ROSY OUTLOOK FOR JOBS; GAS WARNING
Treasury chief upbeat on full employment
Australia has an opportunity to achieve and sustain full employment as it emerges from Covid-19 disruptions, according to the head of the Federal Treasury. Appearing before the parliamentary Economics Legislation Committee, Dr Steven Kennedy said that unemployment and underemployment were at 13-year lows, with a broad-based tightness in the labour market likely to persist. The Treasury Secretary said the department had not foreseen the extent of the Omicron wave, with reports of staff shortages as high as 30 to 40 per cent. Post-Covid, Dr Kennedy noted the risks to recovery of higher inflation, public debt levels and climate change.
Jobless rate steady at 4.2 per cent
Meanwhile, unemployment in Australia during January remained unchanged at 4.2 per cent, seasonally-adjusted, confirming Treasury’s analysis of current labour conditions. Australian Bureau of Statistics figures show, however, that jobless rates varied widely across the nation: Western Australia, Tasmania, the Northern Territory and the ACT (3.2 per cent) recorded unemployment rates of less than four per cent, but South Australia’s unemployment rate jumped to 4.8 per cent. The national unemployment rate was 5.3 per cent at the outbreak of Covid-19 in March 2020, rising to a peak of 7.4 per cent three months later.
ACCC review sounds warning on gas supplies
Australia’s southern states face a shortage of gas from late this year as the domestic market competes against LNG supplies diverted to the international market, according to an ACCC report. ACCC Chair, Rod Sims, said southern states would be reliant on gas from Queensland until additional supplies from new sources came on-stream. Current heads of agreement between the Australian Government and LNG producers, due to conclude on 1 January 2023, requires LNG exporters to offer uncontracted gas to the domestic market on internationally competitive terms before it is exported. The ACCC report found that domestic gas contract prices offered to commercial and industrial users for supply increased from $6 to $8 per Gigajoule in late 2020 to about $7 - $9.50 by mid 2021.
International traffic taking off again
After almost two years of border closures, international arrival and departure numbers are trending upwards, according to ABS estimates. In January, Australia was estimated to have recorded 265,000 international arrivals and 190,000 departures, rising from lowpoint monthly arrivals of 15,000 in October and 30,000 departures in September. Short-term visitor numbers remained low at 73,000 in December, headed by visitors from the UK, Singapore and India. Before Covid-19, monthly international arrivals and departures were each exceeding more than two million a month.
Tougher poll restrictions on foreign donors
Ahead of the Federal Election expected in May, the Coalition Government has introduced legislation to limit the influence of foreign interests in Federal elections. Legislation introduced this week will prohibit foreign campaigners from incurring electoral expenditure of more than $1000 a year, and closes a potential loophole that allowed foreign donors to circumvent existing restrictions under the Electoral Act. Under the legislation, foreign campaigners would be banned from authorising the communication of electoral matter.
Technology reforms for corporate compliance
Federal Parliament has passed legislation to allow companies and registered schemes to use technology to meet regulatory requirements such as the holding of meetings, distribution of related materials and valid execution of documents. Amendments to the Corporations Act makes permanent the temporary changes introduced at the height of Covid-19. Federal Treasurer Josh Frydenberg said the reforms would enable around a million businesses to save about $450 million in red tape each year.
Australia-India co-operation on cyber security
Foreign Minister Marise Payne has moved to step up Australia’s level of co-operation with India on cyber security issues. Senator Payne and her Indian counterpart have agreed to work together to address the threat of malicious cyber activity by state and non-state actors; they also acknowledged a need to work closely together to protect next generation telecommunications networks, including 5G and 6G.