Category Archives: Australian economy

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

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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.

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

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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.

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

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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.

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

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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.

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

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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.

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Covid quarantine centre to reopen for flood evacuees – as it happened

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Daniel Andrews says 500 homes have been flooded and another 500 have been isolated. This blog is now closed

An estimated 500 homes are flooded in Victoria with number expected to grow: Daniel Andrews

Victoria’s premier, Daniel Andrews, has been on ABC radio Melbourne this morning, providing listeners with an update on the floods.

Obviously this has been a very, very significant flood event and it’s far from over. There’s a little bit more rainfall but as that weather event passes through, the real challenge is waters continuing to rise and more and more houses being inundated, more and more communities being closed off, becoming isolated, then of course we move to clean up and all of those issues.

We think there’s about 500 homes that are flooded, we think there are another 500 that have been isolated across the state. But I would just say they’re very early estimates and the aerial intelligence gathering choppers are up in the air now ... they’ll be doing all their reports back to the state control centre. So I’d say those numbers are absolutely certain to grow. And indeed, we’re still asking people to leave in some areas. There have been important, important evacuation notices have been issued in a number of communities. So those numbers will go up. That’s why we’ve got nine important relief centres opening and 50 sandbag collection points. There’s an enormous amount of work going on.

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Lidia Thorpe to lodge press council complaint over voice report; attorney general says pursuit of Assange has ‘gone on long enough’ – as it happened

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Mark Dreyfus says most anti-corruption hearings will be private and only public in exceptional circumstances. This blog is now closed

US security expert says chances of Putin using nuclear weapon are “small”

During his visit to Canberra, the chief executive of the Washington-based thinktank the Center for a New American Security, Richard Fontaine, weighed in on the US president, Joe Biden’s recent comments that the world could face “Armageddon” if Russia’s Vladimir Putin uses a tactical nuclear weapon to try to win the war in Ukraine.

I seriously doubt that anybody handed the president a set of written talking points that had the word Armageddon on it. On the other hand, there is very grave concern about the rattling of the nuclear sabre, because the chances, I think, of Russia using even a tactical nuclear weapon are small, but they’re higher than they were. And they’re probably higher than any time since 1962 with the [Cuban] missile crisis.

The use of nuclear weapons is one of these low probability, extremely high consequence events. So even if the probability is relatively small, the consequences would be so grave. If they were to do this, we would wake up in a different world the next day.

Yes, absolutely. Every country really has a dog in this fight, because what we’re talking about here is a violation of the fundamental rules of international order, the cardinal element of which is the prohibition against territorial conquest by force. And that’s exactly what we’re seeing here.

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Almost 200,000 robodebt cases to be wiped as Albanese government condemns ‘shameful’ scheme

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Amanda Rishworth cites need for a welfare system that is ‘not punitive’ as she confirms reviews will be scrapped

Nearly 200,000 Australians will have their robodebt reviews wiped as the federal government scraps investigations that were put on hold for three years under the unlawful welfare scheme.

About 124,000 people were told they were under review for social security payments they had received, while 73,000 were never informed they were being assessed for potential debts under the data-matching program.

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Man shot dead by police in Brisbane – as it happened

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Queensland police say officers had been called to Edmonstone Street in South Brisbane around 3pm. This blog is now closed

Treasurer says surging electricity costs will make inflation ‘hang around longer’

We brought you the grim news on the blog yesterday that the head of Alinta energy has predicated a 35% increase to retail electricity bills next year, as energy providers juggle phasing out fossil fuels alongside investment in renewables.

I think one of the reasons this inflation will hang around longer than we want it to is because there are expectations around these electricity price rises being more problematic for longer.

You’ve said the government would put the economy above politics, can you really say that’s what you doing if you leave the stage-three tax cuts in place as they are?

I can say that, and I think what people will see in the budget in two weeks’ time is some difficult decisions in difficult times.

Our job is to make sure that our budgets are perfectly calibrated to the economic conditions as we confront them.

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NSW stamp duty overhaul ‘vanilla’ but could help first home buyers cut costs

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Annual tax could be paid for almost 20 years before it equalled the value of a stamp duty payment in parts of western Sydney, calculator suggests

First home buyers could save tens of thousands of dollars under the New South Wales government’s proposal for an optional land tax but housing experts say the “vanilla” plan falls well short of the “revolution” it had initially promised.

