WA’S $12B LIFT FOR AUKUS; TAXES RECORD

Feds’ $12 billion downpayment on naval facilities in WA

Prime Minister Anthony Albanese has flagged a significant step-up in his government's AUKUS commitments, announcing a $12 billion injection for naval shipbuilding in Western Australia. The allocation represents a major instalment for the Defence Precinct at Henderson, south of Perth, which is forecast to require investment of around $25 billion over the next decade. The PM and Defence Minister Richard Marles said the $12 billion investment would underpin the construction of surface vessels for the Australian Defence Force, including Army landing craft and potentially the future general-purpose frigates. In addition, the upgraded Henderson precinct would provide contingency docking capabilities for Australia’s future conventionally-armed, nuclear-powered submarine fleet from the early 2030s.

Defence treaty to lift co-operation with PNG

Meanwhile, Papua New Guinea and Australia are set to sign a major defence treaty, with a sharing of defence resources between the two countries. Prime Minister Anthony Albanese told a radio interview that the two nations would sign the defence treaty on September 17, coinciding with PNG’s 50th anniversary of independence. Mr Albanese said the treaty would provide for mutual defence through support for each other. The treaty would also allow interoperability of each nation’s assets and respective defence forces.

Public spending revenue, spending both hit $1 trillion

Australian governments spent and collected more than $1 trillion a year for the first time in 2024-25, according to latest figures. The government finance statistics released by the Australian Bureau of Statistics show that revenue across three levels of government rose by four per cent to $1,007 billion, outpaced by a 7.7 per cent increase in public spending ($1,026 billion).  Federal personal income tax and company tax collection accounted for almost $460 billion. While state royalties on commodities fell 21 per cent to $23.5 billion in 2024-25, state and territory stamp duty on conveyances rose 13.4 per cent, and payroll taxes by seven per cent. Double digit percentage increases in aged care, disability, and childcare and family spending contributed to a $20 billion rise in social benefits to $160 billion.

Farrell affirms support for global-based trade rules

Trade Minister Don Farrell says Australia needs to double down on its commitment to defend a rules-based trading system, in the face of a shift in  policy. In a speech on Asian engagement, Senator Farrell said the World Trade Organisation needed reform, and that the maintenance of free and open markets was essential to Australia’s prosperity. The Minister said Australia would not compromise on its fundamental values and interests, including in ensuring a level playing field for Australian businesses and workers. Senator Farrell said Australia was reviewing its trade agreement with Indonesia, while a new deal with the United Arab Emirates would eliminate 99 per cent of tariffs on Australian exports to the UAE. A new trade agreement with the European Union would only be struck if it were in Australia’s national interest, he said.

Inaugural assessment on national climate risk

The Albanese Government has released the first National Climate Risk Assessment, stressing the future risks posed by floods, cyclones, heatwaves, droughts and bushfires. Climate Change and Energy Minister Chris Bowen said federal agencies the Bureau of Meteorology, CSIRO, the Australian Bureau of Statistics, and Geoscience Australia had contributed data and analysis to the assessment report. He said that northern Australia, coastal areas, remote communities and outer urban areas were particularly susceptible to the effects of climate change. A National Adaptation Plan accompanied the National Climate Risk Assessment.