PM's deal on emissions; prices rising
Low-emission technologies to lead climate response
After more than a week of negotiations by and with the National Party, Scott Morrison has announced Australia would deliver net zero emissions by 2050. The Prime Minister said Australia would achieve the target by becoming a leader in low-emission technologies, while preserving industries and jobs in regional areas. He said the Government’s $20 billion investment in low-emission technology would unlock at least $80 billion in total public and private investment, with a focus on clean hydrogen, carbon capture and storage, and energy storage. Lower-cost solar generation would also assist in containing energy costs.
Treasury tips cash-fuelled economic recovery
Federal Treasury Secretary Dr Steven Kennedy has predicted that economic activity will recover quickly after Covid-19 lockdowns are lifted, boosted by initial government support and strong cash holdings. Presenting to the Senate Economics Legislation Committee, Dr Kennedy said Treasury had predicted that gross domestic product would fall by three per cent in the September quarter, with federal and state governments providing around $20 billion in direct economic support to businesses and households. He also noted that households and businesses held around $330 billion more in cash than at the end of 2019.
Import costs fuel three per cent annual inflation
Australia recorded inflation of three per cent in the year to the end of September, boosted by higher automotive fuel and construction costs. Figures from the Australian Bureau of Statistics show that the Consumer Price Index rose 0.8 per cent in the September quarter. In the past year, the cost of automotive fuel rose almost 25 per cent, while global supply disruptions contributed to price rises in furniture and cars.
Energy demand boost export prices
Meanwhile, rising global energy demand has contributed to a surge in prices received for Australian exports over the last 12 months, according to latest figures. Australian Bureau of Statistics data show a 6.2 per cent increase in the export price index in the September quarter and a 41 per cent rise annually, with the import price index rising just 5.4 per cent and 6.4 per cent respectively over the same two periods. Prices for coal and related-product exports rose almost 83 per cent in the year to the end of September, while export prices for natural and manufactured gas jumped more than 96 per cent. Petroleum and petroleum product prices increased 12 per cent in the quarter, and 57 per cent annually.
Most universities in the black
Twenty-three of Australia’s 39 higher education providers reported a net surplus in 2020, despite the impact of Covid-19, according to the Education and Youth Minister Alan Tudge. The Minister said the 2020 Financial Report for Higher Education Providers showed that overall, universities reported a net operating surplus of almost $670 million across the sector. He said that international student revenue was down by $756 million, or 7.6 per cent on 2019. More Australians, however, were studying at university, with enrolments up by 39,000 this year.
New Bill tightens regulation on class actions
The Federal Government has introduced legislation into Parliament to promote a fair and reasonable distribution of proceeds from litigated class actions. Treasurer Josh Frydenberg and Attorney-General Michaelia Cash said the reforms would enhance court oversight of the distribution of class action proceeds between the litigation funder and members of a class action litigation funding scheme. Courts would be empowered to approve or vary the method for distributing claim proceeds to non-members of the scheme.