Month: March 2025

Source: Northern Territory Police and Fire Services

The Northern Territory Police Force has arrested a 53-year-old male in relation to a domestic violence incident that occurred in Alice Springs early this morning.

Around 1:25am, a female presented to the Alice Springs Police Station to report she had been assaulted by her partner with a blunt weapon at a residence in Braitling.

The victim sustained injuries to her head, face and arm, and was conveyed to the Alice Springs Hospital by St John Ambulance for treatment.

Police attended the residence and arrested a 53-year-old male at 2am.

He remains in police custody and investigations are ongoing.

Police urge anyone with information to call 131 444 and quote reference P25083467. Anonymous reports can also be made through Crime Stoppers on 1800 333 000.

If you or someone you know are experiencing difficulties due to domestic violence, support services are available, including, but not limited to, 1800RESPECT (1800737732) or Lifeline 131 114.

Source: Northern Territory Police and Fire Services

The Northern Territory Police Force is calling for information in relation to disturbances that occurred in Alice Springs yesterday.

Around 12:30pm, the Joint Emergency Services Communication Centre (JESCC) received multiple reports of groups fighting in the Alice Springs CBD. Police responded and the group dispersed.

A 37-year-old female was conveyed to the Alice Springs Hospital with minor injuries, along with a second victim with non-life-threatening injuries.

A 22-year-old female was arrested in relation to this incident and is expected to be charged.

Around 2:35pm, further alleged fighting occurred between the same groups on Hartley Street, with some participants allegedly armed with weapons.

Multiple police units responded, and the group once again dispersed.

Investigations are ongoing and police urge anyone with information to make contact on 131 444. Please quote reference P25082836. You can also report anonymously through Crime Stoppers on 1800 333 000 or via https://crimestoppersnt.com.au/.

Source: Historic Cooma Gaol listed on the NSW State Heritage Register

The Albanese Government and the Investment Dialogue for Australia’s Children (IDAC) will partner to build supply and capacity of integrated early years services.

The Albanese Government will provide up to $50 million through the Build Early Education Fund, toward co-investment opportunities to help build or expand integrated and holistic early learning services in areas of need.

Philanthropic partners of IDAC have also committed to up to $50 million in-principle funding, to bring together early learning, child and maternal health services, and family and community supports.

Philanthropic funding will also be targeted towards initiatives that strengthen a holistic early childhood development system, such as measures to strengthen the not-for-profit sector’s capacity as well as research and evaluation.

The partnership represents one of the biggest co-investments between government and philanthropy in Australian history.

IDAC is a flagship collaboration between the Government and philanthropic organisations to improve the health and wellbeing of children, young people, and their families.

This co-investment is the next major step in translating commitments made at the 2024 IDAC Roundtable into action.

The partnership also builds on the significant reforms the Albanese Government is delivering across the early childhood education and care sector, ensuring children and families have universal access to high-quality early learning.

To learn more about these reforms visit education.gov.au/early-childhood/announcements/building-universal-early-education-and-care-system

Quotes attributable to Treasurer Jim Chalmers:

“The transformational power of education begins with quality early childhood education and care.

“Every child has a right to early education no matter their background or where they live, and this partnership is a milestone on our path to universal education and care.

“This investment isn’t just good for children, it gives parents and carers the choice to return to work or study earlier if they want to – helping families earn more and keep more of what they earn.”

Quotes attributable to Minister for Social Services Amanda Rishworth:

“The first years of a child’s life are vitally important to their wellbeing, education and development.

“This partnership builds on the successes of IDAC and continues to enliven community-led solutions to meet the aspirations of communities, families and their children.

“It is another example of the Government working together with community and philanthropy to find solutions that are led by and are meaningful for the families and children who will most benefit.”

Quotes attributable to Minister for Early Childhood Dr Anne Aly:

“We’re strengthening local communities by ensuring that Government and philanthropy work together to maximise our efforts and deliver for disadvantaged communities.

“The Albanese Labor Government is laying the foundations for a truly universal early childhood education system through improving affordability, boosting supply, increasing accessibility and securing the vital workforce families rely on.

“No child should have to carry disadvantage through their life – we know that by investing in the early years we can change the trajectory of a child’s life and improve their education and health outcomes.”

Quotes attributable to Paul Ramsay Foundation CEO Professor Kristy Muir:

“This is a major step towards an Australia where every child has what they need to thrive in the first critical years of life.

“Through these co-investments, we’re creating the conditions needed for kids and families to have experiences in the early years that set them up for life.”

Quotes attributable to Minderoo Foundation CEO John Hartman:

“Minderoo Foundation is proud to be part of a collaborative effort with the Federal Government and other philanthropies to empower communities to break cycles of adversity by tackling issues at their root causes.

“The most effective way to create sustainable change is to provide the resources and capability that communities need to be able to lead the way and providing infrastructure that brings services together and benefits the whole community.

“This commitment by government and philanthropy will help build a fair future for Australian children and families.”

Quotes attributable to The Bryan Foundation Executive Director Matthew Cox:

“When we look to the services and supports other OECD countries have established to support their children we see highly integrated early learning, child and maternal health and family support services under the one roof providing all the help that families need.

“This partnership will enable us to put more of these kinds of joined-up services on the ground and begin to plan for how to do this at scale.”

