Chapter 2Key Issues
2.1This chapter outlines the key issues considered by the Senate Economics Legislation Committee (the committee) at its 2024-25 Additional estimates hearings with the Treasury Portfolio and Industry Portfolio.
Treasury Portfolio, 26 February 2025
The Treasury
2.2Dr Steven Kennedy PSM, Secretary of the Treasury, provided an opening statement to the committee reflecting on the changing international economic landscape and Australia’s recent economic performance. Dr Kennedy also touched on trade with China, employment, and the potential effects of recent US policy developments.
Macroeconomic Group and International and Foreign Investment Group
2.3Topics examined by the committee included:
Costing of deductions for small business expenses (pp. 8–11; 14–18)
Australia’s recent economic performance and future challenges (pp. 12–13; 18–20; 24–25)
Superannuation, with reference to mortgages and long-term stability (pp.20–21)
Net company tax rate (p. 21)
Role of the Treasurer on the Reserve Bank of Australia (RBA) board (pp. 21–23)
Development of the Budget (p. 25)
Policy response to the Global Financial Crisis (pp. 25–32; 37–42)
US tariff negotiations (pp. 32–34)
The Washington superannuation summit (pp. 34–35)
The jobs market (pp. 35–37)
Overseas migration and housing demand (pp. 42–44)
Future Made in Australia sector development (pp. 44–45; 47–50)
Foreign ownership of housing (pp. 45–46)
Foreign investment review of offtake agreements (p. 47)
Small Business, Housing, Corporate and Law Group
2.4Topics examined by the committee included:
Housing supply targets (pp. 50–54)
The Housing Australia Future Fund (pp. 54–58)
The Help to Buy Scheme (pp. 58–60)
Build-to-Rent tax incentives for investors (pp. 60–61)
The Treasury’s internal complaints mechanisms (p. 61)
Caretaker arrangements (pp. 61–64; 72–73)
Annual data on entries and exits of Australian businesses (pp. 64–70)
Government advertising campaigns (pp. 70–72)
Fiscal Group
2.5Topics examined by the committee included:
Government spending announcements since the Mid-Year Economic and Fiscal Outlook (MYEFO) (pp. 74–75)
Markets Group
2.6Topics examined by the committee included:
The regulation of cryptocurrency (pp. 75–78; 87)
Debanking (pp. 78–80; 91–93)
Review of tax promoter penalty laws (pp. 80–81)
The status of the review of 2019 whistleblower protection law (pp. 81–82)
Genetic testing in life insurance (pp. 82–83)
Affordability and availability of insurance (pp. 83–4; 87; 89)
Insurance for natural disasters (pp. 85–86)
Competition in the Australian insurance market (pp.86; 87–88)
Dark pools on the Australian Securities Exchange (ASX) (p. 87)
The Scams Prevention Framework Bill (pp. 88–89)
Extension of Consumer Data Right to insurance(pp. 89–91)
Handling by government officials of market-sensitive information (pp. 93–94)
Australian Competition and Consumer Commission (ACCC)
2.7Topics examined by the committee included:
Future grants for cash-in-transit services (p. 94)
The merger of Armaguard and Prosegur (pp. 95–96)
LNG exports and shortages (pp. 96–99; 100–101)
Overlap of data-gathering between the ACCC and the Australian Energy Regulator (pp. 99–100)
The use of Non-Disclosure Agreements by supermarkets (pp. 101–102)
Craveable Brands sale (p. 102)
Australian Prudential Regulation Authority (APRA)
2.8Topics examined by the committee included:
Investigations by APRA of Cbus Super (pp. 103–106)
Comparative data on expenditure and returns of superannuation funds (pp.106–108)
APRA’s enforcement powers in relation to banks (pp. 108–109; 110–113)
Relations between APRA and the Australian Financial Complaints Authority (p. 109)
Changes to arrangements around financing new housing blocks (pp. 114–115)
