US, MINING LEAD INVESTMENT; DEFENCE SALVO

US, mining sector dominating inbound foreign investment

Foreign investment into Australia remains dominated by the US, with the mining sector attracting the bulk of foreign funds, according to latest official figures. The Department of Treasury report on foreign investment approvals shows that almost $50 billion of commercial investments were approved for the first quarter of 2023-24. Of the total $49.5 billion, the US ($31.3 billion) was the largest source for approved investments by value, followed by France, Canada and China. Mineral exploration and development was the largest target sector for proposed investment, with a total value of $28.5 billion. In the first three months of the financial year, 283 foreign investment proposals were approved, and 98 withdrawn, fewer than the 297 approved proposals (of lower total value) in the final quarter of 2022-23. Treasury reported that 13 proposals were approved subject to national security actions.

Marles demands “culture of excellence” in Defence

Prime Minister Anthony Albanese has defended his deputy Richard Marles, in the face of criticism by the deputy prime minister of the Department of Defence. The PM said Defence needed to move away from a position where so many defence projects were over-budget, and delayed by “years, and years, and years”. In Federal Parliament the last week, the Deputy PM said he made “no excuses or apologies for demanding excellence and a culture of excellence in the Department of Defence and in the Australian Defence Force.” While “there was a way to go” before there was a culture of excellence in the department and the ADF, Mr Marles said the government was working co-operatively with Defence and giving it a strategic purpose and direction.

Defence major projects budget up by $22.8 billion, Audit Office finds

Meanwhile, the Australian National Audit Office (ANAO) has found that the total approved budget  for Defence’s 20 major projects had increased by $22.8 billion, or by 39 per cent, since their initial second pass approval by government. ANAO’s Major Projects Report for 2022-23 said increases in the scope of projects contributed to $17.4 billion of the increases, with $10.5 billion attributed to 58 additional aircraft for the Joint Strike Fighter project. A $3.3 billion variation in the foreign exchange rate to June 2022 also contributed to the overall cost increases. The ANAO said Defence had reported that all 20 projects in the Major Project Review could continue to operate within the total approved budget of $58.6 billion.

Inflation still too high, says RBA Chief

Reserve Bank Governor Michele Bullock has hosed down expectations of a reduction in the cash rate to accompany the latest downward trend in inflation. Ms Bullock said the inflation rate with a ‘4’ in front of it was not good enough, with the RBA forecasting that inflation would not fall to three per cent – the top of the 2-3 per cent target range – until 2025. In her address to the House of Representatives Economics Committee, the RBA Governor said the alternative of lower interest rates and high inflation for a prolonged period would be worse for both mortgaged and non-mortgaged households. Ms Bullock noted that the latest inflation figure of 4.1 per cent was based on goods inflation that was softer than expected, but services inflation remained high. 

NDIS providers face registration overhaul

National Disability Insurance Scheme (NDIS) Minister Bill Shorten has announced a new taskforce to advise the Federal Government on an improved registration system for providers and workers. Mr Shorten said the current form of registration was “shoddy and inconsistent”, and should be made more transparent and targeted to deliver consistent outcomes that reach all groups of participants and providers. He said last year’s NDIS Review had recommended a model to ensure greater oversight of those responsible for delivering services through the NDIS, while continuing to promote choice and control for participants.

Indian graduate program for Australian industry sectors

A bi-lateral agreement to allow Indian university graduates and early-career professionals to live and work in Australia for up to two years will come into force this year. Immigration Minister Andrew Giles said the Mobility Arrangement for Talented Early-professionals Scheme (MATES) would open for application from late 2024, and would enhance Australian industry access to some of India’s most talented graduates with in-demand knowledge and skills. Eligible industry fields would include renewable energy, mining, engineering, information and communication technology, and agricultural technology. Mr Giles said the arrangement would start as a pilot program with 3000 places for primary applicants per program year.