2.1
This chapter outlines the key issues considered by the Senate Economics Legislation Committee (the committee) at its 2022–23 Budget Estimates hearings with the Treasury Portfolio and Industry, Science, and Resources Portfolio (Industry Portfolio).
Treasury Portfolio, 8 November 2022
Department of the Treasury
2.2
The Secretary of the Department of the Treasury (Treasury), Dr Steven Kennedy PSM, prepared an opening statement that was presented to the committee by Deputy Secretary, Mr Luke Yeaman. The statement highlighted the deterioration of the global economic outlook since the April Pre-election Economic and Fiscal Outlook (PEFO) and the likelihood that most economies in developed countries will experience recessions in the near future.
Corporate Group, Macroeconomic Group
2.3
Topics examined by the committee included:
Inflation forecasts (pp. 7–9)
Wholesale power price assumptions in Budget Paper No. 2 (pp. 9–11)
Timeframe for renewable energy network development and impact on power prices
Flow on effect of wholesale prices on retail market and on manufacturing sector
Causes of inflation (pp. 11–12)
Extent of corporate profiteering and its contribution to inflation
Treasury forecasts of inflation and its accuracy (pp. 12–17, 31)
Impact of the war in Ukraine and the pandemic
Increase in shipping costs
Government intervention in energy markets and price caps
Potential increase of supply of energy—production of coal and gas
Forecasts and accounting of economic policies—revenue costings for set policies and updated costings for Stage 3 tax cuts
Global economic forecasts since the PEFO 2022-23 (pp. 17–20, 30)
Significant rise in energy prices and global cash expectations in Europe and the US—downgrade in growth outlook and upgrade in unemployment figures
Predicted impact on the Australian economy and adjustment due to higher than predicted inflation
Forecast of real spending growth and historical averages
Impact of New Payments Platform (NPP) across the economy over 2022 to 2024
Timeframes that key developments were finalised
Downgrade of productivity assumption
Modelling and participation effects of the childcare, paid parental leave and IR policies—productivity projections and calculations
Wages and inflation—building pressure in the labour market (pp. 28–30)
Development of strategic policy advice and election commitment analysis (pp. 31–35)
Resources used for monitoring election commitments
Content of incoming government briefing and provision of advice for policy implementation
Consideration of the franking credit measure by government and its origin
Distribution modelling of the budget by the Australian National University (ANU) (pp. 35–37)
Increase of incomes and Budget measures
Extent of what is captured by the ANU modelling
PEFO underlying cash balance and the October underlying cash balance difference and calculations (pp. 37–45)
Economic and fiscal strategy‒net and gross debt estimates
Commitment to return most of the increase in tax receipts to the Budget
Responsible/cautious nature of the Budget
Clarification on the comparison of savings between this budget and the former government’s March Budget
Fiscal Group, including Wellbeing Statement, and Job Summit and Employment White Paper Task Force
2.4
Topics examined by the committee included:
Macroeconomic policy regarding the care economy (pp. 45–46)
Investments and female participation rate can lift GDP by $20 million—what policy levers are being developed to achieve this (p. 46)
Intergenerational Report (p. 46)
Stage-3 Tax Cuts instead being utilised on paid parental leave, childcare, etc. to boost the economy (pp. 20, 21, 25, 26, 28, 47)
Impact during COVID on free childcare (pp. 26, 47)
Superannuation payments on paid parental leave lowering the poverty faced by women in retirement (p. 48)
Women’s Economic Equality Taskforce
Wellbeing Statement—Consideration given to what should be included in the measure, child poverty, health of the environment
Australian domestic gas market intervention (pp. 48–53)
Jobs and Skills Summit—questions regarding LGBTQIA+ representation at the Summit and in the issues paper (pp. 53–54)
Industry Portfolio, 8 November 2022
Department of Industry, Science and Resources
2.5
The Secretary of the Department of Industry, Science and Resources (Industry), Ms Meghan Quinn, made an opening statement, outlining the changes the department has experienced, as several functions related to climate change, energy, and liquid fuels have moved to the newly created Department of Climate Change, Energy, the Environment and Water.
