Business News Releases

Lending for new homes reaches decade low - HIA economist

LENDING for new homes has his a 10-year low, returning to numbers not seen since 2013, accourding to the Housing Industry Association of Australia (HIA).

“There were only 5,057 loans for the construction or purchase of new homes in November, the weakest month since June 2013,” HIA economist, Tom Devitt said.

The Australian bureau of Statistics (ABS) released the Lending to Households and Businesses data for November 2022 today.

“This reflects the very well broadcast housing downturn, with new housing loans over the 12 months to November 2022 down by 36.2 percent on the preceding year,” Mr Devitt said.

“Investors and owner-occupiers, alike, are retreating from the market.

“This contraction in lending occurred before the RBA increased the cash rate in December and we expect an ongoing decline in lending as the full impact of the increase in interest rates flows through to households.

“There are long lags inherent in this cycle and the full impact of the increase in the cash rate in 2022 will not be observed until late in 2023.

“The RBA has already undertaken the steepest hiking cycle in a generation, and it needs to hold fire on further hikes to give their actions to date time to play out.

“The RBA will not restore the economy to stable growth by putting the building industry through boom-and-bust cycles.

“As building activity slows in 2023, the RBA will be under increasing pressure to reverse course in the second half of this year,” Mr Devitt said.

The number of loans for the construction or purchase of new homes declined in all jurisdictions in November 2022 compared to the same month in 2021, led by the Northern Territory (-58.3 percent), and followed by the Australian Capital Territory (-39.7 percent), Queensland (-30.8 percent), Western Australia (-30.3 percent), South Australia (-29.7 percent), New South Wales (-26.8 percent), Victoria (-15.2 percent) and Tasmania (-7.4 percent).

Graph Lending for Purchase and Construction of a New Home

Graph Housing Loans by Market Segment

 

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Keep Australia's population below 30 million for environment and wellbeing - SPA

AUISTRALIA must stabilise its population below 30 million to stop the growing impacts on climate and biodiversity, as well as preserve quality of life, according to the environment organisation Sustainable Population Australia (SPA).

SPA president, Jenny Goldie was commenting on the latest report from the Centre for Population, the Treasury office which advises the Federal Government on population. That report is due to be released on Friday, January 6.

“The slowing of Australia’s population growth due to the pandemic should have been wholeheartedly welcomed,” Ms Goldie said.

“It is madness for the government and its business backers to restart extreme population growth by going flat-out with even higher levels of Net Overseas Migration (NOM). It’s even higher than we saw before the pandemic when it averaged 226,000.”

Ms Goldie said, "like the October Budget" the new report demanded annual NOM of 235,000. The report expects Australia to grow from its current 26 million to 30 million people by 2032-33.

“The Treasurer, and his media acolytes, like to portray the 235,000 as ‘normal trend’ and ‘nothing to see here’.  It is three times Australia’s historic average. In fact, Canada is the only rich nation in the world with a more aggressive immigration program," Ms Goldie said.

“Even with the new Federal Labor Government policies for emissions reduction, an extra four million people will still add tens of millions of tonnes of extra emissions each year – possibly as much as 80 million tonnes.

“That is not trivial when we are facing a climate crisis. Most of that 80 million tonnes will be new emissions, not a redistribution of emissions around the planet.  That is because the average migrant who comes to Australia is coming from a country with one-quarter as much per capita emissions as Australia,” Ms Goldie said.

“Add to that the impact of population growth on habitat and species loss. The State of the Environment 2021 report released in July 2022 was quite explicit about population growth having ‘high impact’ on biodiversity. 

"For instance, the last remaining habitat of koalas in the Sydney Basin is currently threatened by housing development. Nationally, the Environment Minister is confronted by 140 development applications which, if approved, can only worsen the koala crisis.

“We have already returned to the pre-Covid levels of population growth, of which most Australians believed they had seen the end. The pre-election silence of both major parties on the topic of immigration made clear that each understood more population growth was not what most Australians wanted.

“The people are now entitled to ask why they have been ignored,” Ms Goldie said.

“Why are the impacts of population growth on the two gravest crises we face – climate and biodiversity – being ignored? The Treasurer’s radical population program can only be a negative for real wages and housing affordability. It will erase the Covid low-unemployment windfall.” 

www.population.org.au

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New safety laws for food delivery riders start today in NSW

SAFEWORK NSW is now reminding food delivery riders if they do not adhere to the new safety laws that begin today it could prove costly for them.

Acting head of SafeWork, John Tansey said from today all food delivery riders must wear high-visibility personal protective equipment (PPE) and carry their training verification record or risk being fined.

