This week's political news
Funding shake-up for higher education
Federal Education Minister Dan Tehan has proposed a major shake-up of university funding, with cheaper degrees for students in areas of future job demand. Under the proposed reforms, students will pay up to 62 per cent less to study agriculture and mathematics and 46 per cent less to study teaching, nursing, clinical psychology, English and languages. Humanities students, however, will pay more than 100 per cent higher in contributions and law and commerce students 28 per cent more. The Coalition Government will provide an additional 39,000 university places by 2023 to meet the expected increase in demand because of COVID-19.
Credit relief for Federal borrowing
Credit agency Moody’s has reaffirmed Australia’s AAA credit rating, despite the economic crisis caused by the coronavirus pandemic. The confirmation of the AAA credit rating is significant given that it reflects a lower cost of borrowing for the Federal Government as it seeks to fund $260 billion in support for workers, households and business.
Trade slumps as world economy shrinks
Imports of cars and petroleum slumped in May as COVID-19 restrictions curbed economic demand, according to the Australian Bureau of Statistics Preliminary ABS figures show the value of imports fell to $21.9 billion, down nine per cent on April figures and 18 per cent on May 2019. The value of cars imported was the lowest for nine years, while the value of imports of petroleum was the lowest in 15 years. Meanwhile, the value of exports declined four per cent on the previous month, with a fall in the export of coal and gas resulting from reduced demand from some of Australia’s key trading partners.
Record fall in job vacancies
Job vacancies in Australia slumped by a record 43 per cent in the May quarter, the ABS has reported. It was the largest quarterly fall in job vacancies over the 40 years of job surveys, and well above the previous largest fall of 27 per cent during the 1990s recession. Job vacancies in the private and public sectors fell by 45 per cent and 29 per cent respectively. The arts and recreation services industries suffered a 95 per cent fall in vacancies; Victoria was the most affected state, with a 52 per cent fall in vacancies.
Hunt bats away Victorian border closure
Federal Health Minister Greg Hunt has refused to support interstate travel bans for Victorians, as the State grapples with a resurgence in the number of new coronavirus cases. On Thursday this week, Victoria recorded 33 new COVID-19 cases, the highest level of daily new cases since early April. Mr Hunt supported rapid local responses, such as rapid testing and tracing that was undertaken in Western Sydney and north-west Tasmania earlier in the outbreak.
Financial regulators more optimistic
Australia’s financial regulators, meeting this week, said that economic recovery was beginning to recover in some sectors, after COVID-19 and the accompanying restrictions had led to the biggest economic contraction in the nation since the 1930s.