Quotes attributable to Investment Dialogue for Australia’s Children Executive Convenor Simon Factor:

“This is an exciting moment for IDAC, where ambitious discussions and significant commitments are being transformed into a record co-investment that will deliver tangible benefits for children and families.

“This partnership represents a crucial step in building the early childhood development system of the future – one that is integrated, sustainable, and focused on delivering the best outcomes for all Australian children.”

Source: Assistant Minister for Industry, Innovation and Science

27 March 2025

The Albanese Labor Government and Allen Labor Government are working together to deliver more frontline critical family, domestic and sexual violence services in Victoria.

Both governments have demonstrated their commitment to ending gender-based violence by renewing the five-year National Partnership Agreement on Family, Domestic and Sexual Violence Responses.

The Victorian Government will receive an additional $89.7 million in Commonwealth funding as part of the renewed National Partnership, bringing the total Commonwealth investment to $163.9 million since 2022.   

The funding is matched by the Victorian Government to support frontline family, domestic and sexual violence services, including specialist services for women and children, and men’s behaviour change programs.

Minister for Social Services, Amanda Rishworth, said that real, transparent and productive partnerships between governments are required to achieve change.

“Through the FDSV National Partnership, we are demonstrating the commitment of governments to work together to fund frontline services, strengthen supports and ultimately end gender-based violence in Australia,” Minister Rishworth said.

“This renewed partnership will provide longer term funding certainty to family, domestic and sexual violence frontline services and help impacted Victorians access the support they need.”

“The signing of this agreement marks an important milestone of delivery with all states and territories now having signed renewed partnership agreements with the Commonwealth.”

The renewed FDSV National Partnership will deliver over $700 million across all jurisdictions in new, matched investments from the Commonwealth and states and territories, supporting frontline FDSV services, including specialist services for women and children impacted by FDSV, and men’s behaviour change programs.

An additional $1 million will also be used for an independent evaluation of the renewed FDSV National Partnership.

More information on the FDSV National Partnership Agreement is available on the Federal Financial Relations website.

If you or someone you know is experiencing, or at risk of experiencing domestic, family and sexual violence, you can call 1800RESPECT on 1800 737 732, text 0458 737 732 or visit www.1800respect.org.au for online chat and video call services:

• Available 24/7: Call, text or online chat
• Mon-Fri, 9am – midnight AEST (except national public holidays): Video call (no appointment needed) 

If you are concerned about your behaviour or use of violence, you can contact the Men’s Referral Service on 1300 766 491 or visit www.ntv.org.au

Feeling worried or no good? Connect with 13YARN Aboriginal & Torres Strait Islander Crisis Supporters on 13 92 76, available 24/7 from any mobile or pay phone, or visit www.13yarn.org.au No shame, no judgement, safe place to yarn.

Source: Allens Insights (legal sector)

Draft assessment guidelines open for consultation 5 min read

The ACCC has released its draft merger assessment guidelines (Draft Guidelines) for consultation, offering a preview of how it plans to assess mergers under the new mandatory regime (which comes into effect on 1 January 2026).

In this Insight, we highlight key aspects of the ACCC’s renewed approach and what the proposed changes would mean for your business.

Key takeaways

• Businesses that may be seen as already having a substantial degree of market power can expect close scrutiny of any transactions where the target has overlapping goods or services, even if the market share increment is low. According to the ACCC, even mergers that lead to a small change in market power can potentially substantially lessen competition.
• The ACCC has set out its proposed framework for assessing mergers that may eliminate potential competition, involve multi-sided platforms or form part of a set of serial acquisitions. We expect these will be key areas of focus under the new regime for all sectors, but will particularly impact transactions in the tech, financial services and supermarket sectors.
• Merger parties will need to demonstrate that any claimed pro-competitive efficiencies are specifically related to the merger and are likely to be realised.
• The Draft Guidelines represent a significant update to the ACCC’s guidelines published in November 2008, with more detailed guidance on the approach to the new and more novel competition issues with which the ACCC has grappled in recent years. The Draft Guidelines indicate a level of convergence with those issued by US agencies in 2023.

What you need to know

Creating, strengthening or entrenching market power

Under the new regime, the ACCC will consider whether a merger is likely to create, strengthen or entrench a substantial degree of market power in determining whether it substantially lessens competition.

The ACCC’s position is that a merger can substantially lessen competition even if it leads to only a small change in market power.

Mergers that eliminate potential competition, including killer acquisitions

The ACCC plans to look closely at mergers that eliminate potential competition, eg mergers in which an incumbent acquires a nascent rival or potential entrant.

The ACCC has expressly called out killer acquisitions, where an acquirer acquires a target (a potential competitor) to neutralise the competitive threat before the target develops into a true rival. Alternatively, a business may decide to acquire an existing player instead of entering a certain market itself, thereby removing competition that would have been introduced by the acquirer’s own entry.

The ACCC considers that in markets characterised by network effects (where users derive more value from a product if more users use the same product), potential competitors that threaten to displace the incumbent’s market position may exert the greatest competitive constraint.

The ACCC is on the lookout for acquirers undertaking multiple acquisitions of nascent rivals over time and says this could strengthen or entrench the acquirer’s market power.

It considers that the loss of potential competition will be more relevant in markets where significant and long-term investments are necessary, eg digital platforms or pharmaceutical companies.

