Taylor, Howarth & Smith – JMR – Consumers Losing From Labor’s Failures on Consumer Data Right

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Friday, 9 August 2024 CONSUMERS LOSING FROM LABOR’S FAILURES ON CONSUMER DATA RIGHT The Coalition welcome the Assistant Treasurer’s rediscovery of the Consumer Data Right after two years of inaction on this crucial reform. The Consumer Data Right has the potential to be a gamechanger for consumers and competition in Australia, but it needs to be managed right. Under Labor, legislation has sat unpassed in parliament for almost two years, an awareness campaign for consumers has stalled, businesses have been left in limbo without regulatory certainty, and new policy has developed without consideration of how it would interact with a future CDR ecosystem. These failures are of Labor’s making. This is another failure from an Assistant Treasurer who has disappointed in every element of his portfolio, yet stayed in the job because of his factional allegiance to the Prime Minister. Australian consumers are the losers for Stephen Jones’ repeated failures. It is clear from the delays on the Consumer Data Right that Labor’s commitment to competition reform is more about distracting from their role in fuelling inflation than delivering for Australians. The Coalition is committed to making the Consumer Data Right work to boost competition and drive good consumer outcomes. The Coalition will closely scrutinise the next steps outlined by the government and hold Labor accountable for any further delays or cost increases of this crucial reform. The Coalition will continue to work with stakeholders across the whole CDR ecosystem to ensure the roll out is efficient, well phased, and proportionate – particularly for small, regional and rural banks and mutuals. The Coalition is committed to reversing the creeping compliance burden Labor is imposing on Australian businesses. It is essential the Financial Services Regulatory Grid be delivered as a priority, before the end of the year, to help businesses plan and hold regulators accountable for the costs they are passing on to consumers and small businesses. Shadow Treasurer Angus Taylor said this is just another example of Labor’s failed economic management. “It is clear Labor has given up leading the economic debate. Labor has let inflation run out of control and it has botched the roll out of this crucial reform for over two years in office. “This is a crucial competition reform that will deliver real benefits for consumers, but it has sat idle while Labor has spent billions of taxpayers’ money on its own priorities that are just fuelling inflation. “The Coalition is committed to delivering strong competition policy that empowers consumers and small businesses, and we will work in government to ensure the Consumer Data Right delivers on its potential.” Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said the Assistant Treasurer provided nothing new today after 14 months of silence on the Consumer Data Right. “Regulatory uncertainty has been the hallmark of the Albanese Government’s financial services policy agenda. “Banks, energy providers, non-bank lenders and other CDR participants have faced a year of regulatory limbo waiting for the Assistant Treasurer to make up his mind. “The Government has failed to explain why it has stalled and neglected this important initiative for so long.” Shadow Assistant Minister for Competition, Charities and Treasury Senator Dean Smith said Labor’s competition agenda is now being driven by the Coalition.   “At a time when lifting productivity is critical to reversing Australia’s declining living standards, Labor’s approach has been characterised by dithering and delay.   “Labor’s go-slow approach to CDR reform has hurt the FinTech industry and disempowered consumers at a time when Australians deserve greater finance technology choices.” ENDS.

