Energy minister plugs in for power price cap reforms
Caps designed to protect power users from excessive price hikes are not working as intended and need refining, the federal energy minister will concede in his first major speech since the election.
A convincing Labor win also has Chris Bowen hopeful Australia can triumph in its bid to co-host global climate talks and muscle out competitor Turkey, with a decision expected soon.
In a wide-ranging address to the Australian Energy Week conference in Melbourne, Mr Bowen will promise changes to the so-called Default Market Offer rules to force retailers to compete harder for customer dollars.
"The DMO was intended to act as a benchmark price to stop the worst forms of price gouging, while leaving the job of putting downward pressure on prices to competition between energy companies," he will say on Wednesday.
"However, I'll be frank. I don't think it's working that way and reform is needed."
In several states, regulators enforce caps on what retailers can charge households and businesses to protect the hundreds of thousands of customers unable or uninterested in chasing a better deal.
Caps are reviewed annually to reflect the costs of generation and moving electricity around through poles and wires.
In NSW, South Australia, southeast Queensland, it's the independent Australian Energy Regulator's job, while in Victoria, the Essential Services Commission sets benchmark prices.
Changes to AER's price cap mechanism have not yet been locked in, but could include clamping down on what retailers can claim back from customers on their bills.
Mr Bowen said it was hard to defend price caps when 80 per cent of billpayers could be getting a better deal.
"That's why we have work underway to deliver a better regulated pricing mechanism which will put downward pressure on electricity bills and also ensure the energy market better utilises the huge uptake of rooftop solar and batteries," he will say.
Mr Bowen will declare Labor's thumping election win as a vote of confidence in its energy and decarbonisation policies.
He says it puts Australia in a strong position to secure the rights to co-host the COP31 climate talks alongside Pacific nations.
An announcement is possible at the UN climate meetings underway in Bonn, Germany.
The bid has come under pressure following the federal government's proposed decision to grant an extension on the North West Shelf gas plant's operating life.
The project was singled out by Oil Change International in a report showing the United States, Canada, Norway, and Australia are responsible for nearly 70 per cent of projected new oil and gas from 2025 to 2035.
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Perth Now
14 hours ago
- Perth Now
ScoMo's warning to Albo after Iran strikes
Former prime minister Scott Morrison has accused the Albanese Labor government of not showing enough 'clarity' on the Israel-Iran conflict. Speaking on Sky News on Sunday, Mr Morrison urged Labor to back the United States' attack on Iran's nuclear sites, after Donald Trump deployed a series of strikes on the country's three nuclear sites in Fordow, Natanz and Esfahan. 'I think there's been far too much ambiguity about this from Australia, far too much ambiguity, and it's time for clarity,' Mr Morrison said. 'And the clarity is we were dealing with a theocratic authoritarian state that had sponsored an attack on close friends in Israel back on the seventh of October, and they have shown their true colours, and Iran is not a friend of Australia. It's not a friend of Australia's interests. 'We should be expressing no ambiguity when it comes to Iran.' Former prime minister Scott Morrison said Australia had shown 'far too much ambiguity' over the Israel-Iran conflict. NewsWire/ Martin Ollman Credit: News Corp Australia Following Mr Trump's confirmation of the strikes, a government spokesperson said Labor has noted Mr Trump's statements, and reiterated the President's comments that 'now is the time for peace'. 'We have been clear that Iran's nuclear and ballistic missile program has been a threat to international peace and security,' they said. 'The security situation in the region is highly volatile. 'We continue to call for de-escalation, dialogue and diplomacy.' They also urged the 2600 Australians in Iran and 1200 in Israel to monitor public safety information by local authorities and 'shelter in place when required'. 'The Department of Foreign Affairs and Trade will be communicating directly with registered Australians about preparations for assisted departures,' they said. Mr Morrison gave his firm backing of Mr Trump's decision to strike the three Iranian nuclear bases, saying the US were the 'only ones who could do it'. He said the move was done not to 'oppose some sort of regime change', but to end the threat of Iran's nuclear programs, and were 'totally justified given the threat that was faced'. 'This has been the most decisive and the most comprehensive action to terminate that threat,' Mr Morrison told Sky. 'This is not the place that President Trump would rather be. He has not rushed towards this and further, this is not about the US trying to oppose some sort of regime change, they have a very specific job here that they have undertaken.' In the wake of the strikes, Mr Trump urged the Iranian regime to 'make peace' or risk 'greater' and 'easier' attacks. 'There will be either peace or there will be tragedy for Iran, far greater than we have witnessed over the last eight days,' he said. 'Remember, there are many targets left. Tonight's was the most difficult of them all by far, and perhaps the most lethal. 'But if peace does not come quickly, we will go after those other targets with precision, speed and skill. 'Most of them can be taken out in a matter of minutes.' US President Donald Trump says Iran's key nuclear enrichment facilities have been 'completely and totally obliterated'. Mr Trump has addressed the nation after the United States carried out attacks on three nuclear sites in Iran, marking a significant development in the conflict in the Middle East. Earlier on Sunday, Defence Minister Richard Marles said the government remained concerned about the prospect of escalation and continued calls for dialogue, denying claims the government was trying to distance itself from the US. However he acknowledged Israel's 'right to defend itself', and the 'risk that the Iranian nuclear and ballistic missile program represents to both the region and the stability of the world'. He said the Department of Foreign Affairs remained alert in trying to evacuate the thousands of Australians caught in Iran and Israel. 'We do have civilian aircraft chartered ready to go in the event that airspace opens up over Iran and Israel, and right now that is the biggest constraint here, that both airspace over both countries is closed,' he said. 'We have a C-17 and a KC-30 which both can take hundreds of passengers placed in Al Minhad (in the United Arab Emirates), which is just outside of Dubai.' Mr Marles said the staff at Al Minhad had been increased from 'about 40, to 'about 300'. US President Donald Trump warned of further attacks on Iran if it doesn't 'make peace'. Carlos Barria/ NewsWire POOL Credit: NewsWire Greens Leader Larissa Waters said the US strikes on Iran were a 'terrifying and catastrophic escalation by the USA,' and called on Mr Albanese to condemn the actions. 'From Iraq to Afghanistan, we have seen Australia follow the US into devastating and brutal wars that have done untold damage to the people of the Middle East. We know that you cannot bomb your way to peace,' she said. Greens defence and foreign affairs spokesman David Shoebridge said Australia should distance itself from the US' actions, including withdrawing from the AUKUS defence pact. 'That means ending the AUKUS agreement, prohibiting the use of US military bases in Australia, including Pine Gap, from being used in this conflict, and clearly opposing military action by the US and Israel against Iran,' he said. 'Like every war, the cost will not be carried by governments, but by people, families and communities who face destruction. 'The impact of war is always inflicted on ordinary people. The Iranian people, who currently face oppression under the Iranian regime, are only put at further risk of violence and persecution by these US and Israeli attacks.'