Mergers involving multi-sided platforms

In relation to multi-sided platforms (platforms that supply services to two or more distinct but related customer groups, eg social media platforms and shopping centres), the ACCC observes that such platforms tend to be characterised by network effects. The ACCC is concerned that these effects may be so strong and self-reinforcing that they create a ‘tipping effect‘, where one platform becomes supreme and smaller platforms only exert a weak constraint.

The ACCC has indicated that in assessing mergers relating to multi-sided platforms, it will consider factors such as whether one or both sides of the platform are impacted, the incentives of the platform operator and the strength of network effects. It also proposes to consider the risk of amplifying a party’s market power, eg where interoperability or multi-homing is necessary to compete.

Cumulative effects of serial acquisitions

The ACCC is setting its sights on serial acquisitions. Under the new regime, the ACCC will be able to take into account prior acquisitions that, when viewed together (in the same or related markets and in the preceding three years), would be likely to substantially lessen competition.

The ACCC foreshadows that it may consider information and evidence about the acquirer’s previous and future business plans, incentives behind the acquisitions and the likely impact of both the notified transaction and the series of acquisitions on the merged entity’s market position.

Efficiencies

The ACCC proposes to take a discerning approach to arguments about efficiencies.

It says a merger that removes or weakens competitive constraints will, in many cases, substantially lessen competition even if the merger results in a more efficient firm with a lower cost structure.

It has stressed that it will only consider merger-related efficiencies to be relevant where there is clear and compelling information or evidence that the efficiencies incentivise the merged firm to compete more vigorously against rivals.

The ACCC will seek to verify that any claimed efficiencies arise specifically from the merger and will consider the parties’ alternative options to achieving these efficiencies in testing this.

Merger parties will need to demonstrate that the efficiencies are likely to materialise and that they improve the incentives to compete, eg through internal documents and external experts’ studies.

Comparisons with guidelines from overseas regimes

The approach the ACCC has taken is similar to the approach taken by the UK Competition and Markets Authority as reflected in its 2021 Merger Assessment Guidelines and the approach taken by US agencies as set out in the 2023 Joint Merger Guidelines issued by the US Department of Justice and Federal Trade Commission (US Merger Guidelines), although there are some subtle differences. Comparing the Draft Guidelines and US Merger Guidelines:

• The Draft Guidelines do not create a presumption of illegality, unlike the US Merger Guidelines. However, both reflect the agencies’ respective positions that a small increase in existing market power may be sufficient to substantially lessen competition in an already consolidated market.
• Both focus on eliminating potential competition and ‘killer acquisitions’.
• The Draft Guidelines expressly deal with serial acquisitions, whereas the US Merger Guidelines frames this issue within a broader context of industry trends and consolidation.
• Both approach mergers involving multi-sided platforms in a similar way. The US Merger Guidelines outline an approach to examining ‘competition between platforms, on a platform or to displace a platform’.
• The Draft Guidelines include a framework to ensure claimed merger efficiencies are ‘merger specific’ and ‘verifiable’. This is largely consistent with the approach agencies have traditionally taken to closely scrutinise claims of efficiencies.

Next steps

The ACCC’s public consultation on the Draft Guidelines is open until 17 April 2025. If you would like to discuss the Draft Guidelines, the impact they may have on your business and the steps you can take to prepare for the new merger regime, please get in touch with us.

You can read our previous Insight for a detailed overview of the legal framework and key elements of the new merger regime, or download our practical summary here.

Source: Australian Ministers for Regional Development

The ACCC is predicting gas supply in the east coast gas market could fall short by 9 petajoules (PJ) in the period July to September 2025, if LNG producers export all their uncontracted gas, according to its updated assessment.

This period, which includes winter months, usually sees the highest demand domestically for gas due to colder temperatures.

The ACCC’s short-term update indicates the supply-demand forecast has dropped by 22 PJ since the December 2024 quarter report, due to a fall in production and increased exports.

In the southern states, the supply shortfall is projected to reach a historic high of 40 PJ for the quarter.

The revised outlook coupled with market risks, such as higher demand for gas in case of unexpected weather events or outages of coal-fired power plants, increases the risk of a shortfall across the east coast without access to the LNG producers’ surplus gas.

“This changed outlook reflects the susceptibility of the supply/demand balance to short-term reductions in gas production and changes in LNG producers’ intended exports and swaps,” ACCC Commissioner Anna Brakey said.

“The east coast supply and demand balance is projected to worsen further over the next few years, which will increase the impact of LNG producers’ decisions on the market. It remains crucial that LNG producers have regard to the domestic outlook before making any significant variations to export volumes or schedules.”

“To ensure that the east coast gas market has enough gas this winter, including through any significant demand or supply shocks, we recommend that the Australian Government work with LNG producers to secure additional gas, which is currently uncommitted, for the domestic market,” Ms Brakey said.

Chart 2: Quarterly supply demand outlook for quarter 3, 2025 (PJ)

_{Source: ACCC analysis of data obtained from gas producers in January 2025 and of the domestic demand forecast (Step Change scenario) from AEMO, Gas Statement of Opportunities (GSOO), March 2025.}

  _{Note:     Totals may not sum due to rounding.}

Shortfall of gas supply in the southern states doubles

The predicted 40 PJ shortfall of gas in the southern states for the third quarter of 2025 is twice that of the same time in 2024.

This is mainly due to declining production from the Gippsland, Otway and Cooper basins, and higher forecast demand for gas-powered electricity generation.

