- West Australian Senator Fatima Payman’s decision to quit the Labor Party after being suspended for crossing the floor to vote with the Greens has derailed the government’s momentum. Much to the government’s annoyance, Senator Payman’s earlier decision to vote for a Greens motion on Palestine — and her subsequent suspension from the Labor caucus — overshadowed the government’s cost-of-living measures.
- Treasurer Jim Chalmers has introduced the government’s Future Made in Australia legislation to parliament, as several cost-of-living measures kicked in from 1 July. However, there is a significant backlog of bills still to be dealt with. Along with other changes to parental leave, rent assistance and pensions, the government’s messaging is that it is addressing the high cost of living without further stoking inflation, which remains stubbornly high and could lead to an increase in interest rates.
- Australia will send a significantly reduced contingent to the United States-led RIMPAC 2024 military exercises as the Australian Defence Force (ADF) struggles with capability issues. The reduced contribution comes as the Royal Australian Navy deals with the retirement of vessels, sustainment issues, as well as ongoing difficulties with recruitment. It also comes despite a A$5.7 billion funding boost for Defence over the next four years, and an additional A$50 billion over the next decade.
- Inflation may take longer than expected to reach the Reserve Bank of Australia’s (RBA) target, increasing the possibility of an interest rate rise, possibly as early as August. According to the minutes of its latest board meeting, the RBA was concerned that its forecast of inflation falling to 2-3 per cent by mid-2026 was at risk. If subsequent data indicates that to be the case, the RBA will likely push rates up.
- Global efforts to “reshore” manufacturing and move away from an over-reliance on China will have implications for Australia’s resources sector. According to a quarterly outlook from the Department of Industry, Science and Resources, measures “by a number of governments to intervene in trade with China will have implications for the direction and quantity of Australian resource and energy exports”.
- More Australians are living with a chronic disease, and spending more time in ill health, with the country’s life expectancy dropping for the first time in 30 years, according to a new report from the Australian Institute of Health and Welfare (AIHW). However, AIHW‘s biennial Australia’s health report found that people’s overall health continues to fare well when compared with similar countries despite significant impacts from Covid-19 and chronic conditions.
- KPMG Australia has announced three senior appointments to the firm following a major restructuring aimed at boosting growth. The appointments come as KPMG and the other “big four” consulting firms Deloitte, EY and PwC have cut back new partner intakes because of the downturn in the sector following the PwC scandal and government efforts to cut back on the use of consultants.
- Large-scale grain growers will likely shift towards a combination of renewable fuels such as biofuels, green hydrogen and renewable electric power as they seek to de-carbonise production. While agriculture accounts for 18 per cent of Australia’s total annual greenhouse gas emissions, grain-growers face particular challenges that mean their greenhouse gas emissions tend to be higher. These include the power needed for heavy vehicles such as combine harvesters.
The full CMAX Advisory Australian Weekly Report is available on our website every Friday.
