Following an overly generous rate cut in August 2025, the RBA Board made a unanimous decision to move from On Hold Status to the first-interest rate hike since the post-COVID recovery under the Morrison Government. The pain of this decision will be increased by falling real wages to the latest data from the September Quarter (Greg Jericho’s article in The Guardian 4 February 2026):
In keeping with traditional Liberal Party agendas, Deputy Ted O’Brien has called for cuts to discretionary components of federal government spending with a chorus of support from News Corp networks. The Australian Budget Papers for 2025-26 provide no evidence of out-of-control public sector spending, outside the defence sector, compared with the Morrison years (Image: Budget Paper 1):
A structural budget deficit of 1.5 per cent of GDP makes no real contribution to either inflationary pressures or higher interest rates. This myth is manufactured by networks like Sky News.
In contrast Treasurer Jim Chalmers favours a continuation of the current balancing act to contain a modest inflation rate of 3.8 per cent with respectable targets of 4-4.5 per cent unemployment and an economic growth rate of over 2 per cent.
The problem with the current balancing act is the continued hike in housing prices and rents particularly at the lower and moderate ends of the market.
The Murdoch owned real estate sector was still gloating over the housing cost trendlines during the holiday season (realestate.com.au 29 December 2025):
REA Group economist Angus Moore said prices weren’t done climbing.
He noted that if prices continued to grow at the same rate as the past five years, buyers would pay about 61 per cent more in Sydney, 68 per cent more in Brisbane and 75 per cent more in Adelaide by 2030.
Melbourne prices would be 17 per cent higher, Perth prices would go up by 66 per cent and in Hobart and Canberra the rise would be about 40 per cent.
Treasurer Chalmers can of course compensate struggling householders with taxation relief at the lower end of the income scale with significant tinkering with tax rates in the May budget.
Australian income tax rates for 2024-25 and 2025-26 are tiered: Nil tax on income up to $18,200; 16% on income from $18,201 to $45,000; 30% on $45,001 to $135,000; 37% on $135,001 to $190,000; and 45% on income over $190,000. One possibility is to raise the tax exemption level. Relief could be extended to the next two taxation tiers with rates remaining on hold for higher income levels.
SMH (31 January 2026) offered encouragement to greater consideration for support to expand affordable housing supplies with some additional controls on property investors:
Treasurer Jim Chalmers is navigating a complex housing landscape, focusing on boosting supply through a $33 billion, 1.2 million home plan while considering potential changes to capital gains tax (CGT) and negative gearing to address intergenerational inequality. His strategy balances supporting new construction and institutional investment with stricter foreign investment regulations, aiming to manage investor demand and housing affordability.
Key Aspects of Chalmers’ Approach to Investors:
Tax Reform Speculation:As of early 2026, the government is considering changes to the Capital Gains Tax (CGT) discount. While there have been calls to curb negative gearing, Treasurer Chalmers has previously expressed hesitation to make wholesale changes, acknowledging that reducing investor tax concessions could decrease rental supply.
Housing Supply Focus:The primary approach is to increase supply through the $33 billion 2025 federal budget plan, aiming to build 1.2 million new homes by 2030.
Foreign Investment Changes:The government has tightened rules for foreign investors, introducing higher fees for purchasing established dwellings and increased vacancy fees for unused, foreign-owned properties to encourage investment in new builds.
Institutional Investment:The government is encouraging institutional investment in build-to-rent projects to boost long-term, secure rental housing.
Balancing Demand and Supply:Policies aim to limit, rather than halt, investor activity while addressing the supply shortage.
Such measures might cool the housing market against the trendlines which are welcomed by realestate.com.au.
An important structural initiative would open foreign investment here from the current hegemony of capital flows from the US, Britain and the EU in favour of greater tolerance to investment flows from Asian countries. These countries generate most of our trading surpluses. There should be a total review of legalized tax evasion by multinational firms as alternative forms of ethical investment are available for Australia’s private sector (ABC News Audio 9 October 2025: Corporate Tax Avoidance – ABC listen). Some progress has been made in this direction by the Albanese Government. ABC News (22 July 2025) elaborated more on the extent of this tax evasion by major US corporations.
