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Hearings commence for local government funding inquiry

THE Department of Infrastructure, Transport, Regional Development, Communications, Sport and the Arts will explain its key financial role at the opening public hearing for the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport’s inquiry into local government funding.

In 2023-24 the Department was responsible for administering more than $5 billion or 94% of the Commonwealth’s total commitment to local governments. The committee wants to better understand how the Department’s manages its important role in the funding and financial sustainability of local governments in Australia.

Of this funding for local governments, more than $3 billion in 2023-24 was provided under the untied Financial Assistance Grants. Another $500 million was for Roads to Recovery (RTR) and also $730 million for Local Roads and Community Infrastructure (LRCI) programs.

Chair of the committee, Fiona Phillips, said, "The committee will be considering whether existing funding mechanisms are addressing the evolving responsibilities of local governments and identify how funding arrangements affect local government’s ability to deliver services and invest in local infrastructure."

Further information on the inquiry, including the terms of reference and how to contribute, is available on the committee’s website.

Evidence provided to the House of Representatives Standing Committee on Regional Development, Infrastructure and Transport inquiry into Local Government Sustainability of the 47th Parliament will also be considered as part of this new inquiry.

The committee will schedule further public hearings in 2026.

Public hearing

Date: Thursday, 5 February 2026
Time: 11am – 12pm
Location: Committee Room 1R3, Parliament House, Canberra

A program for the public hearing is available on the inquiry website. A live broadcast of the hearing will also be available on the APH website.

 

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Blanket work from home mandates unworkable for builders says HIA

“THE Housing Industry Association (HIA) is calling for a proposed Federal Bill creating a legislated right to work from home to be rejected, as it would only add further regulatory pressure on small building businesses already struggling with rising costs and labour shortages,” senior executive director for compliance and workplace relations, Stuart Collins said today.

“Flexible work arrangements can play an important role in supporting workforce participation, and the current laws already provide a clear and functioning framework for employers and employees to establish effective working from home arrangements.

“While there has been a lot of discussion around mandating work from home in recent months, these changes would create a blanket one-size fits all obligation that disregards the operational realities of many industries, including home building businesses, adding compliance pressure and complexity for employers.

“For housing construction, work from home mandates would be impractical as many roles in home building require work that must be done on site. Supervising construction, managing trades and ensuring safety compliance simply can’t be done remotely," Mr Collins said.

“Mandating a broad right to work from home risks creating confusion, more disputes and extra compliance costs, particularly for small businesses.

“It would also create added work health and safety complications for employers, who remain responsible for workplace safety even when that workplace is someone’s home.

“Importantly, HIA's position as set out in our recent submission to the Senate Standing Committees on Education and Employment is broadly supported by the Productivity Commission (PC), who have outlined similar concerns with this proposed legislation in their submission.

“The Productivity Commission (PC) submission states that 'Australia appears to have arrived at a sensible middle ground' and '... the need for a legislated right to work from home is not clear'.

“This position by the PC confirms what Australian business and workers already know: that further interference in negotiated and flexible employment arrangements risks significantly undermining productivity, employment choice and can lead to unfairness and inequity in the workplace," Mr Collins said.

“At a time when Australia faces a critical housing shortage, policy settings should support productivity and reduce regulatory imposts. Adding another layer of workplace regulation without clear evidence of a problem will only make it harder to focus on what matters most, building more homes for Australians,” Mr Collins said.

HIA’s submission to the Private Senators Bill – Fair Work Amendment (Right to Work from Home) Bill 2025 can be accessed here.

www.hia.com.au

 

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UNSW economists: What the RBA’s 2026 outlook could mean for your mortgage, rent and savings

With interest rates expected to stay higher for longer, UNSW economists explain what could shape the Reserve Bank’s next decisions and what they could mean for households.

 

AFTER SEVERAL interest rate cuts last year, many Australians are looking ahead and asking whether further relief is on the way.

Australia is moving out of a high inflation period, but price pressures have been more persistent than expected, leaving the Reserve Bank cautious about easing rates further.

