As early voting in the Dunkley by-election got underway this week, the Prime Minister and his team were travelling the country selling the government’s amended stage three tax cut package, attempting to steer the headlines back to cost-of-living after an escalating national security debate.
The polling in Dunkley is being closely watched by both major parties, and its shaping as a crucial test of how voters rate the government’s handling of the economy. Watch this space.
Let’s take a quick look at this week’s headlines:
- Work from home policies in the spotlight as Labor’s new IR legislation is put to the test
- Steven Miles closes the gap on the LNP in Queensland as Attorney-General Yvette D’Ath pulls pin on her career
- New Qantas chief Vanessa Hudson delivers first half-yearly results, unveils $873m profit – a 13 per cent fall in the last six months
- Young police officer in custody in relation to missing Sydney couple
- Bushfires sweep through Victoria’s west, with firefighters battling to save properties
- BHP considers closing major nickel operation in WA, federal government weighs assistance package
- Department of Finance in major data bungle, releases sensitive contract and personal information
Politics
Wage growth outstrips inflation, hits 15 year high
The Australian Bureau of Statistics’ Wage Price Index released on Wednesday showed Australia recorded a 15-year high in wage growth in the last quarter of 2023, narrowly edging ahead of inflation.
Treasurer Jim Chalmers and Minister for Employment and Workplace Relations Tony Burke said it was a substantial turnaround since the May 2022 election and had exceeded expectations set by Treasury. The result was driven by a surge in public sector wages, and a 5.75 per cent boost for workers on awards – a decision made by the Independent Remuneration Tribunal in June.
Business leaders were quick to urge caution about the result, saying the level of wage growth recorded was ‘unsustainable’ and would hurt an economy already struggling with low productivity growth.
The Coalition attacked the government for talking up the result, saying Australians battling cost of living increases had not felt the 0.1 per cent increase in real wages.
Government responds to Naval fleet review
After a lengthy delay, Defence Minister Richard Marles on Tuesday announced the government’s response to a review of the Royal Australian Navy’s surface fleet, confirming the acquisition of 11 new ‘general purpose frigates’ to respond to growing regional threats. The first three of these new frigates will be purchased “off the shelf” and built overseas, in a politically risky move the government hopes is accepted by the local defence industry as the best possible option.
The major shake-up also includes a scaling-back of the troubled Hunter Class Frigate project, with the build reduced from nine to six frigates in response to budget and schedule blowouts. The six frigates will be more lethal than planned, to be built with new Tomahawk cruise missiles that will increase the lethality of the Navy’s surface fleet.
An additional $11 billion has been provisioned for the Defence budget over the coming decade, but the Coalition and other defence observers have said the government’s plans did nothing to address a looming capability gap in the early 2030s before the new ships come on line.
Shipbuilding is a notoriously political industry for the federal government, with major shipyards in South Australia and Western Australia supporting thousands of local jobs. With both states key to a successive election victory for the Albanese Government, they have tried hard to keep both states onside.
Home Affairs Minister confirms government is urgently working on border security boost
The arrival of three groups of asylum seekers on the remote north coast of WA has put intense pressure on the Albanese Government to defend its border security measures, and is being weaponised in the Dunkley by-election in Victoria.
In Perth to meet with his Cabinet on Monday, the Prime Minister repeatedly insisted the government had made no changes to Operation Sovereign Borders, put in place by the former Coalition Government. Opposition leader Peter Dutton, who served as Home Affairs Minister in the former government, seized on the arrivals as proof the government had lost control of the border.
By Tuesday, Home Affairs Minister Clare O’Neil confirmed her department was urgently putting together a package for the May budget, to bolster stretched frontline resources while insisting the government had not cut funding for border operations.
Conservative campaign group Advance, which is spending big on the Dunkley by-election, is running billboard and digital advertisements criticising the Prime Minister’s handling of national security issues since they were elected in 2022.
PM moves to kill off early election speculation
The Prime Minister announced this week the government would hand down an election-eve budget in March next year, in an effort to dispel speculation they were readying for an early election this year.
It came after an internal memo sent by the Prime Minister’s chief of staff to Labor staffers was leaked that advised on staff appointments “as we enter the election year”. The PM denied the memo confirmed rumours of a 2024 election, instead saying it merely referred to the fact the government was entering it’s last 12 months in office.
He lamented the fact federal elections were still three year, non-fixed terms, compared to the four year terms of the states and territories. But as election terms are set by the constitution, any change would have to be brought about by a successful referendum. And it would be a brave government who held another one of those any time soon.
Global
Australian politicians support Julian Assange’s last-ditch extradition bid
A London court held two days of hearings this week to decide the fate of Australian Wikileaks founder Julian Assange, who is fighting extradition to the United States on espionage charges. If it fails, with a result not known until at last early next month, Assange will almost certainly be deported swiftly to the US.
His wife has told media ‘he will die’ if he is extradited, citing poor health and concerns for his treatment at the hands of United States’ authorities.
Independent MP Andrew Wilkie, who last week successfully lobbied Parliament to pass a motion of support for Assange, was in London to support protestors at the hearing. This week Prime Minister Albanese confirmed he had raised the issue at the highest levels within the US and UK governments, and that he had been working with Assange’s legal team on a strategy to bring the Australian home.
World reacts to Alexei Navalny death
The death of Russian opposition leader Alexei Navalny in a Siberian prison last Friday has sparked a furious reaction from the global community, with nearly everyone including US President Joe Biden holding Russian President Vladimir Putin responsible.
News of the jailed activist’s death was condemned by Western political leaders, who have called for a full and transparent investigation into the circumstances surrounding his death. The US has announced a major package of new sanctions on Russia to ‘hold Russia accountable’.
It is expected to heighten political tensions in the country ahead of the Russian ‘elections’ next month. Navalny was a prominent critic of Putin and many are speculating his death is a warning to other politicians who dare to question the dictator’s reign.
Sport and other news
Messi releases apology video in wake of China snub
Soccer megastar Lionel Messi has found himself embroiled in a political controversy in China, after he skipped a match in Hong Kong earlier this month.
Chinese authorities reacted angrily to news of the star’s no-show in Hong Kong, alleging he was making a political statement. They later cancelled a friendly match scheduled between Messi’s Argentina and Nigeria which was due to be held in China.
Messi denied any political reasons for not playing in the February 3 match, saying he was managing a groin injury, but Chinese authorities fanned the controversy days later when he made an appearance during a match in Tokyo.
After several apologies, Messi this week released a video on Chinese social media to ‘set the record straight’ and assure Chinese soccer fans his non-appearance had nothing to do with politics. So much for never mixing politics and sport…
Taylor Swift juggernaut moves onto Sydney after record Melbourne shows
Of course, we’re ending with a Swiftie update – it is undeniably the biggest news-making event happening in Australia this week. Thousands of Swift fans (this newsletter’s authors among them) are descending on Sydney this weekend to attend the global star’s four sold-out shows at Accor Stadium. Prime Minister Albanese confirmed this week he would attend tonight’s show.
Swift’s Australian tour has made global headlines, as her NFL star boyfriend Travis Kelce – fresh from winning the Super Bowl – jetted in to be with her in Sydney this week.
Images of the pair strolling around Sydney zoo have been beamed across the world, much to the delight of local tourism bosses.
Whatever you think of her music, no one can begrudge the incredible economic impact the tour has had in Australia, with hospitality and accommodation providers in Melbourne and Sydney thrilled to share in a slice of the more than half a billion dollar boost.