The Prime Minister landed back in Australia fresh from the Quad summit in the United States on Monday as news broke the ACCC would sue major supermarkets who advertised dodgy discounts.
Meanwhile, Treasurer Jim Chalmers headed to China this week as new CPI figures showed federal and state government energy rebates were having the desired effect on headline inflation.
And the Greens were simply delighted with news this week that Treasury was looking at negative gearing reform, something the Albanese Government denied asking them to do, but what could be a strategically timed intervention as they try to convince the minor party to pass their stalled housing legislation.
Let’s take a quick look at the week’s headlines before we jump into the major political stories:
- Qantas strikes may hit AFL grand final travel plans
- NSW Labor will not contest blue ribbon by-elections
- The Biden Administration tables a ban on EV connected car tech from China
- Benjamin Netanyahu rejects the US-led push for a ceasefire with Hezbollah and vows to keep fighting “until victory”
- Brisbane Broncos sack coach Kevin Walters
- Authorities investigate an environmental hazard after the mysterious leak sees fluorescent green substance leaked into Sydney Harbour
- Elon Musk clashes with the Australian government over new social media regulations, accusing Canberra of censorship following demands to remove violent content
Politics
Energy handouts drive down headline inflation
On federal budget night, the Albanese Government announced every Australian household and business would be receiving a $300 energy bill subsidy, aimed at taking the heat out of the cost of living crunch. It couldn’t be targeted, the government said, that’s too hard and would take too long.
Back then, nearly every political commentator said that policy was a deliberate strategy to manipulate a drop in the monthly inflation numbers that have been causing the RBA to keep rates on hold – and even consider another interest rate hike. The federal government was helped along by state governments, who announced their own generous energy bill giveaways.
And this week, the Treasurer was rewarded, with the fall in energy bills the primary contributor to a drop in monthly inflation from 3.5 per cent in July to 2.7 per cent in August. But it came a day late for the RBA, who on Tuesday announced it was keeping rates on hold because they weren’t convinced the economy was cooling.
A drop in headline inflation, however, will do little to convince the Central Bank otherwise, as Governor Michele Bullock has specifically said the Board looks beyond headline inflation – which tends to be volatile and sensitive to ‘temporary measures’ such as government subsidies.
Underlying inflation is still hovering above 3 per cent (3.4 per cent to be precise) and is reducing much more slowly than headline inflation. That will likely keep rates – and the Treasurer’s hopes of a rate cut – on hold for the rest of the year.
Supermarkets under investigation
The ACCC has initiated Federal Court proceedings against Coles and Woolies, accusing them of misleading consumers with deceptive discount pricing schemes. The allegations focus on promotions like Woolworths’ “Prices Dropped” and Coles’ “Down Down” campaigns.
The supermarkets are accused of temporarily raising prices by at least 15% before promoting a “discount” that was either higher than, or the same as, the original price. This practice allegedly misled customers into believing they were getting a better deal than they actually were. The investigation covers hundreds of products sold over several months between 2021 and 2023.
In response, the Prime Minister announced the release of the exposure draft for it’s mandatory Food and Grocery Code, which will impose stricter regulations and penalties on supermarkets that engage in deceptive practices. The government is also backing the CHOICE supermarket price reports which provide consumers with accurate data on where to find the most affordable groceries.
Coalition turns up pressure on nuclear
This week the Opposition Leader Peter Dutton addressed the Committee for Economic Development of Australia (CEDA) where he reinforced the Coalition’s commitment to nuclear energy as a key solution for Australia’s energy future, contrasting sharply with the government’s renewable energy focus.
Dutton emphasised that nuclear energy is essential for Australia to meet its net-zero emissions target by 2050 and argued that a “renewables-only” approach is insufficient and economically damaging, highlighting that no major economy relies solely on renewables. He also linked current high energy prices to the closure of manufacturing businesses and offshoring of jobs.
The Coalition’s plan includes building seven nuclear reactors at sites where coal-fired power stations are set to retire with the first reactor operational within 10-12 years. While he acknowledged significant upfront costs, Dutton claimed nuclear power would require less infrastructure than renewables due to the use of existing transmission networks at coal plant sites. He did not provide exact costings but promised they would be released “in due course”.
