In the last full week of sitting for the House of Representatives, the opposition pursued the government on a number of fronts including the Prime Minister’s response to the navy incident involving China, national security and the government’s taxation policies.

It was a high-stakes week for the PM, who faced falling support in national polls and growing backbench unease about the government’s performance.

We bring you all the key updates in this week’s parliamentary wrap.

Ministers in rushed response to High Court decision

After the government last sitting week bowed to pressure to legislate tough new monitoring laws for around 140 released detainees, the fallout continued this week as the High Court released its reasons for the decision.

Those reasons provided a legislative pathway to preventative detention for some released detainees to be re-detained, and the government rushed legislation into the House on Wednesday in response.

It prompted fierce criticism from the opposition that the government had dropped the ball and was playing catch up, even suggesting the government had panicked and released the 140 detainees without being certain they were required to.

Opposition leader Peter Dutton argued the mess risked unravelling the government’s tough border protection policies, as Border Force officials released videos aimed at asylum seekers across South East Asia who were being targeted by increased people smuggling activity. 

When the Coalition voted against the government’s new proposed laws earlier in the week, saying they were rushed and should be stronger, Home Affairs minister Clare O’Neil in question time labelled the opposition leader a “protector of pedophiles”. 

Peter Dutton, a former police officer who worked in teams that tracked and arrested pedophiles targeting children online, has demanded an apology from the Prime Minister.

 

Backbench angst over voter revolt

Amongst the chaos that was the detention debacle, the Prime Minister fronted a nervous party room on Tuesday after new polls on Monday showed the government – and in particular Anthony Albanese – were fast losing electorate support as cost of living issues started to bite.

As a larger-than-predicted budget surplus looms in the mid-year budget update later this month, some government backbenchers are urging the Treasurer to go beyond the targeted cost of living relief delivered in the May budget.

The Treasurer held a serious of meetings through the week with backbenchers, but both he and the Prime Minister have publicly stated their position on stage three tax cuts (due to take effect in July next year) has not changed.

Sensing the government may come under increased pressure from its own backbench and the crossbench to dump the tax cuts, the Coalition ramped up pressure on the Prime Minister this week to commit to his election promise not to dismantle the Coalition-era tax package. 

 

NDIS, GST pit states against Albanese

As the states and territories consider the long-awaited NDIS review ahead of national cabinet next week, a looming battle about the cost of the scheme threatens to derail the government’s NDIS reform plans.

States are worried they’ll be lumped with yet more costs for additional disability supports if the Albanese Government scales back the scheme, putting at risk a funding agreement that must be reached in order to reign in NDIS blowouts.

Ahead of next week’s national cabinet meeting, Treasurer Jim Chalmers today met with his counterparts, who were urging the government to extend the temporary ‘no worse off’ GST guarantee put in place by former Prime Minister Scott Morrison. The states have accused the federal government of ‘cost shifting’ in areas like health and infrastructure.

The leaders are also expected to raise the GST issue with the Prime Minister next week, with Albanese getting a sufficiently less smooth ride than he would have hoped from the large cohort of Labor premiers and chief ministers.

 

IR bill passes lower House – again

The government passed its amended Closing Loopholes industrial relations package through the House of Representatives this week.

Industry groups and the Coalition remain staunchly opposed to the bill, but the government this week reached a deal with the Greens in return for amendments criminalising super theft. Greens changes accepted by the government will also increase unions’ bargaining power.

However, the Greens haven’t yet guaranteed their support in the Senate, and will push the government further to include ‘right to disconnect’ laws that would prohibit employers from contacting employees after hours. 

The bill won’t be put to a vote in the Senate next week, with a Senate committee report on the legislation expected in February. 

Inflation data surprise mutes expectations of further rate rises

Monthly inflation data out this week showed a surprising fall in the inflation rate, with many economists predicting it would be enough for the RBA to reconsider any future rate rises. 

Inflation rose 4.9 per cent in the 12 months to October, down from the 5.6 per cent increase in September. 

The news came as the OECD predicted interest rates had peaked in Australia, saying it expected the RBA would keep rates on hold until inflation began to come down.

Both pieces of news were welcomed by the government, facing voter backlash over a sustained period of cost of living and housing pressures. 


The Senate sits as normal next week, but the House is only scheduled to sit on Thursday to pass urgent legislation before Parliament rises for the year.