Taylor, Howarth & Smith – JMR – Labor Must Not Abandon The Consumer Data Right

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The Hon Angus Taylor MP Shadow Treasurer The Hon Luke Howarth MP Shadow Assistant Treasurer Shadow Minister for Financial Services Senator Dean Smith Shadow Assistant Minister for Treasury, Charities, and Competition MEDIA RELEASE 7 August 2024 LABOR MUST NOT ABANDON THE CONSUMER DATA RIGHT The Albanese Labor Government’s silence and inaction on the Consumer Data Right (CDR) is holding back this crucial cost of living relief and competition initiative. After fourteen months of neglecting a key part of his portfolio, Assistant Treasurer Stephen Jones will finally break his silence at an event on Friday billed as his “first public remarks on CDR since June 2023”. If the Assistant Treasurer rolls out more of the same platitudes about doing “the work to get it right” but again refuses to progress any of that work, the Albanese Government has effectively abandoned the CDR and failed the consumers and small businesses who stand to benefit from it. Banks and energy providers have made a significant investment in the CDR – an investment which has the potential to set Australia’s digital economy up for the next century. However, this investment must be coupled with strong leadership from the Government and the support of the responsible minister. Instead, the Albanese Government’s record on the CDR is a litany of stalled or abandoned projects led by a minister who is simply not interested: Expansions to insurance, superannuation and telecommunications have been abandoned. The Government’s own “action initiation” legislation to expand its functionality has languished in Parliament since its introduction in November 2022. The non-bank lending sector has been left in regulatory limbo with rules to expand CDR to include them stalled since August 2023. A promised education campaign to help consumers to easily identify CDR‑enabled providers, products and services never eventuated. The most recent consultations on improving the CDR and phasing out screen scraping have not progressed since August 2023. No new consultations on improving the CDR since August 2023. In his June 2023 speech, the Assistant Treasurer said “right now, you can use your CDR data to get a better deal on your credit card, find a cheaper mortgage, and understand your energy usage” and that “an extensive architecture has been built, designed to expand and scale out.” Fully aware of the benefits CDR can provide, the Labor Government’s failure to prioritise, support and scale it is compounding Australia’s cost of living crisis and sticky, home grown inflation. Shadow Treasurer Angus Taylor said this is just another example that Labor’s competition agenda is more about spin than substance. “With quarterly inflation rising again, it is baffling that the Labor Government isn’t using every lever it can to bring cost of living down. “The Coalition implemented the CDR and since coming into Government, Labor has completely botched the roll out of a program its own Ministers’ described as a ‘game changer.’ “Australian consumers are paying the price for Labor’s lack of leadership.” Shadow Assistant Treasurer and Shadow Minister for Financial Services said Labor’s inaction on CDR is yet another broken promise. “Over the last two years the Albanese Government has pumped the brakes on its rollout and stalled its progress without explanation, creating regulatory uncertainty across the financial services sector. “There is no leadership or plan from the Albanese Government and the ecosystem of innovative businesses supporting the CDR is suffering as a result.” Shadow Assistant Minister for Treasury, Charities, and Competition, Senator Dean Smith said the Government’s delay in enacting CDR Legislation is denying Australian consumers the benefits of enhanced competition in the banking and energy sectors. “The Coalition has forced the CDR back on the legislative agenda, and swift passage of the legislation next week will be a step towards improved competition outcomes for the economy at a time where Australia’s competition landscape is languishing. “Australian consumers are paying a high price for Labor’s inaction and their delay is further proof that this Government fails to understand the levers that will drive improved productivity, bring down cost of living pressures, and improve living standards.” ENDS

Hume, Smith, Canavan & Kovacic – Media Release – Labor’s spending to fuel inflation crisis for longer

