PREMIER QUITS IN QLD; DEAL ON GST SHARE
Palaszczuk quits as Queensland Premier
Queensland Labor Premier Annastacia Palaszczuk has announced her resignation, after serving as the state’s leader for almost nine years. Ms Palaszczuk swept into office after defeating the one-term government of the Liberal National Party in February 2015, and was re-elected twice. She is the third Labor Premier to vacate their position in 2023, following the retirements of Mark McGowan in Western Australia and Daniel Andrews in Victoria. Her replacement as Premier is due to be decided by December 15.
GDP growth just in the black
Australia’s economy barely kept its head above water in the September quarter, with economic growth rising by 0.2 per cent seasonally adjusted and by 2.1 per cent for the year. National accounts figures released by the Australian Bureau of Statistics show that economic growth was propped up by government spending and capital investment, as household spending remained sluggish and export prices fell. Higher oil prices and a depreciating Australian dollar contributed to rising fuel import prices, while household savings levels fell. Based on total population, gross domestic product went backwards in the quarter, at -0.5 per cent per capita, or -0.3 per cent for the 12 months.
National Cabinet strikes deal to extend GST guarantee
Australian states and territories have struck a deal with the Federal Government to extend by three years the ‘no-worse-off-guarantee’ on distributions from goods and services tax revenue. The GST agreement was settled at National Cabinet and is part of broader changes to joint funding arrangements on health and the National Disability Insurance Scheme (NDIS). Treasurer Jim Chalmers said the GST distribution system was transitioning to a new equalisation arrangement that began in 2021-22 and was due to conclude in 2026-27. He said that during this transition, a legislated Commonwealth-funded, no-worse-off-guarantee ensured that no state received a lower cumulative amount of GST than it would have under previous arrangements. That arrangement has now been extended to the end of 2029-30.
States, territories to wear more of growth in NDIS costs
In return for the GST revenue extension, the states and territories agreed to major reforms to contain the rising costs of funding the $42 billion NDIS. Prime Minister Anthony Albanese announced that legislative and other changes would be made to the NDIS, to “restore the original intent of the scheme to support people with permanent and significant disability.” As part of the reforms, state and territory contribution escalation rates would be increased from four per cent to a capped eight per cent, in line with actual scheme growth. The Federal Government would pay the remainder of scheme costs growth. Additional “foundational supports” were planned to be phased in through government settings, such as in child care and schools.
NDIS review targets access eligibility, employment outcomes
Less than 24 hours after the GST deal, a report of a major review of the NDIS was released, which called for a stronger role of National Cabinet in developing support for disability services. The NDIS review said Commonwealth, States and Territories should agree to jointly invest in navigation support for people with disability outside the NDIS. It also recommended greater co-operation between federal agencies to target improved employment outcomes for all people with disability, including the NDIS. In addition, the review also said the National Disability Insurance Agency should introduce a more consistent and robust approach to determine eligibility for access to the NDIS.
Albanese government looks to immigration re-set
A new migration strategy has been unveiled by the Albanese Government, aiming to bring migration back to “sustainable levels”, while ensuring the nation had the skills for the future. Government ministers said the strategy would seek to prevent migration worker exploitation and make the immigration system work by being fast, efficient and fair for migrants and employers. Education Minister Jason Clare said the strategy would also act to prevent exploitation of international students working in Australia. The Government said Treasury forecasts showed migration was expected to decline substantially over the next financial year.