2.6
Topics examined by the committee included:
Cross-portfolio / corporate
Gas prices and electricity prices (pp. 58–65)
Ministerial briefings and departmental responsibilities
EnergyQuest price cap report
Contract lengths and risk and demand factors, including penalties for non-delivery
Industrial gas and electricity pricing caps
The appointment of former Prime Minister Hon. Scott Morrison MP as Minister of Industry (pp. 65–70)
Technology sector skill shortages (pp. 70–72)
Jobs and skills summit—Pre-summit round tables (pp. 75–76, 80, 84–86)
Events hosted by the department and breakdown
Critical minerals strategy—Process to develop new strategy (pp. 80–84)
Future regulatory decision causing hesitation in gas industry investment (pp. 72–78)
Decision to transfer Carbon Capture and Storage responsibilities policies to the Department of Climate Change, Energy, the Environment and Water (DCEEW) Portfolio (pp. 86–87)
Regulation of offshore responsibilities with the Department of Industry, Science and Resources (DISR)
National Reconstruction Fund—Allocation of funds (pp. 87–90)
Clarity on value adding to resources
Consultation with stakeholders
Attendance of Mr Tim Watts MP at a mining conference in West Africa—Australian Mining Industry campaigning (pp. 90–91)
Mining dispute with Casius and a Chinese mining company
Treasury Portfolio, 9 November 2022
Department of the Treasury
Revenue, Small Business and Housing Group
2.7
Topics examined by the committee included:
Advice on budget policy—remodelling of tax settings and costing of New Policy Proposals (updated costings) for the October budget (pp. 4–8)
Costing of personal income tax arrangements
Deductible gift recipient (DGR) applications and information (pp. 8–10)
Process of considering applications, providing advice to government, and obtaining DGR status
Housing targets (pp. 10–21)
Baseline / projections for completed builds that the private housing market will build across the financial years up to 2024
Breakdown of forecast of one million new homes and expectation of the private sector for delivery
Addressing issues of land supply
Targets for construction and request for modelling data
Implementation of the housing accord
Affordable housing renovation grant (Homebuilder)—restrictions and income gaps (pp. 21–23, 37–39)
Dividends, franking credits and dividend imputations—plans to reduce deficits, increase taxes (pp. 23–27)
Tax to GDP ratio—how to handle structural deficit (p. 27)
Small business tax support (pp. 34–37, 39–41)
Petroleum Resource Rent Tax (PRRT) and tax regime for gas (pp. 41–45)
Process of strengthening the Australian charity and not-for-profit sector
(pp. 45–47)
Australian Financial Complaints Authority (AFCA)
2.8
The Chief Ombudsman and Chief Executive Officer of the Australian Financial Complaints Authority, Mr David Locke, made an opening statement thanking the committee for the opportunity to appear at the Senate estimates hearing. He highlighted AFCA’s accountability following the Ramsay review and reaffirmed AFCA’s requirement of transparency and accountability.