On Monday the government said it would introduce its plans for an overhaul of stamp duty into the state’s parliament this week.

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Australia news live: increased risk of floods, tropical cyclones and heatwaves, long-range forecast warns

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The Bureau of Meteorology has released its long-range forecast for Australia’s coming severe weather season. Follow all the day’s news live

‘It’s time to move on now’: Tanya Plibersek on Andrew Thorburn saga

On Sunrise, environment minister Tanya Plibersek was asked about a war of words between Victoria premier Daniel Andrews and Andrew Thorburn, the would-be CEO of Essendon who resigned following criticism about his role as chairman of City on a Hill.

When it comes to rampant homophobia, when I lead the pride march every year, I do that with a sense of genuine concern, support and commitment.

I think the important thing here is that the fellow in question has resigned from the position, it really is a matter for the football club. It seems like they are moving on from a national perspective, the government is committed to making sure that we introduce religious discrimination laws, as we said we would. I think it’s time to move on now.

I think that his personal views should be separated from the overarching views of the church that he is involved with … I’m in the Catholic Church, it doesn’t mean I believe in every tenet of the Catholic Church. This is completely out of order and Mr Thorburn should get his job back. The whole thing looks like a total mess.

I think you always look back and think I could have done this or not. I tried to do as much as I could as prime minister in the sense that every day was precious, every day we were trying to drive big reforms forward. On sexism and misogyny I specifically regret not calling it out earlier.

I had thought when I first became prime minister that the maximum reaction to me being the first woman would be in the early days and it would wash away … I was clearly wrong on that. Knowing what I know now it was going to gather and get worse. Potentially if I called it out earlier it could have been a bit easier. You never get to run the control test in politics.

I think things have changed, I think it’s impossible to imagine a prominent woman in Australian politics would be called the things I was without it having huge negative consequences today … but we’ve still got a way to go.

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Extinction Rebellion protesters glue hands to prized Picasso – as it happened

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Dutton on his answer to filling the gap should stage-three tax cuts go through

Dutton:

If you look at even post lockdowns on a month by month basis, you can see months where we’ve gone back into surplus, so the settings we have in government, our instinct as Liberals, as a Coalition when it comes to budget management are vindicated.

When you look at where we are with a 50-year low unemployment, when you look at the strength of the underlying indicators here in Australia, that is a very significant contrast to where the UK or US budget is, and this government inherited a very strong position after nine years of Coalition management.

David, we went to the last election with a promise and I’m not in the business of breaking promises. The prime minister can contemplate it. He looked the Australian public in the eye and it seems he wasn’t so genuine and that he was prepared to make that statement.

I want to see the prime minister honour his commitment and not lie to the Australian people.

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Albanese urged not to ‘lose the moment’ for tax reform as he squashes debate on stage-three cuts

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Economists say the tax cuts are unaffordable and should be trimmed or changed, either now or in May

Economists have urged the federal government not to squander the chance for tax reform, after the prime minister hosed down speculation about possible changes to the legislated stage-three cuts in this month’s budget.

The chief executive of the Grattan Institute, Danielle Wood, said she would be “sad” if “we lost the moment” for a substantial discussion about tax changes and hoped a broader debate was still possible before the next budget in May.

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Gig workers to get rights to workers comp under NSW Labor election promise

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Gig, disability and home care workers would also gain access to a portable entitlement scheme

Uber delivery drivers and casual employees will be able to claim compensation if injured at work and take entitlements from job to job if Labor wins the New South Wales election.

New entitlements would make gig workers more resilient and make the labour environment less precarious in general, the state opposition said on Sunday.

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Growing number of Australians want the stage-three tax cuts scrapped, poll shows

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Public opinion for repealing the package jumped 7% from the previous month as people become better informed about the consequences

Public support for the stage-three tax cuts continues to fall, with polling showing increased support for scrapping the $243bn plan.

The last stage of the Morrison government tax reform is not legislated to come into effect until July 2024, but a downturn in the economy has put increased pressure on the Labor government to make a decision on whether it will keep the cuts in place.

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