“We made a major step to improve safety for riders on 1 July last year, when it became law for food delivery booking providers to supply their riders with PPE,” Mr Tansey said.

“Today it becomes law for riders to wear the supplied PPE, which is a high visibility vest and food bag and carry a training verification record. Riders found to not be wearing their PPE will be hit with a $144 fine for each offence.

“We now have the strongest safety environment for food delivery platforms and riders anywhere in the world and will continue to work with industry to ensure a culture where people and safety comes first.”

Safework NSW advised that from today all riders:

  • Will be legally required to use or wear the PPE that has been provided to them while delivering food or drink.
  • Must produce their training record if requested by a SafeWork NSW Inspector or NSW police officer.
  • Penalties and fines will apply to platforms and riders who cannot show they have met these requirements.

For further information visit the SafeWork NSW food delivery industry page: https://www.safework.nsw.gov.au/your-industry/transport,-postal-and-warehousing/food-delivery-industry

 

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Commonwealth Speakers and Presiding Officers begin their 26th Conference in Canberra

THIS WEEK, Senator Sue Lines, President of the Senate, and Milton Dick MP, Speaker of the House of Representatives, will welcome the attendees to the 26th Conference of Speakers and Presiding Officers of the Commonwealth (CSPOC) at Australian Parliament House.

This biennial conference aims to strengthen parliamentary institutions by bringing together Speakers and Presiding Officers.

“We are looking forward to welcoming our parliamentary colleagues from the Commonwealth to Australian Parliament House,” President Lines said. “As we emerge from the pandemic, we will look to strengthen our relationships and learn from each other to ensure that our debates and parliamentary processes continue to be robust.”

Delegates will attend workshops and plenaries on topics relating to their roles as Presiding Officers, including the pandemic, security, e-parliaments, and the central role Presiding Officers play in leading innovation. This will be the first CSPOC to be held in three years.

“The last few years have taught us that things can change very quickly, and the role of parliamentary institutions has been reinforced. It is so important for us to work together and learn from one another,” Speaker Milton Dick said.

The first CSPOC was held in Canada in 1969. The program for CSPOC 2023 is available on the website.

 

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Change migration system to stop rorting: new submission 

REFORMS to stop rorting of Australia’s migration system are urgently needed, according to a new submission to a government review.

Caps on the proportion of overseas students in all university courses, increased minimum wage thresholds for temporary skilled migrants, measures to stop rorting of skill migration visas, and tightening of family reunion criteria are among the recommendations made by Sustainable Population Australia (SPA).

The group also calls for a lower annual migrant intake (net overseas migration or NOM) of no more than 60,000, so that Australia’s population can stabilise at an ecologically sustainable level below 30 million people.

The submission says high levels of immigration have solved none of the problems it was intended to fix, while exacerbating all of the issues of most concern to Australians, from job insecurity and falling real wages to housing unaffordability, inadequate infrastructure, environmental degradation and greenhouse gas emissions.

The submission is to the Federal Government’s review, A Migration System for Australia’s Future, announced by the Minister for Home Affairs, Clare O’Neil, at the Jobs and Skills Summit in September.

SPA national president, Jenny Goldie said returning to a NOM of 235,000 annually, as currently proposed by the government, would simply deliver windfall gains to property developers, large employers, universities and migration agents, at the expense of ordinary Australians and the environment.

“High immigration leads to rapid population growth,” Ms Goldie said. “Yet the costs of population growth far outweigh the benefits.

“In particular, concerns about demographic ageing causing worker shortages have proven unfounded. The fiscal costs associated with population ageing are more than off-set by lower infrastructure costs in a stable population.”“Excessive overseas student numbers are weakening our higher education system and placing extra costs on Australian taxpayers.”SPA has made a number of recommendations in its submission that include:

  • A sustainable scale of migration, based on a vision for an ecologically sustainable population and economy, must be the bedrock criterion;
  • A NOM of no more than 60,000 a year should include a generous allowance for humanitarian refugees;
  • All skilled migrants should be employer-sponsored and initially temporary. Permanent skill visas should only be offered to those who have demonstrated a period of appropriately skilled employment;
  • To ensure that the jobs migrants fill are actually skilled and needed, the Temporary Skilled Migration Income Threshold (TSMIT) should be at least 10 percent greater than the median full-time wage, that is, the TSMIT should be set at around $90,000 a year, not the current $53,900;
  • Caps should be placed on the proportion of international students enrolled in any course, perhaps no more than 25 percent except in courses specifically intended to prepare foreign students for further study;
  • The family reunion system should be tightened to reduce its widespread abuse as a method for commercial chain migration. Only those who have gained Australian citizenship should be entitled to sponsor a newly-married spouse. At least five years on a permanent residence visa should be required before qualifying for citizenship.

www.population.org.au

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Further information: Jenny Goldie This email address is being protected from spambots. You need JavaScript enabled to view it. 0401 921 453Dr Jane O’Sullivan (author of submission) This email address is being protected from spambots. You need JavaScript enabled to view it. 