The ACCC projects that the 40 PJ gap will be able to be met by transporting surplus gas from Queensland (about 30 PJ) and drawing on southern state gas stores (about 10 PJ).

“Pleasingly, we expect that there will be adequate gas and sufficient pipeline and storage capacity to meet the shortfall in the south. But, without access to the LNG producers’ surplus gas, the current outlook provides very little buffer for unexpected events, including extreme weather, higher than allowed-for demand, or higher than usual outages in coal-fired power stations,” Ms Brakey said.

“Actual supply and demand for the third quarter of the year could surprise on the up or down sides. But with not enough new supply coming online to offset declining production in the southern states and higher, more volatile, demand for gas-powered generation, there needs to be a bigger buffer for downside risks.”

The report highlights the importance of sufficient storage in the southern states in averting a shortfall.

“Iona underground storage is essential to meet winter demand,” Ms Brakey said.

Chart 2: Southern states outlook for quarter 3, 2025

                         

_{Source: ACCC analysis of data obtained from gas producers in January 2025 and of the domestic demand forecast (Step Change scenario) from AEMO, Gas Statement of Opportunities (GSOO), March 2025.}

  _{Note:     Totals may not sum due to rounding.}

Government response to ACCC report

The ACCC report recommended that the Australian Government work with LNG producers to secure additional gas, which is currently uncommitted, for the domestic market, to ensure that the east coast gas market has enough gas this winter.  

The ACCC recognises the commitments made by the LNG producers to the government and welcomes the progress this represents. It is important that LNG producers ensure that the needs of the domestic market are met before they export gas that is currently uncontracted.

“It is an important step for the LNG producers to fulfil the commitments they have made to the government in order to reduce the risk of a shortfall eventuating over the July to September period if all uncontracted gas was exported,” Ms Brakey said.

“Our March report identified that, between them, the three LNG producers have sufficient uncontracted gas to supply the domestic market if they make it available.”

“We will continue to report quarterly on the supply and demand balance in the market.”

Long-term gas contract update shows prices have eased

In another update to the market released today, ACCC analysis of contracts for supply over 2025 and 2026 shows that prices eased, and agreed volumes for supply increased, over the six months to December 2024 compared to the preceding six months.

The average price for gas in producer contracts for supply in 2025 fell by about 10 per cent (to $13.58 per gigajoule) in the second half of 2024 compared to the previous six months. Prices in retailer gas supply contracts dropped slightly in the same period, to an average of $14.51 per gigajoule (GJ).

Average producer prices for 2026 supply fell by 2 per cent to $13.94 per GJ compared to the first half of 2024. Retailer prices averaged $13.55 per GJ. “This report shows encouraging signs on gas supply, but there is still a way to go,” Ms Brakey said.

“While the increase in contracted gas and the reduction in prices are positive developments, the total volumes for 2025 and 2026 remain significantly below those contracted before the energy crisis for 2021 and 2022.”

Background

In 2017, the Australian Government directed the ACCC to conduct a wide-ranging inquiry into the supply of and demand for natural gas in Australia, and to publish regular information on the supply and pricing of gas. The ACCC will conduct the inquiry until 2030.

The Interim update on east coast gas supply-demand outlook provides an updated picture on the gas supply-demand balance for the east coast gas market for quarter 3 of 2025. The ACCC reports quarterly on the gas supply outlook which provides information that assists Government decision making, including in relation to the ADGSM.

The Interim update on long-term contract prices for July – December 2024 provides updated pricing and other information on contracts agreed for long-term supply of gas (for terms of 12 months or more) on the east coast market during the period July to December 2024. This report is in response to a request from the Minister for Climate Change and Energy on 14 November 2024 to increase the frequency of reporting on gas supply agreements as an interim means of improving the transparency of gas prices.

Source: Australia’s climate in 2024: 2nd warmest and 8th wettest year on record

The Albanese Labor Government has passed legislation that will allow eligible Australians to apply for easier passage through US airports.

The United States’ Global Entry Program provides an avenue for eligible citizens of trusted partner countries to access expedited clearance processes on arrival in the US.

This is a mark of the closeness of the relationship and trust between Australia and the US and will be welcomed by Australian tourists, business leaders and corporate travellers who will be able to join faster entry lanes when they arrive in the US.

This program is voluntary, and only available for pre-approved, low-risk travellers who meet the strict eligibility criteria as set out by the US. Both Australia and the US will conduct background checks on Australian applicants.

The Global Entry Program membership also opens up eligibility to TSA Pre-Check program, making travel within the US a much simpler process.

A limited number of Australian citizens have been able to apply for Global Entry Program from January this year under phase one, which is now closed. The passage of this Bill will pave the way for the expansion of the program to all eligible Australians with phase two expected to commence in the second half of the year.

Quotes attributable to the Minister for Home Affairs, Tony Burke MP

“The Albanese Government has done the work to ensure Australia’s entry into the United States’ Global Entry Program. It was first promised when Peter Dutton was Home Affairs Minister but was never delivered by the former government.

“This means shorter queues for Australian business travellers so they can spend their time working and building business links rather than waiting in line.”

Quotes attributable to the Minister for Foreign Affairs, Senator the Hon Penny Wong

“Expansion of the Global Entry Program is a testament to the closeness and friendship between our people.

“I pay tribute to Ambassador Rudd who has been the driving force behind Australia’s entry into this program, six years after it was first announced by the former Government.

