Australian households and businesses should benefit from lower interest rates and improved market conditions, in what a University of South Australia economist predicts will be a year of recovery for the country.UniSA’s Credit Union SA Chair of Economics, Dr Susan Stone, says global economic growth is expected to improve in 2025, with G20 economies averaging growth rates of 3.35%. India and Indonesia are stand-out markets and will benefit Australia as they are both major export markets.Dr Stone says inflation is also expected to further recede, with central banks having reached their monetary policy targets in nearly half of the world’s advanced economies (US, UK, Canada, Japan etc) and close to 60% for emerging market economies (India, Brazil, South Africa etc).“Inflation is coming down in Australia, and rate cuts are expected in the first half of the year, with many economists predicting one at the February meeting. However, there are still lingering concerns about Commonwealth payments affecting the CPI (consumer price index) numbers, with rents still growing strongly, services inflation running over 4%, a continued tight housing market and low unemployment,” she says,“All of this implies that spare capacity is limited in the economy and that any increase in demand accompanied by lowering interest rates could rekindle inflation.”Dr Stone, a former OECD and United Nations economist, says the labour market picture is more nuanced, with growth in full-time employment post-COVID-19 slightly ahead of part-time work,but this varies significantly by sector. The strongest employment increases have been in electricity, gas and water (EGW) and construction nationally.“EGW has more than doubled its employment growth since COVID (compared to the 10-year average) but it has come mainly through part-time work – 11% growth versus 3% growth in full-time jobs,” Dr Stone says. “The construction and health sectors were the next highest at 1.6% and 1.5% growth respectively. Both experienced stronger growth in full time workers than part-time.“Professional, scientific and technical services employment has actually grown at a slower rate in Australia since COVID with the average annual rate of 0.8% versus the average rate of 0.9% since 2014. However, manufacturing, while small, shows much stronger employment gains since COVID than in the 10-year period overall. In this sector, part-time employment has actually fallen while full-time has increased.“We see the construction sector really bouncing back from pre-COVID averages, with full-time job growth (at 1.7%) more than twice the rate as prior to COVID (0.7%) while part-time job growth remained the same (1%). Thus, tight conditions in the construction industry job market are likely to continue into 2025.”As inflation comes down and real wages rise, some recovery in household finances can be expected, which should increase household spending. A key to growth in Australia’s economy for 2025 and beyond is business investment, Dr Stone says.“We saw volume measures of retail spending finish the year up, especially for household goods, which means people aren’t just spending more because of price increases. As the price index (CPI) continues to fall faster than the wage index (WPI), along with the expected cut in interest rates, household budgets should recover in 2025,” she says.Following Donald Trump’s official inauguration as the United States’ 47th president, like many countries, Australia is adapting to his return and promise of new tariffs on Canada, Mexico and China.Dr Stone says Australians may be affected by the additional trade barriers as even though the US accounts for only 5% of Australian exports, it still ranks as Australia’s fifth-largest export market.“We export a relatively small number of commodities to the US, but it’s still an important customer for our advanced manufacturing sector. The US imports many of our high technology products such as hi-tech engines, aircraft and space parts and machine tools,” she says.“The US is also our second largest services export market, making up more than 10% of our total services trade. Service inputs are things like software, engineering or transport services that help produce international goods such as toys, laptops and refrigerators.”Dr Stone says overall, 2025 should be a year of recovery, with Australian households and businesses benefitting from lower interest rates and improved market conditions.“Overseas markets are likely to remain rocky, but a weak dollar will help exports. Structural challenges in the housing market, innovation and business investment will need to be addressed to ensure sustained growth,” she adds.

