Duelling housing and tax policies dominate campaign

Duelling housing and tax policies have dominated Week 3 of the election campaign with the battle now well past the half way mark. A Newspoll released earlier this week had Labor still leading 52-48 on a two-party preferred basis which mirrored the 2022 election result where Labor emerged the majority government victor by just one seat. But it remains to be seen how both sides campaign launches which focussed respectively on $10 billion cash splashes on housing and tax relief will be received by the Australian electorate. The second leaders debate on the ABC on Wednesday saw both leaders promoting their cost-of-living efforts on housing, energy, and tax relief. The Opposition Leader Peter Dutton and the Deputy Prime Minister and Defence Minister Richard Marles also locked horns over defence spending. The Coalition leader accused Labor of cutting billions from the Defence budget, since coming to office in 2022. However, Deputy Prime Minister Marles rejected Mr Dutton’s claims insisting Labor was increasing defence spending to 2.33 per cent of GDP by 2033-34 or to just over $100 billion. Deputy Prime Minister Marles also insisted that the government had to address a raft of unfunded defence projects on coming to government.

AUKUS concerns deepen

The Trump administration continues to cast a shadow over AUKUS with news that Department of Government Efficiency Chief and billionaire Elon Musk is examining the state of the US Navy Virginia class fleet. Mr Musk has been tasked with examining how the production of ships and submarines for the US Navy can be accelerated. Concerns persist in the US that its Navy does not have enough submarines to spare for Australia. Under the AUKUS terms Australia is to buy the first of three Virginia class submarines from 2032. However, both Prime Minister Anthony Albanese and Opposition Leader Peter Dutton have reaffirmed their commitment to AUKUS during the campaign with Mr Albanese insisting nothing would sink the deal. Meanwhile concerns have been expressed by Democrat Senator Tim Kaine that Trump’s tariff regime on aluminium and steel and reciprocal tariffs will also impact the AUKUS submarine program only adding to costs. The Albanese government insists it is continuing to lobby for tariffs on Australia to be dropped including on Australia’s defence exports. AIDN has warned higher global tariffs triggered by the Trump administration are harmful to Australia-US defence trade. AIDN in a statement issued last week called for the US and Australian governments to mitigate the negative impact of tariffs ensuring they did not undermine mutual defence objectives.

Defence lauds F-35 industry milestone

Defence has welcomed a significant milestone in the global F-35 program with Australian industry reaching more than $5 billion in contract value. More than 75 Australian companies have contributed to this success through advanced manufacturing, supply chain solutions and sustainment services. These contributions have been instrumental in the development of innovative technologies and the establishment of a highly skilled workforce, further strengthening Australia’s defence capabilities The contracts secured by Australian businesses cover a wide range of critical capabilities, including the supply of components for the F-35 sophisticated avionics and propulsion systems, as well as providing ongoing maintenance and upgrades. This involvement not only enhances the operational capability of the Royal Australian Air Force but also presents significant opportunities for local companies to expand their footprint in a global defence supply chain, in line with the recommendations outlined in the Defence Industry Development Strategy.

Quantum leap for DSTG

While the election focus has been on defence spending, AUKUS, and the impact of tariffs the Defence Science and Technology Group has quietly made two significant announcements this week. The first is a ground-breaking project, which will enhance the Australian Defence Force’s (ADF) ability to operate in contested environments when Global Positioning Systems (GPS) are degraded or denied. The uniquely Australian research project aims to create a quantum-secured ground-to-satellite optical link which allows for the robust, secure, and precise synchronisation of timing between Defence assets across a battlespace. Chief Defence Scientist, Professor Tanya Monro also declared Defence now has a fully operational supercomputer. The secure supercomputer is capable of working at orders of magnitude faster than a standard computer to leverage machine learning and artificial intelligence and support complex decision making at scale. Professor Monro said the supercomputer would undertake critical work for the defence of the nation, supporting many Australian defence platforms to optimise system performance.

Russian intervention

Voters are used to US President Donald Trump intervening in the Australian election campaign but not so much Russian President Vladimir Putin. Reports emerged this week that Russia had asked Indonesia for access to an airbase in Indonesia, just 1200km from Darwin. The report caught all off guard with Deputy Prime Minister Richard Marles eventually saying Indonesia’s Defence Minister Sjafrie Sjamsoeddin, had reassured him the Russia-Indonesia airbase deal was not going to happen. Opposition Leader Peter Dutton seized on the speculation warning the “murderous dictator’’ Vladimir Putin was not welcome in Australia’s neighborhood. A spokesperson for the Kremlin dismissed the report as fake news.