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SENATOR THE HON JANE HUME SHADOW MINISTER FOR FINANCE CHAIR OF THE COST OF LIVING COMMITTEE SENATOR FOR VICTORIA SENATOR DEAN SMITH SHADOW MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA SENATOR THE HON MATT CANAVAN SENATOR FOR QUEENSLAND SENATOR MARIA KOVACIC SENATOR FOR NEW SOUTH WALES   MEDIA RELEASE Wednesday, 7 August 2024 LABOR’S SPENDING TO FUEL INFLATION CRISIS FOR LONGER Struggling mortgage holders won’t be seeing rate relief any time soon as the Reserve Bank of Australia has said they are looking for ‘softer growth’ in Government spending before it could cut interest rates. The Reserve Bank of Australia (RBA) told the Cost of Living Committee at its hearing in Sydney, that it had almost doubled its forecast of Government spending since Labor’s Budget, increasing from 2.1% to 4%, confirming that Government spending is driving inflation. AMP economist Dr Shane Oliver told the Committee that wages had gone backwards by five per cent, and that the economy was at a risk of recession. He went on to tell the Committee that if Labor’s spending was lower, the RBA would be able to consider cutting rates. Alan Oster, chief economist at NAB, told the Committee that sectors like manufacturing, hospitality, and retail were feeling the pinch of higher interest rates and lower consumer spending most acutely. Both Dr Oliver and Mr Oster described Labor’s spending as “bad timing” and “unhelpful”. Economics professor Richard Holden told the Committee that the Labor Government had delivered three very expansionary Budgets that were “putting upwards pressure on inflation.” He went on to say that the Government’s temporary measures that lowered headline inflation were a ‘trick’ and still added to demand. Judo Bank economist Warren Hogan agreed, and said that the only way to get inflation under control was for the Government to get the policy settings right, including by getting more flexibility into the labour market. The Business Council of Australia (BCA) highlighted the cost of doing business crisis that was also caused by higher inflation, noting record insolvencies experienced in Australia in recent months. Chief Economist Stephen Walters echoed the economists’ comments that a flexible industrial relations system was key to lowering costs and passing on savings to consumers. Chair of the Committee, Senator the Hon Jane Hume said that the Albanese Government is ignoring the warnings of experts and running the Australian economy into the ground. “Instead of showing restraint in their fiscal policy to be in line with the RBA, the Albanese Government has increased spending by $315 billion. That’s not what the RBA wants to see. “The RBA has now pushed out any hope of a rate cut this year, and in fact they even considered lifting rates yesterday. That brings no comfort to Australian households who are struggling to cope with these higher for longer interest rates. “Australians are poorer under Labor, and from the evidence we heard today, it’s clear that there is no end in sight to the financial pain households and businesses are facing right now.” Coalition Senators Smith, Canavan and Kovacic called on the Albanese Government to act on the warnings from the RBA and the economists who gave evidence to the Committee today for the sake of all Australian households and businesses. ENDS.

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Labor ignores competition advice, makes regional Australians pay the price

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 31 July 2024 LABOR IGNORES COMPETITION ADVICE, MAKES REGIONAL AUSTRALIANS PAY THE PRICE The collapse of Bonza and now Rex demonstrates Labor has ignored the many warning signs that Australia’s aviation industry needed urgent reform in order to sustain the green shoots of healthier aviation competition. With the announcement of Rex’s insolvency, the Labor Government has now overseen an irreversible backwards step in the competitiveness of Australia’s aviation industry with the effects likely to be felt for years to come. The Australian Consumer and Competition Commission’s (ACCC) most recent domestic monitoring reports into airline competition reveal the entrance of Bonza and Rex to the aviation market were providing consumers greater choice and access to a wider range of routes – including flights to under-serviced regional areas. Rex had distinguished itself as the airline with the lowest cancellation rate, demonstrating its role in improving the competitiveness and consumer experience for air travellers. The May 2024 report noted Rex had a cancellation rate of just 0.8% compared to Qantas at 3.8%, Bonza at 3.5% Virgin Australia at 2.8% and Jetstar at 1.5%. Labor’s failure to act: In February 2024, the ACCC emphasised the importance of supporting these new entrants by urging the Labor Government to adopt a suite of aviation reforms “as soon as possible”. These reforms included measures such as improvements to the Sydney Airport Demand Management Scheme and prioritising competition as an objective for the slot management scheme. These reforms were first publicly canvassed by the ACCC in November 2023. Labor ignored the urgency of these and subsequent calls from the ACCC, and they currently remain unenacted. The failures of Bonza and Rex highlight the lack of required urgency within Labor’s Competition Review process in delivering timely improvements to aviation competition in Australia. A significant rework of Australia’s aviation market is now required if this Government still hopes to deliver productivity and wages growth, lower airfares and deliver more aviation choice. When Labor’s Competition Review was announced in August last year it was tasked with working closely with the Department of Infrastructure, Transport and Regional Development to consider competition issues in Australia’s aviation sector. The Labor Government should immediately demonstrate the level of effort and attention its Competition Taskforce has put into developing a pro-competition agenda for the aviation sector and explain why the Competition Taskforce has been silent to date on publicly announcing its suggested reforms to the aviation industry. Labor’s lack of attention to airline competition issues has failed every Australian airline customer, as well as the 600 employees facing potential job losses, and the hundreds of regional communities, business and community organisations dependent on regional air travel connections. Comments attributable to Senator Dean Smith: Senator Dean Smith, Shadow Assistant Minister for Competition, said “Labor has been asleep at the cockpit, and the collapse of Australia’s third largest airline should be a wakeup call to accelerate its competition review process.” “Since their election, Labor has failed to implement the regulatory reforms necessary to sustain the entry of new airlines and provide enhanced aviation travel.” “The collapse of Bonza and Rex has heralded further concentration of an already over concentrated aviation sector – where 93% of the market is controlled by just two airlines.” “The events of this week demonstrate Labor’s loyalty program is restricted to protecting Australia’s aviation monopoly and not the aviation consumer.” ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Charities report a wasted opportunity when Australians need it most

