NO DEALS WITH INDEPENDENTS; CPI TO PEAK
Major parties steer clear of deals with Independents
Both the Coalition and Labor have reaffirmed that they will not do deals with Independent MPs to form minority government. In Perth, Prime Minister Scott Morrison said a vote for Independents was a vote for chaos in Federal Parliament, and he had “no plans whatsoever” to be doing any deals with them. In Brisbane, Anthony Albanese said there would be no deal with Independents and crossbenchers, especially on issues like new coal mines in Queensland. In the current parliament, the Coalition holds the minimum 76 seats for majority, while Labor needs to win a net seven seats to form a majority in the 151-seat House of Representatives.
Critical minerals support in critical state for Coalition
With Western Australia a critical plank in the Coalition’s re-election prospects, Prime Minister Scott Morrison flew to Perth to announce a new partnership to develop technology for critical minerals supply chains. The Morrison Government has pledged $50 million to create a partnership with WA’s Curtin University on technology to help Australia establish a competitive advantage in supply chains for critical minerals such as nickel, cobalt and lithium. It said the project would create up to 1,300 jobs over the next decade. In addition, the Government announced funding packages totalling more than $200 million for major hydrogen and energy projects in WA.
Labor pushes back on changes to workplace laws
Anthony Albanese campaigned in Queensland this week, where Labor holds just six of 30 seats, before moving to the NSW south coast to focus on Scott Morrison’s response to the 2019-20 bushfires. The Labor Leader also opened fire on the industrial relations front, attacking any potential moves by a re-elected Coalition government to amend legislation on working conditions and penalty rate provisions, via changes to the ‘better-off-overall-test.’
New funds for Adelaide defence research projects
South Australia has been targeted for more defence investment, with the Morrison Government promising to invest $50 million for a new business and research partnership with the University of Adelaide. The project aims to develop 100 new defence products, with the university working with 52 business partners and the University of NSW to strengthen the sovereign defence industry.
Disability funding, employment under review
Federal Labor has promised a major review of the National Disability Insurance Agency, to increase access for people with a disability. It has pledged to establish a ‘centre of excellence’ to enable more people with a disability to move into long-term jobs, as well as increase advocacy funding and provide more flexible housing options for affected people.
Treasury update confirms higher inflation
Federal Treasury has forecast that Australia’s annual CPI-measured inflation will peak at 4.25 per cent to the end of the June 2022 quarter, according to its pre-election economic and fiscal outlook. Issued as part of the Charter of Budget Honesty, the joint Treasury-Department of Finance paper said oil prices were contributing to higher consumer prices, but inflation would fall to three per cent or lower next year. In the meantime, Treasury predicted a tightening of monetary policy, and lower economic growth as a result of floods in New South Wales and south-east Queensland. The pre-election outlook also predicted an increase in net government debt, as a proportion of GDP, until 2024-25 and an unchanged budget deficit of $77.9 billion in 2022-23.
Foreign investment on the rebound
Foreign investment in Australia has bounced back after the peak of Covid-19 interruptions, rising 19 per cent in 2020-21, according to official figures. The Foreign Investment Review Board’s annual report for 2020-21 reveals $233 billion of approved foreign investment, exceeding the pre-Covid annual level of $231 billion. The United States remained the largest source country of approved foreign investment, followed by Singapore, Canada, China and Germany, with commercial real estate being the largest sector for investment. During the onset of coronavirus in 2019-20, the Morrison Government imposed tighter thresholds on foreign investment applications.