LIBS RETURN IN TASMANIA; COSTS WARNING

Rockliff back as Tasmanian Premier

More than two weeks after the state election on July 19, Liberal Premier Jeremy Rockliff has been formally commissioned to again lead the Tasmanian Government. Holding only 14 seats in the new 35-seat House of Assembly, the re-elected Premier will need to garner support among the 11 elected crossbenchers. Mr Rockliff announced his new Ministry, which features two MPs who were defeated in, or did not contest, the May 3 Federal Election – Bridget Archer and Gavin Pearce. Former Federal senators Guy Barnett, as Deputy Premier, and Eric Abetz, as Treasurer, will also serve in the fifth-term Liberal ministry.

Treasury’s pre-roundtable warning on budget pressures

Treasury analysis prepared for the Federal Government’s upcoming Economic Reform Roundtable has nominated seven key spending areas that will outstrip annual economic growth. In its paper on budget sustainability and tax reform, Treasury said defence and care services would place growing pressure on government payments. It said interest costs were projected to grow by 9.5 per cent annually over the medium term, alongside the National Disability Insurance Scheme (eight per cent a year) and hospitals funding (about six per cent). Defence, already Australia’s second largest payment, would grow faster than GDP, while Medicare, aged care and childcare costs would all grow at an annual rate above five per cent. The paper noted that some of the largest tax concessions in Australia tended to “disproportionately benefit higher income earners.”

Treasurer pours cold water on GST changes

Meanwhile, Treasurer Jim Chalmers has moved to quash expectations that Australia’s goods and services tax would be a focus of discussion at the economic reform roundtable next week. Dr Chalmers said the roundtable would discuss how to make the national economy more efficient, including through National Competition Policy. He said any changes to the current GST arrangement, in which all GST revenue flowed back to the states and territories, would require their support. The government had not been “beavering away” to work on a change to GST distribution or its current 10 per cent rate, Dr Chalmers said.

Japan in line for Navy’s new general purpose frigate

Japan is poised to supply the Australian Navy’s future fleet of general purpose frigates, with the first of the selected Mogami-class frigates scheduled for delivery in 2029. Defence Minister Richard Marles said three of the Mitsubishi Heavy Industries’ frigates would be constructed in Japan, ahead of local construction at the Henderson precinct in Western Australia. He said the upgraded Mogami-class frigate had a range of 10,000 nautical miles and was fitted with surface-to-air missiles and anti-ship missiles. Australia’s new general-purpose frigates will replace the Anzac-class frigates and be equipped for undersea warfare and air defence.

Cap on international student places

International student places into Australia will be capped at just under 300,000 in 2026, the Federal Government has announced. Education Minister Jason Clare said the national planning level of 295,000 provided an additional 25,000 places on the 2025 intake, but was eight per cent below the immediate post-Covid peak. He said that for 2026, public universities would be able to apply to increase their individual higher education allocations by demonstrating increased engagement with Southeast Asia, and via the provision of student accommodation. Assistant Minister Julian Hill said international education was a $50 billion export sector, the nation’s highest non-resource export.

Trade surplus bounces back

Australia’s international trade in goods has taken a sharp turn upwards, with a fall in imports helping to drive a $5.3 billion trade surplus, seasonally adjusted, in June. The Australian Bureau of Statistics recorded a six per cent increase in monthly goods exports, with higher gold and coal exports. Imports fell by three per cent, with a sharp fall in the importation of capital goods, especially in machinery and industrial equipment and in telecommunications components. The June figures reversed a recent decline in Australia’s trade surplus, which eased to just $1.6 billion in May.

Emily MinsonLunik