“Inflation has come down, but it is not yet back within the target range and has proved more persistent than expected. That is why the RBA has been cautious about easing policy,” associate professor Evgenia Dechter from UNSW Business School said.

“The implication is that the cash rate is likely to stay relatively high for longer.”

The cash rate currently sits at 3.60% with the next cash rate announcement on February 3. While economic growth is modest and the labour market remains relatively strong, UNSW economists say the path to lower rates will depend on how inflation, wages and productivity evolve. Understanding how those decisions are made, and what signals to watch, can help Australians prepare for what this outlook could mean for mortgages, rents, savings and spending.

What is the cash rate and why does it matter?

The cash rate is the Reserve Bank of Australia’s (RBA) main tool for steering the economy, and it shapes how much Australians pay to borrow and how much they earn on their savings.

“The cash rate is the interest rate set by the RBA that influences how much it costs to borrow money and how much you earn on your savings,” Dr Nalini Prasad, senior lecturer in the School of Economics at UNSW Business School said.

Changes to the cash rate flow through to household finances quickly. When rates rise, loan repayments increase and borrowing becomes more expensive. When rates fall, repayments ease, freeing up cash for other spending.  
 
“A higher interest rate leads to higher costs for borrowers as interest rates on loans rise, leading to higher loan repayments,” Dr Prasad said. “It is beneficial for savers as the interest rates on their savings rise.

“Through changing the amount that consumers and businesses save and borrow, the RBA attempts to influence prices and employment in the economy,” Dr Prasad said.

Where cash rates could head next

According to UNSW experts, inflation, a general increase in prices and a fall in the purchasing value of money, will be the central factor shaping cash rate decisions as the Reserve Bank looks ahead to 2026.

“Inflation has not fallen as quickly as expected, and consumer spending remains resilient in the face of higher inflation,” Dr Prasad said. “Inflation has been above the RBA’s target since the middle of 2025.” 
 
If inflation pressures fail to ease further, interest rates may not come down as soon as many are expecting.

“If inflation pressures persist, expect to see increases in the cash rate in 2026,” Dr Prasad said. 
 
Dr Gonzalo Castex, Senior Lecturer in the School of Economics at UNSW Business School, said the RBA’s decision will depend on how inflation, wages and productivity evolve, alongside global economic conditions.

“In a favourable scenario, inflation returns sustainably to target, productivity improves, and wage growth moderates, allowing interest rates to gradually normalise,” Dr Castex said.

But risks remain tilted toward caution. 

“In a less favourable scenario, inflation could prove more persistent, driven primarily by stronger-than-expected wage pressures and, potentially, reinforced by renewed supply-side frictions, requiring policy to remain restrictive for longer.”

Taken together, these scenarios underscore why households should not expect a fixed path for interest rates.

“Australians should understand that the RBA’s outlook is inherently uncertain and data dependent. Decisions will reflect a careful balance between controlling inflation and supporting employment, rather than a fixed path for interest rates,” he said. 
 
That uncertainty also shapes expectations around the timing of any rate cuts.

“The most realistic scenario is rates stay on hold for longer, with any easing likely to be gradual,” Assoc. Prof. Dechter said.

“The cash rate could increase if inflation remains above the target range or accelerates, particularly if demand and the labour market remain stronger than expected,” she said.

What this could mean for mortgages, renters and savers

If interest rates stay higher for longer, the effects will be felt differently across households, depending on whether Australians are paying off a mortgage, renting, or relying on savings.

For mortgage holders, the outlook suggests repayments are likely to remain tight, even if rates eventually begin to ease. 

“For mortgage holders, the ‘higher for longer’ scenario means repayments stay high for a while, and relief would likely be gradual rather than immediate,” Assoc. Prof. Dechter said.

Even when the cash rate starts to fall, changes may take time to flow through to household budgets. 

“Rate cuts don't affect everyone at the same time. Mortgage holders may see some relief relatively quickly, while the broader effects on business conditions and the labour market take longer to emerge,” she said.

Renters may continue to face pressure regardless of short-term interest rate movements, as conditions in the rental market matter more than changes to the cash rate.