2.9
Topics examined by the committee included:
AFCA’s board composition (p. 47)
Common directors between AFCA and the Compensation Scheme of Last Resort (CSLR) (p. 48)
The powers that Australian Securities and Investment Commission (ASIC) has over AFCA (p. 48)
The roles of ASIC versus AFCA regarding the CSLR (pp. 48–49)
How AFCA operationalises their reporting obligations to ASIC (pp. 49–50)
The number of determinations resolved by AFCA since its establishment (pp. 50–51)
Claims pertaining to general insurance (p. 50)
Since 1 November 2018, the insurance referrals received by AFCA by geographic region (p. 50)
The percentage of complaints resolved (p. 51)
Treasury continued—Markets Group
2.10
Topics examined by the committee included:
Superannuation disclosure statement (pp. 51–55)
Election commitment in relation to changes to the performance test of faith based super
Examination of unintended consequences of Your Future, Your Super package
Exceptional circumstances that are driving prices up electricity prices in the current market (pp. 55–56)
Consideration of intervention
Advice on options available to the Commonwealth and discussion with the states
Recommendations from the Hayne Royal Commission (pp. 57, 65–66)
Progress on implementation of outstanding recommendations
Compensation Scheme of Last Resort (CSLR) is a remaining recommendation that the government is in the process of implementing
Commitment to implement recommendations
Consumer Data Rollout update (pp. 59–62)
Consultation in relation to new Consumer Data Right (CDR) rules—expansion to the telecommunications sector
Ongoing consultation in relation to standards and maintenance
Australian Competition and Consumer Commission (ACCC) consultation paper regarding data quality (data coming out of the banks now)
Feedback from sectors—statutory review
Complaints with AFCA relating to the Dixon Advisory matter
Discussion of the levy system
Technical working group for super reforms (p. 62)
Timeline and composition of the working group
Crypto asset secondary providers custody arrangements (p. 66)
Token mapping exercise as a first step
Licencing of the crypto markets
Announced reforms in August—current work is being undertaken regarding token mapping work and release of work on licensing next year
Australian Securities and Investments Commission (ASIC)
2.11
The Chair of the ASIC, Mr Joe Longo, made an opening statement, focusing on ASIC’s commitment to enforcement, as well as highlighting ASIC’s new strategic priorities, including their work on crypto assets and greenwashing.
2.12
Topics examined by the committee included:
Compliance with Australia’s civil liability laws and civil penalties
(pp. 69–71)
ASIC’s action against individual directors and accountable persons within organisations
Examination of circumstances and due diligence
Whistle-blower policies and procedures—protections for whistle-blowers
Off-shore companies—director identification (pp. 71–74)
Availability of certain websites (and non-availability) in certain countries
Fulham FC licence arrangements
Fictitious licensee names
Expenditure of taxpayer’s money and investigation decisions
Enforcement proceedings and suspension of licenses (Dixon Advisory matter) (pp. 74–76)
ASIC’s enforcement and deterrence role—work in collaboration with AFCA for compensation
Access to CSLR—payment of penalties and losses from clients—timing of lodgement
Greenwashing avoidance (pp. 76–80)
Information pack released by ASIC and any observance in an increase in Greenwashing
Impact of Greenwashing––undermining the efficiency of the market due to misrepresentation
Surveillance and investigations underway––focus on net zero statements, investment screening to ensure there is a reasonable basis
ASIC examination of organisations in the fossil fuel sector
Integrity of Australian carbon credit unions––regulation of the carbon market
ASIC forums and accessibility (pp. 80–81)
Attendance at the forum and composition of stakeholders
Australian Prudential Regulation Authority (APRA)
2.13
The Chair of APRA, Mr John Lonsdale, made an opening statement highlighting the challenges faced by the Australian community since the start of the pandemic. Mr Lonsdale continued by outlining APRA’s areas of immediate focus, including housing credit, cyber incidents, and superannuation.
2.14
Topics examined by the committee included:
Payment disclosure to political parties (p. 82)
Superannuation fund investment in the New Daily newspaper (pp. 83‒85)
Superannuation annual meeting notice requirements (pp. 83‒86)
Data on dividend payments made by superannuation entities (retail sector) and compatibility with the best financial interest test
Australian Reinsurance Pool Corporation (ARPC)
2.15
The Chief Executive of the ARPC, Dr Chris Wallace, made an opening statement outlining ARPC’s function, and highlighting that the ARPC welcomes the passing of legislation related to the cyclone reinsurance pool and its administration of this.
2.16
Topics examined by the committee included:
Cyclone reinsurance pool (pp. 87‒88)
Requirements for joining the pool and timings
Modelling released regarding premium savings
Cost-neutral basis for the ARPC (pp. 88‒89)
Modelling inclusive of inflationary pressures, costs of rebuilds, shortages of workforce and other associated shortages (p. 89)
Outstanding issues of concerns insurers are raising with the ARPC (pp. 90‒91)
Cyclone risk in Brisbane and current risk categorisation
Frequency of extreme weather events–management of this by the APRC overtime
Role of the APRC regarding mitigation
Australian Office of Financial Management (AOFM)
2.17
The Acting Chief Officer of the Australian Office of Financial Management, Mr Michael Bath, made an opening statement outlining the agency’s activities over the last two years, including the recent operating environment, bond insurance and observations about the near-term future.
