Jobs and retail sales hold up in resilient Australian economy despite 2023 growth fears

Consumer prices rose 7.3% in the year to November, boosting the chances of another RBA interest rate rise in February

Australia’s economy was resilient towards the end of last year, with job vacancies and retail sales holding up, even as the World Bank joined other agencies to slash the outlook for growth in 2023.

Data for November, released by the Australian Bureau of Statistics (ABS) on Wednesday, showed consumer price inflation picked up in the month while the number of firms advertising for staff increased and consumers set fresh records for retail spending.

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Concerns over use of ‘cheap and easy’ offsets – as it happened

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More than 80% of council areas declared disasters in the past four years, Watt says

Murray Watt was hesitant to attribute the individual disaster in the Kimberley to climate change, unlike his colleague Chris Bowen. But he said the overall pattern of increasing disasters was “undoubtedly climate change”:

I don’t think that you can point to one particular event and say it’s due to climate change, but there is no doubt that we are seeing before our eyes is climate change happening. We know from all the scientists that we’re going to be facing more of these intense events more frequently.

I was actually advised yesterday by our agency that just in the last 12 months we’ve seen 316 of Australia’s 537 council areas disaster-declared: that’s about 60% of the council areas in the country. And if you go back four years to the black summer, 438 council areas in Australia have been disaster-declared, which is over 80%.

A lot of people aren’t aware but the wet season in northern Western Australia … generally doesn’t begin until later this month. So their wettest months actually tend to be February and March rather than starting as early as January. So to have this amount of water come through the system this early in the wet season is a concern.

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Australian coal industry says China market matters less than before, even if import ban ends

Queensland Resources Council says industry would welcome restrictions easing but new long-term customers since found elsewhere in Asia

Australia would benefit from a lifting of China’s ban on its coal but any gains would likely be modest as miners have largely redirected supplies elsewhere, analysts said.

Shares of ASX-listed coalminers shot up on Wednesday after reports China was considering lifting its restrictions on coal imports from Australia from April. The ban was imposed in mid-2020 amid deteriorating bilateral relations that have since begun to improve.

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Record falls for Sydney and Melbourne housing in 2022 – but prices remain above pre-Covid levels

Rents increased by 10.2% nationally, CoreLogic says, despite the decline in home prices

Sydney, Melbourne and Hobart posted record annual falls in property prices in 2022 as higher interest rates sapped demand and amounted to the largest national decline since the global financial crisis, industry analysts say.

However, rent increases were “virtually off the charts” rising an average of 10.2% nationally.

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David Pocock wants stage-three tax cuts revisited in light of shrinking workforce

ACT senator suggests ageing population with proportion of taxpayers declining means situation has ‘changed significantly’ since cuts legislated in 2019

New data on Australia’s ageing population and shrinking workforce should push the government to review the stage-three tax cuts, independent senator David Pocock has said.

Pocock said economic circumstances have “changed significantly” since the Morrison government legislated the tax cuts, with Labor’s support, in 2019.

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Migration to Australia set to rebound to pre-pandemic levels, report finds

Covid travel restrictions resulted in 85,000 fewer people migrating to Australia in 2020-21, the first net loss since the second world war

Australia has lost 473,000 potential migrants as a result of Covid, but net inward migration is now on track to rebound to pre-pandemic levels of 235,000 people a year, the Centre for Population has found.

The treasurer, Jim Chalmers, said the centre’s 2022 statement, to be released on Friday, confirmed migration was “part of the solution” to skills and labour shortages.

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Labor under renewed pressure to axe stage-three tax cuts as Australia’s budget woes mount

The party voted in support of tax cuts while in opposition and went to the election promising no changes to the policy

Warnings from the treasurer, Jim Chalmers, that Australia’s economy is slowing and that the population is ageing have prompted calls to scrap the stage-three tax cuts.

Chalmers said the latest Australian population data showed an ageing population continues to present a demographic challenge for Australia and the budget, with the government having to keep one eye on current challenges, while the other focuses on longer term needs in health, pensions and support services.

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Sales shoppers say Australia’s cost of living crisis drives search for Boxing Day bargains

Consumers are ‘freedom spending’ after an intense year, but on essentials rather than big-ticket items

With the cost of living crisis biting into budgets, Angela Jakovljebic decided to give her three daughters gift cards as presents, to spend on the post-Christmas sales.

