Category Archives: Australian economy

Global shocks likely to drive more frequent interest rate changes, RBA says

Posted on by

Central banks will need to adjust rates more often to respond to unpredictable levels of inflation, Philip Lowe says

Inflation is likely to become more volatile in the future as globalism retreats and climate shocks mount, requiring central banks to adjust interest rates more often, the Reserve Bank governor has said.

Philip Lowe, in a Committee for Economic Development of Australia speech in Melbourne on Tuesday, said the current spike in prices was soon expected to peak at around 8% before declining to “a little over 3%” by the end of 2024. Improving post-Covid supply chains, cheaper commodities and the effects of interest rate hikes – with more possible – would combine to rein in inflation.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Australia politics live: Albanese accuses Dutton of ‘dog-whistling’ over Cop27 climate damage fund

Posted on by

Follow the day’s news live

Buy now, pay later review has been coming for a while

The last time the issue was examined, under the previous government, it was decided the industry could regulate itself.

Continue reading...

Flood warnings in Victoria and NSW – as it happened

Posted on by

This blog is now closed

Birmingham against a windfall tax for oil and gas companies

Birmingham says he is opposed to a windfall tax for oil and gas companies to help assist with rising energy prices.

We don’t think that simply slugging a tax in relation to companies is going to do anything for the energy prices of Australians. You’ve got to fix supply in the gas market to provide for genuine outcomes there, and those types of taxes will actually only hurt you in the longer term because they will act as an investment disincentive and you have less supply for the future.

The International Energy Agency (IEA) has previously said limiting global heating to 1.5C as set out in the Paris agreement meant there can be no new oil, gas or coal investment beyond 2021.

A windfall tax is not about shoring up gas supplies, but generating revenue which can re-invested in new renewable energy projects and other decarbonisation projects.

I strongly support recognition and have done for many years and, of course, the debate around the voice has come along subsequent to early efforts to try to achieve Indigenous recognition. When it comes to the model for the Voice, I do think Australians deserve to see more detail and have more answers about how it will work, how it will be constituted and how it will make a difference. I understand the very passionate views by those who argue for the voice and I don’t wish to see them disrespected in any way, but I also acknowledge that there are strong Indigenous views of doubt and question about whether the voice will be actually effective in achieving any substantial change on the ground in relation to Indigenous disadvantage.

We are going to be asked to support a constitutional change for a model that is as undefined by the government in relation to that model. It is not unreasonable to want to see the detail of the model.

An economy growing as strongly as possible, keeping unemployment as low as possible – those are the things that our government managed to achieve, with strong economic growth in our last year in office, with unemployment down to 50-year lows, creating the conditions for economic growth to help to drive productive wages growth.

Continue reading...

News live updates: Medibank, Optus among companies shunning privacy law hearing in ‘collective failure of corporate Australia’

Posted on by

Greens senator David Shoebridge has criticised notable absences at a Senate committee looking at privacy laws today. Follow the day’s news live

ADF personnel to help in NSW as government works on dedicated disaster workforce

Murray Watt is asked about a permanent disaster workforce to assist during national disasters and their clean-up, given the pressure put on the defence force.

The ADF does certainly play a role, particularly in the recovery phase. And just yesterday we activated more defence forces to go into western New South Wales to assist so over the next couple of days, we expect to see 200 defence force personnel helping there to top up these state-based services. But the reality is all of this is putting a huge amount of pressure, whether it be on those state-based services or the ADF. And that’s why in this budget, we committed over $30m to a volunteer veteran organisation called Disaster Relief Australia to sort of top up the kind of services that are available for communities, particularly in that clean-up phase.

But we’re going to be keeping on doing some work on this about what we need to put in place as a country to supplement the ADF and I’d be hopeful that we might be able to bring that to a conclusion around about the budget next year.

There’s insurance costs so let alone the huge damage bill that individuals are going to be incurring themselves.

So I think everyone is unfortunately going to be having to put their hands in their pockets for for this unfolding event that just won’t go away.

So even if we weren’t to get any more rain, we’re going to be looking at even more damage from the existing flood waters. And, as I say, I think we’re likely to see more. We’ve also got to remember that we haven’t yet seen the cyclone season start whether that be in north Queensland, Western Australia or Northern Territory. So unfortunately I haven’t got a lot of good news for people except for the fact that there is unlikely to be a lot of rain over the next couple of days. So that’s a good thing.

Continue reading...

Australian business hails Albanese’s meeting with Xi as ‘tremendous reset’

Posted on by

Business Council of Australia chief Jennifer Westacott sees a chance to ‘start building relationships’ damaged by trade and human rights disputes

The Business Council of Australia has hailed the Albanese government’s “tremendous reset” with China as a breakthrough meeting was planned for Tuesday between the Australian prime minister and the Chinese president on the sidelines of the G20.

The BCA’s chief executive, Jennifer Westacott, told journalists on Monday night that Labor’s “huge foreign policy reset” with Indonesia and Pacific countries, and the “tremendous reset announced today with China”, was creating opportunity “for business to come in behind … and start building those business-to-business relationships”.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

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

Posted on by

This blog is now closed

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.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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”.

Continue reading...

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

Posted on by

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.

Continue reading...

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

Posted on by

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.

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

Continue reading...

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...