Labour market remains ‘very tight' while employment growth eases
'The labour market has remained very tight, in fact, if we think about the last eight to nine months, the unemployment rate has kept between 3.9 and 4.1 per cent,' Ms Deda told Sky News host Ross Greenwood.
'It's barely budged from that trough over the last two years.
'On most indications, it's suggesting that it will continue to be tight, although there are some early signs that potentially employment growth is easing.'
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ABC News
25 minutes ago
- ABC News
Consumers left in the dark about steep hikes to insurance premium
When Michele Vanderlanh Smith discovered her annual home and contents insurance premium had jumped by 600 per cent, she thought it must have been a mistake. In just 12 months, Westpac's insurance arm, underwritten by Allianz, had lifted her premium from $728.16 to $5,345.88. Living on the first floor of an inner-city Sydney apartment block, not prone to flooding, she said she couldn't believe the explanation her contents insurer gave. "The [contents] insurer basically justified the $5,000 increase by saying that my property's a flood risk," she told ABC News. "And, based on their national modelling and commercially sensitive information, et cetera, I wasn't entitled to have access to that data." In contrast, her the cost of her building's strata insurance had barely moved. Westpac's insurance arm also argued she had "consented" to the new premium because her payments were set to automatically debit. When Ms Vanderlanh Smith said she had only set up automatic payments while working overseas because she could not access her mail during this time, the insurer would not budge. Instead, she was told she would need to obtain a hydrologist's report at her own expense, if she wanted to challenge the premium increase. Julia Davis from the Financial Rights Legal Centre said households are facing steep hikes with little or no explanation. "It's impossible for consumers to know if they're being charged a fair price," she said. "The pricing algorithms insurers use are commercial in confidence — it is a total black box. "If your premium doubles from one year to the next, it's really hard to understand whether or not you are paying a fair price." The centre's Insurance Law Service takes 100–150 calls a week, often from people reporting premium increases of 30–50 per cent. Some callers, like Ms Vanderlanh Smith, have faced rises of several hundred per cent. "Insurers say they're not price gouging," Ms Davis said. "But again, they don't share any tailored information with their customers about individual risk on people's homes." She said the law centre sees examples every day of "insurers simply not meeting community expectations". "We're still getting calls from people whose claims haven't been appropriately handled in the 2022 floods. "Now people from Cyclone Alfred are experiencing significant delays, or their vulnerability hasn't been identified. This is commonplace." The frustration comes as Australia's biggest insurers post bumper profits, fuelled by years of premium increases and a relatively quiet year for natural disasters. The ACCC's latest monitoring report found the government's cyclone reinsurance pool has moderated price rises in cyclone-prone areas, but across much of the country premiums remain high and continue to climb. Craig Bennett, director at S&P Global Ratings, said ASX-listed insurers including Suncorp, QBE and IAG were enjoying "very, very solid results". "You've seen a lot of [premium] rate rises come through in the last three to five years," he said. "They're earning through those now … that's feeding into bottom-line results." But he warned affordability pressures were mounting for insurance customers. "You've seen price increases well over, probably, three times the rate of growth of wages over the last three to five years. Consumer groups have argued households are right to question whether they are paying fair prices — or simply funding big returns for shareholders. But Ms Davis said customers unhappy with premium hikes have limited recourse. The Australian Financial Complaints Authority (AFCA) does not have the power to decide whether an insurer has charged an accurate premium. "Really, as lawyers, mostly what we tell people is that you need to shop around. It's completely up to an insurer how they price you," she said. AFCA will occasionally investigate if an insurer fails to explain a sudden increase, but "very few of those complaints ever make it through". Even then, she said, "an insurer can provide a lot of detailed information to AFCA that the complainant will never be allowed to see". That was the case for Ms Vanderlanh Smith when she took Allianz to AFCA. The complaints body refused to release the modelling Allianz used to justify the increase, then sided with the insurer, noting it had limited jurisdiction and there was no evidence of an error in calculating the premium. In response to questions from the ABC, Allianz said it could not comment on individual cases but defended its approach. "In these cases, it was necessary to adjust premiums to accurately reflect the updated flood risk assessment and ensure adequate coverage." Consumer advocates are pushing for systemic reform, including an independent national price monitor and guaranteed discounts for home owners who invest in resilience upgrades. "We want to see big uplifts in transparency," Ms Davis said. "They want to know which of those risks are changing, how they've been priced and whether that pricing is fair. "Most of our wealth and most of our retirement planning is wrapped up in our homes, and that means that adequate insurance coverage for our homes is more and more an essential service," Ms Davis said. "And when something becomes an essential service, we think that means it deserves better pricing oversight," she said. Insurance Council of Australia chief executive Andrew Hall said some insurers already offer discounts for home improvements, but he rejected calls for a national price monitor and the idea insurers are profiteering. Instead, he pointed to state taxes, which he said can add hundreds of dollars to average premiums. "We could employ hundreds of public servants to be looking at prices every day, but I would rather see tax reform happen in this country. "I would rather see money being invested in risk reduction so that homes are built in safe locations and allow insurance to get on and do what it does best, which is be there for when the unexpected happens." He also urged consumers to shop around. "It's a very competitive market in Australia," he said, predicting premiums would begin to ease in line with inflation. "What we are seeing globally is the cost of reinsurance moderating and in some areas reduce," Mr Hall said. "I suspect what we will see in the coming 12 to 18 months, bar another large weather event, is insurers putting more effort into acquiring customers — and that will be a good thing in terms of pricing." The ABC asked Suncorp, QBE and IAG whether they were price gouging. All three said they recognised household cost pressures but insisted premiums are set on risk, and called for greater investment in mitigation. Despite finding at least three other insurers offering the same coverage for as little as $1,000 — one-fifth of Allianz's price — Ms Vanderlanh Smith said the burden shouldn't fall on consumers to avoid overpaying. "It's an easy thing to say to people when you don't want the accountability," she said. "There is no price transparency and no simple way to compare premiums. "Insurers are supposed to protect you from disaster, but they're becoming the disaster."