“Rental prices are primarily driven by supply and demand in the rental market," Assoc. Prof. Dechter said. "But when financing costs are high and vacancy rates are low, landlords may have more opportunities to pass through the financial costs to renters.

"And over time, higher interest rates can also reduce new housing construction and future housing supply,” Assoc. Prof. Dechter said. 
 
On the other hand, higher interest rates can be a positive and can tend to benefit savers, with returns on savings remaining elevated while rates stay high. 

“A higher interest rate is beneficial for savers as the interest rates on their savings rise,” Dr Prasad said.

Those gains, however, sit alongside broader cost-of-living pressures, particularly if inflation remains elevated.

Preparing for what comes next 

As the Reserve Bank weighs its next moves, the message for Australians is that any change is likely to be gradual rather than dramatic.  Even as inflation moves back toward the Reserve Bank’s target range, many households may continue to feel financial pressure.

“It is also worth noting that even when inflation is back in the target range, it does not mean the cost of living falls; prices stay high, and wages can take time to catch up, so many households may still feel stretched,” Assoc. Prof. Dechter said. 

“If inflation eases, the cash rate should eventually come down, and mortgage repayments will ease too, but we are unlikely to return to the ultra-low pandemic era rates,” she said.

Global uncertainty adds another layer of complexity, reinforcing the need for flexibility in policy settings. 

“Global uncertainty remains a risk, so the RBA will want to stay flexible, and Australians should be ready for policy to shift if external conditions change,” Assoc. Prof. Dechter said.

That flexibility is central to how the Reserve Bank operates. “The RBA’s approach is forward-looking, meaning policy will adjust as new information emerges about the economy, both domestically and internationally,” Dr Castex said.

www.unsw.edu.au

 

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Economics Committee to hear from Reserve Bank of Australia

RBA Governor, Michele Bullock, will appear before the committee along with other senior RBA officials, following the release of the first Monetary Policy Decision of 2026 on February 3. 

"The Standing Committee on Economics biannual public hearings with the RBA are a significant accountability measure," Committee Chair, Ed Husic MP said.

"The RBA has an integral role in easing inflationary strain and supporting economic growth."

The committee said it welcomed the public to attend the upcoming public hearings in person or to watch live at aph.gov.au/live 

Public hearing details

Date: Friday 6 February 2026
Time: 9:30am – 12:30pm
Location: Committee Room 1R0, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live 

 

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Average Australian billionaire wealth grew by over half a million dollars a day in the last year says Oxfam

AVERAGE Australian billionaires' wealth grew by almost $600,000 a day in the last year alone, or over $10.5 billion collectively, new Oxfam analysis has revealed as the World Economic Forum opens in Davos today.

Since 2020, eight new Australian billionaires have been minted. Today, Australia’s 48 billionaires hold more wealth than the bottom 40% of the population combined, almost 11 million people. In light of these eye-watering figures, the anti-poverty organisation is calling the Australian Government to tax the fortunes of the super-rich to tackle rampant inequality. 

Data crunching also revealed: 

  • One Australian billionaire’s wealth increase alone matched the annual average incomes of more than 2,000 Australians.
  • The growth in wealth of Australia’s richest man and largest landlord, billionaire property developer, Harry Triguboff, in the last year alone, is equal to the amount required to fund the construction of 10,600 homes.
  • Globally, billionaire wealth jumped by over 16% in 2025, three times faster than the past five-year average, to $27.7 trillion – its highest level in history.
  • The total number of billionaires topped 3,000 last year for the first time, while the richest, Elon Musk, became the first ever to briefly surpass half a trillion dollars.   

Meanwhile, everyday Australians continue to face financial uncertainty as the cost-of-living crisis and rising housing prices persist. 

Jennifer Tierney, Oxfam Australia chief executive said the surge in billionaire wealth exposes a system that is failing people at home and abroad. 

“While millions of Australians are cutting back on essentials, struggling with soaring rents and mortgages, and watching global crises like conflict in Yemen, Sudan and Syria receive dwindling humanitarian support, Australia’s billionaires are accumulating extraordinary wealth at extraordinary speed," Ms Tierney said.

