JOBLESS RATE RISES; APPLE ISLE ELECTION

Rising unemployment, dipping inflation rates intersect at 4.1 per cent

Australia’s jobless rate has passed the four per cent mark for the first time in two years, according to official figures. The Australian Bureau of Statistics said the seasonally-adjusted unemployment rate rose from 3.9 per cent to 4.1 per cent in January, with Victoria and the Northern Territory (3.9 per cent) recording the lowest unemployment rates and Tasmania (4.5 per cent) the highest. At 4.1 per cent and rising, the seasonally-adjusted unemployment rate is now at the same level as the annual rate of inflation, which was 4.1 per cent and declining during the latest December quarter. Over the past two years, the unemployment rate reached a low of 3.4 per cent in October 2022 while inflation hit a peak of 7.8 per cent in the December 2022 quarter.

Tasmanians off to early election

Tasmanians will go to the polls on March 23, as the Liberal government of Premier Jeremy Rockcliff seeks a fourth term. Mr Rockcliff called an early State Election last week, citing the need to restore stability and certainty after the Liberal Party lost its parliamentary majority in 2023. In the current 25-member Tasmanian House of Assembly, the Liberal Party holds 11 seats, Labor eight, Greens two and Independents (which includes two former Liberal MPs) four. At the March 23 election, voters will elect 35 MPs in an enlarged Lower House. The Liberal Party was elected to government in Tasmania in March 2014, defeating a Labor-Greens government, and was re-elected in 2018 and 2021. Tasmania is the only Australian state or territory presently governed by a non-Labor administration.

Interest bill, NDIS pushing out budget payments

Treasury head Dr Steven Kennedy said total government payments were expected to increase by almost $28 billion over the forward estimates, with upward revisions to interest on government debt, the National Disability Insurance Scheme and the child care subsidy. Addressing Parliament’s Economics Legislation Committee, the Treasury Secretary said tax receipts had been revised upwards by more than $64 billion over the same period, driven in part by strong employment growth. Dr Kennedy said volatility was still expected in monthly inflation, despite a recent easing. Rental pressures, higher insurance premiums and shipping delays would add to inflationary pressures, but Dr Kennedy saw no evidence of an emerging wage spiral.

Fraud crackdown in national disability program

Almost $84 million will be spent to strengthen the National Disability Insurance Scheme (NDIS) against fraud. NDIS Minister Bill Shorten said a new fraud case management system would interact with other enforcement agencies, complemented by a new information technology system to improve actioning of transactions. Identity proofing systems would be improved to increase safety and privacy, as well as an upgrading of systems that assess, process and pay more than 400,000 NDIS claims a day. Mr Shorten said the independent review of the NDIS had expressed concerns about the integrity of the scheme, which according to 2023-24 budget papers now costs the Federal Government $42 billion a year.

Nickel placed on Critical Minerals list

Resources Minister Madeleine King has placed nickel on Australia’s list of critical minerals, as the nickel industry faces pressures through declining prices. Ms King said the addition of nickel to the list of 30 critical minerals would give nickel companies the opportunity to access Commonwealth funding. With the change, nickel companies will have access to funding under the $4 billion Critical Minerals Facility, as well as the $40 million International Partnerships Program. Ms King said the international nickel price was forecast to stay relatively low through 2024.

Apprentice incentives up for review

Against a backdrop of major skills shortages, Skills and Training Minister Brendan O’Connor has moved to implement a review of incentives for apprentices in Australia. The review would investigate how the incentive system and complementary services were assisting the take-up and completion of apprenticeships and traineeships. Mr O’Connor said it would also examine the impact of cost-of-living on apprentices and trainees, and how the incentive system could be aligned with the priorities in the 2023 Employment White Paper.