Connect with us
https://tickernews.co/wp-content/uploads/2023/10/AmEx-Thought-Leaders.jpg

Ticker Views

10 things to know about the federal budget 2025-26

Published

on

The context. This is the budget that nobody wanted. It was only necessary because of the partial delay in the calling of the election due to cyclone Alfred in Queensland.

This makes it Treasurer ‘Sunny Jim’ Chalmers’ 4th budget when normally Treasurer would only bring down 3 in a normal term of government.

The macroeconomic outcomes present a good story.  Treasury forecasts expect inflation to be lower than expected, back to its 2-3 per cent range required by agreement with the Reserve Bank of Australia (RBA). In the labour market, unemployment is expected to be lower than expected (4 ¼ instead of 4.5 per cent) whilst real wages are expected grow and real GDP is expected to be back up to the 2-3 per cent range. Given it’s 5 years since COVID19, and the subsequent impact of slower economic growth and the spurt of high inflation, this outcome, if achieved, would be a beautiful set of numbers.

But the numbers on the fiscal bottom line are a different story. The budget is expected to return to deficit territory after two surpluses in a row. Whether the surpluses were achieved through good luck (higher commodity prices and revenues) or good management is debatable but still gives the Albanese Labor government some political capital leading into an election.

The Treasurer has promised a kinder, gentler budget. Spending  on Medicare is up, Childcare is up and the Pharmaceutical Benefits Scheme (PBS) has been given a boost.  But spending on aged care is down, spending on the National Disability Insurance Scheme (NDIS) is down after the government needed to fix some structural problems and the government is paying down debt faster.

The big surprise was the $17.1 billion worth tax cuts targeted clearly at middle income Australia. There were of course, the expected tax cuts but the unexpected (but moderate) tax cuts caught some of the media and the opposition by surprise. The shadow Treasurer Angus Taylor seemed to rule out matching the tax cuts and the Opposition Leader’s traditional reply to the Budget on Thursday, delivered by Peter Dutton will need to be a strong performance to make up for Taylor being wrong footed in response to the government’s tax offering. Surprise tax cuts always a good idea just before an election especially as it gives the opposition little time to put up a counter proposal, especially when they have been reluctant to release policies.

Energy relief package

The surprise tax cuts are clearly aimed at cost of living pressures and the same goes with the energy relief package. However,  some critics believe the rising energy prices may be a consequence of net zero policies of the government, so the Treasurer is just giving households and businesses compensation for the consequences of policies they have caused in the first place.

This is deemed a budget for prosperity at a time of uncertainty . What that means is it’s a budget for the trump tariffs following the Beijing tariffs. In short, it’s a budget for a trade war. The global uncertainty emanating from the use of tariffs by the Trump administration for geopolitical ends, which followed on from China’s tariffs on Australia for calling for an inquiry into the causes of Covid19 in Wuhan, puts at risk the stability of the world trade system and the consequences for markets and alliances. The Trump administration may think tariffs will help boost revenue, but as the great depression showed, a rise in global protection ultimately makes all countries worse off.

A global trade war might be one thing but there is also real war happening throughout the world in Russia and the Ukraine, the Middle East and tensions elsewhere. Hence the need for increased defence spending in the budget, a trend occurring elsewhere, particularly in the UK, Europe and Canada due to Trump’s foreign policy and trade policy stances.

Of course, there’s things mentioned ‘off budget’ that matter and will be revealed in days to come by seasonal analysts. Another thing not highlighted on budget night was the impact of higher than expected immigration on housing, employment and infrastructure that may actually be more important than some more regionally focused wars. Expect more discussion of immigration in the budget analysis as immigration will definitely be an election issue.

In conclusion, this is a budget for an election, no ifs, no buts. As Jim Chalmers said on budget night “if you get the economics right then the politics looks after itself” which is a bit like when as Treasurer Paul Keating said “Good policy is good politics”. Well, Chalmers may be Treasurer but he is a politician, so he’s in the game of winning elections.

That’s his main job and therefore that’s what the budget is all about.

Will he be successful? We will find out in about 6 weeks’ time.