The Advertiser
15 hours ago
- The Advertiser
Future focus as inflation blare dims but change needed
The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement." The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement." The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement." The man who writes the cheques for Australia's largest state budget can finally focus on the future. Inflation was "blaring" in NSW Treasurer Daniel Mookhey's ears when he was compiling his first two budgets after Labor returned to government in 2023 for the first time in 12 years. "But the challenge in front of the state and the nation is making sure that we are growing our economy fast enough to support a rise in living standards," he tells AAP as he prepares to hand down his third. Mr Mookhey says Tuesday's state budget is about the future of the state's essential services and economic growth. "There's a lot of opportunity and a lot of ambition in NSW and the changes we're making are designed to hold on to what we love ... but also ensure that our kids and our grandkids have the same level of opportunity that we had," he says. While receding inflation and distance from the COVID-19 pandemic's associated spending have allowed the treasurer to cast an eye to the future, issues from the past remain. Framed in Mr Mookhey's parliament office is a newspaper headline relating to the underpayments scandal in the state's workers' compensation scheme he played a role in exposing in opposition. The page is yellowing with age as Mr Mookhey pushes to reform a scheme he is now in charge of, and which he argues is becoming unsustainable due to the rising cost and prevalence of psychological injuries. "It's been a hard case to argue," he says. "This system is failing everybody. It's a system that is fundamentally broken." Changes are simmering on the back burner after a parliamentary inquiry prevented action before the budget. Mr Mookhey hopes reform can create a "prevention culture" that limits psychological injuries from occurring. Outside of the workplace, he has promised some reassurance to people dealing with mental health issues and their loved ones. "They will see more investment in mental health resources in our health system and they will see more investment when it comes to our social interventions," he says. However, public psychiatrists at the pointy end of mental health crises should not expect the budget to deliver a pay rise at the level they have been calling for amid resignations in protest and arbitration in the state's Industrial Relations Commission. The federal distribution of GST to the states also continues to frustrate Mr Mookhey after dashing his hopes of a surplus in 2024. NSW now receives its lowest share of GST since it was introduced - about 85 cents for every dollar raised. "What frustrates me is not so much that we support the other states, it's just the missed opportunities," he says. The distribution needs to change but the tax's bigger proportional hit on the spending power of lower-income Australians means Mr Mookhey does not support raising the rate. "We can do better," he says. "What we need to focus on is just making sure the system is simple, the distribution is fair, the distribution is predictable, but also the distribution is understandable." Another federal issue with implications for state budgets is the rise of the black market for illicit tobacco fuelled by rising excise on dinky-di durries. The market shift is robbing the Commonwealth of expected revenue and creating criminal complications for states. It has already led to increased funding for enforcement within the health budget, but Premier Chris Minns indicated earlier in June a decision would have to be made about the resources devoted to combating illicit tobacco sales. While smoke clouds what the budget might do to address the issue, Mr Mookhey notes it is a source of public anxiety. "It's right and fair that we respond to community concerns about it ... we're going to have to work through what is the right solution." The tax issues are part of what economic researchers at the e61 Institute call a "vertical fiscal imbalance" that characterises the nation. "The states carry many of the spending responsibilities but lack equivalent revenue-raising capacity," chief executive Michael Brennan says, warning state finances are drifting onto an unsustainable path. But NSW will at least bank a cash surplus in Tuesday's budget for the first time since 2021. "Which means we're no longer borrowing money to pay our day-to-day bills as a government," Mr Mookhey says. "That gives us a platform for further progress." Australian Public Policy Institute chief executive Libby Hackett expects the budget will be a step forward, building on previous years. "This will be a structural reform budget: supporting better service delivery, infrastructure alignment and long-term productivity, even in a tight fiscal environment," Professor Hackett tells AAP. "Moreover, this budget presents a real opportunity to advance whole-of-government objectives in cross-cutting areas." Opposition Leader Mark Speakman sees it differently, warning the state is heading for "yet another low-vision, low-value, low-energy budget". "We have had not one visionary pre-budget announcement."
AU Financial Review
15 hours ago
- AU Financial Review
Labor must seal the cracks in Australia's carbon credits market
After Labor's resounding election victory, it is now likely that Australia and Pacific countries will co-host next year's global climate summit, bringing renewed focus on the Albanese government's performance in this area. With Australia's emissions continuing to rise and growing concerns in the business community about ESG risks relating to the offsets market, Labor should bring forward the review of its signature emissions pricing policy to this year.
