This week's Australian political news
Feds plead for Victorian re-opening
Industry and the Federal Government are ramping up pressure on Victoria to expedite the lifting of restrictions on business, as the state emerges slowly from its second wave of Covid-19. The hospitality industry and large sections of the retail sector are due to remain closed until at least 1 November, despite the state recording fewer daily coronavirus cases than New South Wales. Federal Treasurer Josh Frydenberg is desperate for a reopened Victoria to contribute to the nation’s economic revival, with a worrying 0.9 per cent decline in the number of payroll jobs nationally from mid-September to early October. According to the Australian Bureau of Statistics, Victoria has suffered the biggest job losses under Covid-19, losing 7.7 per cent of jobs since mid-March, compared to 2.8 per cent for the rest of Australia. By contrast, Western Australia has lost just one per cent of payroll jobs over the same period.
Retail trade falls again
In a bad omen for the immediate economic recovery, retail trade across Australia fell in September, with turnover falling 1.5 per cent on August figures. The ABS said that in seasonally-adjusted terms, retail turnover fell in all Australian states, except in the Northern Territory. Retail turnover initially rebounded strongly after the first wave of Covid-19, but has slumped since July as Victoria’s second wave led to tightening of trading and travel restrictions.
Business growth fund kicks off for SME businesses
Small and medium-sized Australian businesses will be able to access equity capital through the Australian Business Growth Fund formally established and announced by Federal Treasurer Josh Frydenberg last week. The fund is a joint initiative between the Federal Government and major banks, with the Commonwealth contributing $100 million, and the fund having an initial investment capacity of $540 million. Established Australian businesses will be eligible to apply for long-term equity capital investments of between $5 million and $15 million, where they have generated annual revenue of between $2 million and $100 million. Businesses must also demonstrate three years of revenue growth and profitability, allowing for the impact of Covid-19 on recent business performance.
ACCC head canvasses tougher digital regulation
The Chair of the Australian Competition and Consumer Commission, Rod Sims, has signalled stronger regulation of digital platforms, including greater consumer control over data. In an address to the National Press Club, Mr Sims said the access to consumer data was in some cases a serious source of market power. Consumers should be allowed to have their data, which had been collected by one company, transferred to another. He cited other data-related issues, including problems in the adtech supply chain, market power in apps, cyber security issues, the prevalence of scams, manipulation of consumers and social division.
Telco head to chair cyber security advisory panel
The Federal Government has appointed the CEO of Telstra, Andy Penn, to lead its industry advisory committee that will guide the implementation of Australia’s cyber security strategy. Mr Penn warned that Australia was under constant cyber attack from more abundant and better-resourced cyber-criminals and cyber-activists, as well as increasingly sophisticated and emboldened state actors. The committee will report to Home Affairs Minister Peter Dutton who this week noted that cyber actors had ramped up activity during Covid-19, with healthcare providers and medical research providers being the target of cyber attacks, both in Australia and around the world.