EU TRADE DEAL IMPASSE; GAS SECURITY VOW
Gas exports crucial to regional peace and prosperity, says King
Resources Minister Madeleine King has reaffirmed the role of gas exports in maintaining peace and prosperity in the South-east Asian region and in progressing the energy transition. In a speech to the National Press Club, Ms King said Australia must keep developing gas for export for its regional partners, as part of a mutually supportive trade relationship. She said Australia’s exports of gas and coal supported the energy security of Japan, Korea, Malaysia and Singapore, in return for access to refined liquid fuels such as petrol, diesel and aviation fuel. Australia had enjoyed 50 years of peace and prosperity in the region, in large part due to its outbound flow of energy exports. Ms King also said an affordable supply of gas was crucial to the development of Australia’s critical minerals and rare earths, which supported the growth of the renewables sector.
EU free trade deal to provide $30 billion boost, says Farrell
Trade Minister Don Farrell said a proposed free trade deal with the European Union would deliver up to $10 billion in new business to the Australian economy in the first year. Amid opposition to the free trade legislation in Federal Parliament, Senator Farrell said the free trade pact would quickly deliver a total of $30 billion in new business because of tariff-free critical minerals exports to the EU. Senator Farrell said Australia had around 30 trade agreements; a free trade deal with the EU would add 27 countries to that list. A free trade agreement with the European Union, he said, would provide access to 450 million consumers and an economy of $33 trillion.
Chalmers waters down tax changes on discretionary trusts
More than five months after the May Budget, the Federal Government has introduced watered-down legislative changes to its proposals to tax discretionary trusts. Treasurer Jim Chalmers said the legislation introduced a minimum tax on discretionary trusts from July 2028, but that more than 90 per cent of small businesses would not be affected by the changes in any given year. Small businesses and others using discretionary trusts could access rollover relief from July 2027 if they wished to restructure. Dr Chalmers said fixed trusts, charitable trusts, special disability trusts and superannuation funds, as well as primary production income and certain income relating to vulnerable minors would all be exempt from the minimum tax. Deceased estates and discretionary testamentary trusts established for genuine testamentary purposes would also be excluded.
IMF’s sober outlook for Australian growth
Australia’s economic growth rate is poised to slide and its inflation will remain outside target levels into 2027, according to a global report by the International Monetary Fund. The IMF’s World Economic Outlook report forecast that real growth in gross domestic product would end up at 1.9 per cent in 2026, before sliding to 1.6 per cent in 2027. Inflation, as measured by Australia’s Consumer Price Index, would conclude at 3.9 per cent in 2026 but drop to 3.1 per cent next calendar year. The IMF said the rerouting of energy supplies and substitution to other sources of energy had helped to cushion the effects of global energy disruptions on economic growth. In addition, the investment boom triggered by artificial intelligence had provided impetus to global activity and supported international trade.
Unemployment rate creeping up
Meanwhile, Australia’s unemployment rate is edging upwards, rising to 4.7 per cent seasonally adjusted in September. The Australian Bureau of Statistics has recorded a gradual rise in the jobless rate this year since a 4.1 per cent rate was registered in January. In the latest figures, Victoria recorded the highest rate of unemployment, at 5.1 per cent, while South Australia recorded the lowest, at 4.2 per cent.