2.18
Topics examined by the committee included:
Public register of government borrowings––categorisation of register by country (p. 91)
Forecast interest payments and evolution of these payments
overtime––stock of debt currently outstanding (p. 92)
Reduction of insurance (p. 93)
Investment relations activities (p. 93)
2020–2021 final budget outcome (p. 94)
Australian Taxation Office (ATO)
2.19
The Commissioner of Taxation, Mr Chris Jordan AO, made an opening statement outlining the ATO’s key achievements around tax collection, total revenue effects and activities that have improved taxpayer compliance. Mr Jordan also continued to highlight several activities in support of continuing to achieve the ATO’s fundamental purpose.
2.20
Topics examined by the committee included:
Deductibility of various contributions to religious institutions (pp. 95‒96)
Approach to provide compassionate options in meeting tax obligations for people and small businesses affected by disasters (pp. 97‒105)
The Company Tax Transparency Report (pp. 107‒108)
Tax deductibility of political donations (p. 109)
Australian Charities and Not-for-Profits Commission (ACNC)
2.21
The Acting Commissioner for the ACNC, Ms Deborah Jenkins, made an opening statement reasserting the work of the ACNC and success of its achievements over the last 10 years.
2.22
Topics examined by the committee included:
Charity status of Australians for Indigenous Constitutional Recognition (pp. 94‒95)
Process for appointing a new Commissioner (p. 98)
The difference between a charity and a not-for-profit organisation (p. 98)
Composition and engagement of the Adviser Forum and the Sector Forum (pp. 101‒102)
Factors affecting the timeliness of charity online lodgements (p. 103)
Clarification regarding the advocacy activities of charities relative to their charitable purpose (pp. 103‒104)
National Housing Finance and Investments Corporation (NHFIC)
2.23
Topics examined by the committee included:
Involvement of superannuation funds in financing activities of NHFIC (p. 113)
NHFIC’s role in the National Housing Accord (pp. 114‒115)
Productivity Commission (PC)
2.24
Topics examined by the committee included:
Australia’s productivity performance in the international context (pp. 115‒117)
Broad themes arising from the five-year productivity review (pp. 115‒117)
Treasury Portfolio, Thursday 10 November 2022
Australian Competition and Consumer Commission (ACCC) and the National Competition Council (NCC)
2.25
Topics examined by the committee included:
Pfizer vaccination trial––public risk disclosure and effectiveness information in relation to vaccinations (pp. 3–4)
Exceptional circumstances driving the high price in the energy market
(pp. 4–5)
ACCC July interim report (pp. 5–11)
Involvement in heads of agreement process––gas prices
Nature of the supply chain for the gas industry
Australian gas industry (pp. 11–12)
Dispute resolution avenues and trade agreements
Scope of the ACCC to examine anti-competitive agreements––action to investigate within the scope of the ACCC’s powers
East coast gas prices and oil benchmark and gas price purchasing prices from Asia (p. 12)
Greenwashing, complaints, and possible action taken
(pp. 12–13, 15–16, 19–20)
Provision of advice to Department of Industry, Science and Resources (DISR) on the issue of the gas prices (pp. 13–15, 16–18)
National Broadband Network (NBN) and broadband pricing (p. 18)
Monitoring of company margins (pp. 18–19)
Scams and fraud reports and statistics (pp. 20–22)
Insurance monitoring department––reinsurance pool (pp. 22–23)
Australian Bureau of Statistics (ABS)
2.26
Topics examined by the committee included:
Budget allocation for increased frequency of data detailing (pp. 23–24)
Vaccine mandates and unemployment figures (pp. 25–26)
Renewable energy jobs (p. 24)
Census questions regarding gender, data on carers and consultation on questions for the next census (p. 26)
Census completion and average timeframe to complete the document
(pp. 26–27)
Postal survey on the marriage debate and five-year anniversary of the survey (p. 27)
Reserve Bank of Australia (RBA)
2.27
Topics examined by the committee included:
Government meetings with RBA executive (p. 28)
RBA review (p. 28, 40–42)