Professor Tim Harcourt is Industry Professor and Chief Economist, Institute of Public Policy and Governance (IPPG), at the University of Technology Sydney (UTS) and host of The Airport Economist channel:  https://tickernews.co/shows/airporteconomist/

Continue Reading

Ticker Views

The housing crisis is forcing Americans to choose between affordability and safety

Published

on

The housing crisis is forcing Americans to choose between affordability and safety

Ivis García, Texas A&M University

Picture this: You’re looking to buy a place to live, and you have two options.

Option A is a beautiful home in California near good schools and job opportunities. But it goes for nearly a million dollars – the median California home sells for US$906,500 – and you’d be paying a mortgage that’s risen 82% since January 2020.

Option B is a similar home in Texas, where the median home costs less than half as much: just $353,700. The catch? Option B sits in an area with significant hurricane and flood risk.

As a professor of urban planning, I know this isn’t just a hypothetical scenario. It’s the impossible choice millions of Americans face every day as the U.S. housing crisis collides with climate change. And we’re not handling it well.

The numbers tell the story

The migration patterns are stark. Take California, which lost 239,575 residents in 2024 – the largest out-migration of any state. High housing costs are a primary driver: The median home price in California is more than double the national median.

Where are these displaced residents going? Many are heading to southern and western states like Florida and Texas. Texas, which is the top destination for former California residents, saw a net gain of 85,267 people in 2024, much of it from domestic migration. These newcomers are drawn primarily by more affordable housing markets.

Housing costs are the main driver of the California exodus, the Los Angeles Times notes.

This isn’t simply people chasing lower taxes. It’s a housing affordability crisis in motion. The annual household income needed to qualify for a mortgage on a mid-tier California home was about $237,000 in June 2025, a recent analysis found – over twice the state’s median household income.

Over 21 million renter households nationwide spent more than 30% of their income on housing costs in 2023, according to the U.S. Census Bureau. For them and others struggling to get by, the financial math is simple, even if the risk calculation isn’t.

I find this troubling. In essence, the U.S. is creating a system where your income determines your exposure to climate disasters. When housing becomes unaffordable in safer areas, the only available and affordable property is often in riskier locations – low-lying areas at flood risk in Houston and coastal Texas, or higher-wildfire-risk areas as California cities expand into fire-prone foothills and canyons.

Climate risk becomes part of the equation

The destinations drawing newcomers aren’t exactly safe havens. Research shows that America’s high-fire-risk counties saw 63,365 more people move in than out in 2023, much of that flowing to Texas. Meanwhile, my own research and other studies of post-disaster recovery have shown how the most vulnerable communities – low-income residents, people of color, renters – face the greatest barriers to rebuilding after disasters strike.

Consider the insurance crisis brewing in these destination states. Dozens of insurers in Florida, Louisiana, Texas and beyond have collapsed in recent years, unable to sustain the mounting claims from increasingly frequent and severe disasters like wildfires and hurricanes. Economists Benjamin Keys and Philip Mulder, who study climate change impacts on real estate, describe the insurance markets in some high-risk areas as “broken”. Between 2018 and 2023, insurers canceled nearly 2 million homeowner policies nationwide – four times the historically typical rate.

Yet people keep moving into risky areas. For example, recent research shows that people have been moving toward areas most at risk of wildfires, even holding wealth and other factors constant. The wild beauty of fire-prone areas may be part of the attraction, but so is housing availability and cost.

The policy failures behind the false choice

In my view, this isn’t really about individual choice – it’s about policy failure. The state of California aims to build 2.5 million new homes by 2030, which would require adding more than 350,000 units annually. Yet in 2024, the state only added about 100,000 – falling dramatically short of what’s needed. When local governments restrict housing development through exclusionary zoning, they’re effectively pricing out working families and pushing them toward risk.

My research on disaster recovery has consistently shown how housing policies intersect with climate vulnerability. Communities with limited housing options before disasters become even more constrained afterward. People can’t “choose” resilience if resilient places won’t let them build affordable housing.

The federal government started recognizing this connection – to an extent. For example, in 2023, the Federal Emergency Management Agency encouraged communities to consider “social vulnerability” in disaster planning, in addition to things like geographic risk. Social vulnerability refers to socioeconomic factors like poverty, lack of transportation or language barriers that make it harder for communities to deal with disasters.

