Category Archives: Australian economy

Australia news live: Ed Husic says government must intervene in gas market; Pocock backs fossil fuels super profits tax

Posted on by

Industry minister says gas companies are ‘not picking up the signals’. Follow all the day’s news live

Gas supply not a problem, ‘glut of greed is’, industry minister says

Husic:

This is not a shortage of supply problem; this is a glut of greed problem, that has to be basically short-circuited and common sense prevail.

The pricing mechanism is the one that I think needs to be seriously examined.

The LNG exporters are offering gas to the domestic market at prices they couldn’t reasonably expect on the international market.

We have the ACCC looking at that [code of conduct] and that code of conduct is to help better guide the way in which these contracts get negotiated … in terms of the other areas, we want to work through that internally.

If you look at what the treasurer has said over the last few days, he is examining those type of options and again that will be in the mix of things he thinks through.

I think the bigger focus long-term is the price mechanism.

Continue reading...

Crowds gather for national Cassius Turvey vigils – as it happened

Posted on by

Budget forecast doesn’t predict wage price spiral: finance minister

The Reserve Bank says it wants to avoid a wage price spiral. Does Gallagher think the government’s policies are risking that?

The bank obviously will keep looking at that … we’re not seeing that, the budget in its forecast doesn’t predict that.

Looking at the regulatory arrangements is our first inclination. That work is under way, I can’t give you a timeframe on the completion of that.

Continue reading...

Interest rates to keep rising as RBA warns it will do ‘what is necessary’ to curb inflation

Posted on by

Reserve Bank governor Philip Lowe says half percentage point increases to cash rate possible if economic conditions do not improve

Interest rates will be rising for the foreseeable future and the Reserve Bank of Australia will not hesitate in making higher increases than predicted if inflation does not begin to settle, the RBA governor, Philip Lowe, has warned.

Tuesday’s seventh interest rate hike saw the cash rate increase by the standard quarter of a percentage point, taking rates to a nine-year high of 2.85%, and Lowe said the RBA board would not hesitate to move to half percentage point increases if economic conditions didn’t improve.

Sign up for our free morning and afternoon email newsletters from Guardian Australia for your daily news roundup

Continue reading...

Reserve Bank ‘consulting’ with government on whether King Charles should be on $5 note

Posted on by

RBA governor Philip Lowe says ‘monarch has been on at least one banknote since 1923’ but decision won’t be made until talks with Labor are complete

He’s on the throne but should he be on the fiver?

The Reserve Bank of Australia has begun consultations with the federal government to answer one of the burning questions following the death of Queen Elizabeth II – should King Charles III take her place on the $5 note?

Continue reading...

Australian borrowers hit again as RBA raises interest rates by 25 basis points to 2.85%

Posted on by

Reserve Bank raises rates for seventh time in attempt to bring inflation under control

Borrowers have been slugged with a record seventh rate rise from the Reserve Bank of Australia in as many months, as the central bank tries to quell the nation’s strongest burst of inflation in 32 years.

The RBA on Tuesday lifted the cash rate by 25 basis points to 2.85%, the highest since early May 2013. The increase was in line with most economists’ expectations.

Continue reading...

Treasurer says inflation ‘number one challenge’ – as it happened

Posted on by

We’ve been bringing you some of the news about rain causing more flooding in NSW. Here are some visuals from Wagga Wagga in southern NSW and the Newell highway in the state’s central west.

Jacinta Allan avoids question of whether families returned from Syria would be welcome in Victoria

The first group of families the wives and children of Islamic State fighters arrived in Sydney over the weekend from Syria and are now living in the community in Sydney. Will Victoria accept returnees?

I was with the premier [Daniel Andrews] on Sunday at a at a media event… where the premier was asked this direct question and I’ll give to you the answer he gave on Sunday which is these are very sensitive security matters. They are primarily the province of the federal government, it would not be appropriate -

As a matter of principle, will you accept them [in] Victoria? Or have you asked for them not to come during the election campaign?

We’ve not, Patricia. There is a … As I think we’ve seen from the media reporting around this issue, this is a very careful matter. There is a very -

Sure, but as a matter of principle, do you think returning citizens – they’re Australian citizens – should be allowed to live in Victoria?

I would really direct you to the federal government and the federal … I think you would appreciate that this is not a simple yes or no proposition because there needs to be robust and careful assessments that are not undertaken by the Victorian government. They’re undertaken by the federal government and the federal Department of Home Affairs.

And if they do all the checks and balances, should they be welcome in Victoria?

Firstly it’d be entirely inappropriate to cut across that and secondly, I am in no position to run a commentary.

Continue reading...