Level of engagement that the RBA has had with the review process to date
Statement on monetary policy (pp. 28–29, 50–51)
Views on tighter monetary policy and inflation pressures
Fiscal policy and impact on demand and inflation
Digital Finance Cooperative Research Centre (DFCRC) and processes for digital finance responsibilities within the RBA (pp. 29–30)
Real and nominal wage growth and inflation (pp. 30–32)
Interest rates and economic prosperity of the country (pp. 32–33, 47–49)
Funding facility (pp. 33–34)
Supply constraints in the infrastructure and construction industry
(p. 34)
Accountability of central banks to the parliament (p. 34)
Gold bars owned by the RBA in the Bank of England’s vaults and lending arrangements (p. 35)
Approach to managing inflation through the budget (pp. 35–36)
Impact of new policy decisions (p. 36)
RBA’s expectations of the global economic outlook (p. 37)
Rebuilding equity and capital (pp. 37–39)
Long maturity bonds––bond purchase programs (pp. 39–40, 46)
Labour supply and demand for retail products (pp. 42–43)
Accuracy of inflation forecasts––deliberate inflation (pp. 43–44, 49)
Future effigy of King Charles III on $5 dollar note (pp. 44–46)
Inflation psychology and the risks that this presents (pp. 49, 51)
Industry, Science and Resources Portfolio, Thursday 10 November 2022
Commonwealth Scientific and Industrial Research Organisation (CSIRO)
2.28
The Chief Executive of the CSIRO, Dr Larry Marshall, made an opening statement highlighting the key goals of the organisation and reaffirming the CSIRO’s directive for science for today as well as for the future.
2.29
Topics examined by the committee included:
GenCost Report (pp. 55–58, 63–65)
Australia’s lead on renewable energy
Merger of ocean atmosphere and land and water divisions (pp. 58–61)
Project external funding sources and costing
Individual projects (which seek external funding, particularly with relation to climate science)––how to explain discrepancy in funding (climate science vs rest of CSIRO)
Gas Industry Social and Environmental Research Alliance (GISERA) Report (pp. 61–63, 67–68, 70–72)
Nuclear energy costs (pp. 65–66)
Murray Darling Basin plan and funding to the CSIRO––‘updated sustainable yields work’ (pp. 66–67)
Generation cost report––solar and wind share summary and renewable investment and transmission costs (pp. 68–70)
Scientific data on carbon dioxide reductions (pp. 72–74)
National Health and Medical Research Council (NHMRC) Report
(pp. 74–75)
CSIRO relationship with the Chinese Academy of Science (pp. 75–76)
Partnership with Santos to eliminate carbon emissions (p. 76)
Workplace culture of CSIRO and growth trajectory (pp. 76–77)
Outcome 1 – Program 1.2
2.30
Topics examined by the committee included:
Ammonium nitrate dumping exported from Russia (p. 78)
National Reconstruction Fund (pp. 78–80, 86–87)
Consultation and stakeholder engagement with First Nations people through the independent board (p. 80)
Safeguards for finance of projects and informed consent and consultation
Moon to Mars program––guidelines for grants and procurement
(pp. 80–82, 84–86)
Cyber Workforce grants (pp. 82–84)
Electric Vehicle infrastructure for charging (pp. 87–89)
Office of the Chief Scientist (OCS)
2.31
Topics examined by the committee included:
Semi-conductors’—explanation and role (p. 89)
Reliance on electronics and importing chips internationally (pp. 89–90)
Science disinformation on social media (pp. 90–91)
Outcome 1 – Program 1.3
2.32
Topics examined by the committee included:
Costs of legal action between Traditional Owners and the National Radioactive Waste Agency (pp. 115–118)
Number of locations where nuclear waste is currently stored in Australia
(p. 118)
Petroleum Exploration Permit 11 (PEP11) (pp. 118–121)
Community benefit programs in Kimba resulting from the decision to establish the National Radioactive Waste Agency in that location (p. 118)
Departmental notification of the appointment of Ministers in the previous government (pp. 118‒121, 124‒125)
Geoscience Australia
2.33
The Chief Executive Officer of Geoscience Australia, Dr James Johnson, made an opening statement, outlining Geoscience Australia’s key areas of impact focus and the science programs that support these.