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 19 July 2024 CHARITIES REPORT A WASTED OPPORTUNITY WHEN AUSTRALIANS NEED IT MOST Australia’s charity sector is supporting millions of households through the Albanese Government’s cost of living crisis, but it has also been fighting for its life. Battling record demand and skyrocketing overheads on Labor’s watch, it has fought through the last two years unsupported and uncertain. That uncertainty now continues with the release yesterday of the Productivity Commission’s final report, Future foundations for giving. The Report contains a drastic proposal to reshape the Deductible Gift Recipient system in Australia – and the activities of many of the nation’s charities along with it. The result, unless Labor rejects these changes, will be victory for an ideological attack on religious charities in particular. Every bit as concerning, the Report represents no immediate, meaningful pathways to growing charitable donations at a time they are desperately needed. Ideological attack The Productivity Commission itself notes “many participants also expressed significant concerns” regarding the removal of DGR status from entities including religious charities and school building funds. Despite this, it chose to ignore these concerns – the Report features six additional recommendations and one re-worded recommendation to those in the Draft Report, but the proposed DGR reforms are unchanged. Assistant Charities Minister Andrew Leigh might have committed to maintaining the DGR status of school building funds yesterday but, given Labor’s track record of breaking promises, doubt remains. The Report now serves as a blueprint to transition school building funds, including those of thousands of public schools, out of the DGR regime whenever it suits Labor to do so. The Report recommends axing the status of a “basic religious charity” and its associated exemptions – specifically targeted at activities with the “sole purpose of advancing religion”. It prioritises instead charities focused on advocacy, including those driving social and environmental change. Dr Leigh’s silence on the future position of religious charities, among them some of the largest contributing and most trusted in Australia, leaves a noose around their necks. Fails to boost giving Labor’s goal is to double philanthropic giving in Australia by 2030 and a key purpose of the Report – noted in the Treasurer’s direction to the Productivity Commission – was to “increase opportunities for philanthropic giving”. It is debatable if the Report’s recommendations have, or will, achieve either. For a start, very few of its recommendations are specifically aimed at boosting giving. In fact, apart from recommendations removing the minimum donation threshold and coordinating distribution of funds, most are heavily focused on regulatory issues and the future administration of the Australian Charities and Not for Profits Commission. This is red tape over genuine improvement – something laid bare in recent Estimates hearings when Productivity Commission officials confirmed it had not even modelled how these proposed DGR changes would impact levels of giving. Comments attributable to Senator Dean Smith: “As the election approaches, Labor has failed to deliver meaningful reforms to Australia’s philanthropic sector.” “This is especially unacceptable as the sector looks for real leadership at a time when it faces unprecedented challenges. “Many will be forced to accept the work of the Productivity Commission on this as a wasted opportunity. “Despite the widespread concerns raised, the Productivity Commission has pressed ahead and presented Labor with a weapon aimed at some of our major charitable organisations in parts of this Report. “I call on Andrew Leigh to make clear which recommendations will be adopted and which won’t on an urgent basis – but, regardless, we all know this will hang over the heads of the sector and our communities while Labor remains in power. “That fact that the Report does not adequately prioritise growing giving is hugely disappointing and Labor must step in to fill this growing void. “I urge Andrew Leigh not to fall into his usual routine of round tables and studies, and instead focus on actually providing outcomes for the sector. “Labor has some clear choices here – and if they choose ideology over practicality Australians will be the losers yet again.” ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – WA household spending in record downturn under Labor

