Social cohesion, inflation and construction corruption

Security and social cohesion have been front of mind in February following the arrest of a man accused of making death threats against Treasurer Jim Chalmers and the evacuation of the Prime Minister from The Lodge during a security incident. The AFP has reported a rise in threats directed at politicians, senior office holders and the Jewish community with 21 individuals charged nationwide. Senior ministers have called for de-escalation as law enforcement shifts a greater focus to social cohesion.

Debate over the status of the 34 Australian women and children in the Al Roj camp in north-eastern Syria has added to the heightened tensions. Both major parties have rejected calls to aid in repatriation, maintaining a hardline position on national security, while Home Affairs Minister Tony Burke remains under scrutiny regarding the government’s next steps.

One Nation’s continued rise in the polls is looking to reshape the electorate landscape with recent polling suggesting the party is within striking distance of Labor at the national level and Pauline Hanson is on 25 per cent as preferred Prime Minister. Similar trends can be seen in Victoria, WA and NSW. Pundits will be watching closely as South Australia heads to the polls in March for an early test to see if One Nation’s promise translates into electoral reality.

Economic conditions remain challenging with a further interest rate rise anticipated on the back of inflation. The Albanese Government has signalled a ‘belt tightening’ alongside tax reform and productivity measures to come in the May budget as new ABS data confirms wages are lagging behind the cost of living.

In Victoria, pressure is mounting on the Allan Government to establish a Royal Commission into the CFMEU following a Queensland inquiry report by Geoffrey Watson SC finding costs to Victorian taxpayers of $15bn, much of which “poured directly into the hands of criminals and organised crime gangs.” The ongoing criticism of the government’s handling of corruption within the construction sector will place additional pressure on Labor in the lead up to the November election.

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• NSW Premier Chris Minns is under fire following recent violence between police and protesters at anti-Herzog rallies, and the introduction of new protest laws following the Bondi Beach terror attack which have been described as ‘draconian’. Minns has defended his government’s response in the interest of community safety, while fending off criticism from within his own party structure and unions.
• The Federal Government has released its annual Closing the Gap report, finding just four of the 19 targets are on track to improve the lives of Indigenous Australians, while progress on youth incarceration, child removal, early development, and suicide has stalled. The Prime Minister has announced $144 million to boost Indigenous health while Independent Senator Lidia Thorpe has criticised the government’s focus on police rather than community-led solutions.
• South Australia and Tasmania are pushing the Productivity Commission to recommend scrapping the current GST carve up that benefits Western Australia. The Productivity Commission has been asked to undertake an inquiry into the 2018 funding floor GST distribution reforms, which sees Western Australia now receive 75 cents on the dollar, and will make recommendations to promote fiscal sustainability across the states, territories and Commonwealth.

The NSW Government has released the finalised Works-in-Kind (WIK) Guideline and Infrastructure Opportunity Plans (IAP) which will allow developers to contribute through the provision of local infrastructure such as roads, open space and active transport, as well as dedicating land for transport corridors, schools, emergency services or other public purposes. The initiative aims to align infrastructure projects with the supply of new homes amidst an ongoing housing shortage, and criticism of new developments being built without the necessary community infrastructure.