This current tax suggests that more tolerance of investment links to BRICS-friendly countries from Egypt to other parts of the Middle East to India, Indonesia, Malaysia and China is justified. The US Trade Representatives (UTR) at embassies globally act rigorously to protect corporate global economic hegemony. Any tilts in the direction of inward foreign investment are monitored.
Meanwhile, the extra $20 billion in defence spending by the 2030s with orders from US and British military industrial companies continues at the expense of local essentials like social housing. There is an urgent need for such projects in localities like the Gold Coast and the Sunshine Coast where housing and rents for permanent residents have become quite unaffordable. Regrettably, all federal electorates in these unaffordable locations are held by Liberal or National Party representatives, including Ted O’Brien in Fairfax.
In Brisbane, Conservative administrations at state and local levels do not even de-litter sites when homeless people are moved on by authorities in the inner-city. Checks on evasions of fifty cent fares on public transport are quite rigorous by the US Defence Company in Cubic Transport and Defense (US spelling), based in San Diego.
One ongoing problem with the Cubic electronic systems is a technical fault that offers a reading of Invalid Card on the first hit and then a tick on the second hit. This can generate a $2.50 fee if the user moves to a second terminal.
I have been in communication with Phil Pennington of Radio NZ about problems with Cubic Corporation in that country.
Locally, Cubic across Australia is on the No ATO Tax List of Multinational Companies.
Cubic has since been acquired by other multinational finance companies since 2023-24. These companies are listed as Veritas Capital and Elliott Investment Management via Evergreen Coast Capital but the ATO returns still offer the old brand name.
Great initiatives in social housing can be delivered by the corporate sector with government support for investment projects for mixed levels of income. I was so impressed by projects in the vicinity of Central Park Domain near Tanya Plibersek’s electorate office (Images from Central Park Domain):
Denis Bright (pictured) is a financial member of the Media Entertainment and Arts Alliance (MEAA). Denis is committed to consensus-building on the critical issues raised in each article. Your comments on this and related articles can be recorded on theaimn.net site.
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Competes with coverage in the Murdoch press Denis. News Corp overs only A causes B explanations that defy Economic logic.
Neoliberalism is defective when people are homeless or even under anguish paying off mortgages.
Inflation above the target has proven to lead to poor economic outcomes.
It is now far about the target, and the government has plenty of levers to bear down on it.
This requires fiscal discipline
Accommodating higher inflation ultimately results on lower living standards, poor investment, higher housing prices and punishingly high interest rates
Labor must take up social democratic agendas over hollow rhetoric
Supporting mixed housing developments above shops and services at a time of housing crisis is a great initiative
Two things, first one is still waiting for concrete examples of working age from young through retirement on the actual impact of marginal rises in interest rates?
The RW MSM and related influencers online are desperate to blame/shout at the ALP government on interest rates and house prices.
Secondly, realesate.con.au is not a credible source* (formal research studies cannot use RW MSM or any media sources) using already analysed data from US subsidiary CoreLogic now CoreData which owns raw sales data and their subjective ‘hedonic index’.
Fun facts, house prices can rise while values stagnate and decline, ditto population when fertility stagnates and declines; there is a significant time lag between two different but related factors.
‘Value’ is calculated over time eg. benchmark of 7% pa equates with median house prices doubling each decade to retain ‘value’.
In Australia, according to Core, median city house prices 2014-24 did not double, hence, losing value or stagnant……correlates with the boomer ‘bomb’?
Good news is Melbourne, that leftist and immigrant hell scape, is now the most affordable city for renting/buying due to impact of some targeted taxes on the margins.
I like the idea of Win-Win strategies that are appropriate for a capitalist society as appropriate progressive measures for change.
No matter what Chalmers ‘attempts’ to do, Negative Gearing is the MAJOR cause of the problem, no if’s and’s or but’s.
Billions of dollars shovelled into the mouths of people with no need other than because they can and the ‘system’ allows it, a deliberately blind RBA and a billionaire who profits from malfeasance in the RE industry.
I have said it before, and will say it again, the Real Estate Industry needs a Royal Commission, its insidious tendrils are currently 50% of the economy which has been a deliberate strategy to enshrine its presence as a fixture into the ‘market’.
