightened uncertainty around how the climate will change and the resulting impacts on the economy and financial system, the incoming governor, Michele Bullock, has said.

Bullock, now deputy RBA governor before her elevation to the top post on 18 September, used her Sir Leslie Melville lecture at the Australian National University on Tuesday – after a brief disruption from protesters – to detail how the central bank was preparing for a warming world and the increased risk of extreme weather events.

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Australia news live: grocery prices should ease, Gallagher says; eye-infection causing microbe found at NSW swimming spots

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Comments follow Coles and Woolworths announcing annual profits of more than $1bn even after a spike in cost-of-living pressures on households. Follow today’s live news updates

A Gold Coast city councillor has been charged with murder, AAP reports.

A 58-year-old man was found deceased inside an Arundel property by emergency services, after police were called to the residence around 3pm yesterday.

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Former Asic head accuses government of failing him during ‘abusive advertising campaign’

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Former corporate watchdog chair James Shipton tells Senate inquiry of attacks on his character, competence and integrity

The former head of Australia’s corporate watchdog has described feeling suicidal after an “abusive advertising campaign” waged against him, accusing the government of failing to support him.

A Senate committee is examining the ability of the Australian Securities and Investments Commission (Asic) to investigate allegations of corporate misconduct and to undertake enforcement action.

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In Australia, support is available at Beyond Blue on 1300 22 4636, Lifeline on 13 11 14, and at MensLine on 1300 789 978.

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Cost-of-living crisis: Albanese government launches taskforce to review competition in bid to ease pressures

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Panel’s appointment comes as Woolworths reports rise in net annual earnings to $1.6bn, a day after Coles posts $1.1bn profit

The Albanese government will appoint a taskforce to provide a rolling competition review in a bid to lower cost-of-living pressures by creating a more productive and dynamic economy.

The taskforce, set up in Treasury, will include an expert panel including Danielle Wood, chief executive of the Grattan Institute, and Rod Sims, former chair of the Australian Competition and Consumer Commission (ACCC). It will engage in “targeted public consultation” and provide continuous advice over the coming two years.

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Australia news live: Brisbane to undergo ‘mock earthquake’; Coles profit up to $1.1bn

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Supermarket operator posts 4.8% rise in full year cash profit, lifted by strong rise in groceries revenue. Follow today’s live news updates

AEC monitoring disinformation about electoral processes

Rogers said the AEC has seen an increase in mis- and disinformation over the last few years, particularly around the electoral process itself.

It’s all about the electoral process. We’re seeing an increase in [disinformation]. We’re seeing an increase in threats to staff. Which is very disappointing. And we’re monitoring that very closely.

At the last federal election, we had similar issues. We’re seeing behaviours we haven’t seen previously. The people who work elections are community members … Treat people with respect and civility.

We’re ready for it whenever it may be. That’s what we do in any case. We’re used to these events when we don’t know the date until a few weeks out. We’ve got all systems go.

We would ultimately like the rate to be exactly the same as the general roll, but it’s very close.

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Senator responds to report – as it happened

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Conroy says comments at Labor conference about strategic balance in Pacific

Conroy is asked about comments he made at the Labor conference, saying it is against Australia’s interest to have one power dominate our region, especially one that breaches international laws.

And is it your view that China is trying to do that, dominate our region?

I’m not going to be going into what other countries are doing but it’s clear that we’re seeing great strategic competition in our region, and it’s appropriate that we respond through increased diplomatic engagement and an increasing deterrence in the Australian Defence Force.

They all play complementary roles in promoting peace and stability in our [region].

So this is about peace and stability in our region by deterring conflict and I know you will respond that saying, well, aren’t we just engaging in military buildup, but in the end, the only way we pursue peace and stability is by presenting strength. This is what this is about.

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Australia’s population to grow at slowest rate since federation, intergenerational report forecasts

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Australians are expected to live longer and remain healthier to an older age, while having fewer children over the next 40 years

Australia’s population is forecast to grow at its slowest rate since federation, the latest intergenerational report from Treasury has found.

The report, which forecasts what the next four decades will look like, has found population growth is projected to slow to an annual average of 1.1% over the next 40 years, compared to 1.4% over the past four decades.

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Inflation spiral: food prices could yet rise higher and may never come down

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Concerns are growing over the effects of a warming climate on production and the danger of high grocery prices getting embedded into Australia’s economy

Food prices have been rising rapidly and there are reasons to fear they will push even higher. Economists warn some prices might never come down.

The ominous outlook is linked to drought conditions wilting crops in major grain-producing nations, disrupted grain deliveries out of Ukraine and moves by governments to ban food exports to protect their own supplies.

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ALP national conference day one – as it happened

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This blog is now closed.

The conference is up and running.

We will bring you as much of it as we can – and will make sure we have all the main motions covered off, as well as the tone and vibe of it all.

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Australia’s oversupply of wine tops 2.8bn bottles in wake of China trade dispute

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New report suggests glut will last years, even if Beijing drops tariffs early, while prices of Australian red wine grapes plummet by more than half

Australia has an oversupply equivalent to more than 2.8bn bottles of wine – a little more than 100 bottles per person – after the trade dispute with China slashed exports to the biggest consumer of Australian wines.

The excess wine is being stored in large steel vats in wineries across Australia, equating to 859 Olympic wine-filled swimming pools.

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RBA says slowing economy and acute pressure on household budgets behind interest rate pause

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Minutes from the Reserve Bank’s August meeting show the board considered lifting the cash rate to 4.35% but decided to allow more time to look at economic data

Slowing economic growth helping to drag inflation down and a recognition that some households faced “acute financial challenges” were among the reasons the Reserve Bank left interest rates on hold earlier this month.

Minutes from the RBA’s August meeting, released on Tuesday, showed the board viewed the risks facing the economy as “broadly balanced” between allowing inflation to remain too high for too long or slowing the economy too hard.

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In previous downturns the world turned to China as an engine of growth – this time that driver may not be there

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What might Chinese deflation mean for interest rates, commodity prices and even EV exports outside China?

When Australia’s central bank released its quarterly economic update last week, China’s “uncertain” economic outlook topped a list of domestic worries for Australia.

The International Monetary Fund too singled out China in its latest world economic outlook as among the “downside” tilts to its balance of risks.

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Commonwealth Bank posts record $10bn profit amid rising stress for borrowers

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Annual results for CBA are 6% higher than previous year, buoyed by expanded profit margins during interest rate hikes

Australia’s biggest lender, Commonwealth Bank, has posted a record $10.16bn cash profit, even as more of its customers succumb to rising borrowing rates, prompting a sharp increase in bad debts.

The bank’s 2022-23 results were 6% higher than a year earlier, buoyed by expanding profit margins generated during a period of fast-rising interest rates.

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Labor launches crackdown on tax adviser misconduct following PwC scandal

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Government says it will increase penalties for promoting tax avoidance schemes and bolster regulators’ powers

Penalties for promoting tax avoidance schemes will be increased tenfold and financial regulators will get much stronger powers as the federal government seeks to fix “severe shortcomings” in the nation’s financial systems exposed by the PwC scandal.

In what the treasurer, Jim Chalmers calls, “the biggest crackdown on tax adviser misconduct in Australian history”, advisers and firms promoting tax exploitation schemes would face fines up to $780m, while red tape that hamstrung regulators from better investigating PwC will be slashed. The Treasury department will also conduct a two-year whole-of-government response to the shortcomings exposed by the disclosure of confidential tax information.

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