Federal budget faces spending constraints

Treasurer Jim Chalmers has said rising interest rates will have an impact on the federal budget, which is expected to be delivered on 25 October. His comments followed the Reserve Bank of Australia’s decision to raise interest rates by a larger-than-expected 50 basis points.

Prime Minister Anthony Albanese will host state and territory leaders in Canberra this week as the first National Cabinet meeting takes place under the new Labor government, with health reform expected to dominate the discussion.

State governments will need to hire more medical staff from overseas and train more people locally if they are to meet recently announced recruitment targets. Both New South Wales and Victoria have said they will boost the number of medical staff in their health systems.

Former Defence Minister Peter Dutton has said the previous government was working on a plan to fast-track nuclear-powered submarines by acquiring two Virginia class boats from the United States by 2030. However, the comments have prompted a backlash.

For more on these developments, see today's edition of CMAX Advisory's Australian Weekly Report.