27 February | Federal Sitting Period in Review
This week, the Morrison Government secures a win against tech giants, JobKeeper confirmed to be ending in March, and Australia retains a AAA credit rating. Of course, another story has also dominated the headlines this sitting period - the sexual assault allegations brought by Brittany Higgins. This sitting period review, we take a look into the Federal government’s investigation and inquiries to probe into the troubled culture of the Canberra bubble.
Finally, as the COVID-19 vaccine begins to rollout in Australia, our Regulatory + Commercial Affairs Team explains what this means for workplaces across the country.
Negotiations over the Media Bargaining Code
A deal between Facebook and the federal government relating to the proposed media bargaining code legislation saw news pages restored on the platform. According to Treasurer Josh Frydenberg, Facebook has commenced commercial discussions with key news media businesses, while the government has agreed to make legislative amendments to the mandatory digital bargaining code, including the provision of more time to Facebook to make deals with publishers.
The media bargaining code legislation passed the Senate on Wednesday and has been seen as a win for the Morrison Government and local media companies — and it hasn’t gone unnoticed. Canada has signalled it’s intention to follow a similar path with the tech giants, with Prime Minister Morrison talking to Canadian Prime Minister Justin Trudeau about the media bargaining code on Wednesday.
JobKeeper to end in March
In an address to the Australian Chamber of Commerce and Industry, Treasurer Frydenberg signalled JobKeeper will be ending in March, saying that Australia is “well placed for the end of JobKeeper, though some targeted, proportionate and temporary support may be needed”.
ATO data for the December quarter was better than expected. According to the ABC:
“In October there were 1.63 million workers that received JobKeeper and that dropped to 1.6 million in November before it dipped further to 1.54 million by the end of December... The ATO figures showed the number of workers on JobKeeper in retail dropped by 68 per cent, while transport, postal and warehousing still struggled, with only a 36 per cent drop in the number of people on the wage subsidy.”
Sectors that remain impacted by the pandemic, like tourism, have asked the Morrison Government for additional support past the cut off date.
Federal Credit Rating AAA
Australia has retained a AAA credit rating with a Negative Outlook, one of only nine nations to receive the rating after a tumultuous 2020. According to Fitch Ratings:
“Australia's rating reflects its strong institutions and effective policy framework, which supported nearly three decades of economic growth prior to the coronavirus pandemic and helped limit the severity of the current shock. The Negative Outlook reflects uncertainty around the medium-term debt trajectory following the significant rise in public debt/GDP caused by the response to the pandemic.
The Australian economy has weathered the pandemic well compared with peers. Fitch estimates real GDP contracted by 2.8% in 2020, against a 'AAA' median contraction of 3.8%. This performance reflects successful virus containment and an effective fiscal and monetary response consistent with a policy framework that has underpinned the economy's resilience to shocks over the medium term”.
Workplace Culture
In the wake of the sexual assault allegations brought by Brittany Higgins, the Federal government has announced a number of investigations to probe into the matter and the troubled culture of the Canberra bubble.
As part of a comprehensive response plan, the Prime Minister announced an inquiry to scope workplace culture within the Coalition, overseen by Liberal MP Celia Hammond. In a separate inquiry, the lens will also zoom in on complaints process initiatives and support services for political staffers in an inquiry led by Deputy Secretary of the Department of Prime Minister and Cabinet, Stephanie Foster.
To compliment these processes, an independent inquiry into the working culture in Parliament House is in its early stages. Finance minister Simon Brimingham is coordinating the cross-party response, with an announcement of who will lead the charge expected in the coming weeks.
An internal investigation into the initial response from the Prime Minister's office and the staffers who handled the principal investigation will be led by the Secretary of the Department of Prime Minister and Cabinet, Phil Gaetjens.
As Canberra continues to grapple with a growing number of allegations and a police matter now underway, these timely approaches have been welcomed as the first step in improving the working environment for women and staffers in all areas of government and politics.
National Vaccine Rollout Begins
The national rollout of the COVID-19 vaccines has begun. The National Rollout Strategy outlines phases of the rollout, prioritising the most at-risk groups first, which includes aged care and disability care residents and workers, frontline healthcare workers and quarantine and border workers. The National Rollout Strategy, including a breakdown of the phasing of the vaccinations, can be found here.