“This will make travel easier for eligible Australians and will continue to grow the strong commercial ties between Australia and the United States.”

Source: Australian Parliamentary Secretary to the Minister for Industry

Georgia Stynes:

Our guest is the Labor Member for Fenner, Dr Andrew Leigh, who has been listening into this previous conversation and joins us. Good afternoon.

Andrew Leigh:

Good afternoon Georgia, great to be with you.

Stynes:

Yeah, nice to be with you too. Do you acknowledge that there were some forgotten people in this Budget that a lot of the measures seem to be aimed towards, well, either people who are paying tax or business?

Leigh:

Well in our previous Budgets, we’ve raised the JobSeeker rate, we’ve increased Commonwealth Rent Assistance by over 40 per cent. We have prioritised those who are doing it tough by supporting increases to the minimum wage and supporting increases to aged care workers and early childhood workers.

Our tax cuts are directed towards everyone. So, everyone earning over $45,000 receives that same benefit over the 2 tax cuts. Somewhere around $10 a week in conjunction with our previous tax cut totals around $50 a week or $2,500 a year. So, we’ve looked to deliver egalitarian reforms at the same time as focusing on the long run productivity challenge that our predecessors left us with.

Stynes:

To be fair, that that would buy you a democracy sausage though at election day, which is partly what’s being said is that this looked like an election budget. There weren’t lots of big things, big picture things.

Leigh:

Look, I think $50 a week is pretty significant. And you put that alongside the energy bill rebates, that $75 off each of your next 2 quarterly bills. The work we’ve done around cheaper medicines, cheaper childcare and housing affordability through our work with the ACT Government and other state and territory governments, historic investment in housing, all of that is focused on making us a more productive economy and at the same time helping to keep our lid on prices.

Leigh:

You live in Canberra, you’ve lived in Canberra for a long time and I know you spend a lot of time out in the community ACTCOSS, Vinnies, lots of agencies – Marymead Catholic Care are telling us that they’re seeing people come through their doors that have never come through their doors before. People that used to donate to them are now queuing up for food banks. Things have changed.

Don’t you think this was an opportunity? The Budget was an opportunity to help those people struggling with the cost of living?

Leigh:

Last week the ACT Labor team was out at Marymead in Lyneham around an announcement that we’d made of investing in housing for women and children fleeing domestic and family violence. We pioritise those social spends and social supports in this Budget, as we have the productivity boosting reforms. We’re aiming to be an inclusive government that makes these investments for everyone.

And I don’t think there has been an Australian Government, certainly in my lifetime, that has given so much of a priority to Canberra. Through the investments in the national cultural institutions, the National Security Precinct, the work in the War Memorial, prioritising the public service over outsourced consultants and contractors and giving the ACT our fair share of infrastructure spending, which you see strongly reflected in this Budget with the investments in the Monaro Highway, Gundaroo Drive and the like.

Stynes:

Do you acknowledge that Canberra has changed? That we are seeing more people on the streets and there are people struggling, that we are in a cost‑of‑living crisis?

Leigh:

Look, I think there’s certainly cost‑of‑living challenges. Inflation is now back within the Reserve Bank’s target band and we’ve done that for the first time in Australian history without smashing the labour market. Previously, we had a big surge in joblessness as Australia sought to bring down prices. We haven’t done that this time. We’ve got inflation under control while maintaining a historically low rate of unemployment – the lowest average rate of unemployment of any government in 50 years.

The UK has gone into recession, New Zealand has gone into recession. Other countries have suffered quarters of negative growth as they’ve sought to tame inflation. Australia has tamed inflation while maintaining full employment. And that is so important to the social equity goals that you’re talking about there Georgia.

Stynes:

Dr Andrew Leigh is our guest. He’s the Labor Member for Fenner. Just on the text line, one listener says ‘What about a Newstart hike? Why didn’t that happen? Another listener has said ‘Yeah, the people currently living in tents in and around Canberra will get cold comfort from this Budget’. Another listener has said ‘long‑term unemployment really needed more analysis. They need to be looking at why this is happening. There’s a huge resource there if the government could help them do courses lead to degrees, we could get them into aged care or others that need employees.’

I just want to, I know you’re very busy – just before we run out of time. One of the things that you’re quite passionate about is this non‑compete clause. Can you just explain to people how this will work? The changes?

Leigh:

One in 5 workers are subject to a non‑compete which makes it hard for them to move to a better job. People like the 17‑year‑old dance instructor who found herself harassed at work and then when she moved to a competing dance studio, found herself being threatened for breach of contract by her former employer. These non‑compete clauses are dampening down wages and decreasing productivity.

And so we’re going to be getting rid of non‑compete clauses for workers earning under $175,000. That’s going to be great for wages. Those affected workers will see on average a 4 per cent wage boost and it’ll be great for productivity. It’ll make it easier to start a business because in a full employment economy you need to hire workers from other firms if you’re going to get a new business off the ground.

Stynes:

How many people does that actually affect in Canberra? Is that dancer an example here in Canberra or is that a federal example?

Leigh:

That’s an example from interstate, but certainly in the ACT I would expect that it would be around one in 5 workers affected as well. You know, these aren’t just high paid executives who are being affected. These are gardeners, cleaners, security guards, early childhood workers who are signing up to standard form employment agreements Georgia, which contain non‑compete clauses making it harder for them to move to a better job.

