PNG STALLS ON DEFENCE PACT; TARGETS LIFT
PNG mutual defence treaty stalls
Australia and Papua New Guinea (PNG) have agreed to progress a mutual defence treaty, but its signing is contingent on Cabinet approvals in both countries. PNG Prime Minister James Marape and Anthony Albanese said the Pukpuk Treaty would, among other features, move to establish the recruitment of PNG citizens into the Australian Defence Force. A joint communique issued after their meeting said the treaty would include “ensuring any activities, agreements or arrangement with third parties would not compromise the ability” of either country to implement the treaty. Days before his visit to Papua New Guinea, Mr Albanese said the treaty would be signed during his meeting with the PNG leader; he later said the deferment of the signing respected the processes of the PNG government, with Cabinet members absent that week.
Albanese government ramps up 2035 emissions targets
Australia has announced its 10-year target for climate change, aiming to reduce emissions by between 62 to 70 per cent on 2005 levels. The Albanese Government said the 2035 target was ambitious but achievable, nominating five priority areas in order to hit the emissions range. The emissions target will be driven by more renewable electricity generation, new vehicle efficiency standards, an expansion of clean fuel use, accelerating new technologies, and greater incentives for net carbon removal by landholders. To assist the transition, Prime Minister Anthony Albanese and senior ministers Jim Chalmers and Chris Bowen announced a new $5 billion net zero fund within the National Reconstruction Fund, aimed at helping industrial facilities to decarbonise. The current 2030 target is based on a 43 per cent reduction in 2005-level emissions.
Treasury projects 20 per cent fall in wholesale electricity prices
Meanwhile, Federal Treasury modelling and analysis supporting the updated emissions reduction targets has projected that wholesale electricity prices will be around 20 per cent lower in 2050 if Australia releases its renewable energy exports potential. It says that households that electrify their home and vehicles, and install solar and a battery, could reduce their energy costs by 40 per cent over the same time. Leveraging Australia’s comparative advantages in renewable energy could lead to an 84 per cent expansion in the economy by 2050, relative to 2025; in the same scenario, real GDP per capita was projected to be $38,000 higher in 2050, the report said.
Parliamentary budget report warns on spending overruns
An independent Federal parliamentary report has warned that federal spending programs would need to avoid the rapid growth seen in the National Disability Insurance Scheme if the budget were to be kept sustainable. The Mid-Term Budget Report issued by the Parliamentary Budget Office (PBO) says that long-term structural pressures persisted, particularly from Australia’s aging population, the rising cost of health care and disability support. In addition, increased defence spending, interest costs, and future costs of climate change policies would continue to put pressure on expenditure. The PBO report said that future policies in tax and spending programs would need to support productivity. It also said that based on historical assumptions, expenses may be understated by up to 1.5 per cent of gross domestic product by 2028-29, and by up to three per cent of GDP in a decade.
Net overseas migration up as population rises 1.6 per cent
Net overseas migration is edging up again, contributing to a 1.6 per cent increase in Australia’s population in the 12 months to March 2025. Australian Bureau of Statistics figures show that annual net overseas migration rose to 316,000, resulting in total national population reaching 27.5 million people. Net overseas migration was almost three times that of annual natural increase. Over the 12 months to March, Western Australia recorded the highest annual population growth, of 2.3 per cent, while Tasmania registered the lowest rate of growth, at 0.2 per cent.
Cyber legislation lifting business response, says Burke
Cyber security legislation introduced last year is helping to raise the level of business cooperation during the threat or incidence of cyber-attacks, according to the Federal Government. Cyber Security Minister Tony Burke told a conference that the Cyber Security Act (2024) had resulted in a significant behavioural change by companies contacted by the Australian Signals Directorate (ASD) at the time of a cyber incident or threat. He said that under the Act’s ‘limited use provisions’, the Federal Government guaranteed to only seek information from companies that would help the business deal with a cyber-attack. Prior to the legislation, only 55 per cent of companies responded to an ASD notice; a year later, around 75 per cent of companies were responding. Legal obligations to report ransomware attacks were also assisting co-operation by business, Mr Burke said.