Revenue Group; Australian Taxation Office (ATO); Tax Practitioners Board (TPB); Australian Charities and Not-for-profits Commission (ACNC)
2.9Topics examined by the committee included:
Costing of deductions for small business expenses (pp. 116–117)
Harmonisation of fundraising laws (p. 117)
Investigations into links between charities and terrorist organisations (pp.117–118)
Staffing of the ATO (pp. 118–120)
Treasury Portfolio, 27 February 2025
Reserve Bank of Australia (RBA)
2.10Topics examined by the committee included:
Interest rate decisions (pp. 3–9; 10–11; 13; 17–19)
The recruitment process for the RBA Deputy Governor (pp. 9–10)
RBA dividend payments to government (p.11)
Underlying inflation (pp. 11–14)
Monetary policy and the use of quantitative easing to reduce inflation (pp.14–15)
The auditing and repatriation of gold bars (pp. 15; 16–17)
The jobs market (pp. 15–16)
Australia’s economic outlook (p. 17)
Australian Securities and Investments Commission (ASIC)
2.11Topics examined by the committee included:
ASIC investigations and enforcement outcomes (pp. 20–22; 28–31; 34–36)
Insider trading and ASIC’s tools for detection and enforcement(pp. 22–28)
The regulation of cryptocurrency (pp. 31–32)
Governance of public and private markets and diversity requirements on boards (pp. 32–34)
Director requirements relating to insider trading (pp. 36–37
Add-on insurance (pp. 37–39)
Case relating to insider trading and information movement within the public service (pp. 39–41)
WiseTech governance issues (pp. 41–42)
ASIC investigation of Keystone Asset Management (pp. 42–43)
Mr Sanjeev Gupta’s GFG Alliance and the Whyalla steelworks (p. 43)
Industry Portfolio, 27 February 2025
Department of Industry, Science and Resources
2.12Secretary of the Department of Industry, Science and Resources (Industry), MsMeghan Quinn PSM, appeared before the committee, along with officials for the examination of the Industry Portfolio.
Corporate, Enabling and Business Services
2.13Topics examined by the committee included:
Grants made by the Business Grants Hub (pp. 47–49)
Briefings provided by Industry(pp. 49–50)
Staffing of the department across different divisions (pp. 50–53)
The Whyalla Steelworks (p. 53)
Outcome 1 – Program 1.1
2.14Topics examined by the committee included:
The Whyalla Steelworks (pp. 53–56; 59–66)
The Research and Development Tax Incentive (pp. 57–59)
Wind towers (pp. 66–67)
Consultancy contracts (p. 67)
Insolvencies in the manufacturing sector (pp. 67–68)
Changes in latest update of National Construction Codes (pp. 68–70)
National Reconstruction Fund Corporation
2.15Topics examined by the committee included:
Functions and priorities of National Reconstruction Fund Corporation (pp.71–77)
Investment in Harrison.ai (pp. 77–81)
Nolans and Arafura rare earths projects (pp. 81–83)
Outcome 1 – Program 1.2 (including The Chief Scientist)
2.16Topics examined by the committee included:
The PsiQuantum project (pp. 83–93; 96–97))
Strategic Examination of Research and Development research paper (pp. 93–96)
Outcome 1 – Program 1.3
2.17Topics examined by the committee included:
The east coast gas market (pp. 97–102)
Future demand for LNG (pp. 102–103)
Critical minerals (pp. 103–105)
Environmental approvals of the North West Shelf extension (pp. 105–107)
The water spill in the Beetaloo basin (pp. 107–108)
Carbon Capture and Storage (pp. 108–109)
The administration and staffing of the Australian Radioactive Waste Agency (pp.109–112)
National Offshore Petroleum Safety and Environmental Management Authority
2.18Topics examined by the committee included:
Assessments for environmental plans (p. 112)
First Nations training session (pp. 112–114)
Environmental approvals of the North West Shelf extension (pp. 114–115)
Safety breaches on offshore rigs (pp. 115–116)
Senator Jess Walsh
Chair
Labor Senator for Victoria