EU DEFENCE TIP IN TRADE DEAL; PC’S TAX PUSH
PM moves to speed up progress on European Union trade deal
Prime Minister Anthony Albanese has met with the head of the European Union (EU) in a bid to accelerate progress on a free trade agreement between Australia and the EU. Visiting Rome for the Papal Inauguration, the PM sidestepped suggestions that the President of the EU Commission, Ursula von der Leyen, had requested defence support as part of a free trade deal. Mr Albanese said Australia already had a range of defence relationships including trade with countries such as Germany and other European countries. He added that further discussions on a possible defence link would be explored at either NATO or on a bilateral basis between Australia and the EU. On his arrival in Rome, the PM also said Australia would not strike a deal with the EU “at any price”; a free trade deal would have to be in Australia’s national interest, including via breakthroughs on agricultural trade. Another issue was the use of European-origin names on Australian produce.
Productivity review flags corporate tax shakeup
The Federal Government’s inhouse productivity adviser has canvassed a shakeup of the corporate tax system in a bid to help Australia attract foreign capital and lift business investment. The Productivity Commission (PC) says a decline in private sector capital investment is contributing to Australia’s stagnant productivity growth. In opening a review into creating a more dynamic and resilient economy, the agency says Australia would benefit from a simpler and more efficient tax system, with potential changes to company tax rates or changes to the company tax base. The PC review complements its concurrent reviews relating to workforce skills, digital technology, care services and renewable energy.
Queensland Senator takes over Greens leadership
Senator Larissa Waters is the new leader of The Greens in the Federal Parliament, succeeding Adam Bandt, who was defeated in his seat of Melbourne at the May 3 election. The Queensland Senator was first elected to the Senate in 2011, and will be supported by her new deputy, Senator Mehreen Faruqi of New South Wales. The Greens lost three of their four House of Representatives seats to Labor at the election but are on course to retain their 11-member Senate team from July 1. In that scenario, Federal Labor will need only the support of the Greens in the Upper House to pass Coalition-opposed legislation.
Labor eyes poll record, Senate boost
Meanwhile, Labor is on track to claim up to 94 seats in the House of Representatives and potentially win an extra five Senate seats after latest counting from the Federal Election. With around 62 per cent of 150 Lower House seats, Labor’s haul will be its best post-World War 2 result, and the party’s strongest ratio of MPs since the 1943 Federal Election under John Curtin. Latest counting from the Australian Electoral Commission has three seats in the balance, two of which are Liberal-Teal Independent contests. In the Senate, Labor may hold as many as 30 seats in the Upper House after July 1.
Tasmania, ACT share lowest jobless rate
While inflation in Australia is easing, the nation’s unemployment rate remains historically low, registering at 4.1 per cent, seasonally adjusted, for April. Jobs figures for April released by the Australian Bureau of Statistics show that both full and part-time employment increased over the month. Tasmania and the Australian Capital Territory shared the lowest rate of unemployment, at 3.8 per cent, while Victoria, Queensland and Western Australia all recorded a jobless rate of 4.2 per cent.
Public sector leads lift in wages
Meanwhile, wages rose by 3.4 per cent across Australia in the 12 months to March, according to the ABS’ Wage Price Index. Annual wage increases were higher in the public sector (3.6 per cent) than in the private sector (3.3 per cent), with the biggest wage rises in health care and social assistance, and in the education and training sectors. The highest annual wage rises were recorded in the Australian Capital Territory (3.9 per cent), and the lowest in NSW, 3.1 per cent.