Emily, Lilly and Mila weren’t too happy about their gifts when they received them, they say. But they felt better when they saw the sales in Parramatta.

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Australia’s lobster industry hopeful China will drop trade sanctions

Exporters optimistic as Penny Wong raises trade with her Chinese counterpart but many are also wary of being ‘burned again’ by volatile diplomatic relations

Australia’s lobster industry is cautiously optimistic that China could soon remove trade restrictions, but exporters are wary of being “burned again” by sanctions and volatile diplomatic relations.

Many businesses have been paying close attention to foreign affairs minister Penny Wong’s trip to China this week – the first by an Australian minister in three years – where she discussed “trade blockages” with her counterparts.

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Union fury over Labor decision to split aged care pay rises – as it happened

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Crossbench say Australia needs to ‘get cracking’ on Cop15 commitments

More reactions are coming in after the close of the biodiversity Cop15 – which leading scientists have called vastly more important” than the Cop27 climate meeting, because it decides the “fate of the living world”.

We need to get cracking on implementation to deliver on commitments.

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‘Great migrant nation’: bid to protect Australian prosecco and feta from EU bans

Trade minister Don Farrell says many producers took their food and culture to Australia from Europe and have the right to use traditional terms

The trade minister, Don Farrell, has asked his European counterparts to recognise Australia as a “great migrant nation” and not force its producers to stop using terms like prosecco and feta.

In an interview from Berlin, Farrell said he was hopeful of clinching a free trade agreement with the European Union early in the new year because he had received an “extremely positive response in all of the countries we visited”.

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Australia’s unemployment rate remains at 3.4% in November as 64,000 new jobs added

The national jobless rate remains at a near 50-year-low as rebounding economy faces labor shortages from lack of migration

Australia’s jobless rate remained steady in November even as the economy added about 2,000 jobs a day, underscoring the tight conditions in the labour market.

The unemployment rate last month was 3.4% with employers taking on 64,000 extra positions, more than half of them full time, the Australian Bureau of Statistics said on Thursday. Economists from the ANZ and CBA forecast the rate would remain at October’s 3.4% rate with a net increase of about 15-20,000 jobs.

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Australia’s skilled migration program needs overhaul to boost economy, report says

Grattan Institute says government should target permanent skilled visas at younger, higher-skilled migrants

A better skilled migration program could be the solution to Australia’s major economic challenges, a new report says.

A lack of productivity growth, growing debt in the federal budget and the economy’s transition to net-zero could be assisted by key reforms, the submission by the public policy thinktank, the Grattan Institute, to the federal government’s migration review has said.

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Man who fired gun inside Canberra airport was on parole for attempted murder – as it happened

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Butler defends decision to cut Medicare-funded psychology sessions

The federal health minister, Mark Butler, is speaking to ABC Radio following his decision Monday to cut the number of Medicare psychologist sessions. He’s come under serious heat for the move which experts say is “appalling.”

This program has been around for a number of years, and it has for many years had a limit of 10 sessions for people to access over that long period the average person has used 4 - 5 of those sessions.

This is a good program, I’ve been familiar with it for many, many years, but its problem has always been one of equity.

The evaluation found that the lowest-income communities have more than twice the levels of mental distress as the highest-income communities, but they get the lowest level of support and, under this program, that inequality was substantially worsened by these additional 10 sessions.

People like Prof Ian Hickey said at the time that those additional sessions in a sector with a limit workforce, was going to have the effect of cutting out other people, meaning other people couldn’t get any support whatsoever.

And the evaluation I .. released on Monday showed exactly that, that it had the impact of cutting more people out of the system. Most of those people were in some of the poorest communities, where the evaluation said there is the highest need.

The recommendation of the report was we would consider additional sessions for people with complex needs, now this system was not designed to focus on people with complex needs.

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Australia news live: Queensland police pay tribute to two officers killed in ‘absolutely devastating’ shooting ambush

Two police officers and another member of the public were shot dead at a Wieambilla property, then two men and a woman were killed by police late last night. Follow the day’s news live

Police officers who were shot and killed on a regional Queensland property were searching for a New South Wales man last seen by his family almost a year ago, Guardian Australia understands.