SBS Australia
an hour ago
- SBS Australia
No propeller, no crew: How drone technology could impact global conflicts, under the sea
In a warehouse south of Perth, rows of sleek yellow gliders are being built for a purpose that seems deceptively simple: monitoring whales. But they may soon have a second life in defending the nation. The acoustic sensors fitted inside these autonomous vehicles can detect the vocalisations of migrating humpback pods. Offshore gas operators, under pressure from those critical of the oil and gas industry to limit noise during critical migration periods, rely on this data to stop drilling when whales pass nearby. A yellow underwater glider undergoes buoyancy testing. Source: SBS News / Christopher Tan "These unmanned underwater vehicles can stay at sea for three to four months on a single battery charge," Mike Deeks, a former Australian Navy submarine commander who now heads the company making the drones, Blue Ocean Marine Tech Systems, says. "They don't have propellers. They move by changing their buoyancy, which means they require very little power." Initially used to measure water salinity and temperature for Defence, the new generation of "locus gliders" can operate in swarms of hundreds, even thousands, by communicating with one another, and even land on the seabed to covertly monitor activity. "We can go to places where other naval or air force assets can't," Deeks said. "And very quietly, gather intelligence." AUKUS and the 'poorer cousin' of submarines The emergence of underwater drones coincides with Australia's most ambitious defence project in decades — the AUKUS security pact with the United States and the United Kingdom. AUKUS has two pillars: nuclear-powered submarines (Pillar 1) and advanced defence technologies such as artificial intelligence, hypersonics and autonomous systems (Pillar 2). Deeks believes underwater drones fit squarely into Pillar 2. But he is blunt. "Pillar 2 is in some ways the poorer cousin of Pillar 1," he said, arguing that funding, support and progress aren't moving quickly. That critique is echoed by defence analyst Malcolm Davis from the Australian Strategic Policy Institute. "We are not moving fast enough on either pillar, to be honest," he said. A computer simulation released in 2018 shows a Russian nuclear-powered underwater drone being launched from a submarine. Source: Supplied / RU-RTR Russian Television/AP "There has been a degree of risk aversion and caution that is slowing down the delivery of those technologies into an actual deployed capability." Davis says armed underwater drones will likely operate alongside submarines within the next decade. "What the future undersea battlespace looks like for Australia is a mix of nuclear-powered, but not nuclear-armed submarines, together with underwater drone capabilities," he said. Lessons from Ukraine While aerial drones have already reshaped the war in Ukraine, the undersea realm remains an emerging frontier. "One of the most innovative breakthroughs in recent warfare has been what's known as autonomous systems — or more commonly, drones," Davis said. A Ukrainian pilot prepares drones on an attack mission on a frontline near the city of Chasiv Yar, Donetsk region, in late July. Source: EPA / Sergey Shestak According to the BBC, Ukraine has also pushed the boundaries at sea. Naval drones such as the Magura V5 — an uncrewed surface vessel capable of carrying 250kg of explosives and travelling at 80km/h — have sunk or damaged several Russian warships in the Black Sea, forcing Moscow to relocate much of its fleet away from Crimea. But Davis warns the West faces challenges around how the drones are used. "We have to be very focused on rules of engagement and laws about conflict and how we use these autonomous systems to avoid risk to civilians," he said. The government's stance on underwater drones The federal government says underwater drones are central to its future defence strategy. A defence spokesperson told SBS News the 2024 National Defence Strategy outlines plans for "an integrated, focused force" that will deliver a Navy with enhanced strike capability across the sea, air and land domains through the introduction of uncrewed underwater and surface vehicles. Planned investments, the spokesperson said, include "large and extra-large uncrewed underwater vehicles to undertake stealthy, long-range missions in high-risk environments, including intelligence, surveillance and reconnaissance, and strike." The Magura V5 naval drone operates on the water's surface. Source: Getty / Global Images Ukraine The government maintains that both pillars of the AUKUS pact are on track, with Pillar 2 — focused on advanced technologies — already yielding results. "Pillar 2 is already delivering capability benefits faster than any partner could achieve alone ... especially in areas such as autonomous and uncrewed maritime warfare," the spokesperson said. That message was reinforced at a defence industry press conference in Perth on Wednesday, where Defence Minister Richard Marles was questioned on the urgency of adopting autonomous systems. "Autonomous warfare drones in every respect, including in the sea, is obviously a focus of our innovation efforts across the Defence Force," he said. "We've seen the nature