THE House of Representatives Standing Committee on Economics today tabled its report titled Uncharted Territory: Review of the Reserve Bank of Australia (RBA) Annual Reports 2019 and 2020. The report focuses on matters arising from public hearings held in August 2020, December 2020, February 2021, August 2021 and February 2022.

The committee scrutinised the RBA on its response to the COVID-19 pandemic through monetary policy – in particular, reducing the cash rate, introducing a bond yield target and bond purchase program, providing a Term Funding Facility (TFF), and reducing the interest rate paid on Exchange Settlement (ES) balances.

The committee also heard from the RBA on Australia’s economic recovery, and broader economic conditions including inflation, unemployment, wage growth, labour supply and housing affordability. Beyond the COVID-19 pandemic, the committee inquired into issues such as digital currency, digital wallets and governance issues in the RBA.

Monetary policy was descried as remaining "incredibly consequential for the Australian economy during these times of great uncertainty" — in the wake of Russia’s invasion of Ukraine "and as we emerge from the pandemic".

Accordingly, the committee plans to continue to scrutinise the RBA’s policy responses to current and emerging threats to the strength of the nation’s economy and ensure the transparency and accountability of RBA decisions.  

A full copy of the committee’s report is available on committee’s website: www.aph.gov.au/economics

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A VITAL mental health service for first responders must be given permanent funding and the NSW Government should step in if the Federal Government won’t, according to the Public Service Association (PSA) and the Fire Brigade Employees Union (FBEU).

Funding for the Black Dog Institute’s Traumatic Stress Clinic has not been renewed, meaning the vital mental health support for first responders to bushfires, floods and other natural disasters will end on June 30.

The unions, which have members working across emergency services including Fire and Rescue NSW, RFS, SES, Police and 000 call operators, say the funding must be secured, either by the Commonwealth or the state.

“Post traumatic stress and mental trauma doesn’t stop once the flood dries and the fires are out,” PSA general secretary Stewart Little said.

“If the Commonwealth won’t fund the Black Dog Institute’s Traumatic Stress Clinic for first responders then the Premier needs to step in and do it.

FBEU secretary Leighton Drury said, “First responders are ordinary women and men who do extraordinary things.

“They're there for us in our hour of need, we shouldn’t abandon them. We should be investing in their mental health and resilience.”

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RECOMMENDATIONS to support Australia’s newspaper services in rural, regional and remote areas will be laid out in a report released today by the House of Representatives Standing Committee on Communications and the Arts.

Committee Chair, Anne Webster MP said, "Regional newspapers in Australia represent a large and diverse industry, which has experienced significant challenges over the past decade. With the transition to digital news and the ongoing COVID-19 pandemic, assessing the health of our regional newspapers is more important than ever before."

The Committee made 12 recommendations aimed at addressing core sector issues, and implementing alternative and sustainable business practices, to ensure the longevity of local newspapers across Australia.

The Committee also recommended a multi-pronged approach to support the long-term viability of the sector, particularly for small and independent newspapers based in regional and remote Australian communities. The approach includes the funding and development of a project to gather and analyse core longitudinal data on regional newspapers in Australia.

"For people in regional, rural, or remote communities, regional newspapers are the main source of local information. It also plays an important role in maintaining an interconnected community, and a healthy democracy," Dr Webster said.

"A diversity of opinion from all sides of the political spectrum and coverage of local, as well as national issues, is essential to public debate. It is important we ensure the sector remains viable in the long-term," Dr Webster said.

The report can be accessed from the committee’s website.

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THE House of Representatives Standing Committee on Tax and Revenue has today released its report titled The Australian Dream: inquiry into housing affordability and supply in Australia.

The report follows a seven-month parliamentary inquiry in which the committee heard from the Australian Federal Government, state and local governments, industry groups, peak bodies, think tanks, academics, economists, unions, and the general public. In its report, the committee makes 16 recommendations to improve housing supply and affordability across the country.

Chair of the committee, Jason Falinski MP said, "It should not need to be stated, but home ownership matters. It matters for reasons as diverse as wealth equality, mental health, childhood outcomes and democratic stability.

"But at the end of our months-long investigation, it does need to be reasserted that our nation was founded to be a classless society in which everyone got a chance to own their own home.

"The primary driver of growing house prices is the lack of market response. We need to reform broken planning systems, fix inefficient regulation, and stop new home buyers unfairly bearing the brunt of taxes and charges that are designed to raise funds, not living standards.

"This report identifies opportunities for all levels of government to unlock more housing supply, create more affordable homes and increase home ownership," Mr Falinski said.

Many of these recommendations focus on increasing housing supply. By recommending the Australian Government implement policies which financially incentivise state and local governments to adopt better planning and property administration practices, upwards pressure on supply will be mitigated. Further, incentivising state and local governments to directly tie taxes and levies to actual and meaningful infrastructure improvements will also serve to mitigate this upward pressure.

The committee is cognisant of the fact that a housing deposit is the largest barrier for first home buyers. Therefore, one of the key recommendations is that first home buyers be allowed to use their superannuation assets as security for a home loan. The report also makes recommendations regarding emerging housing models in Australia, including rent-to-own and build-to-rent housing.

It is evident that there are serious and large-scale issues in Australia’s housing market. In many parts of the country, an increasing number of Australians are struggling to buy a home, find an affordable rental property that meets their needs, and afford housing costs. Meanwhile, home ownership rates continue to fall. This situation has severe implications for us now and future generations.

The committee said it hoped this report would pave the way for effective government action and cooperation to address this critical issue, and has thanked all of those who contributed to the inquiry.

A full copy of the committee’s report can be found on the Inquiry’s website.

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