FARRELL HAILS TRADE PIVOT; PRIVACY CURBS
Trade Minister hails surge in exports to India, UK
Trade and Tourism Minister Don Farrell has hailed the results of a trade diversification program, amid a significant increase in exports to the United Kingdom and India. Senator Farrell said a trade program, implemented after global trade uncertainty in early 2025, had supported more than 900 exporters to generate more than $100 million in export sales in nine months. In a speech to a major business forum, the Minister said the Accessing New Markets initiative contributed to an Australian record of $1.3 trillion worth of trade with the world. Senator Farrell said the Australia-UK Free Trade Agreement had seen trade with the UK double since 2023. In addition, the Australia-India Economic Cooperation and Trade Agreement had, since 2022, resulted in a 139 per cent increase in agricultural exports to India. Australian services exports to India more than doubled over the same time frame, he said.
Tougher privacy laws loom for AI-powered devices
Attorney-General Michelle Rowland has announced a significant upgrade of Australia’s privacy laws to bolster personal protection in the digital age. Ms Rowland said draft legislation would help tackle emerging risks from new technologies, including from tools and devices powered by artificial intelligence. The proposed changes introduce a fair and reasonable test, so that companies could no longer collect information they did not need, as well as a ‘right to erasure’ for individuals. In addition, Ms Rowland said the proposed legislation would introduce stronger, more meaningful standards for consent, and measures to stop businesses from trading in personal information without permission.
Inflation easing, but remains well above target
Annual inflation in Australia continued to track lower in July, easing from 3.8 per cent in June to 3.5 per cent, down from a peak of 4.6 per cent in March. Australian Bureau of Statistics figures show that a five per cent annual lift in housing costs kept inflation at an elevated level, propped up by a six per cent rise in electricity prices. Core, or underlying, inflation remained at 3.6 per cent in July, well above the Reserve Bank of Australia’s 2-3 per cent target. Annual inflation varied widely among capital cities; Hobart recorded the highest annual inflation rate under the Consumer Price Index, at 4.5 per cent, while Sydney, Melbourne and Canberra all recorded 3.2 per cent headline inflation.
Information sector outlays weigh on private capex
Meanwhile, the level of private capital investment turned downwards in the June quarter, falling by 3.6 per cent seasonaly adjusted, through lower outlays on equipment, plant and machinery. ABS figures show that private capital investment in equipment, plant and machinery fell by almost nine per cent in the quarter. Investment in equipment in the information media and telecommunications sector – which includes data centres – slumped by 53 per cent in the June quarter but rose by more than 93 per cent over the 2025-26 year. Construction industry private investment was a consistent performer, up by 16 per cent over the quarter and by 29 per cent through the year. Across the economy, private new capital expenditure rose by 10.7 per cent over the year.
New Federal fund to finance defence export push
The Federal Government has announced a new $4.2 billion (US$3 billion) finance facility to help Australian defence industry in developing export opportunities and expanding sovereign capability. Defence Industry Minister Pat Conroy and Trade Minister Don Farrell said the Defence Industry Growth Facility would provide loans, bonds, guarantees, and equity to support projects that prioritised sovereign capability and self-reliance. They said the government was committed to ensuring that the facility was more flexible and responsive to industry needs, particularly those of small and medium enterprises. In addition, the ministers said the facility was designed to “crowd in” private sector finance and complement other Federal financing mechanisms.
Energy market operator warns of winter electricity supply risks
Australia’s energy market regulator has warned that uncertainty over the delivery of new generation capacity threatens to undermine electricity reliability in the national grid. In its 2026 Electricity Statement of Opportunities, the Australian Energy Market Operator said that maintaining supply reliability increasingly depended on timely delivery of new resources to replace coal-fired generation. AEMO said that reliability was projected to meet the required standard until 2033-34 in New South Wales, Victoria and South Australia, and until the following year in Tasmania. But it warned that many of the developments underpinning its assessment had not yet progressed sufficiently to satisfy AEMO’s criteria. AEMO said diversity of supply became increasingly important in winter, as households and businesses electrified heating, contributing to stronger growth in electricity demand at a time when solar resource availability was lower.