No immediate power price relief for households and businesses as Australia’s energy ministers meet

Posted on by

Ministers agree to give regulator more powers to ensure supplies while plans for a capacity market could be ready in December

Households and businesses will get no immediate relief on their utility bills after Friday’s meeting of energy ministers, with discussions instead aimed at ensuring electricity and gas supplies will be ample next winter.

Federal, state and territory energy ministers gathered in Melbourne for an update on power and gas markets, and to discuss progress on creating some form of a capacity market that would bolster the reliance of the energy sector as coal-fired plants exit.

Sign up for our free morning newsletter and afternoon email to get your daily news roundup

Continue reading...

Federal budget: Jim Chalmers flags intervention in energy market as prices surge

Posted on by

ACCC to review gas industry as Labor’s budget forecasts point to a 56% rise in power prices over the next two years

The Albanese government has asked the competition watchdog to review the code of conduct covering the gas industry and recommend options to toughen the current regime in the hope of delivering energy price relief to households and businesses.

The Australian Competition and Consumer Commission confirmed it had new riding instructions from the government after the treasurer, Jim Chalmers, on Wednesday flagged fresh government intervention in the energy market.

Sign up for our free morning newsletter and afternoon email to get your daily news roundup

Continue reading...

Australia’s inflation rate hits 7.3%, the highest since 1990, heaping pressure on households

Posted on by

Families and businesses feeling the pinch as soaring CPI ensures more interest rate rises to come

Australia’s inflation rate accelerated in the September quarter as energy prices soared, heaping pressure on households and businesses and ensuring more interest rate rises to come.

The consumer prices index (CPI) has risen 7.3% over the past year and increased by 1.8% in the July to September period, the Australian Bureau of Statistics said on Wednesday. Economists had predicted annual CPI would quicken to 7% from the 6.1% pace reported in the previous quarter.

Continue reading...

Jim Chalmers’ first budget comes amid a darkening economic outlook. Here’s what could go wrong

Posted on by

The federal budget forecasts growth of 3.25% this year but hints at a slowing global economy with high inflation and interest rates

The resilience of Australian households to soaring expenses and the nascent recovery of China’s economy will likely determine whether Jim Chalmers’ first budget is a charm or chimera.

This year’s forecast for Australia’s economy to grow 3.25% may be the best this side of the next federal election as the Reserve Bank tries to douse inflation with another 75 basis points of interest rate hikes. The outlook, though, is darkening at home and abroad, adding to looming fiscal strains.

Continue reading...

Australian budget forecasts heavy hit to economy due to floods and disasters

Posted on by

Estimates growth will lose about quarter of a percentage point during the current quarter, or about $5bn in economic activity, because of flooding

The increasing frequency of weather disasters will take its toll on the economy in the near term and force the government to fork out hundreds of millions of dollars to build resilience for more to come.

As Australia endures its third La Niña event in as many years, the budget estimates growth will lose about quarter of a percentage point during the current quarter, or about $5bn in economic activity, because of the flooding across the country’s south-east.

Continue reading...

Labor hints at more controls on energy sector – as it happened

Posted on by

We will be breaking into the political coverage today to keep you updated on the floods as well:

Overnight, residents of the north west NSW town of Narrabri have been ordered to evacuate due to flooding, with the SES issuing the warnings for the town’s industrial and residential areas.

The rivers are very, very full and, of course, our dams are mostly at full capacity at present. So, even the smallest rainfall can cause an elevated risk of flash flooding and riverine flooding. We will see rivers decline, but the risk is real.

We are bracing for another wet weather system into the state on the weekend.

He is a friend of Australia as the UK is a friend of Australia. We congratulate him on his elevation to the Prime Ministership. The UK, like Australia, has no shortage of challenges and no shortage of economic challenges.

So, we wish Rishi Sunak well. Some of us had the opportunity to work with him briefly when we first came to government. I was able to exchange messages with him when he was unsuccessful in the last leadership ballot. I think it says something about his commitment and his persistence, the way that he conducted himself in the interim. I don’t think it’s insignificant that a country like the United Kingdom has its first Prime Minister of colour.

Continue reading...

Budget deficit to halve this financial year but spending pressures mean boost will be short-lived

Posted on by

Jim Chalmers’ first budget to reveal $42bn improvement to bottom line across forward estimates but conditions will deteriorate after two years

Soaring commodity prices and a strong labour market will deliver a $42bn boost to the budget bottom line over the next four years, with the deficit more than halving this financial year.

However, the improvement – to be revealed in Jim Chalmers’ first budget on Tuesday night – will be short-lived, with worse-than-expected deficits by the end of the forward estimates as a result of growing spending pressures.

Sign up for our free morning newsletter and afternoon email to get your daily news roundup

Continue reading...