Living costs for Age pensioner and Pensioner and beneficiary (PBLCI) households fell 0.1 per cent in the December 2024 quarter, according to the latest data from the Australian Bureau of Statistics (ABS). This is the first fall in quarterly living costs since the June 2020 quarter for households whose main source of income is government payments. Michelle Marquardt, ABS head of prices statistics, said: “Lower prices for electricity due to the 2024-25 Commonwealth Energy Bill Relief fund rebates impacted living costs this quarter. These lower electricity prices largely offset rises in other areas of living costs.” Living costs were also impacted by an increase in Commonwealth Rent Assistance (CRA) this quarter, especially for Age pensioner and Pensioner and beneficiary households. The increase in CRA reduced the amount of rent payable by eligible households. From 20 September 2024, the maximum rate for CRA increased by 10% in addition to the usual biannual CPI indexation each year. Government payment recipient households also experienced falls in Health costs due to an increase in the proportion of these households reaching the Pharmaceutical Benefits Scheme (PBS) safety net threshold this quarter, reducing their out-of-pocket expenses.Employee households saw the largest rise in living costs across the household types this quarter, up 0.4 per cent. “While the growth in Employee households’ living costs has also slowed this quarter, these households continued to see higher rises than others as they are more impacted by mortgage interest charges. The Reserve Bank of Australia’s cash rate stayed the same this quarter, however higher mortgage debt levels and the continued rollover of expired fixed rate mortgages to higher variable rate mortgages led to a rise in mortgage interest charges” Ms Marquardt said. Lowest rise in annual living costs in over two years“Falls in electricity and automotive fuel, as well as slowing growth in insurance premiums, mortgage interest charges and food prices over the last 12 months, contributed to the lowest annual living cost rises in over two years,” Ms Marquardt said.Of the household types, Employee households had the largest annual rise in living costs, up by 4.0 per cent. “Mortgage interest charges were up 14.7 per cent over the year, down from an annual rise of 18.9 per cent in the September 2024 quarter. The smaller annual increase reflects the unchanged cash rate over the last 12 months, and a fall in the share of expired fixed rate mortgages rolling over to higher variable rate mortgages,” Ms Marquardt said.Age pensioner and Self-funded retiree households saw the smallest annual rises in living costs, both up 2.5 per cent. Mortgage interest charges and Rents, which rose over the year, make up a smaller proportion of spending for these household types. Pensioner and Beneficiary Living Cost Index (PBLCI)The Pensioner and Beneficiary Living Cost Index (PBLCI), which measures living costs for age pensioner and other government transfer recipient households, rose 2.8 per cent over the year, compared to a rise of 2.4 per cent in the Consumer Price Index (CPI). Government pensions are indexed on 20 March (and 20 September) by the greater of the rise in the PBLCI and CPI over a six-month period. Over the six months between the June 2024 quarter and December 2024 quarter, the PBLCI rose 0.2 per cent while the CPI rose 0.4 per cent. 

Three pioneering projects have been awarded $1.25 million by the NSW Government to tackle plastic pollution through innovative and impactful solutions.Most councils throughout NSW, including Lismore, are looking for new landfill sites along with solutions for minimal waste to be put into landfill. Without new waste and recycling solutions, Greater Sydney’s landfill capacity will be exhausted by 2030.The NSW Government would like to solve waste challenges and support future technologies that will continue to drive us to a circular economy where nothing is wasted.Universities and government research institutions were invited to apply for funding under the Plastic Research Program.Following a competitive process, three exciting projects were successful in securing funding:Research to develop ways to reliably collect and analyse microplastics in soil, compost and treated sewage (NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW) and CSIRO).A project to create tools to identify and prioritise harmful chemicals from plastics in agricultural soils (NSW Department of Primary Industries and Regional Development (DPIRD) and CSIRO).Study into plastic fabrics like polyester to track harmful chemicals in new and recycled textiles (University of Technology Sydney’s Institute for Sustainable Futures). The Plastic Research Program is focused on making NSW a leader in managing plastic waste, and the findings from these projects will guide future policies, regulations, and actions.Each project will receive between $308,000 and $493,000, and completion is expected by 31 May 2027.For more information visit: https://www.epa.nsw.gov.au/PlasticsResearchProgram.  Minister for the Environment Penny Sharpe said, “NSW is facing a landfill crisis. New solutions are needed and needed quickly.“Hidden chemicals in plastic waste make recycling harder.“This investment into cutting edge research will help uncover hidden chemicals in soils and everyday fabrics, to assist in finding better solutions to get rid of them.”