2.34
Topics examined by the committee included:
Consultation period for the critical mineral’s strategy (p. 92)
Information on Australia’s gas reserves and remaining capacity of gas reserves in certain basins (pp. 92–93, 93–95)
Exploring for the future program funding arrangements (p. 93)
Gas shortages and exploration possibilities in Australia—medium to long term supplies of gas (pp. 95–97)
Seismic programs—active line designed to examine mineral sources and ground water (p. 97)
Staffing at Geoscience and their location (pp. 97–98)
Education centre and production of online materials for schools—programs for regional and remote communities (p. 98)
GPS accuracy developments (p. 99)
Australian Nuclear Science and Technology Organisation (ANSTO)
2.35
The Chief Executive Officer of ANSTO, Mr Shaun Jenkinson, made an opening statement highlighting the key role ANSTO takes in supporting and addressing the challenges facing Australia today in several key areas.
2.36
Topics examined by the committee included:
Options for the disposal of radioactive waste from ANSTO’s operations
(pp. 100–101, 102–105, 109–110)
Role of ANSTO representing Australia in international forums on nuclear technology (pp. 101, 110–112)
Cost of construction and operation of large and small nuclear reactors for energy production (p. 101)
Safety of the Lucas Heights operating facility (pp. 105–109)
GenCost report consultation (pp. 112–113)
Nuclear waste classifications (pp. 113–114)
National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA)
2.37
Topics examined by the committee included:
Investigation of a seismic survey in the Otway Basin (pp. 128‒129)
Requirements on companies to consult as a requirement of environmental approvals (pp. 130‒131)
NOPSEMA’s responses to oil spills (pp. 131‒132)
Penalties and fines associated with oil spills (pp. 132‒133)
Reserve Bank of Australia, Monday, 28 November 2022
2.38
Topics examined by the committee included:
Former Guidance—RBA review (p. 4)
Increase of cash rate and conditions of wage growth (p. 4)
RBA messaging that interest rates will stay low and apology that the community acted on the RBA advice despite caveats—failure of communication and renewed approach for future (p. 5)
Interest rate rises, supply side pressures and appropriate tools to tackle inflation––increasing the supply of electricity and gas in the domestic market and housing supply (p. 5)
Rationale for increasing interest rates—part of the insurance package and demand in the economy (pp. 5‒6)
Features allowing the economy to get back to the pre-pandemic levels of output––government management of the pandemic, the insurance policy that the RBA implemented, national income boosted by high commodity prices (p. 7)
Use of the word ‘insurance policy’—understanding of the resilience of the economy and underlying strength of the economy not foreseen (pp. 7‒8)
Factors contributing to a decline in inflation over the next few years and the coming year—resolution of the supply side, stabilisation of commodity prices, cost of energy and rent (p. 8)
Growth of real wages and the impact of high inflation––acceptance of some modest reduction of real wages (pp. 9‒10)
Accuracy of RBA forecasts, higher than expected inflation and too much stimulus in hindsight and difficulty in 2020-21 as a result of the pandemic (pp. 10‒11)
Impact of stimulus on inflation (p. 11)
Renewable energy and managing the transition––high energy prices as a result of the transition (p. 12)
Opportunity to put prices up and shift in business psychology––adding some price pressures (pp. 13‒14)
RBA business liaison program and monthly report before board meeting (p. 13)
Worker liaison program—challenges in structuring a formal program (p. 13)
Corporate profits and inflation—whether a primary or ongoing factor in driving inflation (p .14)
Support of higher wages—class warfare angle of rising wages (pp. 14‒15)
Risks in a sectorial perspective rather than an economy wide perspective that are counterproductive and affected sectors (p .15)
