Dr Keith Suter, Treasurer Jim Chalmers speak at Conference of Major Superannuation Funds

An Australian academic has flagged why he thinks the AUKUS agreement could present “all sorts of complications” for international relations.

An Australian academic has flagged major concerns about the consequences of the AUKUS deal on global military relations.

Dr Keith Suter, a global and economic futurist with a focus on innovation and strategic planning, made the comments at the institute of Superannuation Trustees’ Conference of Major Superannuation Funds (CMSF) in Melbourne on Tuesday.

He said the full scope of the situation would come into focus when Australia comes to operate the nuclear-powered submarines, expected to be in the early 2040s.

“From the one point of view, we can find a win-win solution. On the other hand, (when it comes to) how Australia operates fully nuclear submarines, you’re not able to get young people to serve on submarines,” he said.

“But then also you need all the nuclear know how which we do not have. How are we going to put all this together? There are huge practical problems.

“And then the bigger political issue is that there is now speculation that we’re perhaps clearing the decks for action against China, against Russia. The real problem is China.”

The USS Asheville, a Los Angeles-class nuclear-powered fast attack submarine, at HMAS Stirling, Western Australia. Picture: NCA NewsWire / pool / Richard Wainwright

Last week, Prime Minister Anthony Albanese, alongside UK Prime Minister Rishi Sunak and US President Joe Biden announced the historic deal, which will cost between $268bn and $368bn by the 2050s.

The program will feature at least three submarines to be purchased from the US, upgrades to extend the life of the existing fleet, with at least five UK-designed vessels with US-technology to be built in Adelaide by the 2040s.

The agreement also includes co-operation between the three nations on other advanced defence technology, such as hypersonic missiles and undersea drones.

Dr Suter said the AUKUS agreement could lead to “all sorts of complications for us” in the Asian region.

“Another problem for us in Australia with this AUKUS agreement is will Australia eventually withdraw from the nuclear Non Proliferation Treaty and acquire nuclear weapons?” he said.

“Being a realist, I’d have to say, if you want to defend yourself, get yourself nuclear weapons.”

Future globalist and media commentator Dr Keith Suter says the AUKUS agreement has all sorts of complications for Australia.

Dr Suter said there were further issues closer to home, including whether Australia’s Defence revamp would trigger an arms race in its own backyard, particularly with regard to Indonesia, where military expansion is already underway.

“So the AUKUS agreement has all sorts of complications for us. We’ve got to be careful how we enter into that new defence arrangement,” he said.

Dr Suter went on to say the way he predicts the way various powers could attack would differ from conflicts in previous eras.

“The challenge for us in Australia is how do we oppose militarily a major trading partner? This was not the problem we have with the old Soviet Union,” he said.

“Now, I think that China would probably avoid a head-on clash and a conventional war with the United States.

“I do not imagine Chinese soldiers wading ashore. I think the Chinese would go for cyber warfare, cyber attacks on America’s crumbling infrastructure.

Treasurer Jim Chalmers says Australians will continue to feel the pinch with living expenses. Picture: NCA NewsWire/ Glenn Campbell

“All you have is social disruption via social media and the undermining of institutions to have Americans view with each other. So in other words, instead of a head-on collision, the Chinese will go about in the traditional Chinese method of fighting, which according to some is ‘don’t bother with the fight at all if you win by non-military means’.”

ALCOTT’S MESSAGE TO INVEST IN DISABLED AUSTRALIANS

Former Australian of the Year Dylan Alcott also spoke at the conference, touching on why superannuation funds should strive to connect with people with disabilities.

“This is the biggest minority group in the world, 20 per cent of the of the population,” Mr Alcott said.

“But what I will say is, it’s worth the investment in your business to do it and I’ll tell you why.

“Yes, it is the socially correct decision to make to be diverse and inclusive, but it’s also a good business decision because if you are accessible to me as a consumer, what do I do? Who do I give my super to? You. Who does my brother pick? You. Who does my carer pick? You.

“Also, it’s a win-win because it gives me choice to control what I do with my life, choice to control where I want to work, where I want to spend my time, but often that conversation is dictated by us.

“So it’s about talking to somebody we have to do something that we want to do and need to do because it’s the right thing, and it’s a good business decision as well.”

CHALMERS DETAILS INFLATION FUTURE

The comments at the conference come after federal treasurer Jim Chalmers gave insight into how Australia’s soaring rate of inflation will pan out as millions continue to grapple with cost of living pressures.

Mr Chalmers said while the rate of inflation is believed to have peaked around Christmas 2022, Australians will continue to feel the pinch with living expenses.

“As well as being optimistic. I’m also realistic about some of the difficulties that we’ll need to navigate together over the course of the next year or two,” he said.

“Interest rate rises are really tightening the screws on a lot of families and small businesses right around the country. Combine that with a fair bit of global uncertainty that we’re seeing right now, whether it’s in the financial system, or in the major economies around the world.”

Mr Chalmers went on to say the government is predicting all current factors will result in a slowdown for Australia’s economy as a whole.

“You can see why Treasury, the Reserve Bank and others, including a number of you in the room there, are expecting our economy to slow considerably through the course of the next little while,” he said.

“So we’ve got a lot coming at us, from around the world, but we’ve got a lot going for us as well.”

Millions of Australians are struggling with cost of living pressures. Picture: NCA NewsWire / Brendan Read

Mr Chalmers said earlier this month that inflation remains unacceptably high and too persistent but he was optimistic it’s slowing down after the Reserve Bank hiked interest rates for a 10th consecutive time.

He named cost of living as the No.1 fiscal challenge facing Australia, a third of the way into what he describes as a “defining decade” ripe with opportunity to modernise the economy through the climate and energy transition.

The central bank’s board lifted the cash rate, which guides interest rates set by lenders, by 25 basis points to 3.6 per cent earlier this month, reaching its highest level since June 2012.

RBA governor Philip Lowe said inflation could be brought back within the target range of 2 to 3 per cent by mid-2025 and tempered predictions there would be multiple rate rises to come, in a move away from his previous analysis of pending rate hikes.

Originally published as Dr Keith Suter, Treasurer Jim Chalmers speak at Conference of Major Superannuation Funds