Energy Policy is Centre Stage

The major parties have a different outlook on energy policy. The incumbent Labor Government is committed to renewables and seeing Australia on track to meet COP 28 targets of 43% reduction in greenhouse emissions by 2030 and net zero by 2050. The Liberal Party has proposed slowing the renewables roll out, keeping coal fired power stations going longer and the establishment of seven nuclear power stations by 2050 with the first two to come on-line by the mid 2030s.

Australia is uniquely positioned to lead the world in renewables. The fact that we are not doing so already says something about the historical lack of policy direction from governments of all persuasions. The Clean Energy Council noted a reduction in investment in utility scale renewable projects in 2023 and 2024. The current government hoped to reverse this trend with its Capacity Investment Scheme. This has yet to translate into practice. But there are positive signs.

Electricity and gas consumers have been hurting for some time and there is room for governments, regulators and energy companies to do more to bring prices down. We are one of the most energy rich countries in the world.

Affordable and Available Housing

Somewhere around the 1960s and 1970s housing in Australia became a commodity to be bought and sold on market for a profit. Population pressures and speculation began to drive a rising market aided by negative gearing (which originated in the 1930s).

The two primary issues for Australians today are:

Affordability

Housing prices across Australia have been rising consistently since 1985 and have become beyond the reach of many. This has led to an over stretched and over priced rental market accompanyed by rising homelessness.

Availability

The pipeline for building new houses has not kept pace with demand. For sometime now all levels of government have been endeavouring to increase availability but progress has been painfully slow.

There are no easy solutions but we might do well to look at the experience of our near neighbour, New Zealand.

Aboriginal Health

A colleague and I recently had the opportunity to work with a new organisation dedicated to lifting health outcomes for indigenous communities. Two professors of medicine and a general practitioner have developed a model for diagnostics mostly based around ultrasound and other technologies. This was being piloted in remote communities via local medical and allied health professionals. The aim being to enable early detection of a range of conditions through the use of advance medical technology and to improve community health. A federally funded pilot is underway.

Whilst the issue of indigenous health has proved the most intractable for all governments there is a sense that some real progress is finally being made. But there is still a long way to go. Services remain fragmented and funding can vary depending on political priorities.

Support for education in all its forms for First Nations people is essential. We need more indigenous professionals working with communities, particularly in medicine, social work, engineering, environmental science and business generally.

Superannuation and Pensions

Arguably Australia has one of the best retirement safety nets in the world. If you’ve been fortunate enough to enjoy full employment during your working life, the odds are that you will retire with enough superannuation to be self funded for a for a significant amount of your remaining life span.

If, on the other hand, your employment history has been patchy or you’ve experienced periods of hardship or ill-health, then you may not be in a position to self fund and need to rely on the government pension. This is adequate to get by provided you own your own house.

Again we need long term strategic thinking and a stable policy environment when it comes to the financial aspects of retirement planning. Building up your nest egg can be the work of a lifetime. We don’t need overly complex rules to govern superannuation. In Australia the rules around super have become so complex that most cannot follow then and need to take advice. Government pensions should not be subject to political whims.

Industry and retail super funds need to provide greater transparency around investment strategy and holdings. Timely payout for insurance claims needs attention and the latest CBUS revelations were a case in point.

Environment and Climate Change

According to the Federal Agency: Climate Change in Australia: “In Australia in recent decades, anomalously warm months have occurred more often than anomalously cold months. Many heat-related records were broken in the summer of 2012-13 and in the year of 2013, including Australia’s hottest day, week, month and year averaged across Australia. Extreme summer temperatures during 2012- 13 were unlikely to have been caused by natural variability alone, and such temperatures are now five times more likely due to the enhanced greenhouse effect.” See: https://www.climatechangeinaustralia.gov.au/en/overview/

In Australia we need all corporations, governments, communities and individuals to step up to the mark and take action within there sphere of influence. There is a lot going on already. We need to ensure that no political party endeavours to wind-back initiatives that are underway. These initiatives need to go further. We have just 5 years to reach our COP 28 target of 43% reduction in greenhouse gas emissions (compared to a baseline of 2005 levels) and 25 years to reach Net Zero. Who would you trust most with this target?

Cost of Living Crisis

On 6 February 2025 Australia’s second largest supermarket chain, Coles, announced that they would reduce its product range by 10% or 2500 shelf items. This rationalisation maybe about simplifying choice. But I suspect that it does not extend to more profitable items.

The ACCC recently release its final report into Supermarkets. The report and recommendations have been widely critisised as lacking in substantive content and meaningful recommendations.

Prices have risen across the board for many goods and services. We see companies seeking to maximise profits often at the expense of various stakeholders. Shareholder primacy remains at the forefront of board thinking and finding balance appears illusive.

Free market economics sometimes does not favour the average person. The gap between the wealthy and the rest continues to grow. We need policy initiatives which seek to redress this imbalance. And the boards of our major corporations have a role to play.