DEFENCE SITES UP FOR SALE; INDON TREATY
Major divestment of Defence Force properties
Deputy Prime Minister Richard Marles has announced that the Federal Government will divest more than 60 Defence sites across metropolitan and regional Australia, following a major audit of the Defence Estate. Mr Marles and Assistant Defence Minister Peter Khalil said the audit had identified a total of 68 sites, of which 64 were targeted for whole divestment; only one site – Pittwater Annex in New South Wales – would be retained in full. The Defence Estate Audit was commissioned in 2023 to assess whether the estate was fit-for-purpose. The Government received the audit report in late 2023 and had since taken time to assess impacts on personnel and capability. Mr Marles said that for years, many Defence sites had been vacant, decaying, underutilised, and costing millions of dollars to maintain. The Department of Finance will manage the new divestments arising from the Defence Estate Audit.
Australia signs defence cooperation treaty with Indonesia
Australia and Indonesia have signed a treaty on common security, promoting a number of initiatives for greater defence cooperation. Prime Minister Anthony Albanese and Indonesian President Prabowo Subianto signed the treaty in Jakarta. Mr Albanese said the new treaty would support the development of joint defence training facilities in Indonesia, with an offer to establish a new embedded position for a senior Indonesian military officer in the Australian Defence Force.
US holds commanding lead in commercial investment
United States investors continue to dominate international commercial investment in Australia, ahead of those from Japan and Canada, according to the latest official statistics. Foreign investment figures released by Federal Treasury for the first quarter of 2025 show that US investment accounted for $74 billion of the total $101.5 billion for 306 commercial investment proposals in the period. Japan and Canada accounted for $3.7 billion and $2.6 billion respectively, ahead of South Korea and the United Kingdom. Services was the largest target sector for proposed investment, with a total value of almost $82 billion, followed by commercial real estate, with a total value of $10 billion. China was the largest source of investment by value in the 929 approved residential real estate investment proposals, at $400 million, followed by Taiwan and Vietnam.
Private demand, global trade fanning inflation, says RBA Governor
The Reserve Bank of Australia has forecast that domestic inflation may not reach its target band of 2-3 per cent until the middle of 2027, as current annual inflation nears the four per cent mark. Appearing before a parliamentary committee, RBA Governor Michele Bullock said an easing of financial conditions, a more resilient world economy, and stronger private demand had led to higher-than-expected inflation. Governor Bullock said the labour market was also stronger than anticipated, with some firms still finding it difficult to find staff with the right skills and experience. Globally, an ongoing investment boom in artificial intelligence had spilled over into a number of high-income Asian economies that supplied chips and other key inputs. Ms Bullock was speaking just days after the RBA raised Australia’s cash rate by 25 basis points to 3.85 per cent.
King launches critical minerals prospectus in US
Resources Minister Madeleine King has stepped up the push for US investment in critical minerals, launching in Washington a prospectus for investment in almost 80 critical minerals projects. Ms King and Trade Minister Don Farrell said the prospectus covered 49 mines and 29 midstream critical minerals processing projects ready for investment. In October, the Albanese Government signed with the US a framework to secure supply in the mining and processing of critical minerals and rare earths. Ms King said critical minerals and rare earths projects were located in every corner of Australia, and were vital for the production of clean energy and for the defence industry.
Ayres seeks greater share of domestic steel in wind generation
Industry Minister Tim Ayres is seeking to promote opportunities for Australian steel as wind generation is rolled out across the nation. Mr Ayres and Energy and Climate Change Minister Chris Bowen said wind towers and their components, as well as transmission infrastructure, required a significant amount of steel. Steel manufacturing businesses in the wind generation supply chain are being invited via consultation to advise government on potential opportunities and capabilities, and to identify key barriers and pressures.