Job mobility is a really important part of a productive economy. It’s a really important part of an economy in which wages grow. Labor wants people to earn more and keep more of what they earn.

Stynes:

Just to clarify though, this is also working, you know, when you’ve got people you would know too, people who work in say banking or in other areas or a lawyer and they, they resign and then they’re sort of between another job, they can’t go and work for another law firm between that period. Is that what you’re talking about or are you talking about other things?

Leigh:

If they earn less than $175,000 yes, they’ll be caught. And I should be clear Georgia, for any of your listeners who are running small businesses, those small businesses still have the protection of intellectual property laws, of non‑disclosure agreements. So they can hold their secrets but they can’t bind their staff to the desk.

Stynes:

When we talk about – because just back on that for a minute. That happens in the public service, obviously that happens in corporate jobs. But you’re saying the cap is how much they earn, is that right?

Leigh:

That’s right. And so, this is about getting wage growth going. We’ve seen a decline in job mobility under the former government and that may well be one of the reasons why we saw such lousy wage outcomes, why real wages were falling so sharply when we took office.

Allowing people to move to a better job is really fundamental. It’s a question of freedom and opportunity and it’s also a way of ensuring that people get the wage gains they deserve.

Stynes:

There’s quite a few texts coming through just before you go too. One person says, ‘But the point is we have historically high rates of homelessness in this country’. Another listener has said ‘These tax cuts are a huge waste of money’.

Spreading across Australia reduces its impact per person. Wouldn’t it have been better for this huge amount to go into one or 2 areas – say health, say education, say homelessness. Do you think that might have been a better look if that money had actually gone there?

Leigh:

Well, health, education, homelessness are all big priorities for us. In education, you’ve got the 3 day childcare guarantee and the national schools funding agreement that we’ve now signed up to with all states and territories. With health, we’ve been moving to get cheaper medicines. Reforms in this Budget will bring down the cost of PBS medicines from $31 to $25.

In housing, we’ve been making bigger investments in social housing than any previous Australian Government through the Housing Australia Future Fund and our work with the states and territories on dealing with planning and zoning. So, all of those areas are big priorities for the government and were front and centre in the Budget last night.

Stynes:

There is criticism that this was a cobbled together Budget. The idea that this is fit for an election, but it wasn’t expected to be delivered. Is that true? Was this cobbled together?

Leigh:

Not at all. This is a Budget that delivers tax cuts which the Liberals and Nationals today voted against, and which focuses on long‑term reform such as getting competition policy going again. It’s got reforms which will allow electricians to work across state and territory borders. Really important for a sparkie in Queanbeyan to be able to do a job in O’Connor.

And it’s got reforms which are focused on investing for the long run. Increasing the funding to the Clean Energy Finance Corporation, so it can do more innovative work in tackling climate change and that decarbonisation challenge.

Stynes:

We’ll have to leave it there I’m sorry but thank you so much for your time, I appreciate it.

Leigh:

Thank you, Georgia.

Stynes:

Thank you. That’s Dr Leigh there, Labor Member for Fenner.

Source: Australian Parliamentary Secretary to the Minister for Industry

It’s terrific to be with you and I’m sorry we’re not meeting in person in the Great Hall today. I acknowledge that I’m on Ngunnawal land today, and acknowledge all First Nations people joining us.

Thank you to the Canberra Business Chamber and the Institute of Public Accountants for again putting on this event, which is really a fixture in the budget calendar. I’ve done your event many times. I enjoy it more in person than virtually, but it is a real pleasure to be able to engage with the Canberra business community.

Let me start off with where we are in a global context, then go to a couple of the key measures in the Budget and finally finish up by asking the question: ‘What does the Budget mean for Canberra?’

If we look around the world, uncertainty is up. We’ve always lived in an uncertain world, but policy uncertainty is combining with geopolitical uncertainty. At this moment, we’ve seen a range of our counterpart economies go into recession as they’ve sought to battle inflation. The UK and New Zealand have suffered recessions, and many other economies around the world have experienced quarters of negative growth as they sought to tame the global cost‑of‑living challenge. Australia, uniquely in our history, has managed to bring inflation down into the Reserve Bank’s target band without a significant rise in unemployment. We should be collectively extraordinarily proud of this. It’s not the story of the 70s, the 80s or the 90s, where taming inflation meant increasing unemployment.

In Australia, we’ve managed to maintain full employment while getting prices back under control. And that in itself is a remarkable achievement. More than a million jobs created, interest rates now coming down, inflation back within the band, a strong labour market. So, while you look around the world and see a lot of uncertainty, there’s not many places you’d rather be than Australia.

The Treasurer last night talked about 5 big themes. I don’t have half an hour, so let me focus on 2: cost of living and productivity. In terms of cost of living, our biggest measure is continuing the tax cuts that we began last year. Last year as you remember, we adjusted the tax cuts so every taxpayer got a tax cut. Now we’re announcing that from 2026–27, we’ll be delivering a tax cut worth $268 for everyone earning over $45,000 per year, and the same again the year after that. That will be worth about $10 a week for the average worker, and it adds to the previous tax cut worth about $40 a week for the average worker to around $50 a week. That sits alongside the energy bill relief which will be extended for another half year, reflecting the pressure many households are under.