However, the agency more recently stepped back from that move – just as the 2025 hurricane season began.

In my view, when a society forces people to choose between paying for housing and staying safe, that society has failed. Housing should be a right, not a risk calculation.

But until decision-makers address the underlying policies that create housing scarcity in safe areas and fail to protect people in vulnerable ones, climate change will continue to reshape who gets to live where – and who gets left behind when the next disaster strikes.The Conversation

Ivis García, Associate Professor of Landscape Architecture and Urban Planning, Texas A&M University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading

Ticker Views

Space debris could sabotage Google’s next big AI breakthrough

Published

on

Google’s proposed data center in orbit will face issues with space debris in an already crowded orbit

This rendering shows satellites orbiting Earth.
yucelyilmaz/iStock via Getty Images

Mojtaba Akhavan-Tafti, University of Michigan

The rapid expansion of artificial intelligence and cloud services has led to a massive demand for computing power. The surge has strained data infrastructure, which requires lots of electricity to operate. A single, medium-sized data center here on Earth can consume enough electricity to power about 16,500 homes, with even larger facilities using as much as a small city.

Over the past few years, tech leaders have increasingly advocated for space-based AI infrastructure as a way to address the power requirements of data centers.

In space, sunshine – which solar panels can convert into electricity – is abundant and reliable. On Nov. 4, 2025, Google unveiled Project Suncatcher, a bold proposal to launch an 81-satellite constellation into low Earth orbit. It plans to use the constellation to harvest sunlight to power the next generation of AI data centers in space. So, instead of beaming power back to Earth, the constellation would beam data back to Earth.

For example, if you asked a chatbot how to bake sourdough bread, instead of firing up a data center in Virginia to craft a response, your query would be beamed up to the constellation in space, processed by chips running purely on solar energy, and the recipe sent back down to your device. Doing so would mean leaving the substantial heat generated behind in the cold vacuum of space.

As a technology entrepreneur, I applaud Google’s ambitious plan. But as a space scientist, I predict that the company will soon have to reckon with a growing problem: space debris.

The mathematics of disaster

Space debris – the collection of defunct human-made objects in Earth’s orbit – is already affecting space agencies, companies and astronauts. This debris includes large pieces, such as spent rocket stages and dead satellites, as well as tiny flecks of paint and other fragments from discontinued satellites.

Space debris travels at hypersonic speeds of approximately 17,500 miles per hour (28,000 km/h) in low Earth orbit. At this speed, colliding with a piece of debris the size of a blueberry would feel like being hit by a falling anvil.

Satellite breakups and anti-satellite tests have created an alarming amount of debris, a crisis now exacerbated by the rapid expansion of commercial constellations such as SpaceX’s Starlink. The Starlink network has more than 7,500 satellites, which provide global high-speed internet.

The U.S. Space Force actively tracks over 40,000 objects larger than a softball using ground-based radar and optical telescopes. However, this number represents less than 1% of the lethal objects in orbit. The majority are too small for these telescopes to reliably identify and track.

In November 2025, three Chinese astronauts aboard the Tiangong space station were forced to delay their return to Earth because their capsule had been struck by a piece of space debris. Back in 2018, a similar incident on the International Space Station challenged relations between the United States and Russia, as Russian media speculated that a NASA astronaut may have deliberately sabotaged the station.

The orbital shell Google’s project targets – a Sun-synchronous orbit approximately 400 miles (650 kilometers) above Earth – is a prime location for uninterrupted solar energy. At this orbit, the spacecraft’s solar arrays will always be in direct sunshine, where they can generate electricity to power the onboard AI payload. But for this reason, Sun-synchronous orbit is also the single most congested highway in low Earth orbit, and objects in this orbit are the most likely to collide with other satellites or debris.

As new objects arrive and existing objects break apart, low Earth orbit could approach Kessler syndrome. In this theory, once the number of objects in low Earth orbit exceeds a critical threshold, collisions between objects generate a cascade of new debris. Eventually, this cascade of collisions could render certain orbits entirely unusable.

