NewsBite

Economy

Yesterday

NSW nurses demonstrating for a pay rise in November.

Wage rises to blow out ‘unrealistic’ state budgets: S&P

Psychiatrists in NSW and teachers, nurses and police in Queensland are the latest essential workers to demand significant wage rises from state governments.

  • Michael Read and James Hall
The usual suspects are putting political pressure on Michele Bullock to deliver pre-election rate relief next month.

Reserve Bank should not bow to political pressure for February rate cut

Giving in to the pile-on by Labor-aligned commentators calling for cuts would be a bad look and would damage the central bank’s credibility.

  • Richard Holden
Senator Jane Hume in Melbourne on Friday.

Opposition savings from housing, green energy funds in doubt

Senator Jane Hume says the Coalition will interrogate Labor’s billions of dollars tied up in funds for housing, clean energy and manufacturing, but admits they may be difficult to unwind.

  • John Kehoe and Michael Read

This Month

Senator Jane Hume in Melbourne on Friday.

Like Elon Musk, Jane Hume wants to make government more efficient

Hume says her approach as a finance minister would be more efficient government and restoring a deregulation agenda for business across a suite of policy areas.

  • John Kehoe
Finance secretary Jenny Wilkinson and Treasury secretary Steven Kennedy.

Please explain: Treasury and Finance in hot seat over $7.4b black hole

The heads of Treasury and Finance are being urged to explain why no extra money was set aside to pay for public servant wage increases over the next three years.

  • Michael Read
Advertisement
Jim Chalmers.

Tax surge puts shock third budget surplus within reach

Soaring tax revenue so far this financial year has shrunk the federal budget deficit to half the size it was expected to be.

  • John Kehoe

Winners and losers from the Aussie dollar’s near five-year low

There’s something strange going on with the currency. Expect expensive overseas trips, takeover activity, more foreign buyers in the real estate market and a federal budget boost.

  • John Kehoe
From pumping seawater into the lake in the South Australian outback to creating hydroponic farms in inner-city high rises, Australians say we can get productivity growing.

Seven ways everyday Aussies – not CEOs – would fix productivity

From pumping seawater into the lake in the South Australian outback to creating hydroponic farms in inner-city high rises, Australians say we can get productivity growing.

  • Michael Read
Finance Minister Katy Gallagher.

With a $7.4b black hole, Gallagher tries to explain the unexplainable

Budgeting no money for public servant wage rises may have made sense under a stingy Coalition, but it makes no sense under a Labor government hiring like mad.

  • Michael Read
AI

For business, AI can be the new electricity for productivity

If we are to shift productivity momentum back in our favour, it’s worth asking what this kind of progress means in our modern context.

  • Bran Black
Fed staff “highlighted the difficulty” of gaming out what lay ahead from an administration that has promised to deport undocumented immigrants, tighten the borders, and raise taxes on imported goods.

Fed officials wary of new inflation risks around Trump policies

The minutes described the December rate cut by the policy-setting Federal Open Market Committee as “finely balanced”.

  • Howard Schneider
Artic Minerals Mining, Agnico Eagle Meadowbank Complex North of Baker Lake, Kivalliq District, Nunavut Territory, Canada.

The harsh economics of mining the Arctic

Donald Trump’s plan to purchase Greenland is just one symptom of the world’s lust for polar minerals. But who wants to work in a frozen wasteland?

  • The Economist
Labor has hired thousands of extra public servants to cut back on outsourcing, which Finance Minister Katy Gallagher says has saved $4 billion.

$12b blowout in public servant wages since election

Labor is on track to spend at least $12 billion more on public servant wages than it forecast in its first budget, but says it has clawed back $4 billion by cutting down on outsourcing.

  • Michael Read
RBA governor Michele Bullock.

Soft inflation data brings February rate cut into sight

Economists and markets are increasingly confident the RBA will cut the cash rate in February after price pressures cooled further in November.

  • Michael Read
Jim Chalmers, in his mid-year budget update, revealed a $22 billion deterioration in the nation’s bottom line over the next four years.

Chalmers pledged a spending diet, but Labor is on a binge

There is a big difference between what a government forecasts it will spend in the years ahead and what it actually spends.

  • John Kehoe
Advertisement
Treasurer Dr Jim Chalmers and Minister for Finance Katy Gallagher Labor has put aside almost no money for public sector wage rises despite already agreeing to increase the salaries of 185,000 public servants.

Labor’s $7.4b black hole from public service budget blunder

Labor has put aside almost no money for public sector wage rises despite already agreeing to increase the salaries of 185,000 public servants.

  • Michael Read
An Australians for Prosperity-funded advertisement in Westfield Bondi Junction.

‘Smears and lies’: Spender blasts claim she wants to raise taxes

The teal MP has called for truth in political advertising laws after a new right-wing campaign group, Australians for Prosperity, paid for ads saying she wants to lift taxes.

  • Michael Read
RBA governor Michele Bullock.

RBA should cut rates and not be fooled by trimmed mean inflation

The actual inflation rate Australian consumers and businesses feel is now within the designated target range of 2-3 per cent. The RBA should not ignore this.

  • Craig Emerson

How to turn four weeks of leave into 49 days of holidays in 2025

As the summer silly season ends, the idea of returning to work for a whole new year can be overwhelming.

  • Sarah Mitchell
Cbus chief investment officer Brett Chatfield and Aware Super CIO Damian Graham are among money managers expecting the Reserve Bank to begin cutting rates at its May or July meeting.

Top super investors dash pre-election rate cut hopes

But they say investors should be optimistic about inflation easing despite later cuts and risks associated with Donald Trump taking the White House.

  • Hannah Wootton
Prime Minister Anthony Albanese speaks at a press conference in Gympie, Queensland.

PM’s $7.2b Qld road pledge has states clamouring for more funding

Anthony Albanese has caved to Queensland’s new premier to pay 80 per cent of a $9 billion upgrade of the Bruce Highway, igniting demands from three states.

  • John Kehoe, Gus McCubbing and Tom Rabe
Treasurer Jim Chalmers.

No, the budget is not out of control

Readers’ letters on Australia’s economy, sport and climate change, wage theft, populism, emissions reporting, AustralianSuper’s performance and beer bellies.

Business leaders say high house prices and skyrocketing rents are affecting where people choose to work and making it harder to find talent, according to KPMG.

Why housing affordability is now a top problem for CEOs

Business leaders say high house prices and skyrocketing rents are affecting where people choose to work and making it harder to find talent.

  • Michael Read
Treasurer Jim Chalmers has admitted the budget will be “a bit weaker” than forecast in May, as Deloitte warns of a record-breaking deterioration in the bottom line.

Labor’s social spending budget blows out by $26b

The Albanese government’s spending on aged care, disability, medicines and childcare – where it will campaign – is $26 billion higher than first budgeted.

  • John Kehoe, Michael Read and Cecile Lefort

Emissions reporting boosts financial sustainability

Readers’ letters on emissions reporting, renewable energy, green-left politics, productivity, government advertising and an idea for state governments.

Original URL: https://www.afr.com/policy/economy