"The gap between those doing it toughest and those benefiting most is stark, and well evidenced."

The report, Resisting the Rule of the Rich: Defending Freedom Against Billionaire Power, analyses how the super-rich are securing political power to shape the rules of economies and societies, which can be to the detriment of the rights and freedoms of people around the world. Oxfam estimated billionaires were 4,000 times more likely to hold political office than ordinary citizens.  

Clive Palmer, mining magnate and former Member of Parliament, is a prominent Australian example. He has spent more than $250 million over five federal elections, most recently reportedly spending around $60 million to campaign for his party Trumpet of Patriots during the 2025 election.  

“When one billionaire can spend hundreds of millions of dollars to shape political conversations, it shows how extreme wealth can translate directly into political power — undermining a fair and healthy democracy,” Ms Tierney said.  

Across the globe, billions of people are being left facing avoidable hardships of poverty, hunger and death from preventable diseases because the system is rigged against them, according to Oxfam. Worldwide, one in four people face food insecurity, having to regularly skip meals. 

In Australia, more than 3.7 million people live in poverty, including 757,000 children under 15 years. One in three households experienced food insecurity last year, meaning they stressed about or struggled to put food on the table. 

“We have a Prime Minister who talks about creating a kinder and fairer Australia," Ms Tierney said. "The Government has the tools to act.

"Ensuring the richest Australians pay their fair share of tax would reduce inequality, curb the growth of extreme wealth, and generate much-needed revenue for essential services at a time when people are doing it tough at home and humanitarian needs are soaring globally,” Ms Tierney said.  

Oxfam is calling on the Australian Government to take urgent action to effectively tax the super-rich and remove tax breaks that allow them to amass extreme wealth. This is essential to restoring budget revenue needed for reducing inequality and funding essential services. Oxfam's suggested tax system reforms could include: 

  • Introducing a net wealth tax on the richest 0.5% of households, with rates increasing in accordance with increased wealth; 
  • A 5% wealth tax on Australia’s billionaires just last year could have raised $17.4 billion, enough to deliver cheap childcare for all families, extend energy bill relief for another two years, and increase the humanitarian budget almost seven times over;
  • Ending the capital gains tax discount for individuals and trusts, and instead taxing the income from capital gains on investments like Australia taxes income from work;   
  • Phasing out negative gearing to close loopholes that allow wealthy individuals pay less tax. 

Download Oxfam’s report “Resisting the Rule of the Rich: Defending Freedom Against Billionaire Power” and the methodology note. 

 

SOURCES

Australian billionaire data is sourced from the Forbes real time billionaire list. Data was collected on 30 November 2024 and 2025. Given the list is updated in real time, figures that currently appear on the website have been updated since the data was collected. See Oxfam's methodology note for further detail. 

Australian wealth inequality data is derived from the World Inequality Database. 

Australian wage data is taken from the Australian Bureau of Statistics and the National Minimum Wage taken from the Fair Work Ombudsman. 

Australian poverty data is taken from the latest Poverty in Australia 2025 report by the Australian Council of Social Service and UNSW.  

Food insecurity rates are derived from the Foodbank Australia’s 2025 Hunger Report. 

The cost of building a new home is taken from the Australian Bureau of Statistics. This was compared against the increase in Harry Triguboff’s wealth from 2024 to 2025 as listed in the Forbes real time billionaire list. 

The cost of the Energy Bill Relief program is compiled from the 2023-24, 2024-25 and 2025-26 Budget Papers. The cost of delivering universal childcare uses an estimate from the Productivity Commission. The government’s allocation for humanitarian assistance is listed in the Department of Foreign Affairs’ Official Development Assistance Budget Summary 2025-26.  

Crikey found that Clive Palmer has spent over a quarter of a billion dollars since 2013 to support and his political campaigns. In the 2025 Federal Election, Clive Palmer Palmer’s Trumpet of Patriots party reportedly spent $60 million in advertising. 

 

 

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