KING’S VOW ON GAS SUPPLY; GST DUST-UP
King reassures Japan on gas supply
Resources Minister Madeleine King has assured Japan that Australia would protect its gas investment and ensure no alteration to existing gas supply contracts. Ms King said Australia’s external supply commitments would continue to be met, even while it sought to ensure its own domestic energy security. In a speech to the Indo-Pacific Energy Security Forum in Tokyo, Ms King said Australia was a reliable supplier of gas to Japan, having never missed a shipment of liquefied natural gas (LNG); Australian energy also powered Japan for around eight hours every day. The Minister said reliable investment from Japan, and from other nations, was more important than ever. She said Australia had abundant supplies of gas, and gas producers continued to supply gas to the domestic market, despite external shocks caused by the Middle East conflict.
GST revenue pool passes $100 billion; NSW slams falling share
Australia’s six states and two territories will receive almost $103 billion in 2026-27 from the pool of revenue from the nation’s Goods and Services Tax (GST), according to the latest official estimates. The Commonwealth Grants Commission has recommended that all states and territories receive a higher GST allocation next fiscal year, with Victoria due to collect $27.8 billion, ahead of $26.1 billion for Australia’s most populous state, New South Wales. The carve-up of GST revenue is generally based on population, but may vary according to economic factors, such as the level of state royalties from mining activity and ability to raise revenue. In addition to the share from the GST pool, the Federal Government is in line to provide top-up and ‘no-worse-off’ payments of more than $6 billion. NSW Acting Treasurer Courtney Houssos said the state’s share of the GST pool had fallen to 82 cents in the dollar (of GST revenue handed over), down from 86 cents in 2025, and 92.4 cents in 2024. (Victoria’s 2026-27 share is $1.05 cents in the dollar.)
Treasurer’s pre-Budget warning of five per cent inflation
Federal Treasurer Jim Chalmers has conceded that Australia’s inflation rate may jump to almost five per cent, as global oil prices surge during the conflict in the Middle East. In a media interview, Dr Chalmers said current forecasts on oil prices would lead to inflation peaking “between the mid to high fours”, after oil prices rose within weeks from US$60 a barrel to a peak of almost US$120. The Treasurer said the May Budget would focus on the challenges of inflation (last measured at 3.8 per cent), productivity, and global uncertainty. Dr Chalmers said he was working up tax reform options, but sidestepped questions on whether that agenda included family trusts, negative gearing and capital gains tax. On potential spending cuts, the Treasurer said the government was making progress on restraining to eight per cent the annual growth in costs in the National Disability Insurance Scheme, with a willingness to go further, via discussions with the states.
Nationals elect Canavan as new Leader
Queensland Senator Matt Canavan is the new Parliamentary Leader of the Nationals, after David Littleproud resigned the leadership. Senator Canavan was elected to the Senate in 2013 and served as the Minister for Resources and Minister for Northern Australia during the Turnbull and Morrison governments. His new deputy is Victorian Darren Chester, who holds the Lower House seat of Gippsland.
Australia provides military assistance to Gulf states
Australia has confirmed that it will provide defensive military assistance to Gulf states during the conflict in the Middle East. Prime Minister Anthony Albanese announced that Australia would deploy an E-7A Wedgetail aircraft to provide long-range reconnaissance capability and help to secure airspace above the Gulf. In addition, the government said it intended to provide advanced medium-range air-to-air missiles to the United Arab Emirates. The PM, Deputy PM Richard Marles and Foreign Minister Penny Wong said the government was clear that it was not deploying Australian troops on the ground in Iran.
Defence estate divestment plans face Senate inquiry
Plans by the Federal Government to divest more than 60 properties in the Defence Estate across Australia will be examined by a Senate committee. The Defence, Foreign Affairs and Trade References Committee will inquire into the management of Defence estate assets, following the government’s divestment announcement in early February. Terms of reference include the processes for planning and conducting acquisition and disposal of Defence estate assets, and the requirements for permanent and reserve forces and for cadet units. Heritage-related issues will also be considered by the committee, which is due to report by June 3. The Senate’s DFAT references committee is chaired by NSW Liberal Senator Jessica Collins.