An inalienable right been commodified for the wealthy, that’s not democracy or human rights.
https://michaelwest.com.au/blame-game-begins-as-reserve-bank-delivers-rate-pain/
https://www.theguardian.com/business/audio/2026/feb/04/greg-jericho-on-the-cowardly-rate-rise-full-story-podcast
More neoliberalism will not solve our financial volatility, Commentator. Inflation in housing prices and rents is appalling.
In rentals, property owners simply pass on the costs of appalling land taxes to tenants in Queensland in costal resorts where every federal MP is from the Liberal Party and representatives simply follow the News Corp line.
Activists should demand a more inclusive financial order that is less dependent on investment from the US and Britain with more links to our real trading partners in the BRICS countries from China to the Middle East.
Thank you for raising this important matter.
“Billions of dollars shovelled into the mouths of people with no need other than because they can and the ‘system’ allows it, a deliberately blind RBA and a billionaire who profits from malfeasance in the RE industry.”
Well, what can you say about this obvious negligence by the Government, and it is a political choice….
https://www.theage.com.au/politics/federal/audit-exposes-5b-of-incorrect-age-pension-payments-as-seniors-left-waiting-20260127-p5nxfo.html
Plus a landlord that gets ‘free’ holidays paid for by the taxpayers whilst he collects rents?
https://theaimn.com/king-charles-the-liar-king-of-australia/
Really? Talk about double dipping.
Oh wait, all the members Government do it!
That’s rather vague reply Left Resistance.
But I’ll note that people in urban China (eg Shanghai) pay about the same proportion of their income in rent as they do in Melbourne.
And the standard of the housing and city amenity is far better in any Australian city.
Australian housing costs are significantly a product of demand, culture and planning regulations.
While Australia has pleny of room to improve, there isn’t much Australia can learn from any BRICS country about economics, living standards, democracy or human rights
Thanks for the reply from A Commentator. This promotes lively discussion for AIM Network that contrasts with the fixed opinions offered by the News Corp networks with the support offered a largely tax free run in Australia.
The BRICS agenda is gaining momentum with trade and investment transactions in local currencies. Most of our positive trading balances are with BRICS countries.
Ultimately, Australia sill need to join up with BRICS as a pragmatic option. China has a dual arrangements with both SWIFT and mBridge in financial transfers.
Australia is being ripped off by cosy arrangements with US and British multinationals as with the example of Cubic with its hands in both mass transport and the supply of electronic equipment to defence forces and intel agencies.
Australia’s major trading partner is China.
China has demonstrated it doesn’t do favours to BRICS countries.
Australia’s next 3 major trading partners aren’t in BRICS.
Our 5th most important major partner is India, they have intelligence and military alliances with western democracies. BRICS membership would do nothing to improve relations with India.
We should seek stronger bilateral trading and defence relations with countries/trading groups that face similar challenges- the EU, India, Japan, South Korea, Indonesia.
There is little Australia can learn or gain by getting closer to Iran, Russia, Ethiopia, South Africa etc
The residential housing crisis created by too long state (NSW) and feral COALition mis-governments ignoring social housing needs will only be solved when the incentives for investment are directed at ”new builds” only, thus encouraging the growth of available housing while creating a second market for ”used houses” that possibly will be less expensive than new builds and so affordable for Australian voters.
However, now that foreign owned multinational bankers have realised the existing benefits of the Australian residential real estate market and the huge rental demand, there is declining likelihood of any political remedy favouring Australian voters.
Building more social housing requires progressive taxation and more multiplier investment income from investment by our Asian and Middle Eastern trading partners.
Australia has a profitable trading partnership with most BRICS countries.
Our surplus on trade with Indonesia alone was about $3 billion on the latest data.
Australia could take more Indonesian petroleum under the bartering system offered through BRICS. This would generate more profitable exports to Indonesia from Australia.
US Intel services would monitor any such double dipping arrangements as a breach of the US Australia Free Trade Agreement and our security ties with the USA. US multinationals enjoy the free kick from tax avoidance.
Not every US multinational taxes this route. I see that our defence supplier in Lockheed Martin is paying Australian taxation.
Ultimately in the Post-Trump era, Australia will break out of these confines.
The RBA has done research through Project Acacia on possible methods to avoid US financial controls on our trade and investment but progressive leaders have to treat cautiously.
A long term majority social democratic government is needed in Australia with good relations in the senate with the crossbench.
