US LEADS WAY ON INVESTING; LEY LEADS LIBS

US maintains lead in two-way investment

Foreign investment in Australia rose by seven per cent to almost $5 billion in 2024, led again by United States investors, according to latest figures. Over the same 12-month period, the level of Australian investment overseas jumped 12 per cent to $4,317 billion, the Australian Bureau of Statistics has found. The leading source of inbound foreign investment was channelled through portfolio debt, while Australian investors favoured portfolio investment via equity in international markets. The US easily remained the largest foreign investor in Australia, with $1,355 billion worth of investment, followed by the European Union ($869 billion), which overtook the United Kingdom ($839 billion). Australian investors directed $1,552 billion in funds to the US, ahead of the next investment destinations, the UK and the European Union.

Albanese opts for Cabinet reshuffle, rather than refresh

Prime Minister Anthony Albanese has essentially reshuffled, rather than renovated, his post-election Cabinet, with few new faces on the frontbench. Outgoing Communications Minister Michelle Rowland will be the new Attorney-General, replacing Mark Dreyfus, while Health Minister Mark Butler picks up the National Disability Insurance Scheme portfolio, formerly held by the retiring Bill Shorten. Murray Watt moves from Employment and Workplace Relations to Environment and Water, in a three-way shift with Amanda Rishworth – who takes over Senator Watt’s old portfolio – and Tanya Plibersek, who is the new Minister for Social Services. Senator Tim Ayres takes charge of Industry, Innovation and Science, replacing Ed Husic. Victorian MPs Sam Rae and Daniel Mulino join the outer ministry, with the latter appointed Assistant Treasurer.

Sussan Ley becomes first woman Liberal leader

New South Wales MP Sussan Ley has become the first woman to lead the Federal Liberal Party, taking over the reins from Peter Dutton, who lost his seat at the May 3 election. Ms Ley was the deputy leader in the previous term of government and held the health, environment and sport portfolios during the former Coalition Government. She was elected in 2001 to the seat of Farrer, which stretches from Albury to western NSW. Queensland MP Ted O’Brien is the new deputy leader of the Liberal Party.

Littleproud beats off Nationals leadership challenge

Meanwhile, David Littleproud has retained his leadership of Coalition partner, The Nationals, after being challenged by Queensland Senator Matt Canavan. Northern NSW MP Kevin Hogan is the new Deputy Leader, and Victorian Bridget McKenzie, the new Nationals Senate Leader.

Labor poised for 18-seat majority

Labor is poised to have its greatest representation in the House of Representatives since 1943, with the party likely to win between 93 and 95 seats in the Lower House. At the close of counting on Monday May 12, the Australian Electoral Commission had Labor leading in 94 seats, the Liberal-National Coalition on 43, with 11 crossbenchers, and two seats in doubt. One of the doubtful seats is The Greens-held Brisbane seat of Ryan, which would be the party’s only seat after Labor defeated its leader Adam Bandt in the seat of Melbourne and won two other Greens seats in Brisbane. Labor’s victory puts it on track for at least an 18-seat majority – the highest Lower House margin for a government since the Coalition’s 1996 election win.

East Coast wholesale electricity prices fluctuate, gas prices ease

Wholesale prices in the national electricity market stabilised in the first quarter of 2025, with higher demand pressures offset by fewer extreme price volatility events and increased availability of variable renewable energy. The Australian Energy Market Operator (AEMO) quarterly report revealed that price movements on 2024 levels varied widely across the east coast; changes in hydro offers lifted average wholesale prices in Tasmania by 65 per cent on prices of the first quarter of 2024, but wholesale prices fell by 24 per cent in Queensland and rose by just one per cent in New South Wales. AEMO found that average east coast gas prices eased slightly on a quarter-by-quarter basis, but at $13.26 per gigajoule were still 14 per cent higher than 12 months earlier.