This week's Australian political news
Pandemic slams brakes on population growth
Australia’s first annual Population Statement has revealed that population growth in 2020-21 will be the slowest since World War I, with sharp implications for short-term economic growth. The report forecast negative net migration for the first time since 1945, in this year and the next. While the report predicted a strong rebound in population growth by 2023-24, Australia would not reach 28 million people until 2028-29, three years later than predicted pre-Covid 19. The report also found that Queensland would benefit from strong interstate migration, while Sydney’s population growth was forecast to be negative for the first time since 1952-53.
Federal laws clamp down on foreign arrangements
Federal Parliament this week passed amending legislation to ensure that all international arrangements entered by state and territories, local government, and public universities, would be consistent with Australia’s foreign policy. The Foreign Relations Act 2020 enables the Minister for Foreign Affairs to cancel any existing or prospective arrangements that are inconsistent with, or affected, foreign policy. It also establishes a public register to provide transparency about state and territory foreign arrangements.
Tougher laws on ‘sensitive’ foreign investment
Amended laws governing foreign investment in Australia will come into effect on 1 January, 2021, following passage through Federal Parliament this week. Under the reforms, the current $0 monetary screening threshold for foreign investment, introduced in response to the Covid-19 pandemic, will be removed. Federal Treasurer Josh Frydenberg said, however, that investments in sensitive national security businesses would still be subject to mandatory screening at the zero-dollar threshold. Foreign investors would also be subject to enhanced monitoring and investigation powers.
Parliamentary report tips decade of budget deficits
A report by the Federal Parliamentary Budget Office has forecast no return to budget surpluses for at least 10 years, as Australia begins a long recovery from the effects of Covid-19. The annual mid-term Parliamentary Budget Office report forecasts that annual budget deficits will fall from more than $200 billion in 2020-21 to $51 billion in 2030-31. Net debt would rise to 44 per cent of GDP and then fall to 41 per cent of GDP in 10 years; in last year’s report, net debt was projected to be close to zero by 2030.
Retail trade back in positive territory
Australia’s retail trade is growing again, rising 1.4 per cent in October, after going backwards in the previous two months. As Covid-19 restrictions were eased, Victoria’s retail trade grew 5.1 per cent in October, while the rest of Australia registered sluggish retail trade, including negative growth in four states and territories. According to the Australian Bureau of Statistics, growth was strongest for clothing, footwear and personal accessories, and in cafes, restaurants and takeaway food services.
Porter unveils major IR changes
Federal Attorney-General and Minister for Industrial Relations Christian Porter has unveiled major changes to workplace laws, in a bid to stimulate post-pandemic job growth. The amendments to the Fair Work Act 2009 propose major award simplification in the retail and hospitality sectors, which were hit-hard by restrictions, as well as greater clarification of the legal status of casual employees. It also seeks to strengthen compliance and enforcement on the under-payment of wages, refresh the enterprise bargaining process and provide for new life-of-construction work agreements on major projects.