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 11 July 2024 WA HOUSEHOLD SPENDING IN RECORD DOWNTURN UNDER LABOR Plummeting household spending in Western Australia is the latest indicator of the state’s worsening cost-of-living crisis since the Albanese Government came to power. Australian Bureau of Statistics Data, released at the end of last week, revealed total WA household spending fell in May this year – a -0.3% drop compared to May 2023. It was the first time it had entered negative territory since February 2021, during the economic fallout from the COVID-19 pandemic. The data also highlighted a -3.2% fall in discretionary household spending in the year to May 2024. Despite some smaller decreases in recent months, this May 2024 discretionary spending figure represented the largest fall recorded since June of 2020. This was led in the most part by a sharp contraction in the amount being spent by WA households on clothing (-9.4%), recreation (-6.8%) and hospitality (-4.8%). Transport expenditure was also down, falling 0.5% in the year to May 2024, which was the first negative figure for household spending on transport since February 2021 – once again, at the height of the pandemic. These latest ABS numbers confirmed the extent to which the living standards of Western Australians continue to slide under Labor. Senator Dean Smith, Liberal Senator for WA and a member of the Coalition’s Shadow Economic Team, said the declining total household spending lays bare how tough WA households are doing it on Anthony Albanese and Jim Chalmers’ watch. “These are numbers you cannot talk your way out of – the worst in WA since the pandemic – and reflect real local households experiencing real economic pain,” he said. ‘We’ve seen 12 interest rate rises under Labor and the RBA, which is having to act because Labor won’t, has made clear more are likely.” “When you think of the unprecedented economic challenges of COVID-19, to be experiencing similar downturns as a result of Labor’s home-grown inflation is shocking.” “Until the Albanese Government reins in spending and gets inflation under control, these sorts of figures will become the rule, not the exception, and WA households will pay the price.” ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Win for charities as Labor forced to commit to IR action

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE   5 July 2024   WIN FOR CHARITIES AS LABOR FORCED TO COMMIT TO IR ACTION The Australian charity sector is celebrating after a Coalition motion in the Senate put an end to Labor ignoring its concerns. A motion brought by Senator Dean Smith would’ve seen the Standing Committee on Education and Employment probe the harmful impacts of the Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 on the operation of charities and non-profits. But the threat of the public inquiry was enough to force the Albanese Government’s hand. The office of Employment and Workplace Relations Minister Tony Burke providing a written commitment to engage with the sector on the issue only hours before the motion came to a vote. Part of this commitment was then read out by Senator Katie Gallagher in the Senate chamber. Peak bodies, including the Community Council of Australia and its members, have been working closely with the Coalition on this urgent matter. Contrast this with a complete lack of action from Labor and Assistant Charities Minister Andrew Leigh. The sector’s concerns stem from a requirement in Labor’s legislation that staff employed on two consecutive casual contracts must then be employed on a permanent basis. This requirement is incompatible with the funding arrangements for most charities and non-profits, which operates year to year, and would place them in an impossible position moving forward. It comes as Australian charities work in overdrive to meet record demand, supporting communities impacted by the Albanese Government’s dual cost of living and cost of doing business crises. Senator Smith said that it was appalling Labor had refused to genuinely work with the sector until it was forced to. “Labor had made zero meaningful effort to address these very real and very urgent problems with its legislation,” he said. “It’s especially shocking given the sector is currently doing the Government’s heavy lifting for it.” “Fortunately, the power of the Senate is not to be underestimated and the Coalition was able to force Labor to the table.” And Senator Smith made clear that the threat of an inquiry still hangs over Labor’s head. “Andrew Leigh, Tony Burke, Katy Gallagher, are all on notice.” “If this matter isn’t resolved to the satisfaction of the charity and non-profit sector by the time Parliament sits again in August, I will bring the motion again.”   ENDS

Senator Dean Smith – Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Labor seats worst affected by WA mortgage pain

