GOLDEN STRIKE FOR EXPORTS; NEW FIJI PACT

Golden outlook for resource and energy exports

Australia’s resource and energy export outlook has strengthened, with earnings projected to rise from $385 billion in 2024-25 to $416 billion in 2026-27. The Department of Industry, Science and Resources says exports for the immediate past and current financial years have been revised up sharply, due to rising demand caused by Middle East supply disruptions and higher gold prices. The Resources and Energy Quarterly’s June edition says that gold exports are estimated to have risen by 46 per cent to $68 billion in 2025-26, while iron ore will continue to account for more than 25 per cent of all resource and energy commodity exports over the outlook period. Demand for copper is being driven by increasing electrification and grid expansions, with exports tipped to rise from $13 billion in 2024-25 to $18 billion by 2030-31. LNG export earnings are projected to rise from $59 billion in 2025-26 to $65 billion in 2026-27, before declining as more international supplies come on stream.

Rising imports drive monthly trade deficit

Meanwhile, Australia’s most recent monthly balance of trade in goods has taken a sharp dive, falling by $4.4 billion to a $3 billion deficit, seasonally adjusted, in May. Cooling commodity prices, especially in iron ore and gas, contributed to a near seven per cent fall in export values, while goods imports rose by 2.6 per cent in the month. Importation of capital goods jumped by eight per cent in May, according to the Australian Bureau of Statistics. The seasonally adjusted deficit in goods trade is the second such deficit in 2026, representing a major slide since the trade in goods surplus peaked at around $19 billion in June 2022.

Labor bolsters defence capability reforms

The Albanese Government has outlined further reforms to strengthen the delivery and capability of Defence projects. Deputy Prime Minister Richard Marles and Defence Industry Minister Pat Conroy said the Rebuilding Defence Capability report outlined a redesigned capability system that clarified accountabilities and reestablished decision discipline. This system, they said, would include stronger contestability and improved cost estimation and assurance across the new Defence Delivery Agency, the Department of Defence, and the Department of Finance. Capability development would also be consolidated across all domains – land, air, maritime, space and cyber – under the Vice-Chief of the Defence Force. The ministers said the 2024 and 2026 versions of the National Defence Strategy committed additional investment of $117 billion over the decade to 2035-36.

Australia-Fiji treaties beef up defence, economic cooperation

Australia and Fiji have signed two major treaties, committing to greater co-operation on economic issues and climate change, and to regional security. Prime Minister Anthony Albanese, meeting with Fiji PM Sitiveni Rabuka in Suva, said the first treaty – the Vuvale Union – would deepen integration between the two countries’ security, economies and people. The second treaty – the Ocean of Peace Alliance – was a mutual defence treaty that committed Australia and Fiji to come to the other’s aid at times of greatest need.

Foreign investors to face tighter CGT rules

Assistant Treasurer Daniel Mulino has introduced legislation into Federal Parliament to tighten the capital gains tax (CGT) regime for foreign investors. Under the legislation, the definition of ‘real property’ will be clarified, confirming that assets such as energy infrastructure, transport and telecommunications assets, and water entitlements will be within the scope of foreign resident CGT rules. Another provision of the legislation will require foreign investors to inform the Australian Taxation Office before disposing of an interest in an Australian entity when the transaction is valued at $50 million or more. In addition, the legislation provides a transitional concession for foreign investors in the renewable energy sector; a 50 per cent discount will apply to the disposal of eligible assets until June 2030.

Federal taskforce steps up checks on NDIS fraud

A Federal Government taskforce established to investigate fraud within the National Disability Insurance Scheme has sent 17 convicted criminals to jail, according to NDIS Minister Jenny McAllister. Senator McAllister said jail sentences of up to six years had been handed down in 17 of the 26 NDIS-related criminal convictions secured since December 2022. Other offenders had been sentenced to intensive correction orders, fined, or ordered to repay stolen funds. Senator McAllister said that in the financial year to May 31, the NDIS-related Fraud Fusion Taskforce had assessed more than 88,000 tip-offs for potential fraud or non-compliance against the $53 billion NDIS. She said current legislation before Parliament would create new civil penalties enforceable by the National Disability Insurance Agency, complemented by sweeping powers to issue fines, use warrants to enter and search premises, and haul people in for questioning.