On Monday, four officers attended the remote property at Wieambilla in the Western Downs region in connection with the disappearance of Nathaniel Train, 46, from Dubbo in NSW.

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Senator says plan ‘a Band-Aid on a festering wound’ – as it happened

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Severe weather warning for damaging winds in NSW and Victoria

Several children have been injured after a firework shot into a crowd during a Christmas event in Sydney’s northern beaches last night.

An 11-year-old boy was initially taken to Royal North Shore hospital, before being transferred to the Children’s hospital at Westmead for treatment of burns and a chest injury.

An eight-year-old girl was taken to Northern Beaches hospital for treatment of burns and a wrist injury. She has since been released.

Police have been told a 12-year-old boy was taken to hospital by his parents for treatment to minor burns and has since been released, and six other people were treated on scene by NSW Rural Fire Service for minor injuries, and left prior to the arrival of paramedics and police.

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MPs’ Pacific islands tour to show bipartisan support – As it happened

Senior politicians from both major parties to travel to Vanuatu, the Federated States of Micronesia (FSM) and Palau this week. This blog is now closed

The Bureau of Meteorology expects scattered showers expected over South Australia.

Meanwhile the heatwave that has settled across northern Australia is expected to ease.

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$1.5bn energy price relief package for Australians including caps on coal and gas

Treasury advised the PM and premiers not to deliver the rebates as cash handouts due to risk of fuelling inflationary pressure

Canberra and the states have agreed to cap coal and gas prices, and provide additional rebates for Australians on low and middle incomes, as part of a $1.5bn intervention that will shave hundreds of dollars off power bills.

After a national cabinet meeting on Friday, governments have agreed to cap gas prices temporarily at $12 per gigajoule and cap coal prices at $125 per tonne. Parliament will be recalled next week to implement the change.

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Andrews government on track to surpass ‘Danslide’ – as it happened

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Government yet to cap wholesale coal price, but still aiming to land ‘before Christmas’, treasurer says

The treasurer, Jim Chalmers, is speaking to ABC Radio. RN Breakfast host Patricia Karvelas asks him:

Has the government resolved to cap the wholesale coal price at $125 a tonne and the gas price at $13 a gigajoule?

There hasn’t been a concluded view reached yet, and that’s because this is a challenge of such complexity and such consequence for industry and for Australians around the country, that it needs to be a genuine partnership between governments and that requires all sides to come to the table in a reasonable and a constructive way, which recognises that one level of government can’t fix this all on its own.

The need for Aukus is even clearer today. More than ever, our three countries share of similar outlook on the key challenges and opportunities confronting our world. Aukus will enhance our shared ability to sustain peace and stability in the Indo-Pacific, and since creating this trilateral security partnership our defense forces, industries, and scientific communities have been hard at work. Over the past 15 months we’ve made great progress toward identifying a pathway for Australia to acquire conventionally armed and nuclear-powered submarines. Today on behalf of President Biden, I want to reaffirm the US commitment to ensuring that Australia acquires this capability at the earliest possible date, and in adherence with the highest nonproliferation standards.

And central to that is Australia being able to acquire a nuclear-powered, highly capable submarine and we are deeply grateful for the work that we’ve been able to do with both the UK and the US to enable Australia to acquire that capability. And it’s not lost on us the significance of the US and the UK, working together and transferring this technology to Australia. And there has been an enormous amount of work being done by our officials to bring this about, and obviously to bring today about. I think as we talk today, we’re all going to speak to the fact that we’re on track to be able to make this announcement in respect of what will be the optimal pathway for Australia to take in the first part of next year, which is what we have always intended to do.

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Australia news live: treasurer says full impact of interest rate rises still to come as RBA flags further hikes

The central bank has raised the cash rate by 25 basis points to a decade high of 3.1%. Follow the day’s news

Shorten confident solution will be found ‘well before Christmas’

The national cabinet meeting was supposed to see the federal government negotiate with the states on an acceptable intervention on soaring energy prices.

It will be delayed just a few days. The fact of the matter is all options are on the table.

It’s no secret with the premiers, the challenge is Putin’s war in Ukraine has flowed through to coal and gas prices all around the world and it’s affecting Australian families.

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