Wage growth surveys in some sectors and feedback from RBA consultation with businesses (p. 16)
Future productivity agenda and shared ambition to have real wages rising (pp. 16‒18)
Section 36 power in the Banking Act and use of this power (pp. 18‒20)
Responsibility of directing credit policy (p. 19)
Response of the RBA to climate crisis—submission made by Senator McKim to the RBA review not supported by the Governor (p. 19)
Comments from the RBA regarding interest rate rise (and conditions for rate rises) and accountability of the RBA to the Parliament and Australian people (p. 19)
Issuing of credit, government debts and borrowing arrangements from foreign banks—subsidising of finance to central banks and rationale during the pandemic so low rates were passed (pp. 19‒21)
Criticisms of the rate setting approach and alternative model to fix this and the communication problem—political history on this issue (p. 22)
Stimulus of the bank and the government—John Howard’s comments (p. 22)
Bond purchase program and market to market losses—evaluation of an early exit before maturity and other strategies (pp. 22‒23)
Tools to tighten monetary policy (p. 23)
Commodity prices and expectation of increases—factors in relation to an uptake in resources investment—uncertainty in China (p. 24)
Mechanisms to regulate stable coins—regulatory regime should be put in place to ensure trust—adequacy of legislation currently and encouragement of putting in place regulatory measures (p. 24)
Digital currencies and advice to government regarding security of economic risks (p. 24)
Treasury Portfolio, Monday, 28 November 2022
Department of the Treasury
2.39
Topics examined by the committee included:
Inflationary impact statement (p. 4)
Energy market impacts from inflation (p. 4)
Effect of war in Ukraine on energy markets (p. 5)
The role of corporate profits in driving inflation—inflationary psychology (p. 6)
Tax increase effects on inflation (p. 7)
Wealth tax concepts (pp. 7‒8)
Excessive coal and gas profits impacting pricing (pp. 8‒9)
Government intervention for inflation control (p. 9)
ACCC energy markets letter to Jim Chalmers (p. 9)
Gas policies discouraging investors (pp. 10‒11)
Box 3.2 Budget Paper 1––Pre-election fiscal outlook and adjustment PEFO (pp. 12‒13)
Economic inclusion advisory committee––Treasury’s role (pp. 13‒14)
Energy Markets––Treasury analysis of coal or gas tax regime alterations (pp. 15‒16)
Fiscal strategy ‘balancing the budget’ abandonment advice from Treasury–– comparison of Box 3.1 and Chart 3.1 (pp. 18‒19)
Number of budgets that have imposed a cap on tax revenue as a percentage of GDP since 1996 (p. 20)
Update on Evaluator-General’s role in the Treasury (p. 20)
Employment white-paper task force (pp. 21‒24)
Tax related thermal coal announcement (pp. 25‒26)
Industry Portfolio, Thursday, 1 December 2022
Department of Industry, Science and Resources
Outcome 1, Program 1.3
2.40
Topics examined by the committee included:
Advice from the department on the effect of domestic coal and gas price caps (pp. 3‒22)
Decision making process and future effect on supply
Department’s advice to government on effects
Department’s engagement and consultation with other departments in providing smart advice to Australians
Beetaloo drilling program
Optimise and discover program
Critical minerals strategy
Update on changes to the critical minerals list
Ukraine shipment of Whitehaven Coal (pp. 6‒7)
Work with Treasury and ACCC with gas market issues regarding letter received (pp. 12‒14)
Issues raised by gas producers with the department regarding proposed market intervention (pp. 14‒15)
Seismic testing in Otway Basin (pp. 15‒17)
Consultation with traditional owners (p. 16)
Special Prospecting Authority and National Offshore Petroleum Acreage Releases (pp. 15‒17)
Role that National Offshore Petroleum Titles Administrator plays in this process
Funding allocated and spent for strategic basin plans (pp. 18–21)
Senator Jess Walsh
Chair
Labor Senator for Victoria