This is a grey area in international trade which is not reported on Murdoch networks which are US owned networks.
Australia is not strictly forbidden from using both SWIFT and mBridge; indeed, many nations may eventually move toward a “multi-rail” system. However, the current hesitation stems from the need to protect the stability of the Australian Dollar and maintain strong geopolitical ties while the technology matures. Through Project Acacia, the RBA is choosing a path of “sovereign innovation”—building the domestic digital capability first so that Australia can choose how it connects to the world, whether through a reformed SWIFT or a new digital bridge.
Instead, our leaders fear the wrath of the Trump administration and continue to make diplomatic efforts to steer Indonesia and adjacent countries like Malaysia from closer ties with the BRICS network.
Economic diplomacy is one of the key areas of Trump’s MAGA strategies and the controls are getting stronger.
The Australian Council of Social Service (ACOSS) have alerted us to the need for phasing out negative gearing and halving the 50% Capital Gains Tax (CGT) discount over five years to address housing unaffordability.
But did you hear James Paterson this morning warning the Treasurer that any such measure would be a massive broken promise and would demonstrate that the present government cannot run the economy.
ACOSS argues these tax breaks disproportionately benefit high-income earners, fuel housing speculation, and cost more than federal spending on social housing and homelessness services combined.
Surely this is precisely the time for the Albanese government to rein in these handouts to investors to assist the first home buyers into the housing market.
When has James ”Boy” Paterson ever said anything even vaguely relevant to any political discussion??
As a multinational provider, Cubic has been running the electronics of Brisbane’s Translink ticketing for ages.
As of May 25, 2021, Cubic Corporation is no longer a publicly traded company. It was acquired by Veritas Capital and Evergreen Coast Capital (an affiliate of Elliott Investment Management) in a transaction valued at approximately $3 billion.
The LNP always operates on the assumption that the corporate way is the best way for national productivity with the support of media units like News Corp.
Cubic terminals often give an Invalid Card call and this will require an additional swipe. Sometimes the invalid card reading is actually a swipe and customers have to be careful that they don’t double tap as this involves fare penalties.
There are negative comments from Radio NZ (RNZ) about Cubic’s operations but the problems here seem to be largely unreported as Australia has a tame commercial media.
Readers can check on comments about Cubic from RNZ: https://www.rnz.co.nz/news/national/578441/national-ticketing-system-on-public-transport-rolls-out-in-christchurch (10 November 2025) and https://www.rnz.co.nz/news/national/477193/cubic-corporation-confident-of-privacy-compliance-in-public-transport-ticketing-system (22 October 2022).
If Cubic has been sold to another corporation, how can readers check its finances and costing to taxpayers?
Then, there is the defence arm of Cubic: Its contributions are critical to the “integrated battlespace” and modern warfare readiness.
Cubic is a world leader in air and ground combat training systems. Its technology allows pilots and soldiers to engage in hyper-realistic “mock” combat.
• Air Combat: The P5 Combat Training System (P5CTS) is used by the U.S. Air Force, Navy, and Marine Corps. These pods, attached to aircraft, track and record flight data in real-time, allowing for “Top Gun” style dogfight analysis and weapons effect adjudication without firing live rounds.
• Ground Training: The company provides laser-based systems like MILES and the Combat Training Centre Live Instrumentation System (CTC-LIS). These systems instrument soldiers, vehicles, and weapons to simulate force-on-force engagements and “fire and forget” weapon effects.
Cubic produces sophisticated simulators for specific high-end weaponry. These surrogates mimic the weight, feel, and operational procedures of real systems, including:
• Javelin and TOW Missiles: High-fidelity simulators for anti-tank guided missiles.
• MK19 and Mortars: Simulating indirect fire and automatic grenade launchers through geopairing technology.
• EST4000: A 4K-resolution small arms trainer that uses artificial intelligence to generate realistic training scenarios.
Our global economies have many subterranean connections with are worth investigating in an increasingly militarized world.
References
• Cubic Corporation. (2025). “Cubic Defense to Showcase Innovative Solutions.” Official News.
• U.S. Securities and Exchange Commission. (2021). “Cubic Announces Completion of Acquisition By Veritas Capital.”
• Army-Guide. (n.d.). “Cubic Defense Applications Group – Profile.”