Implications for Project Suncatcher

Project Suncatcher proposes a cluster of satellites carrying large solar panels. They would fly with a radius of just one kilometer, each node spaced less than 200 meters apart. To put that in perspective, imagine a racetrack roughly the size of the Daytona International Speedway, where 81 cars race at 17,500 miles per hour – while separated by gaps about the distance you need to safely brake on the highway.

This ultradense formation is necessary for the satellites to transmit data to each other. The constellation splits complex AI workloads across all its 81 units, enabling them to “think” and process data simultaneously as a single, massive, distributed brain. Google is partnering with a space company to launch two prototype satellites by early 2027 to validate the hardware.

But in the vacuum of space, flying in formation is a constant battle against physics. While the atmosphere in low Earth orbit is incredibly thin, it is not empty. Sparse air particles create orbital drag on satellites – this force pushes against the spacecraft, slowing it down and forcing it to drop in altitude. Satellites with large surface areas have more issues with drag, as they can act like a sail catching the wind.

To add to this complexity, streams of particles and magnetic fields from the Sun – known as space weather – can cause the density of air particles in low Earth orbit to fluctuate in unpredictable ways. These fluctuations directly affect orbital drag.

When satellites are spaced less than 200 meters apart, the margin for error evaporates. A single impact could not only destroy one satellite but send it blasting into its neighbors, triggering a cascade that could wipe out the entire cluster and randomly scatter millions of new pieces of debris into an orbit that is already a minefield.

The importance of active avoidance

To prevent crashes and cascades, satellite companies could adopt a leave no trace standard, which means designing satellites that do not fragment, release debris or endanger their neighbors, and that can be safely removed from orbit. For a constellation as dense and intricate as Suncatcher, meeting this standard might require equipping the satellites with “reflexes” that autonomously detect and dance through a debris field. Suncatcher’s current design doesn’t include these active avoidance capabilities.

In the first six months of 2025 alone, SpaceX’s Starlink constellation performed a staggering 144,404 collision-avoidance maneuvers to dodge debris and other spacecraft. Similarly, Suncatcher would likely encounter debris larger than a grain of sand every five seconds.

Today’s object-tracking infrastructure is generally limited to debris larger than a softball, leaving millions of smaller debris pieces effectively invisible to satellite operators. Future constellations will need an onboard detection system that can actively spot these smaller threats and maneuver the satellite autonomously in real time.

Equipping Suncatcher with active collision avoidance capabilities would be an engineering feat. Because of the tight spacing, the constellation would need to respond as a single entity. Satellites would need to reposition in concert, similar to a synchronized flock of birds. Each satellite would need to react to the slightest shift of its neighbor.

Detecting space debris in orbit can help prevent collisions.

Paying rent for the orbit

Technological solutions, however, can go only so far. In September 2022, the Federal Communications Commission created a rule requiring satellite operators to remove their spacecraft from orbit within five years of the mission’s completion. This typically involves a controlled de-orbit maneuver. Operators must now reserve enough fuel to fire the thrusters at the end of the mission to lower the satellite’s altitude, until atmospheric drag takes over and the spacecraft burns up in the atmosphere.

However, the rule does not address the debris already in space, nor any future debris, from accidents or mishaps. To tackle these issues, some policymakers have proposed a use-tax for space debris removal.

A use-tax or orbital-use fee would charge satellite operators a levy based on the orbital stress their constellation imposes, much like larger or heavier vehicles paying greater fees to use public roads. These funds would finance active debris removal missions, which capture and remove the most dangerous pieces of junk.

Avoiding collisions is a temporary technical fix, not a long-term solution to the space debris problem. As some companies look to space as a new home for data centers, and others continue to send satellite constellations into orbit, new policies and active debris removal programs can help keep low Earth orbit open for business.The Conversation

Mojtaba Akhavan-Tafti, Associate Research Scientist, University of Michigan

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading

Ticker Views

What charges does Benjamin Netanyahu face, and what’s at stake if he is granted a pardon?

Published

on

Michelle Burgis-Kasthala, La Trobe University

Israeli Prime Minister Benjamin Netanyahu has requested a pardon in his long-running corruption trial – a move that has set off alarm bells among his critics that he’s trying to circumvent the rule of law.

