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Sky News AU
an hour ago
- Business
- Sky News AU
Jim Chalmers resorting to new taxes is a misguided attempt to ‘purchase prosperity' as private investment in the Australian economy crashes
Earlier this month, a collapsed high-voltage wire near Strathfield Station brought Sydney's entire railway network to a halt, forcing commuters to endure days of chaos and delay. The State Government and rail officials scrambled to apologise, offering a fare-free travel day as compensation. But no number of free rides can repair the ancient cabling, rigid work practices, and flawed design that make the city's rail system so fragile. Sydney's rail meltdown is more than a transport failure - it is a metaphor for Australia's broader political and economic malaise. A system that appears to function smoothly on the surface is merely running on inertia. Beneath the facade lies decay: decades of short-termism, underinvestment, and complacency. This week's news that business investment is falling confirms the rot has spread to the foundations of the national economy and that the current government has little appetite for structural reform. Non-mining investment contracted by 1.6 per cent nationally in the March quarter, while private capital expenditure dropped by 5.3 per cent in Victoria in the three months to March. Yet private investment is the engine of job creation, productivity, and wage growth. Without it, the reverse holds: business shrinks, employment stagnates, and economic momentum falters. Capital - the lifeblood of any economy - flows to where it is welcomed and where returns are reliable. Under Treasurer Jim Chalmers, businesses are increasingly wary of investing in Australia, deterred by high costs, regulatory burdens, and policy uncertainty. The Albanese government's Future Made in Australia strategy risks remaining a slogan unless it can reverse this investment drought. But rising energy costs and an increasingly unreliable power supply are driving manufacturers offshore. On top of that, Australia's high labour costs and complex industrial relations system deter new ventures. CSL Chairman Brian McNamee captured the mood when he said businesses were reacting to 'an accumulation of hostile policies and government crowding out of enterprise'. Investment capital, he warned, 'will find homes elsewhere that are more welcoming and reward risk-taking'. These cracks in our economic edifice didn't appear overnight. Like Sydney's ageing power lines and outdated rolling stock, the deterioration has been years in the making. Australia's GDP per capita has now declined for seven consecutive quarters - a sign that, were it not for population growth through immigration, the country would be in recession. Productivity, the key driver of long-term prosperity, has flatlined. Over the past two decades, it has grown at just 0.7 per cent per year. In the last year, growth was a mere 0.5 per cent. Small wonder that living standards have been slipping since the pandemic. Whatever growth the economy shows is increasingly the product of government spending - now at 27 per cent of GDP, up two points from pre-COVID levels. But governments cannot purchase prosperity any more than they can restore a rail system with free travel days. Eventually, they resort to new taxes. Mr Chalmers' proposal to tax unrealised capital gains in superannuation is one such example - a measure that will discourage long-term savings and further undermine private investment. Self-managed super funds, often used to back small business and start-ups, will be particularly affected. For a cautionary tale, we need only look to Germany, a country long admired for its engineering excellence and export-driven economy. But as Wolfgang Münchau explains in 'Kaputt: The End of the German Miracle ' , complacency and underinvestment have taken their toll. Germany's efficiency endured as a reputation long after it disappeared as a rea lity. The nation failed to keep pace with the digital era, relying instead in analogue infrastructure and unreliable energy sources. Dependence on Russian gas and costly renewables sent electricity prices soaring - now among the highest in Europe. Meanwhile, Germany's vaunted rail system has become a symbol of national decline. Deutsche Bahn, once synonymous with precision and quality, is now plagued by delays, technical faults, and overcrowding. In 2024, just 62 per cent of long-distance trains arrived on time. In April, Swiss operator SBB cut two cross-border services, fearing Germany's dysfunction would spill over into their own network. The parallels with Australia are sobering. Both nations rode waves of prosperity driven by commodity exports while neglecting the need for reform. Both now face the consequences: rigid regulatory systems, soaring power prices, stagnant productivity, and eroded competitiveness. And in both countries, the signs of decline were ignored until something broke. Germany kept betting against the digital age. Australia, too, risks believing its own myth of resilience and economic strength, long after the underlying conditions have shifted. If we don't act now to address structural weaknesses, the next broken wire, literal or metaphorical, will leave more than just a railway in chaos. Nick Cater is a senior fellow at Menzies Research Centre and a regular contributor to Sky News Australia
West Australian
3 hours ago
- Business
- West Australian
Shock for West Australians as State Government set to raise power and water bills by up to three per cent
Shock for West Australians as State Government set to raise power and water bills by up to three per cent
Perth Now
3 hours ago
- Automotive
- Perth Now
Electric buses to hit the streets in Perth's north
Electric buses will soon be hitting the streets of the northern suburbs after a $12.3 million update of the Karrinyup bus depot. The depot will be retrofitted to include EV charging equipment, substation upgrades, CCTV upgrades and other works. The depot will be able to support 110 electric buses once the works are completed, which is expected by the end of the year. Your local paper, whenever you want it. The first electric bus is expected to be delivered to the depot in early 2026, which will also be the first to operate outside of the CBD. Each electric bus has the capability to travel up to 300km on a single charge, saving about 40 tonnes of carbon dioxide emissions a year. The Karrinyup bus depot will be the second major Transperth facility to be upgraded with the charging infrastructure after the installation of bus chargers at the Elizabeth Quay bus station last year. The redevelopment is part of the State Government's $250m electric bus program, which will initially have 130 EV buses replacing their existing diesel counterparts. The program has been jointly funded between the State and Federal governments. The Malaga and Bayswater depots are also being prepared for electric vehicles. Transport Minister Rita Saffioti said depots needed to have the infrastructure to keep the electric fleet running efficiently and effectively. Roger Cook and Rita Saffioti. Credit: Supplied 'It is imperative our bus depots incorporate EV infrastructure so that the transition from a diesel-heavy fleet to one that includes cleaner, greener buses happens as smoothly as possible,' she said. Scarborough MLA Stuart Aubrey said he was thrilled the area was among the first outside the CBD to get access to electric buses. 'We made a commitment to phasing out diesel buses from our network, and the delivery of new electric charging infrastructure at our depots is critical to achieving that,' he said. The last diesel bus manufactured for public transport in WA rolled out last week. All new buses made by Volgren will now be electric. More than 100 people, including 15 apprentices, work at Volgren's Malaga facility. Premier Roger Cook said building buses locally was part of the Government's vision for WA's future. 'It won't just create more than 100 jobs in Perth's north-eastern suburbs — it will lower our emissions and reduce operating costs across Perth's public transport network too,' he said.
