PROJECTS FACE KING-HIT; WAGES SURGE
King sharpens criteria for transport project funds
Infrastructure Minister Catherine King has released an Infrastructure Policy Statement that sets tougher criteria for Federal funding of transport projects. Under the new priorities, projects will only be considered nationally significant if the Australian government contribution is at least $250 million, is connected to key transport or freight routes, or supports other broader national priorities. Funding for nationally significant land transport infrastructure projects will return to a 50:50 basis with state and territory delivery partners. Ms King said the 50:50 arrangement would ensure both levels of government bore equally the benefits and the risks of the funded project. Two days after her statement, Ms King released the report of an independent strategic review of the Federal Government’s infrastructure investment program, which recommended that 82 projects - not yet under construction - be ceased.
New laws to enforce nuclear safety on submarines
Advancing its AUKUS agenda, the Albanese Government is moving to establish an independent regulator to ensure Australia applies the highest standards of nuclear safety across its nuclear-powered submarine enterprise. Legislation to establish the Australian Naval Nuclear Power Safety Regulator was introduced into Federal Parliament last week. Defence Minister Richard Marles said the new agency would sit within the Defence portfolio and would establish a fit-for-purpose regulatory framework that imposed strict nuclear safety duties and licensing requirements related to nuclear-powered submarines. It would also impose new offences for breaches of nuclear safety duties, including serious criminal and civil penalties.
Quarterly wage rises at 26-year high
Wages in Australia have registered their highest annual growth for almost 15 years, according to official figures. The Australian Bureau of Statistics’ wage price index rose 1.3 per cent seasonally-adjusted in the September quarter and four per cent over 12 months, the highest quarterly growth for 26 years and the highest annual growth since March 2009. Wages rose 4.2 per cent annually in the private sector and 3.5 per cent in the public sector. The ABS attributed the private sector wage rises in part to the Fair Work Commission’s annual wage review decision and to consumer price rises feeding into wage and salary reviews. At the public-sector level, the wage rises were being driven by the removal of state wage caps and the flow-on of enterprise agreements.
PM bullish on APEC outcome for free trade
Prime Minister Anthony Albanese has acclaimed the outcomes of the Asia-Pacific Economic Co-operation summit (APEC), underlining the level of international accord to advance free and fair trade. The PM said APEC’s Golden Gate Declaration in San Francisco was positive for trade facilitation, trade in services, digital and artificial intelligence transformation, climate mitigation, and gender equality. He told the 21 nations represented at APEC that proper dispute settlement mechanisms were necessary to ensure that the rules and norms of international trade could be applied in the interests of all. Australia was also party to a separate regional agreement on supply chain resilience, following the PM’s formal bilateral meetings with the leaders of Vietnam and Japan.
Superannuation objective to be tightened under legislation
The Albanese Government is moving to tighten early access to superannuation by enshrining in legislation the objectives of retirement saving. Treasurer Jim Chalmers said the legislated objective would be to “preserve savings to deliver income for a dignified retirement, alongside government support...” Any further changes to superannuation would be judged against this objective. Introducing the bill into Federal Parliament, the Treasurer referred to the withdrawal of around $36 billion from superannuation funds during the Covid-19 pandemic. Dr Chalmers said the legislative changes would not alter the ability of fund members to get early access superannuation in cases of genuine financial hardship or on compassionate grounds.
Merger laws under competition review
Australia’s merger regulations are under fresh scrutiny, with the Federal Department of Treasury seeking public comment on the effect of mergers on competition. A Treasury paper says the intensity of competition has weakened across parts of the economy, potentially contributing to Australia’s declining productivity performance. The paper says the anti-competitive effects of certain types of acquisitions by large firms may not be adequately captured by current competition laws. This may include creeping or small acquisitions by larger firms, acquisition by large incumbents of newly-developing competitors, and expansion into related markets – including by digital platforms.