of warfare change dramatically in Ukraine and we are very mindful of that. We are learning lessons from that, and it is very much informing the way in which we are thinking about what capabilities we need to apply in this space." Defence Minister Richard Marles and Defence Industry Minister Pat Conroy at a Perth press conference on Wednesday, announcing support for a local engineering firm while highlighting Australia's $10 billion investment in drones and autonomous defence systems. Source: SBS News / Christopher Tan Defence Industry Minister Pat Conroy said the government was investing heavily in the technology. "We've allocated over $10 billion to expenditure on drones, counter-drone technology and autonomous systems," he said. "The truth is countries around the world are investing in both crewed and uncrewed systems to work with each other because they do different things and they work best together." WA locals protesting nuclear But while defence leaders in Perth have this week descended for the National Nuclear Submarine Conference, protesters chanting outside warned of another danger — nuclear escalation. Stop AUKUS WA organiser Leonie Lundy said the deal lacks social licence and said the Australian Submarine Agency has misled people about the exact nature of low-level nuclear waste to be stored in the state as part of the AUKUS deal. Protesters outside the National Nuclear Submarine Conference in Perth warn against AUKUS, expressing concerns over nuclear escalation and the storage of low-level nuclear waste in Western Australia. Source: Supplied / Stop AUKUS WA "We were promised a public meeting five months ago, to express our concerns and get answers. "We're fed up with being strung along and lied to." Greens WA MLC Sophie McNeil urged Australia to adopt an independent foreign policy and warned against turning Western Australia into a nuclear submarine base. Others raised broader concerns including the potential of making local communities a nuclear target. The deepening race beneath the waves Back at his shed, Deeks insists his company's technology will never replace nuclear submarines, nor will it be armed. Instead it will complement them — doing the "dull, dirty or dangerous" jobs. But as production scales up from dozens to potentially thousands of underwater drones, Australia is entering uncharted waters — with the recent rise in tensions in the Indo-Pacific region. Whether seen as a breakthrough in maritime surveillance or a step towards an uncertain future, one thing is clear: the battle for the seas may increasingly be fought beneath them — quietly, invisibly, and with machines.
Sky News AU
an hour ago
- Sky News AU
Matt Canavan delivers stark warning about Australia's poor growth, large debt after Sky News Real Economic Round Table
Australians are in for a 'major economic shock' if action is not taken to bolster growth and productivity while slashing government spending, Nationals Senator Matt Canavan has warned. Mr Canavan and Sky News convened leading experts for the 'Real Economic Round Table' in response to the Albanese government's closed-door economic reform roundtable. While Labor's roundtable ruled many topics off the table, the Sky News forum left nothing out of bounds. Following the roundtable, Mr Canavan said changes to boost Australia's flailing productivity and efforts to reel in government debt and spending, which is $300b more annually than pre-pandemic, were both crucial to the health of the nation's economy. 'If we continue to have this stagnant productivity performance - in the last few years it's fallen off a cliff - (and) if that continues, we're going to suffer a major economic shock of some kind,' he said on Business Now. 'We're going to have a reckoning. There will be an economic reckoning of all the debt that's been built up over the last 20 years - both public and private - that can no longer be serviced if we don't have a strong growing economy.' He highlighted Australia's strong growth throughout much of the time since the start of the century which has allowed the nation to borrow. 'But not right now,' Mr Canavan said. '(Over the) last few years we haven't had that high growth so if that continues there's only so long it can continue before it ends.' Mr Canavan warned the writing may already be on the wall for Australia's economic downturn, as he pointed to major Australian companies that have recently announced job cuts or major layoffs. 'I do think our economy is hurtling down the pathway where it could look fine for a while and then suddenly it's off a cliff,' he said. 'This week, you've seen 3,000 jobs lost at CSL, we see the rise of AI, we see earnings fall for BHP (and) Woodside. 'There is a certain drum beat here that things aren't going that well and we'd be much better off fixing those issues while unemployment's still got a four in front of it and our economic growth is still positive, rather than in a year's time.' Alongside the discussion about debt and the nation's growth, the experts at the Sky News roundtable also laid out four actions the government needs to take to restore productivity in the economy. These were scrapping bracket creep, cutting government spending by four per cent, curbing new NDIS entrants and ditching net-zero emissions targets.
