ECONOMY BACK ON TRACK; EXPORT BOOM
Economy bounces back after pandemic disruptions
Australia’s economy has withstood pandemic disruptions and rising consumer costs to record real annual GDP growth of 3.6 per cent in 2021-22, with economic growth of 0.9 per cent in the June quarter. Latest figures from the Australian Bureau of Statistics show that increased household spending and higher export prices contributed to growth during the June quarter. Spending on services rose 3.6 per cent in the June quarter, exceeding pre-pandemic levels for the first time.
Coal, farm exports drive record trade surplus
Elevated commodity prices have contributed to Australia racking up a record $43 billion trade surplus on goods and services in the June quarter, according to official figures. The trade surplus jumped $16.3 billion, fuelled by a boom in coal exports and higher farm commodity prices. According to the Australian Bureau of Statistics, the current account surplus, seasonally adjusted (which also includes payments made overseas) soared by $15.5 billion, to $18.3 billion for the quarter. Travel services increased, but were still almost 60 per cent lower than in pre-pandemic levels of December 2019. In the following month of July, however, Australia’s trade surplus shrunk by almost 50 per cent to $8.7 billion, as exports fell by nearly 10 per cent and imports – driven by outbound international travel – rose five per cent.
Pilot program to help people with disability into tourism jobs
Tourism businesses will be encouraged to employ more people with a disability, under a $3.3 million pilot program announced by the Albanese Government. Social Services Minister Amanda Rishworth and Trade and Tourism Minister Don Farrell said the program would target supporting businesses that experienced skills and worker shortages, through the engagement of so-called Local Navigators. The navigators would be trialled over 12 months in regional locations, helping businesses to source and place people living with disability into available jobs.
Little relief on energy prices, says national regulator
High energy prices are likely to continue in coming years as international coal and gas prices remain at historical highs, according to the nation’s energy regulator. A report into wholesale energy markets by the Australian Energy Regulator (AER) showed that wind and solar output had been lower than expected, while an earlier start to winter created higher-than-expected demand. The AER said that generation closures and a projected shortfall in domestic gas supply for winter 2023 meant that market conditions would remain challenging for some time.
Emissions targets set in legislation
Meanwhile, Australia has formally legislated a 43 per cent emissions reduction target and net zero emissions by 2050, after Climate Change Bills passed through the Senate. Prime Minister Anthony Albanese and Climate Change and Energy Minister Chris Bowen said the legislated targets would provide certainty to investors and to participants in the energy market. Under the legislation, a range of government agencies will be required to embed the new emissions targets in their objectives and functions.
New parliamentary committee for national security
Federal Parliament has finalised the membership of the powerful Parliamentary Joint Committee on Intelligence and Security, with Victorian Labor MP Peter Khalil elected the new chair. The 11-member committee provides oversight of Australia’s intelligence agencies and reviews national security bills introduced to Parliament. It is comprised of six Labor and five Coalition members, including former ministers Simon Birmingham and Karen Andrews.