The Albanese Government is activating financial support for communities directly affected by the floods in North Queensland through the Disaster Recovery Allowance (DRA). The DRA offers up to 13 weeks of income support for eligible workers and sole traders, depending on their personal circumstances, who have suffered a loss of income as a direct result of the flooding in the Local Government Areas (LGAs) of Burdekin, Cassowary Coast, Hinchinbrook, Palm Island and Townsville. It is available to individuals who live or work in the declared LGAs and have lost some or all of their income due to the disaster. To be eligible for the DRA, a person’s income must have fallen below the average Australian weekly income as a result of the floods.Applications for the DRA will open at 2pm on Wednesday, 5 February. Before they claim, people can check their eligibility on the Services Australia website at: servicesaustralia.gov.au/disastersupport The easiest way to claim is online through myGov. If people need help to claim, they can call the Australian Government Emergency Information Line on 180 22 66. Prime Minister Anthony Albanese said, “In the worst of times we see the best of Australians. “We’ve seen that in recent days in Queensland, with Australians helping one another in their time of need. “My Government is there to support them through this difficult period and help on the other side.” Minister for Government Services Katy Gallagher said, “The last thing anyone impacted by natural disasters needs is more stress about making ends meet, paying bills, and putting food on the table. “That’s why, in the wake of severe weather and flooding across Northern Queensland, we are providing up to 13 weeks of income support through the Disaster Recovery Allowance to people who have lost work. “These payments will mean communities can focus on their longer-term recovery, and I encourage those impacted to check their eligibility for Disaster Recovery Allowance on Services Australia’s website.” Minister for Emergency Management Jenny McAllister said, “Communities across Far North and North Queensland have been impacted by heavy rainfall and severe flooding, damaging roads, isolating communities and making it difficult for people to get to work. “We’re moving quickly to activate financial assistance for impacted individuals and families, ensuring they are supported through these challenging times. “Queenslanders are a resilient lot, but now is a time for us to reach out and help. The Australian Government will work hand in glove with the Queensland Government to support them through this event and into recovery." 

Household spending rose 0.4 per cent in December, according to seasonally adjusted figures released today by the Australian Bureau of Statistics (ABS).This follows a 0.8 per cent rise in November and a 1.0 per cent rise in October.Five of the nine spending categories saw growth in December, primarily fuelled by higher spending on discretionary goods and services.Robert Ewing, ABS head of business statistics, said: “Household spending on discretionary goods and services rose 0.6 per cent, which was the third straight monthly rise.“The growth in December was driven by new vehicle purchases, dining out, air travel, and streaming services.“Continued strength in clothing and footwear, furnishings and household equipment, and goods for recreation and culture also contributed to higher discretionary spending.“Consumers have capitalised on the end-of-year sales season, driving a sustained rise in spending to finish 2024.”Spending growth was balanced across both goods and services in December, with goods spending up 0.4 per cent, while services rose 0.3 per cent. Household spending grew in all states and territories. The highest percentage rises were seen in Western Australia (+0.7 per cent), Tasmania (+0.5 per cent) and the Northern Territory (+0.5 per cent), while Queensland (+0.2 per cent) experienced the smallest rise.Today’s release also includes quarterly household spending volumes, which are adjusted for inflation.Household spending volumes were 1.4 per cent higher in the December 2024 quarter than the same time last year in original terms. Furnishings and household equipment (+5.3 per cent), miscellaneous goods and services (+3.9 per cent) and transport (+3.0 per cent) had the largest annual rises, while alcoholic beverages and tobacco fell 12.2 per cent.