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 17 February 2025 LABOR SEATS WORST AFFECTED BY WA MORTGAGE PAIN A new survey of mortgage repayment increases in Western Australia since 2022 has revealed Labor-held electorates are bearing the brunt of the housing affordability crisis – confirming this issue is set to play a major role in the upcoming Federal election. Commissioned by Senator Dean Smith and conducted by the Federal Parliamentary Library, the survey is the first comprehensive geographic analysis of mortgage costs across the state. It covers the period from March 2022 to September 2024 and examines all 16 Federal electorates in WA, including the newly created seat of Bullwinkel. The data takes in more than 300 suburbs and towns, revealing the cumulative effect on households of 13 interest rate rises since the election of the Albanese Government, compounded by rising property prices. The survey found that mortgage repayments have at least doubled in 180 locations across WA since March 2022. In the metropolitan area, Armadale in the electorate of Burt topped the increase in monthly mortgage repayments at 190.2 percent, while Spalding in Durack experienced the highest monthly growth in regional Western Australia at 153 percent. Across the 20 worst-impacted areas – homeowners have faced a minimum increase in repayments of 151.3 percent. 15 of these 20 locations are in the Labor-held electorates of Burt, Tangney, Brand, Hasluck, and Cowan. Balga in Cowan, for example, recorded a 153.7 percent increase, Dayton in Hasluck recorded a 162.0 percent increase, and Shelley in Tangney saw mortgage repayments rise by 181.3 percent, confirming it as one of WA’s hardest-hit suburbs. Two other suburbs in the top 20, Maida Vale and Kelmscott, are in the new Federal electorate of Bullwinkle, where Labor has a small notional majority. The full impact on the monthly budgets of WA households is best appreciated by looking at the dollar amount. In Kelmscott, mortgage repayments have surged by $1,848 per month, rising from $1,222 to $3,069. The research is proof of Labor’s economic mismanagement and policy failures, including fuelling homegrown inflation and housing shortages, and their direct impact on mortgage holders in Western Australia. Critically, the biggest mortgage repayment increases have occurred in Labor electorates – proving that the Albanese’s Government is hurting its own constituents the most. Labor is now out of time to address this crisis and affected Western Australians will soon hold Anthony Albanese, Jim Chalmers and their local Parliamentarians accountable at the ballot box. Comments attributable to Senator Dean Smith: “Labor’s cost-of-living crisis has hit Western Australians hard – from their shopping baskets to their energy bills – but housing affordability is one of the most drastic examples of the toll the Albanese Government has taken.” “This data leaves no doubt about why household budgets are under massive pressure in WA, with locals having to make unimaginable choices about what to go without to keep a roof over their heads.” “The largest rises in mortgage repayments have occurred in Labor electorates, demonstrating how the Albanese Government is negatively impacting its own constituents, who it promised life would be better with it in power.” “Now it is Labor that must pay the price – because, as we approach the Federal election, Western Australians are looking for a better standard of living and only the Coalition has a plan to deliver that.” ENDS

Senator Dean Smith – Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Greater uncertainty, reduced competitiveness for WA resources sector

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 11 February 2025 GREATER UNCERTAINTY, REDUCED COMPETITIVENESS FOR WA RESOURCES SECTOR The Albanese Government has again confirmed it doesn’t have Western Australia’s best interests at heart – or understand the unique competition issues facing the resources sector there. Labor and the Greens joined forces last night to pass the Future Made in Australia (Production Tax Credits and Other Measurers) Bill, despite concerns raised by stakeholders over its ambiguous drafting and overregulation. They also voted against a Coalition amendment, moved by Senator Dean Smith, aimed at providing businesses much needed clarity and protection from political interference. That amendment excluded any requirement for a union agreement, a reconciliation action plan, or Indigenous or environmental consultation beyond that already required by law, to qualify for a tax credit under the Bill. It also made clear that companies could not be penalised by failing to meet these requirements by receiving a reduced tax credit. Companies now face an unpredictable approval process, judged against rules giving effect to ‘Community Benefit Principles’ that are yet to be revealed by the Treasurer – with the obvious risk of politicisation. It was made very clear to the Senate Inquiry into the Bill that it poses a major threat to the international competitiveness of Western Australia’s resources sector. Labor’s recent Resources and Energy Major Projects Report confirms that 81 major Western Australian resource projects worth $119 billion are now stalled, putting 47,000 jobs at risk. Rather than combatting delays and declining investment, the Albanese Government’s new legislation adds complexity, excessive compliance costs, and a regulatory burden that will only make matters worse. The Coalition will be watching closely as the Treasurer makes public the Community Benefit rules. Comments attributable to Senator Dean Smith: “The Albanese Government risks making WA’s world-class resources sector uncompetitive with red and green tape.” “Instead of providing certainty for investors, Labor has created an undefined, highly politicised tax credit scheme that could force businesses into union agreements and other regulatory requirements just to qualify.” “Industry leaders, the WA Government, and major business groups all raised serious concerns about the impact of these new conditions – Federal Labor simply ignored them.” “Future Made in Australia continues to be nothing more than a slogan—because instead of driving growth in WA, it’s likely to drive investment out and into the hands of our competitors.” ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Labor’s Future Made in Australia Another Blow to WA’s Resources Industry

