The Coalition claims its nuclear power plan will save $263 billion compared to Labor’s renewable energy strategy by 2050, resulting in lower electricity costs.

Economic modelling conducted by Frontier Economics estimates the Coalition’s plan, which aims for net zero emissions by 2050, will cost $331 billion.

In contrast, Labor’s renewable energy plan is projected to cost $594 billion according to the modelling.

Opposition Leader Peter Dutton plans to share these findings, stating that the analysis supports their position that Australians will benefit from the Coalition’s approach.

Dutton claims that fewer hidden costs and reduced infrastructure expenses will lead to lower energy prices.

He noted that many advanced economies are increasing their nuclear capabilities and urged Australia to do the same.

Seven plants

The Coalition’s model includes seven nuclear power plants, with renewable energy still providing 54% of the National Electricity Market by 2050 and nuclear contributing 38%.

Labor’s strategy anticipates that 94% of power generation will come from renewable energy by the same year, with 90% of coal-fired power exiting the system by 2034.

However, coal may need to operate longer in the Coalition’s scenario until nuclear power is online.

The Coalition’s plan also suggests a reduced reliance on gas due to a lower number of renewables needing stabilisation.

Dutton committed to constructing and operating seven nuclear plants, with the first expected to be operational as early as 2036.

TikTok’s parent company ByteDance will join Meta and Alphabet in paying new levies for Australian news unless they reach agreements with publishers.

Apple and Microsoft may also be affected if their revenues in Australia exceed $250 million annually.

Labor’s policy seeks to compel Meta to negotiate after it previously refused to pay for news.

Under the proposed legislation, the Australian Taxation Office will impose an annual levy on social media and search companies, exceeding the current news media bargaining code’s value of about $200 million annually.

Companies that negotiate payments to news publishers can offset these payments against their levy.

For example, if a platform faces an $11 million levy with a 10% uplift, it must secure at least $10 million in deals to avoid paying the ATO.

News Distribution

Any shortfall between deals and the annual charge will be collected by the ATO and distributed to publishers.

Final policy details will emerge after consultations early next year.

The law takes effect on January 1, emphasizing quick negotiations with tech companies.

Assistant Treasurer Stephen Jones clarified that the policy aims to facilitate negotiations, not increase government revenue, stating that digital platforms benefit financially from Australia and should support quality journalism.

Labor’s decision follows Meta’s refusal to renegotiate under the existing bargaining code, which could lead to significant job losses in journalism.

The Labor-controlled committee has deemed the current code “broken” and called for an alternative.

Australia’s unemployment rate fell to 3.9% last month, highlighting a robust job market and influencing interest rate forecasts.

The Australian Bureau of Statistics reported an increase of 35,600 jobs, marking the unemployment rate’s first decline below 4% since March.

Economists attribute this growth primarily to expansion in public service and government-funded roles in healthcare and education.

Source: AFR/ABS

Following the job report, Australian shares lost momentum while the local dollar rose by 0.7%, reflecting positive market reactions.

Despite the strong job numbers, Reserve Bank of Australia Governor Michele Bullock indicated a potential cash rate cut from 4.35% as early as February, suggesting confidence in returning inflation to the target range.

New expectations

This shift in the RBA’s stance revives expectations for a pre-election rate cut by the Albanese government, which had seemed unlikely amid solid job data.

NAB’s head of market economics, Tapas Strickland, noted that the employment figures may challenge the RBA’s confidence in its inflation projections.

The current unemployment rate averages 4% this December quarter, below the RBA’s prediction of 4.3%.

Betashares chief economist David Bassanese suggested that the strong employment report diminishes chances for a February rate cut, with May seen as a more likely time for adjustment post-election.