The NSW Return and Earn scheme has hit a new record, celebrating a staggering 13 billion bottles, cans and cartons returned through the return point network since the scheme began. This means over $1.3 billion in container refunds have gone back into people’s pockets, helping with the cost of living, saving for a special goal or supporting amazing causes. Over $72 million has also been raised for charities and community groups through donations and return point hosting fees.  Following a record-breaking summer, with 23 December 2024 setting a record for the biggest single day ever at 10.3 million containers, 2024 ended as our biggest year yet with 2.125 billion containers returned. “This achievement shows just how important drink container recycling is across NSW. With over 650 convenient and accessible return points, it has never been easier to recycle in our state,” said James Dorney, CEO of network operator, TOMRA Cleanaway. “Thanks to the people of NSW, what was once seen as waste is now a valuable resource, delivering significant environmental, social and economic benefits. "  The impact of recycling 13 billion drink containers through Return and Earn instead of using virgin materials to create new containers is:  Two out of every three eligible drink containers supplied in NSW are now redeemed, increasing recycling rates and reducing the beverage industry’s reliance on virgin PET, glass and aluminium.  Water savings equivalent to 30,524 Olympic swimming pools and energy savings equivalent to powering 136,864 Aussie homes for an entire year. CO-2 emission savings equivalent to taking 582,215 cars off the road annually. “Since launching in December 2017, Return and Earn has grown into one of the most successful recycling initiatives in the state, with 8 out of 10 NSW adults making Return and Earn part of their regular routine, most visiting monthly or more often,” said Danielle Smalley, CEO of scheme coordinator, Exchange for Change.  “Recycling isn't just about cleaning up the environment – it’s about turning waste into valuable resources to grow our circular economy. Together, we are contributing to a more sustainable future, where the materials that our bottles, cans and cartons are made of are kept in use and out of landfill,” said Ms. Smalley. Return and Earn has raised funds for everything from weddings and holidays to free care flights for sick children and meals for people doing it tough. Community members can donate their refund to one of over 300 donation partners listed on the Return and Earn app or to the current statewide donation partner, food relief charity, Foodbank NSW & ACT.   Return and Earn is delivered in partnership between the NSW Environment Protection Authority, scheme coordinator Exchange for Change and network operator TOMRA Cleanaway. For more information, visit www.returnandearn.org.au.   RETURN AND EARN KEY POINTS An additional 3.5 billion drink containers have been returned via kerbside collections using the yellow bin.  More than 1.1 million tonnes of materials have been recycled through the scheme overall, contributing to a 73 per cent reduction in drink container litter since pre-scheme levels. By material type, the most common drink containers recycled through the scheme are aluminium (5.6 billion), PET (3.6 billion) and glass (3.2 billion).   The statewide return point network includes Return and Earn machines, over-the-counter return points, and depots and bulk centres for returning larger quantities. Our latest independent consumer research found: 82% of NSW adults have participated in the scheme either by recycling at a return point or by giving their containers to someone else to return.   Young people aged 18-24 recycled more (75 per cent) than those aged 65 or older (66 per cent), although older NSW residents recycled more frequently.  A higher proportion of people in regional NSW have participated (72%), significantly more than those in metropolitan NSW (65%). *Results of Verian’s Return and Earn consumer research report (December 2024). 

The NSW Police Force has officially doubled the investigative resources of Strike Force Pearl as officers increase their proactive patrols of schools, places of worship and communities across Sydney in the wake of multiple antisemitic attacks.On Tuesday, 21 January 2025, NSW Police Force Commissioner Karen Webb APM announced the increase of investigators under the Counter Terrorism and Special Tactics Command-led Strike Force Pearl in the wake of multiple antisemitic arson and graffiti incidents across Sydney.Overnight, that increase of resources came into effect with 40 dedicated investigators being deployed to Strike Force Pearl.Police have also increased the number of taskings under the strike force with the goal of disrupting criminal activity around places of worship and schools.As strike force detectives continue to investigate these incidents, Operation Shelter taskings will now come under Strike Force Pearl as police focus their attention on antisemitic behaviour.NSW Police Force Commissioner Karen Webb APM said that Strike Force Pearl will now be the primary taskforce dealing with these hateful attacks and that the current ten arrests will undoubtedly rise.“Children shouldn’t feel scared to go to school, people shouldn’t feel afraid to go to prayer or practice their religion."“The extra investigators under Strike Force Pearl means those who commit antisemitic acts will be caught and brought before the courts. I want to reassure the Jewish community that we will do everything we can to find the perpetrators of these hateful crimes." Commissioner Webb said.“Over 37,000 taskings have been undertaken by Operation Shelter since October 7, 2023, and these numbers will continue to rise under Strike Force Pearl as we continue to crackdown on this vile antisemitic behaviour. Strike Force Pearl was established in December 2024 by officers attached to the Counter Terrorism and Special Tactics Command – with support provided by Central Metropolitan Region – to investigate hate crimes with an antisemitic focus across Sydney.A total of 10 people have now been charged under Strike Force Pearl,Four men – aged 31, 37, 40 and 26 – have been charged following fires at two businesses in Bondi in October 2024,Three men – aged 20,19 and 21 – have been charged after 10 vehicles and buildings were allegedly deliberately damaged in Woollahra in November 2024,A woman – aged 34 – has been charged after vehicles and buildings were allegedly deliberately damaged in Woollahra in December 2024, and now,Two men – aged 33 and 37 – have now been charged after a building in Newtown was allegedly graffitied and attempted to be set alight.The NSW Police Force takes hate crimes seriously and encourages anyone who is the victim of a hate crime or witnesses a hate crime to report the matter to police through Crime Stoppers on 1800 333 000 or through Triple Zero (000) in an emergency.It is important that the community and police continue to work together to make NSW a safer place for everyone.