Workforce Australia Employment Services inquiry calls for 'honest, direct and bold' submissions

THE Select Committee on Workforce Australia Employment Services is calling for submissions on key issues with Workforce Australia, as well as advice and proposals to improve employment services in the future. Submissions are requested by February 28, 2023.

The committee has published a Submissions Guide which identifies key issues, themes and insights arising from the committee’s preliminary investigations, provides an overview of the current system, and sets out questions that may assist in the framing of a submission.

Committee Chair, Julian Hill MP said, “This inquiry is a comprehensive, first-principles review of Workforce Australia hence nothing is off the table. We are actively questioning all assumptions about the design and implementation of employment services in Australia, as well as a range of other issues related to jobseekers’ and employers’ interactions with employment services. Fundamental aspects of the system require re‑examination.

“A well-known definition of insanity is doing the same thing over and over but expecting different results. Yet this is what Australia has done for decades now with the employment services system. This has led to a system which failed to effectively invest in Australian jobseekers and to support people into sustainable employment, and which has failed to engage and assist the vast majority of employers.

“The submission guide will make it easier for people to contribute as the employment services system is very complex and the inquiry is very broad.  The guide also invites expert submitters to assist the Committee by helping to answer a range of specific questions as clearly and concisely as possible.

“Please be honest, direct and bold in your submissions.”

The committee especially encourages people who have first-hand, lived experience with the system to share their views and recommendations for change.

Copies of the documents provided to the committee by the Department of Employment and Workplace Relations at its first public hearing on November 3, 2022 are now online. These provide a range of details on Workforce Australia that may be useful for submitters.

All contributions to the inquiry are welcomed. Submitters may address as many or as few matters set out in the guidance material as they wish. Submissions may also highlight other issues, so long as they remain directly relevant to the Terms of Reference.

Further information about the inquiry, including future public hearings, published submissions and hearing transcripts, are available on the inquiry website.

 

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Inquiry into referendum process to hold public hearing

THE Electoral Matters Committee is holding a public hearing on December 19, 2022 as part of its examination of the Referendum (Machinery Provisions) Amendment Bill 2022.

The committee will hear from representatives of the Department of Finance, the Australian Electoral Commission as well as legal, electoral and constitutional experts.

Committee Chair Kate Thwaites MP said, "The committee is looking forward to hearing views on how the bill will modernise the way in which referendums are conducted in Australia, and the value in bringing this process in line with the way today’s federal elections are conducted."

"While I know many are interested in highlighting views on issues like the referendum question, amendments to the Constitution or the merits of the Voice to Parliament, it’s important to note that this inquiry will not be examining these matters; our focus is on the provisions of the bill."

Further information about the inquiry, including published submissions and hearing transcripts, will be available on the inquiry webpage.

Public hearing details in Canberra

Time: 10am – 3.30pm AEDTDate: Monday, 19 December 2022Location: Main Committee Room, Parliament House

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

 

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Treaties Committee supports ratification of CLOUD Act Agreement

THE Joint Standing Committee on Treaties has recommended the Australian Government ratifies the Agreement between the Government of Australia and the Government of the United States of America on Access to Electronic Data for the Purpose of Countering Serious Crime (CLOUD Act Agreement).

Committee Chair, Josh Wilson MP said, “If certain conditions are met, the CLOUD Act Agreement would allow Australian authorities to seek an Order under Australian law to obtain data related to a serious offence from communications service providers that operate under the jurisdiction of the United States, and vice versa.

“The CLOUD Act Agreement would provide an agreed administrative mechanism so that providers in the receiving country can comply with Orders without the necessity of law enforcement or intelligence agencies relying on mutual legal assistance arrangements, while still requiring certain steps to be followed for the CLOUD Act Agreement to be properly invoked," Mr Wilson said.

The committee agreed that current processes for obtaining data from United States (US) communications service providers under the mutual legal assistance treaty (MLAT) process can be cumbersome and not necessarily suited to modern communications, data storage, and cloud computing. The CLOUD Act Agreement would complement but significantly improve on the current MLAT process for the acquisition of data held by US communications service providers.