As former Federal Treasurer and Ambassador Joe Hockey pointed out during his National Press Club address, all this talk about energy policy brings back memories of the 2010 and 2013 elections. Does anyone remember the infamous “there will be no carbon tax under the government I lead”?!
Chalmers in China
Treasurer Jim Chalmers jetted off to China this week to engage in high-level economic and trade talks with his Chinese counterpart. This trip is particularly significant as it marks the first time in seven years that an Australian treasurer has visited China, signalling a further thaw in relations following a period of diplomatic tensions.
The key objectives of Chalmers’ visit are to discuss mutual economic interests, promote Australian exports, and address trade barriers that have been affecting sectors like wine, coal, and barley. Australia is looking to ensure stable economic ties with China, despite recent geopolitical challenges.
China’s recent economic downturn has significant implications for Australia. As Australia’s largest trading partner, a slowdown in China’s economy directly impacts several key sectors of the Australian economy.
Australia’s largest exports to China are iron ore, coal, natural gas, and agricultural products like wine and beef. A downturn in China reduces demand for these goods, impacting Australian export revenues. Furthermore, Australia’s economy is heavily reliant on commodity exports. A slowdown in China can lead to a drop in global commodity prices, affecting the profitability of Australian mining companies and reducing government revenue from resources.
Queensland
This coming Tuesday marks the ‘official’ start of the Queensland election campaign, when Parliament is dissolved and the government enters caretaker mode. But you’d be forgiven for thinking we’ve been in a campaign for weeks now, especially this week as the leaders hit the campaign trail in earnest – with funding announcements and election commitments galore.
The LNP started the week by announcing a new plan for early intervention schools, and kept the focus on crime by following that up with a commitment to allow Judges and Magistrates to consider youth offenders’ full rap sheet when sentencing. Youth crime is undeniably the biggest factor at play in this election, and the Labor Government’s biggest vulnerability. Expect to hear a lot more about this in the campaign.
An embarrassing leak from Labor this week made news, a source telling The Australian that regional Labor MPs were “sitting around waiting to lose”. Regional Queensland is a must-win for both parties – Labor won’t retain government without it, and the LNP won’t win government without it. It’s where the youth crime crisis is most acute, and where the leaders have been and will be spending a lot of their time.
So it was a damaging admission from a Labor insider this week that Miles’ MPs in regional Queensland have effectively given up. Internal data from Labor was also leaked that showed some of Labor’s candidates have been out-campaigning government MPs, adding to the perception that morale is low within the caucus.
Meanwhile, the Premier has refused to deny he will promise to introduce rent caps if re-elected – a direct play for Greens’ votes in inner-city seats where the government is at risk of losing support to the minor party. The proposal has been panned by the real estate and property sectors, and a government-dominated committee inquiry two years ago found rent controls were not effective in improving housing affordability. We will see just how worried the Premier is about the Greens over the course of the election.
Sport and pop culture
Grand final fever
Despite no Victorian teams making the 2024 AFL Grand Final, the game is still a sellout with thousands of fans traveling from Queensland and NSW to cheer on their team.
Although the Sydney Swans finished the season as the top team and have been strong throughout the season, the Brisbane Lions are considered slight favorites by many experts. The Lions’ momentum and adaptability, especially after their epic comeback in the preliminary final, have given them an edge in many analysts’ eyes.
Key players like Lachie Neale for Brisbane and Isaac Heeney for Sydney are seen as potential game-breakers, with Neale being a popular pick for the Norm Smith Medal (best on ground). Brisbane’s ability to adjust their play style, particularly with strong handball movement, is expected to be critical if they are to overcome Sydney’s well-oiled team. However, the absence of key players on both sides, such as Brisbane’s Oscar McInerney, could tilt the balance.
As Queenslanders, we will be cheering on the Lions … Go Brisbane!!
Rapper facing serious charges
In a story that has shocked the world and rocked the celebrity community, Sean “Diddy” Combs has been charged with serious federal offenses, including racketeering conspiracy, sex trafficking, and transportation to engage in prostitution.
The charges are part of a larger indictment that alleges Combs led a criminal enterprise from 2008 onwards, which facilitated the abuse, exploitation, and trafficking of women.
The indictment also claims that Combs was involved in acts of kidnapping, forced labor, arson, bribery, and obstruction of justice.
Combs has pleaded not guilty to the charges and is preparing to fight the case in court.