BUDGET POISED FOR SURPLUS; MIGRANT PEAK

Second budget surplus on the cards

Australia is poised to record its second successive Budget surplus in 2023-24, with continued low unemployment and higher taxation revenue contributing to an improved fiscal position. Releasing the mid-year economic and fiscal outlook, Treasurer Jim Chalmers said the Budget was on course to a forecast deficit of $1.1 billion – a $12.8 billion turnaround on the $13.9 billion deficit predicted at the May 2023 budget. The improved budget position has been achieved through ongoing low unemployment of less than four per cent, and higher taxation receipts. Treasury figures show annual taxation receipts tracking $16.4 billion ahead of May Budget projections. Continued low unemployment and healthy export commodity prices would push the final Budget outcome into the black.

Net overseas migration hits record level

Australia recorded its highest level of net overseas migration in 2022-23, with a net annual gain of 518,000 people. Figures from the Australian Bureau of Statistics reveal that total migrant arrivals increased 73 per cent to 737,000 in the year, up from 427,000 arrivals in 2021-22. Temporary visa holders (554,000 people) were the largest contributors to arrival numbers, led by 283,000 international students. With the higher migration level, the ABS reported that Australia’s population reached 26.6 million people at June 30 this year, up by 624,100 people or 2.4 per cent over the year. Western Australia recorded the largest rate of population increase (3.1 per cent), and Tasmania the lowest, at 0.3 per cent.

US Congress approves key AUKUS defence exemptions

In a major breakthrough for the AUKUS defence partnership, the US Congress has passed legislation to establish a national exemption for Australia from US defence export control licensing. The National Defense Authorization Act (NDAA) authorises the transfer of three Virginia class submarines to Australia and the training of Australian contractors in US shipyards. Under the Act, the transfer of controlled goods and technology between the US, Australia and the United Kingdom will not require an export licence. Deputy Prime Minister Richard Marles said the US legislation would streamline the flow of defence trade between AUKUS partners.

New US opening for critical minerals

Meanwhile, the US defence legislative amendments have also opened the door for greater access to Australia’s critical minerals reserves. Richard Marles said the NDAA added Australia and the UK to Title III of the US Defense Production Act, which would allow the US Government to incentivise its industrial base to expand the production and supply of critical minerals and goods. He said the amendment would provide new opportunities for Australian-based industry to directly compete for business with the US Government. President Joe Biden requested the additional provisions after meeting with Australian Prime Minister Anthony Albanese in May this year.

Miles takes the reins in Queensland

Former Deputy Premier Steven Miles has been elected Premier of Queensland by his Labor colleagues, replacing the retiring Annastacia Palazczuk. Dr Miles’ deputy is Cameron Dick, the current Queensland Treasurer. The new Premier previously held the Health, Infrastructure and Transport portfolios and was elected to State Parliament in 2015. He has 10 months to prepare for the next Queensland State Election, due in October 2024.

NDIS crackdown on price gouging

Providers who price-gouge through the National Disability Insurance Scheme will be targeted under strengthened Federal legislation and increased regulatory surveillance. NDIS Minister Bill Shorten said some providers were forcing people with disability to pay “exorbitantly jacked-up prices” for essential services, supports and equipment. The Australian Competition and Consumer Commission will be given additional resources to identify and act on consumer law matters that may arise from the conduct of NDIS providers. Mr Shorten said the measures aimed to prevent suppliers unreasonably charging NDIS participants more for a product or service than non-NDIS participants, in a bid to reduce waste and combat fraud in the $42 billion NDIS.