Category Archives: Australian economy

PM’s meeting with Chinese president confirmed – as it happened

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Andrews rules out deal with the Greens and independents in event of minority government

Dan Andrews was also asked what would happen if Labor finds itself in a minority government situation – will it do a deal with the Greens?

No deal will be offered and no deal will be done.

And independents – no deals with independents?

No deal will be offered and no deal will be done.

So if you’re in a minority situation and you hold more seats than the Liberal party, what happens? You go back to another election?

Well, I think what the best thing to do, and what happens, Michael, is we work hard for the next 13 days, we work hard to put a positive and optimistic plan out there, and we’ll see what the verdict of Victorian voters is. I’m arguing, I’m urging people to vote for a strong, stable majority Labor government, to vote for your local Labor candidate.

The new SEC – government-owned, not private for-profit, but government-owned electricity, so owned by every single Victorian – creates nearly 60,000 jobs – 6,000 of those will be apprentices. It will be 100% renewable electricity. These companies can’t be relied upon to replace themselves. They’ll just put another profit machine in place. We need to make sure that we’re looking after pensioners, we’re looking after families and, indeed, businesses. And without electricity, there is no economy, so we have to replace them. And we choose to replace them with a public option – a government-owned option. An option that’s owned by every single Victorian.

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Albanese meets Chinese premier Li Keqiang at summit – as it happened

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Victorian opposition vows to restrict gas produced in the state from being exported in a bid to reduce household bills; Anthony Albanese speaks to Chinese premier Li Keqiang at East Asia Summit gala dinner. This blog is now closed

Two historic military planes collided and crashed to the ground Saturday during a Dallas airshow, federal officials said, sending plumes of black smoke billowing into the sky.

Officials didn’t immediately make clear how many people were on board the aircraft or if anyone on the ground was hurt. Nonetheless, an ABC News producer – citing reporting from a colleague – said on Twitter that at least six people, all crew members, were feared dead after the crash.

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Australia’s consumer watchdog calls for new laws to stop scams and rein in anti-competitive behaviour online

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ACCC report says digital platforms expose users and businesses to ‘harms’ as it pushes for overhaul

Australia’s competition regulator has run out of patience with digital platforms such as Google and Facebook and has recommended new laws to clamp down on scams, address consumer complaints and rein in anti-competitive behaviour.

Releasing its fifth progress report on digital platforms since it began an inquiry in 2017, the Australian Competition and Consumer Commission (ACCC) has called for industry-specific legislation, saying it has identified “widespread, entrenched and systematic” consumer and competition “harms”.

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One thousand residents urged to evacuate as central west braces for flood peak – as it happened

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Pregnant woman and midwife among 10 rescues in NSW town of Forbes. This blog is now closed

Victorian Labor lead narrows in polls in lead-up to state election

The Victorian election race appears to be tightening three weeks out from polling day, with Labor in danger of slipping in to minority government, AAP reports.

The AMA analysed the documentation these media reports relied on and, like the department, found nothing – not a skerrick of evidence – to support the claims made in headlines splashed across some news organisations.

The AMA has acknowledged consistently that while some fraud does occur, the vast majority of doctors are doing the right thing. And we have seen the mental toll these reports have taken on Australia’s doctors.

The minister has again highlighted the impact of years of cuts and neglect of Medicare, and, while this latest review may identify potential savings that could be made, what Medicare really needs is genuine reform and an injection of new funds.

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Proposed work-from-home tax changes would mean lower deductions or more paperwork

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If adopted, Australian Tax Office draft guidelines would cut 80c flat rate to 67c and affect tax returns from next July

People working from home would lose hundreds of dollars in tax deductions if new draft guidelines released by the Australian Tax Office are adopted.

Under the proposed changes, those working from home would not be able to claim expenses such as internet, electricity and mobile separately using the popular shortcut method, which sets out a flat rate for hours worked at home, rather than calculating the actual costs.

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

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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.

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Crowds gather for national Cassius Turvey vigils – as it happened

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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.

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

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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.

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

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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?

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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