Politics live: Nationals accuse Labor of regional ‘vendetta’; Chinese state media denounces closer security ties between Australia and Japan

Posted on by

Albanese government will scrap two Coalition grants programs to set up two new regional programs worth $1bn over next three years. Follow the day’s news live

Gallagher: spending audit is an ‘ongoing piece of work’

And it will continue, Katy Gallagher says:

My view is finance minister is that this is a process that should keep going. We’ve identified obviously, some of that the short term work and that will be reported in the budget.

But this spending audit should should keep going. We should do it in every budget, just to make sure that we’re constantly looking at ways we’re spending money and I think the Australian public would expect us to do that, that it’s not always adding in new spending when there’s … need that arises, and there will be, but we’re looking at existing expenditure as well and how we can reuse that or … realign it with … new investments.

It’s not exclusively infrastructure. We are finding savings across government. We have gone to every single department and ask them to look at their programs to identify programs that don’t need to be done any longer or don’t align with government priorities and where we’ve been able to return some money to the budget we’re doing that.

The other part of it is actually not adding new funding to things but using existing funding to fund some of our our priorities. So it’s been a very useful exercise and I think $22bn is a pretty reasonable figure to have achieved over just, you know, a couple of months in government.

Continue reading...

Sydney’s property prices dropped 10% this year, with $450 a day lost from average home

Posted on by

Decline comes as RBA documents indicate values may sink as much as 20% nationally from their February peak by end of 2024

Sydney’s property prices have fallen by more than 10% since their mid-February peak, shedding almost $450 a day in value on an average home, and leading other major markets lower, CoreLogic said.

The 10.1% decline for home values in the harbour city so far comes as documents from the Reserve Bank of Australia indicate average property values may sink as much as 20% nationally from their recent highs by the end of 2024. That decline would be the steepest since the 1980s if realised.

Continue reading...

SES urges residents of several NSW areas to evacuate – as it happened

Posted on by

Flood waters in Victorian border towns reach record levels as residents of several NSW towns are urged to evacuate. This blog is now closed

Taylor: potential inflation decrease ‘a good thing’

Taylor is now discussing inflation and says the Coalition believes inflation will be down to 2.5% in the next financial year according to Labor’s forecasts.

I’ve got to say many of the investments I’ve seen out in regional New South Wales have added to productivity, very significant impact.

Continue reading...

Australia and Japan sign new security deal; flood waters peaking in northern Victoria – as it happened

Posted on by

Volunteers place 195,000 sandbags in and around Echuca, which could reach devastating 1993 flood levels. This blog is now closed

Australian ultrarunner on pace to break daily marathon world record

Did you know that you have the genes to be a long distance runner?

If you go back to our early genetics, basically, everyone has the genes to be a distance runner. Back 50,000 years ago, our survival depended on us being able to walk and jog long distances to be able to get food, and catch animals.

Continue reading...

Australia’s jobless rate is steady as she goes – and so too is the economy

Posted on by

Unemployment has come in at 3.5% for the second month in a row. That’s good news for economic growth – if people have jobs, they’re more likely to spend

September’s jobless figures may have remained steady, but a deeper dive shows the seemingly dull and inert data is worth a closer look.

The labour market numbers from the Australian Bureau of Statistics are, on the face of it, almost as steady as is statistically feasible.

Continue reading...

Inflation and inadequate welfare fuelling Australia’s food insecurity crisis, Foodbank finds

Posted on by

The charity’s annual Hunger Report estimates about 500,000 households on any given day struggle with getting enough to eat

The cost-of-living crisis and inadequate welfare payments are fuelling a rise in food insecurity in Australian households, according to a new report.

The charity Foodbank’s annual Hunger Report, to be released on Monday for Anti Poverty Week, surveyed more than 4,000 Australian adults, finding the problem extended beyond those on fixed incomes and was affecting many people in work.

Sign up for our free morning newsletter and afternoon email to get your daily news roundup

Continue reading...

Australia news live: 120 schools to be closed on Monday amid Victorian flood crisis

Posted on by

Residents in Victoria’s north told to move to higher ground; Anthony Albanese and 100 ADF personnel on the ground as situation worsens. Follow live

Federal government ‘in conversation’ with NSW about Warragamba dam wall

King is asked about how the infrastructure spend is being divvied up with New South Wales clearly getting less than Labor-lead states. King says the decisions were based on the projects that had been submitted to the federal government ahead of the budget.

We will work with the New South Wales government as we lead into the May budget.

Of course we will look at it. At this stage we don’t have enough information from the New South Wales government on which to make a decision.

There is back and forth between Infrastructure Australia and the New South Wales department and I haven’t seen any of that yet.

This is for the early works of this project. We haven’t made any further commitments. We will talk to the Victorians around that as we go forward. They have an election they are facing and this will be a contested project, I’m sure, but something we have confidence in.

Continue reading...