POWER HIT AS BILLS JUMP; TRAINING BLITZ

Electricity bills jump by up to 20 per cent

Annual electricity bills rose between nine and 20 per cent across the national electricity market in 2022, according to estimates by the Australian Energy Regulator (AER). In its annual State of the Energy Market report, the statutory federal regulator said that wholesale electricity and gas prices had declined but remained high by historical standards. The AER said rooftop solar output accounted for nine per cent of total generation in 2022 – 15 per cent more than in 2021 and more than double than that of 2018. AER Chair Clare Savage said that while the energy market was less volatile in 2023, pressures remained as Australia transitioned to net zero emissions. She said major transmission projects (to support growth of renewable energy sources) faced challenges, including escalating costs and slower-than-planned progress.

Integrity blitz on VET providers

Australia’s vocational and education training (VET) sector is facing heightened scrutiny in a bid to weed out operators attempting to rort the system, and to better protect vulnerable students. With additional investment of almost $38 million, the Federal Government will establish a new integrity unit within the national VET regulator, the Australian Skills Quality Authority (ASQA). The Government said ASQA would have increased capacity to conduct a compliance blitz on unlawful behaviour, targeting non-genuine providers who may be exploiting international students. A confidential tip-off line will be established for current and former students, staff, and other potential whistle-blowers such as homestay hosts and employers of international students.

Treasurer steps up payday superannuation proposal

Treasurer Jim Chalmers is advancing the Federal Government’s drive to require employers to pay their employees’ superannuation contributions on their payday. In the 2023-24 Budget, the Federal Government announced that superannuation – generally paid quarterly – must be paid on payday, effective from July 2026. Releasing a consultation paper for the change, Dr Chalmers said the payday proposal would provide employees with more visibility of their retirement savings. He said that while most employers did the right thing, the Australian Taxation Office had estimated that employees were owed more than $3.4 billion in superannuation in 2019-20.

Protectionism on the rise, says Productivity Commission

Australia’s Productivity Commission (PC) has warned that post-Covid concerns over supply chains, policy responses to climate change and growing geopolitical tensions are fanning increased economic protectionism around the world. In a submission to a Federal parliamentary inquiry on trade and investment agreements, the PC said there had been an increase in mercantilist and protectionist sentiment in the last decade, with policy responses from major economies tending to provoke responses from other countries. The PC said trade enabled Australians to enjoy a higher standard of living than otherwise, by enabling the nation to concentrate on those activities in which it had a competitive advantage. It added that most imports of goods into Australia attracted a zero-tariff rate. As a result, the case for retaining tariffs as a bargaining chip, to be ‘traded away’ in future trade negotiations, was weaker than ever.

Trade surplus edges up again

Meanwhile, Australia’s monthly trade position has bounced back to record a $9.6 billion surplus in August, jumping by more than 30 per cent and reversing a three-month slide in the level of trade surpluses. Exports rose by $2.1 billion or four per cent in the month, seasonally-adjusted, while monthly imports fell $179 million, or 0.4 per cent, according to the Australian Bureau of Statistics. Imports of capital goods – a sign of potential business investment – fell by almost $1 billion or almost 12 per cent in August.

Higher tax collection boosting revenue, budget bottom line

Higher-than-expected taxation revenue is continuing to improve the Federal Government’s bottom line, with the progressive budget position already almost $4.5 billion better than forecast. Figures from the Department of Finance show that in the first two months of the financial year, the budget deficit was $7.1 billion, ahead of the expected monthly profile of a $11.5 billion deficit. Receipts to the Federal Government were $3.5 billion higher than forecast for July-August, and payments almost $1 billion lower. The 2023-24 Budget estimated a budget deficit of $13.9 billion this financial year.