And then there’s the systemic changes: cheaper medicines, cheaper childcare. The work we’re doing in supermarket competition has a cost‑of‑living lens as well. We’ve commissioned the biggest review of the supermarkets in 17 years, and that review continues to make recommendations which build on the government’s work to tackle shrinkflation and ensure that Australian shoppers get a better deal at the checkout. You’ll soon be seeing the next iteration of CHOICE’s quarterly gross price grocery price monitoring, which is another measure that Labor has put in place to ensure that shoppers get a better deal.

Now, Emma [Alberici] talked about productivity and about a couple of the productivity boosting measures we have in place. I want to focus on those because it is really important that we as progressives, are focused on not only boosting demand, but also on the supply side, on ensuring that we’re unlocking the growth potential of the Australian economy. Emma rightly talked about the work that we’ve done on early learning, providing that 3 day guarantee, following the experts and getting rid of the activity test in order to unlock the productivity potential of the Australian workforce. We’re investing in skills, finally completing that Gonski project of ensuring that every school gets its appropriate level of funding, and that final agreement with the Queensland Premier that was announced this week is the last piece of the puzzle in those Gonski reforms. It’s not just money, it’s about reforms. It’s about more targeted teaching, more intensive literacy and numeracy education to tackle that challenge that we’ve seen in the OECD PISA tests, where Australian students since the beginning of the millennium have slipped back about a year of achievement. We need to do better, and this money will allow us to do that.

The boost in Free TAFE places is vital in ensuring that we have more skills for the jobs in the modern economy, particularly in construction. We understand that we need to increase uptake and we need to encourage apprentices to stay in on the tools. We recognise that by boosting investment in modular methods of construction, we can also unlock productivity in the housing sector. Housing sector productivity has gone down in Australia, as it has in many other advanced countries, and a recent Productivity Commission report talked about some of the challenges. They’re not bagging unions – far from it. They’re talking about the challenges of scale and about the way in which modular construction has sometimes struggled, about some of the regulatory challenges that housing construction faces, and our government is very focused on unlocking housing sector productivity.

Now, Emma also talked about one of our key productivity boosting measures in this Budget, which is around the competition reforms relating to non‑competes. When I first started looking at this about 5 years ago, people said ‘Oh, it’s just an American thing. Sure, one in 5 American workers have non‑competes but you won’t find the same in Australia.’ So, we worked with e61 and with the ABS in order to do surveys that revealed, lo and behold, that one in 5 Australian workers were subject to a non‑compete clause – a clause that stopped them from moving to a better job. And then the argument came ‘It’s just executives being put on gardening leave’. But it turned out in the surveys that it’s gardeners, it’s early childhood workers, security guards, a whole range of workers in low‑wage professions that have been caught by standard form employment agreements which are preventing them from moving to a better job.

Our reform will then unlock a productivity boost, because if you want to start a firm on a full‑employment economy, you need to hire workers from other firms. It’ll apply to workers earning under $175,000 – the Fair Work Act high‑income threshold. Our estimate, the estimates we have from the experts on this suggests that it will boost wages by around $2,500 per year. That means for those affected workers, those one in 5 – that’s a boost of around $50 a week, commensurate with the tax cut gains that I talked about.

Getting rid of non‑compete laws for low wage workers shouldn’t trouble businesses, because you can still put in place non‑disclosure agreements that ensure that your secrets can’t walk out. And in fact, what’s going on at the moment is that many of these non‑compete clauses are not legally enforceable. We’re tying up workers and firms in a thicket of legal regulations. By getting rid of non‑competes and encouraging firms to instead use targeted non‑disclosure agreements, we will unlock productivity.

Finally, for Canberra this Budget builds on the investments of past budgets. On our record investment in the national cultural institutions. Investment in the War Memorial and the National Security precinct. This Albanese Labor government hasn’t neglected Canberra’s infrastructure spend, as the previous government did in their final budget, when Canberra received just one‑fifth of our fair share of infrastructure investment from the Coalition. Instead, this Albanese government has invested in bike paths, roads, and light rail for the nation’s capital.

We’ve got a public service which is right sized for the needs of the nation, and the Coalition’s proposals for a public service cut would devastate the ACT. On one hand, they’re saying that they’re going to cut one in 5 public servants which suggests that frontline services such as people processing veterans’ claims or parental leave benefits would suffer. But then they try and say, ‘well we won’t hurt frontline services – we’ll only cut the Canberra public service’. If they rip 41,000 public service jobs out, and only in Canberra – that’s half the public service in Canberra. That would also devastate the nation’s capacity to deal with future pandemics, with national security risks, and with biosecurity challenges. The Coalition can’t have it both ways. Either their public service cuts are a threat to frontline services, or they will devastate the nation’s policy infrastructure, including our national security.

So, thanks for the chance to talk about Budget 2025. Jim Chalmers and Katy Gallagher have put together a fantastic Budget which invests in productivity, tackles the cost of living, and delivers for Australia.

Source: Australian Parliamentary Secretary to the Minister for Industry

Tom Connell:

Well one of the inclusions in Labor’s Budget was non‑compete clauses. They claim this will be a big increase for people’s wages. Joining the panel now for more budget reaction on that, Assistant Minister for Competition, Charities and Treasury Andrew Leigh. In his own words, he’s been banging on about this for a while. Welcome to the panel. Yes, everything you say off air is on air too in this show.

So, non‑compete clauses – a lot of people will sort of go, alright, has that got anything to do with me? What’s a specific example that you’ve picked up because you’ve been very focused on this. You don’t have to put names in there, of a non‑compete that just had to go in your view?