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 3 February 2025 LABOR’S FUTURE MADE IN AUSTRALIA ANOTHER BLOW TO WA’S RESOURCES INDUSTRY The prosperity of Western Australia’s critical mining and resources sector is again under attack from the Albanese Government. Labor’s Future Made in Australia policies are creating regulatory uncertainty, driving up costs, and discouraging investment in the sector. Although buried in Albanese Government rhetoric, the Future Made in Australia (Production Tax Credits and Other Measures) Bill 2024, which has just been the subject of a Senate inquiry, lacks basic detail on how proposed tax credits will be measured, distributed or enforced. The Coalition section of the inquiry’s report, released last week, confirms how the Bill leaves WA’s economy exposed to risk and excessive red tape—threatening the competitiveness of our state on the global stage. Blind to the Bill’s total lack of clarity on key issues, and stakeholder concerns about the uncertainty this will create, the Albanese Government appears determined to rush this policy through Parliament prior to the next election. This is despite the fact the tax credits in the Bill will not come into effect until 2027, that it saddles businesses with compliance costs in every year of the project, and links tax incentives to murkily defined Community Benefit Principles (CBPs). Treasury officials cannot yet explain how CBPs will be enforced, whether they will require union agreements, or what penalties will be imposed for non-compliance. The Minerals Council of Australia has warned that CBPs could duplicate existing regulatory burdens, increasing costs and slowing down projects, while the Chamber of Minerals and Energy of WA raised concerns that these provisions provide no clear benefits while adding administrative hurdles. The Albanese Government is deterring investment in WA at a time when businesses and projects here need stability. They are under growing threat from Labor on multiple fronts – with its on again off again Nature Positive legislation creating uncertainty and risking the future of WA’s resources sector by wrapping it in red tape without delivering any obvious benefit. The Albanese Government’s own Resources and Energy Major Projects: 2024 report leaves little doubt about the toll misguided policy is taking on the resources sector, revealing 81 major resource projects—worth $119 billion—are now stalled or at risk, with 47,000 jobs in doubt. This is more than triple the stalled investment recorded just a year ago. Instead of supporting economic growth, Labor is making it harder than ever for businesses to invest and create jobs—pushing critical projects offshore at a time when WA—and the rest of Australia—can least afford it. Comments attributable to Senator Dean Smith: “The Albanese Government’s Future Made in Australia policy is riddled with complexity and poorly defined obligations that risk increasing regulatory costs, tying businesses up in red tape and—worst of all—deterring investment”. “Labor is actively fueling uncertainty, pursuing policies that leave businesses with little idea about the compliance measures they will face, what penalties will apply, or how tax credits will be administered.” “Western Australia is competing with the United States, Canada, and other resource-rich nations that are offering clear and immediate investment incentives—Labor is reducing, rather than increasing, our competitiveness.” “If Labor were serious about making Australia an investment leader, they would cut regulatory duplication, offer clear guidance on requirement and penalties, and provide incentives that deliver immediate benefits rather than ones that won’t start until 2027.” ENDS