LIFT IN FOREIGN INVESTMENT; ADF-PNG PUSH

Chalmers lauds foreign investment lift, warns on AI capital push

Federal Treasurer Jim Chalmers says reforms to Australia’s foreign investment framework have contributed to a 60 per cent increase in inbound investment over the last four years. In a speech to an economic forum, Dr Chalmers said the government had approved an additional $87 billion in additional foreign investment in the September quarter, bringing total investment to $278 billion so far in 2026. He said the approvals process for low-risk investment was now more straightforward and high-risk proposals were better scrutinised. But the Treasurer acknowledged that the boom in artificial intelligence was ramping up competition for capital. Corporate bond issuances by AI hyperscalers averaged around US$40 billion five years ago but were now projected to average around US$400 billion in the next few years.

RBA downbeat on oil prices, holds firm on inflation target

Meanwhile, the Reserve Bank of Australia has given a downbeat view on the short-term outlook for inflation, citing ongoing higher oil prices and the effects of artificial intelligence. Speaking at an investment conference, RBA deputy governor Andrew Hauser said oil prices were a third higher than assumed in the RBA’s August projection, while higher AI and technology prices were feeding into consumer prices in Australia and globally. Mr Hauser said there were some perceptions in the business sector that an inflation rate of 3-3.5 per cent was the 'new normal’. He said that view was the central banker’s nightmare, and it could not allow expectations to shift away from the RBA’s 2-3 per cent inflation target.

Defence Force opens recruitment for PNG applicants

Eligible Papua New Guineans will be able to apply to join the Australian Defence Force from next month, Deputy Prime Minister Richard Marles has announced. Under the mutual defence treaty between Australia and PNG, applicants will be required to undergo assessment against ADF entry standards. Mr Marles said that as Australian citizenship was a requirement of ongoing ADF service, successful PNG recruits would be required to apply for Australian citizenship once they became eligible to do so. The new provision follows the involvement of PNG Defence Force personnel in joint military exercises.

Snowy 2.0 hydro project cost blows out to $22 billion

One of Australia’s largest infrastructure projects, the Snowy Hydro 2.0 electricity generation project, is on course to be commissioned in late 2029, the Federal Government has confirmed. But in an update delivered by Climate Change and Energy Minister Chris Bowen and Finance Minister Katy Gallagher, the cost of the project is now estimated to have escalated to $22.2 billion, with an allowance for $25 billion. According to the government, the original cost had risen to $6.1 billion by the time of the final investment decision in December 2018, with the revised cost driven by cost pressures in the construction sector and “significant geological challenges” of the project. But Mr Bowen and Senator Gallagher said that when complete, Snowy 2.0 would help limit wholesale price peaks and reduce exposure to gas generation and aging coal outages. Once completed, the pumped hydro expansion of the Snowy Scheme would provide half of the total energy storage the electricity grid needed by 2050, they said.

Winter electricity demand up as east coast gas prices fall

Meanwhile, underlying demand for electricity across the national electricity market (NEM) reached record third-quarter (July-September) levels, according to the statutory national energy market operator. The Australian Energy Market Operator’s Quarter 3 report said Victoria’s ongoing electrification, higher industrial demand and increasing data centre loads accounted for almost all of the 1.3 per cent rise in Q3 demand. AEMO said that renewable generation supplied a record Q3 share of 44.3 per cent of NEM generation, up from the 41.8 per cent share in the same quarter of 2025. Wholesale spot electricity prices fell as evening peak demand reduced under the influence of grid-scale batteries, while east coast wholesale gas prices were at their lowest Q3 level since 2023, the report said.

Tax Office steps up scrutiny on early-release superannuation

The Australian Taxation Office is on the warpath of health practitioners and third-parties who exploit the early release of superannuation on compassionate grounds. New ATO data shows the number of applications approved for compassionate release of superannuation has decreased by five per cent, but the total value approved rose by two per cent to more than $1.4 billion. The ATO said it was working with health practitioners to ensure health-related superannuation applications were appropriate and did not take advantage of vulnerable people. Australians are generally unable to access their superannuation until the age of 60, except on special grounds.