The Hindu
6 hours ago
- Business
- The Hindu
TIIC begins month-long ‘Special Business Campaign' for giving subsidised loans to entrepreneurs
The 76-year-old Tamil Nadu Industrial Investment Corporation (TIIC), a State finance corporation, organises 'Special Business Campaign' between June 2 and 30 for helping financially the entrepreneurs aspiring to start their manufacturing or service industries. The TIIC, founded in 1949, finances micro, small and medium enterprises and has been a pioneer in the development of industries by providing financial assistance to numerous manufacturing and service related units with the support of the State Government. TIIC is providing financial assistance to micro, small and medium manufacturing and service enterprises under various special schemes for establishment and the expansion of existing units and diversification. The TIIC's Tirunelveli Branch Office is located at 5C/5B, Hotel Sakunthala Shopping Complex, Second Floor, Thiruvananthapuram Road, Vannarpettai. Detailed presentation on the special features of various schemes of TIIC including loan assistance under NEEDS (New Entrepreneur-cum-Enterprise Development Scheme) exclusively meant for first generation entrepreneurs, Annal Ambedkar Business Champions Scheme, 25% State Capital Subsidy subject to a maximum of ₹1.50 crore for eligible categories besides 5% back-ended interest subsidy for technology upgradation or modernization of existing MSMEs s and other schemes will be given at this Special Business Campaign. Loan application submitted during this special initiative will be given a 100% waiver on the 'Investigation Fees'. Aspirants may approach with business plans and avail loan and subsidies and the interest subvention grants from Government of Tamil Nadu. For more details aspiring entrepreneurs may contact 0462 – 2502038 or 9444396830, 9444396881, 9445023459, an official statement said.
West Australian
10 hours ago
- Health
- West Australian
Free RSV jabs for infants extended as WA braces for surge in cases this winter
The State Government has extended its free RSV immunisation programme for babies and young children, as WA braces for a surge in cases of the potentially life threatening illness this winter. With the number of respiratory syncytial virus cases for 0-4-year-olds already totalling 688 so far this year, parents are being urged to take advantage of the free immunisations for infants. The free immunisations — for 0-2 year-olds and available at community health clinics and antenatal clinics for all, regardless of Medicare access — commenced last July and was supposed to finish at the end of June. But the WA-funded free vaccination programme will now run until July next year at a cost of $7.6 million. 'Every year 1 in 30 babies in WA require emergency care for RSV — a potentially life-threatening illness that can easily be prevented,' Premier Roger Cook said. 'My government's free RSV immunisation program has more than halved the number of hospitalisations in babies under one year old, saving parents the heartache of seeing their children seriously ill, and easing pressure on our health system.' RSV is a common virus that infects the airways and lungs. It spreads easily by coughing and sneezing. Symptoms of RSV include runny nose, coughing, sneezing, fever and reduced appetite. It can also make breathing difficult and cause wheezing. According to the government, RSV is the leading cause of hospitalisation for infants during the first year of life and is eight times higher than admission from influenza. Every year one in 30 babies are hospitalised with RSV. The WA Government says the free immunisations have resulted in a 57 per cent reduction in hospitalisations of babies younger than 12 months, easing pressure on hospitals and emergency departments, and saving the WA health system millions of dollars in hospitalisation costs. Almost 22,000 babies were protected during the 2024 RSV season. 'The results from our nation-leading rollout of the RSV vaccine for infants were remarkable, sparing hundreds of families the distress of seeing their babies in emergency care,' Health Minister Meredith Hammat said. 'This vaccination saves lives. 'Continuing to support the program is an easy decision for our government, and one that we hope will bring peace of mind for parents and parents-to-be, particularly during these colder months.'