Andrew Leigh:

So, we heard the story of a 17 year‑old dance instructor who was being harassed by her workplace. She moved to a competing dance studio and then got a letter from the former employer saying that she’d breached a clause that said she couldn’t work in another dance studio within 15 kilometres for 18 months. These clauses were originally applied only to executives, but are now being applied right across the economy, not just in the boardroom, but also in the mailroom.

Connell:

Can you see exceptions where people could take clients from a business with them? Is that an area where non‑competes actually protect a small business trying to make it in the world?

Leigh:

Well, employers still have a significant number of ways they can protect their intellectual property. Of course, they’ve got copyright and patent laws, they’ve got section 183 of the Corporations Act which makes it illegal to take information out of the business for your own benefit. And then they’ve got non‑disclosure clauses. They’re using non‑competes as the bluntest tool in the shed, but it’s curtailing labour mobility, which is one of the great sources of wage growth and productivity gain.

Connell:

But if you have, say someone at a law firm taking clients with them, there’s no IP there. They just, they’ve done that by building a relationship, or someone at a hair salon. Is that an area where there still needs to be some protection for a small business?

Leigh:

We will of course consult on this. It doesn’t come in until 2027.

Connell:

But, those things are on the table. You’re open to areas where these will still be applied?

Leigh:

Well at this stage, Tom, we’re not looking at these non‑solicitation clauses, which is what you’re talking about, except where they might be used to have the same effect as a non‑compete.

Connell:

Okay.

Andrew Clennell:

Why is it in the Budget?

Leigh:

Because we’re about productivity. So, the Budget needs to be about boosting growth. Ultimately, we’re pro‑growth progressives and the competition agenda of this government has been as ambitious as any government in the past generation.

Clennell:

How long have you been trying to get it past the Treasurer and Prime Minister to try and get this thing up?

Leigh:

The Treasurer and Prime Minister are very enthusiastic about this.

Clennell:

Yeah, but how long have you been trying to get it on the agenda?

Leigh:

We set up the Competition Taskforce in 2023. Jim and I announced that Competition Taskforce to drive things like the merger reforms, the National Competition Policy work with the states and territories, and then also the work on non‑competes. Our issues paper went out last year. We’ve got a range of thoughtful responses back on that. We’re moving at the same time Andrew, as a whole range of other countries are moving. Austria, Spain, Finland, the UK, the US all looking at the problem of non‑competes reducing job mobility.

Kieran Gilbert:

Why did you cap it at $175 grand a year?

Leigh:

We see the most egregious impact on wages Kieran, as being among low wage workers. And the Fair Work Act has that high income earner threshold which is a natural one to use, cutting in currently at $175,000.

Gilbert:

If you had your way, would you like it across the board – just get rid of it?

Leigh:

Well, this covers the vast majority of workers and therefore deals with the vast majority of the problem that we’re tackling in non‑competes. We know that firms have other ways of dealing with keeping their intellectual property and we know that non‑competes for workers that have them can drive down wages by around 4 per cent. So, we’re talking for an affected worker about a potential wage gain of $50 a week.

Angira Bharadwaj:

You said this is in the Budget because it’s a productivity measure. Do you think there were enough overall productivity measures in the Budget? What are some of the other things the government’s doing to boost that?

Leigh:

Yeah, look, the government’s really ambitious on productivity. Obviously, the education measures, the 3 day childcare guarantee, getting that schools funding agreement and the free TAFE places. The infrastructure investments are critical, as are the energy investments. All of those are about increasing the speed limit of the economy.

And the competition reforms proudly sit alongside that. We’ve had a decline in the competitiveness and the dynamism of the Australian economy over the last couple of decades and that’s really what’s led us to take such a strong forward leaning approach on competition.

Clennell:

Are you anticipating Peter Dutton to go bigger on tax cuts as a response to the government’s policy?

Leigh:

Well, today he went a lot smaller. We went into the parliament voting for lower taxes for Australians and the Liberals and the Nationals voted for higher taxes. Now, if Robert Menzies was still around, he’d be starting an Opposition party.

Clennell:

Well, hang on. I mean, he’s got a little bit of time now.

Leigh:

He had a chance, right? Today Andrew – he had a chance.

Clennell:

So, that’s it? You don’t think he’ll do it?

Leigh:

I have no idea what he’s going to do. He’s a bit of a loose unit.

Gilbert:

Does he consult you?

Leigh:

It appears not. But you know, this bloke will say one thing on Monday and do something else on Tuesday.

Connell:

But he gets to mull it over. Jim Chalmers was asked about giving a bigger tax cut. He said this was the most, basically that could be afforded. So, if Peter Dutton goes further, you can’t then match it, can you? If the Treasurer said this is the most the budget can afford?

Leigh:

Well, what we’ve done is ensure that every taxpayer got a tax cut. And if you put together – the tax cuts from last year and the tax cuts that we’ve now announced, that will amount to some $50 per week.

Connell:

But, this is your final offer?

Leigh:

This is what we’ve got in the Budget, and $50 a week is pretty substantial. That sits alongside measures such as cheaper medicines, cheaper childcare, the energy bill rebates – so much of it opposed by the Liberals and Nationals who seem not to care at all about the cost‑of‑living pressures that Australians are under.

Connell:

Alright, really appreciate your time today. Thank you.

Leigh:

Thanks so much.