In a video message, Netanyahu says Israel’s current “security and political” situation makes it impossible for him to appear in court several times a week.

His request for a pardon from Israel’s president is just the latest twist in a case that has dragged on for years. It could have significant implications for Israel’s legal system – and Netanyahu’s political future, with elections due next year.

What charges does he face?

Netanyahu is indisputably the most important political figure of modern Israeli politics. He was first elected prime minister in 1996 and is now in his sixth term.

He has been indicted on charges of bribery, fraud and breach of trust, related to investigations that date back to 2016. There are three cases now known by numbers – Case 1,000, Case 2,000 and Case 4,000. The trial began in 2020.

In Case 1,000, Netanyahu is alleged to have received some US$200,000 (A$305,000) worth of gifts, including cigars and champagne, from Hollywood producer Arnon Milchan and Australian billionaire James Packer.

Case 2,000 is related to alleged meetings Netanyahu had with Arnon Mozes, the publisher of the prominent Yediot Ahronot newspaper. Prosecutors say Mozes offered Netanyahu favourable coverage in exchange for restrictions being imposed on one of his rival newspapers.

And the final case, Case 4,000 is related to a communications conglomerate, Bezeq. The attorney-general alleges another reciprocal agreement: Netanyahu would be portrayed positively on the online platform, it’s alleged, in exchange for him supporting regulatory changes that would benefit Bezeq’s controlling shareholder.

Netanyahu has consistently denied any wrongdoing in the cases, saying he’s a victim of a “witch hunt”. In 2021, he characterised the charges as “fabricated and ludicorous”. When he took the stand in 2024, he said:

These investigations were born of sin. There was no offence, so they found an offence.

Experts have pointed out that a pardon can only be given once someone’s been convicted of a crime. But Netanyahu is not offering to admit any responsibility or guilt in the case, and he likely never will. He’s simply asking for a pardon, so that he can get on with his job.

Independence of Israel’s judicial system

Since the trial began in 2020, many witnesses have testified in the case, including some former Netanyahu aides who entered into plea bargains and became state witnesses. So, there’s been some pretty damning material brought against Netanyahu.

But he’s been extremely savvy and politically intelligent to use other issues – particularly the Gaza war – at every opportunity to try to postpone or interrupt the proceedings.

And after the Hamas attacks of October 2023, the number of trial days was limited because of security. According to media reports, Netanyahu has frequently requested his hearings be cancelled due to his handling of the war.

Netanyahu’s supporters don’t seem to have a problem with his request for a pardon, but it is shining a light on broader questions around the independence of the Israeli legal system.

In early 2023, the Netanyahu government put forth plans to overhaul the judicial system, which critics said would weaken the Supreme Court and Israel’s system of checks and balances. Netanyahu wasn’t involved in the effort because the attorney-general said it would be a conflict of interest due to his corruption trial, but other ministers in his cabinet were pushing it.

Massive protests happened on a regular basis throughout Israel in response to this move. Critics saw this as a frontal attack on the basic foundations of the Israeli legal system.

The request for a pardon is now part of this wider story, even though the two issues are not formally linked. Netanyahu’s opponents say it’s yet another indication of him and his coalition having a fundamentally different conception of the rule of law.

Netanyahu’s political survival

This is all about Netanyahu’s personal and political survival. He was re-elected leader of the Likud Party this month and he has declared his intention to run again for prime minister in next year’s elections – and that he expects to win.

The Israeli Basic Law suggests Netanyahu couldn’t run if he’s been convicted of a serious offence, though it’s not clear if he would actually be blocked at this point.

Media reports have suggested Netanyahu wants to move up the elections from November to June in the hopes he’ll be able to secure deals to normalise relations with both Saudi Arabia and Indonesia by then. This fits a pattern of him trying to use foreign policy gains to offset his domestic problems.

With elections coming, he’s now trying every possible manoeuvre to improve his position – and the pardon is just one of them. It’s likely the only option he has now to make the case go away because the trial has gone on for so long and at some point the court will have to make a decision.The Conversation

Michelle Burgis-Kasthala, Professor of International Law, La Trobe University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

Continue Reading

Trending Now