• Australian Defence Magazine. (2025). “Cubic Defence Australia Capability Guide.”
Thanks to A Commentator for promoting discussion.
Even the Liberal and National Party in Queensland (still the LNP there) favour closer commercial relations with China which has the strongest economy of the BRICS countries and took 24 percent of Australian commodities amounting to over $300 billion in 2024-25.
Ties with China are even closer from Queensland.
Indonesia is already a BRICS country and nearby Malaysia has close ties with China and may join the BRICS network.
With Chinese investment in Australia, the US Trade Representative’s staff at US embassies closely monitor all trendlines. Australia is actually a competitor of the US in attracting new Chinese investment.
Since Premier Crisafulli was elected the following commercial events have occurred in relations with China:
While Western Australia dominated 2024 investment totals, Queensland remains a strategic hub for long-term Chinese projects in agriculture, tourism, and logistics.
JD.com’s Logistics Expansion
In early 2025, the Chinese eCommerce giant JD.com completed a $240 million acquisition of a major logistics hub in Wacol, Brisbane. This investment is a prime example of the “new era” of investment, focusing on digital trade pathways and supply chain infrastructure. In November 2025, the Queensland Government further solidified this relationship by signing a Memorandum of Understanding (MoU) with JD.com to unlock export opportunities for over 23 Queensland-based companies.
Fucheng Investment Australia (FIA)
The Fucheng Group has committed substantial funding to Queensland’s agricultural sector. Most notably, they have orchestrated the approval for a $100 million abattoir in Goondiwindi. Their portfolio in the state includes over 38,000 hectares of farmland, feedlots, and cattle operations, representing a deep integration into the Australian red meat supply chain.
3. Tourism and Real Estate: The Whitsundays
Investment in the tourism sector has seen mixed results. The China Capital Investment Group (CCIG) owns Daydream Island Resort, which remains a flagship operational asset. However, other investments, such as the derelict South Molle Island, highlight the challenges of long-term redevelopment in the face of environmental factors like cyclones and changing economic climates.
4. Agriculture and the “S. Kidman & Co” Joint Venture
While predominantly an Australian-owned entity (via Gina Rinehart’s Hancock Prospecting), Shanghai Cred holds a one-third minority stake in the iconic S. Kidman & Co. This joint venture holds significant pastoral properties in Queensland, such as the Rockybank aggregation near Roma. Interestingly, recent reports indicate that some of these properties have been put up for sale due to the impact of Queensland’s foreign land tax, illustrating the regulatory pressures that influence investment decisions.
The Q Government is relying more on Land Tax to keep down its deficit but commercial ties with China are also helping.
Sussan Ley in Canberra should keep working to defend Australia from the impact of Sky News and the Murdoch media on these important issues.
Queensland has a terrible financial deficit which has worsened under the LNP to a likely $9 billion in 2025-26.
Q desperately needs more trade and investment with China as the major BRICS economy.
US Controls and monitoring of Chinese investment profiles are not helping Australia. Both countries are in competition for more Chinese trade and investment.
China’s overreaction to some clumsy remarks by Morrison proves demonstrates it is an unreliable trading partner. We should seek to broaden our trading relations, not become more dependent on the CCP.
A while ago, China place trade sanctions on Norway, because they objected to the Nobel Prize.
Their history on trade and applying sanctions in a fit if pique is almost Trump like.
Thank you Denis for an interesting article.
I write to promote discussion. I really welcome the contribution of A Commentator. I hope that he/she continues to critique any future articles that I am able to make for the AIM Network.
Large sections of our society are alienated from formal political processes and sections of the Murdoch media offer so much politicized interpretations of events.
The Queensland Government’s trading mission to China and Vietnam was great news in November 2025 (https://statements.qld.gov.au/statements/103849).
I liked the conclusion of the press release from Queensland’s Ros Bates as prepared by media contact Brendan Morris:
“By strengthening our ties with China and Vietnam, we are laying the foundation for more resilient supply chains, greater market access and stronger relationships, all of which will underpin a better lifestyle through a stronger economy.”
This is a very eloquent and bipartisan press release.
This is highly relevant to Federal Treasurer Chalmers efforts to control inflation and need to raise interest rates in the call from an Independent RBA.