Developers could face financial penalties for failing to deliver homes and unfairly profiting off buyers under reforms being considered by the NSW Government.Feedback is being sought on stronger protections for consumers in off-the-plan contracts for homes and land in NSW to guide the delivery of new housing and prevent lengthy delays that leave people out of pocket.An off the plan contract is an agreement for the sale and purchase of a property that is yet to be developed or constructed. These contracts can apply to the sale of a proposed lot in a strata or community land scheme or to the sale of land in a conventional subdivision.The reforms are being designed to help increase housing supply by providing greater certainty and clearer deadlines for home buyers and to free up land for development faster by removing outdated restrictions on development sites.The reforms are intended to help more people achieve the Australian dream of home ownership and build greater confidence in the housing market by improving protections for buyers and preventing developers from delaying homes they have been contracted to deliver.About five per cent of 180,000 residential purchases in NSW last financial year were off-the-plan contracts, which allow a buyer to commit to purchasing a property before the complex is built or land is subdivided.Potential reforms being released for comment aim to tighten contract rules to give buyers a clearer understanding of when they can expect to move into their new home, reducing uncertainty and the risk of being left behind in the market when a contract is cancelled.This could include scrapping the ability for developers to draw the contract out with indefinite sunset clauses which give buyers no clear path forward, or ability to exit the arrangement.Other proposed changes the NSW Government is considering include:Making sunset clauses mandatory in contracts so that buyers can withdraw if sunset events do not occur by a set timeRequiring developers to disclose the status of the development against construction milestones so buyers have a better understanding of timeframes and potential risksLimiting a developer’s ability to extend sunset dates only for certain reasons beyond the developer’s control such as weather or supply issues, and imposing time limits on extensionsRequiring developers to take reasonable steps to meet dates by potentially introducing penalties for inaction.The Government is also looking at unlocking potential development sites by making it easier to remove private, outdated agreements from land titles (known as obsolete restrictive covenants) which can limit how land is used or developed.Covenants can continue to bind future landowners indefinitely, even if they become outdated – for example, an obsolete covenant may prevent more than one property from being built on the land or ban the use of certain building materials.To support the reforms, the Office of the Registrar General has released a discussion paper called ‘Contracts and Covenants: Reforms to support development of land’ outlining the options.The community is invited to respond to survey questions or upload a submission on the reform proposals and share their experiences on the NSW Government’s Have Your Say platform.The consultation will lay the groundwork for legislation to be developed in 2025.The Contracts and Covenants consultation is open until 7 March 2025.To have your say, visit: https://www.haveyoursay.nsw.gov.au/offtheplan-contracts-covenants. Minister for Customer Service and Digital Government Jihad Dib said, “Buying a home is one of the most stressful experiences for an individual, these proposals are designed to provide greater certainty and consistency. This review is about making sure home buyers have the right protections and information they need to make informed decisions.”“Off-the-plan contracts play a crucial role in supporting essential housing supply initiatives in NSW. They allow buyers to purchase property early in the development process, while giving developers the confidence and financial security to build.”“We know that most developers do the right thing, but we don’t want situations where businesses try to run down the clock on a contract to sell to a higher bidder or mislead consumers by unfairly changing the goalposts for when they can move into their dream home.”“These reforms are designed to provide greater transparency as well as encourage the delivery of new homes. These proposals are about encouraging developers to be upfront about timelines and challenges to assist homeowners.”  “We encourage people to have their say on these proposals, which aim to boost consumer confidence in the off-the-plan contract process and help NSW achieve our housing targets.”Registrar General Danusia Cameron said, “Off-the-plan, buyers need more information and support than buyers of established homes because they are not able to inspect a property before committing to buy it.”“It is important that the laws governing off-the-plan contracts also arm buyers with appropriate safeguards, meet the needs of the community and address emerging issues in the sector to ensure there is continued confidence in the process.”  