The committee did, however, examine a range of issues with the CLOUD Act Agreement, including implications for civil liberties, reporting on and oversight of Orders, and consultation during negotiations.

The committee encouraged the Australian Government to be mindful that consultation, reporting, and oversight were critical integrity elements that should be applied appropriately where surveillance or other incursions into privacy are involved.

The report can be found on the Committee website, along with further information on the inquiry.

 

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Committee to hold hearing to review international armed conflict decision making

THE Defence Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade will hold its first public hearing tomorrow to examine how Australia makes decisions to send service personnel into international armed conflict.

The inquiry was referred by the Deputy Prime Minister and Minister for Defence, Richard Marles MP, on September 28 to the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) (see Terms of Reference).

The committee will hear from witnesses advocating for both preservation of the status quo and for reform in this important area of public policy. Due to give evidence are Australians for War Powers Reform, legal scholars from academic institutions, public citizens, the Australian Strategic Policy Institute, Australian Defence Association, and the Australian Defence Force.

Commenting on the inquiry hearing, Defence Subcommittee Chair, Julian Hill MP said, “This public hearing will hear evidence from a range of stakeholders and witnesses to examine disparate views around the transparency and accountability of policy settings in the current exercise of these powers. The Terms of Reference also seek advice regarding the impact of any proposed policy changes on the safety and security of our Defence Force personnel.

“The Subcommittee is keen for evidence regarding the way other Westminster democracies exercise these powers, as well as examining this issue from a legal and constitutional perspective.”

Further information in relation to the inquiry is available from the JSCFADT’s website.

Public hearing details

Date: Friday 9 DecemberTime: 1pm – 6.30pm ADSTLocation: Committee Room 1R3 and via teleconference

The hearings will be audio streamed live at aph.gov.au/live.

 

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Economics Committee releases its RBA report

THE House of Representatives Standing Committee on Economics today released its report Review of the Reserve Bank of Australia (RBA) Annual Report 2021. The report focuses on matters arising from the committee’s public hearing with the RBA in September 2022.

Daniel Mulino MP, chair of the committee, said, “The committee’s regular scrutiny of the RBA occurred at an unprecedented time.

“The domestic and global environment had changed rapidly since the last hearing in February. International pressures, including the war in Ukraine, a recovery in local demand as we came out of pandemic lockdowns, and supply side constraints all combined to push inflation to its highest rate since 1990.

"The committee appreciates that several factors influencing inflation could not have been foreseen," Dr Mulino said.

During the hearing, the committee scrutinised the RBA’s approach to monetary policy, including the inflation target; forward guidance on interest rate movements; and the path to bringing inflation down within the target range over time.

“Transparency and accountability in the RBA’s monetary policy decision-making are paramount, and the committee will continue to scrutinise the RBA’s policy responses to current and emerging threats to the economy,” Dr Mulino said.

“The committee also expects the RBA to closely examine lessons learnt from its approach to forecasting and the way it communicated this. Australian households, workers and industries deserve nothing less.”

Other issues the committee canvassed included:

  • the interaction between fiscal and monetary policy
  • climate change
  • housing affordability
  • productivity and the labour market.

A full copy of the report is available on the committee’s website.

The committee will next hear from the RBA on February 17, 2023.

 

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Defence Industry Security Program Inquiry hearing

THE DEFENCE Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade will conduct a public hearing this Friday, December 9, as part of its inquiry into the Auditor-General’s Report No.4 21/22 Defence’s Contract Administration Defence Industry Security Program.

Witnesses from the Australian Industry Group, and defence contractors Babcock Australasia and Leidos Australia will appear along with the Australian National Audit Office and the Department of Defence to discuss Defence’s implementation of the Auditor-General’s recommendations and suggested improvements to the program.

Chair of the Subcommittee, Julian Hill MP said, "Ensuring security requirements are met right across the defence industry supply chain is of critical importance to Australia’s national security.

"The Auditor-General raised serious concerns and Parliament is right to expect greater assurance from Defence. This is important both for current activities and also to give maximum confidence to allies and partners regarding technology transfer and the security of Australia’s defence industrial base.

“After assessing submissions from Industry and Defence, now is the time to publicly examine in depth the extant of Defence’s progress on reform of the DISP and to hear firsthand from Defence Industry of their experiences in the program.”

Public hearing details

Date: Friday 9 DecemberTime: 9.15am – 12pm AEDTLocation: Committee Room 1R3 and via teleconference

The hearings will be audio streamed live at aph.gov.au/live.

 

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