NSW is the big winner from the Men’s Rugby World Cup 2027 host city announcement, with our state set to host more games than any other, including both semi-finals and the final.The third largest sporting event in the world, the Rugby World Cup has delivered decades of drama including Wallabies glory, extra-time heartbreak and Nelson Mandela hoisting the trophy alongside the Springboks. All of that history, along with 24 national teams, an estimated 215,000 visitors, and hundreds of millions of global TV viewers, will culminate in NSW for six weeks in October and November in 2027. The host city agreement has resulted in 17 of a total 52 games being played in NSW, with Newcastle hosting four pool matches and Sydney hosting 13 fixtures, including five pool matches, two Round of 16 matches, two quarter-finals, both semi-finals, the bronze final and the final set to take place at Stadium Australia on November 13.Destination NSW estimates the tournament will inject more than $610 million into the state’s visitor economy and be Sydney’s biggest sport event in over 20 years.In addition to the direct social and economic benefits, the right to host the finals will mean Sydney is centre stage for the global television audience, providing immeasurable marketing impact for the NSW visitor economy.The announcement confirms NSW as a premier destination for world-class sporting events, including the FIFA Women’s World Cup 2023, Sail GP and the Sydney Marathon, which recently gained world marathon major status. Supporting major events is a key part of the Minns Labor Government’s strategy to grow the visitor economy. In October, the government committed to a new ambitious growth target of $91 billion in visitor expenditure by 2035, a 40% increase on the previous 2030 goal.Sydney has a proud Rugby World Cup history, having hosted six games during the inaugural tournament in 1987 and 16 games – including the final – when Australia last hosted in 2003. The NSW Government is also proud to support this year’s British and Irish Lions Tour, while Australia will also host the Women’s Rugby World Cup 2029.In the lead-up to the event, Chair of Destination NSW Sally Loane will lead a committee tasked with maximising the tourism opportunities of hosting the Men’s Rugby World Cup.NSW Premier Chris Minns said, “It’s great to see NSW come out on top - securing hosting rights to the Men’s Rugby World Cup 2027.“Staging the finals and having more matches than any other state, demonstrates just how attractive NSW is as a destination for global sporting events.“To all those keen rugby fans across the globe - it’s time to lock in your travel plans. Not only will you get to watch some fantastic sport, but you will also get to tour the best state in the world, home to extraordinary national parks and unparalleled Harbour views.”Minister for Jobs and Tourism John Graham said, “With more games than any other state, NSW will be the home of the tournament which means hundreds of thousands of fans will travel here and experience what our incredible state has to offer.”“The stadiums and the streets of Sydney and Newcastle will be absolutely buzzing during the Men’s Rugby World Cup in 2027.“Hosting world-class events is a key part of our strategy to significantly grow the NSW visitor economy over the next ten years.”“My message to rugby fans around the world is - come for the rucks and mauls, stay for the food, the wine, the beaches and cultural experiences!”Minister for Sport Steve Kamper said, “Men’s Rugby World Cup 2027 will be a festival of rugby union like no other that will inspire the next generation of players.“The choice of Sydney to host the tournament’s final match – along with both semi-finals and the bronze final - reflects the city’s position as world-class sporting events capital, and the NSW Government is excited to welcome the world’s best rugby teams – and their fans – in 2027.“For 6 weeks, we are going to be centre stage for the sporting world.World Rugby Chair Brett Robinson said, “We are delighted to reach another significant milestone on our journey to Men’s Rugby World Cup 2027. The selection of these incredible host cities reflects our commitment to bring Rugby World Cup to Australians’ backyard and maximise the tournament’s positive impact and sporting legacy in all host communities.“Australia’s iconic cities and rich culture will create an extraordinary atmosphere for fans and players alike, uniting an entire nation for six unforgettable weeks. We look forward to working with host cities to make this tournament one for the ages.”