Chapter 2Key Issues

2.1This chapter outlines the key issues considered by the Senate Economics Legislation Committee (the committee) at its 2025-26 Additional Estimates hearings with the Treasury Portfolio and Industry Portfolio.

Treasury Portfolio, 11 February 2026

The Treasury

2.2Ms Jenny Wilkinson PSM, Secretary of the Treasury, provided an opening statement to the committee reflecting on the changing international economic landscape and Australia’s recent economic performance. Ms Wilkinson also touched on trade with China, inflation, and the potential effects of recent US policy developments.[1]

Macroeconomic Group and International, Corporate and Investment Group

2.3Topics examined by the committee included:

Productivity growth and economic forecasting (pp. 7–8; 31–33)

Budget projections and variations (pp. 8–11; 14–17)

Capital Gains Tax discount (pp. 11–14; 23–25)

Dwelling investment (pp. 17–20)

Review of the Australian Office of Financial Management (pp. 20–21)

Investor Front Door (pp. 21–22)

Modelling of Net Zero transformation (pp. 22–23; 27–28)

Inflationary pressures and interest rates (pp. 25–27; 29–31)

The appointment of the Australian Securities and Investments Commission (ASIC) Chair (pp. 33–34)

Markets Group

2.4Topics examined by the committee included:

Agency Statements of Expectations (pp. 35–37)

Government responses to reports (pp. 37–40; 45–47)

Price gouging (pp. 40–45)

Appointment of the National Competition Council (pp. 47–49)

External Reporting Australia (pp. 49–50)

Fiscal Group

2.5Topics examined by the committee included:

Budget projections and variations (pp. 50–57; 59–67)

Review of the Australian Office of Financial Management (pp. 57–59)

Revenue Group; Australian Taxation Office (ATO); Tax Practitioners Board (TPB); Australian Charities and Not-for-profits Commission (ACNC)

2.6Topics examined by the committee included:

Taxation of superannuation and estates (pp. 68–70; 99–100)

Capital Gains Tax discount (pp. 70–75)

Tobacco excise (pp. 75–78; 81–82; 89–90)

Investigations into PwC (pp. 78; 82–84)

Modelling of Net Zero transformation (pp. 78–81)

Charities at risk of terrorist exploitation (pp. 84–86)

Petroleum Rent Resource Tax (pp. 86–89)

Performance tests for superannuation funds (pp. 90–92)

Freedom of Information (FoI) Requests (pp. 92–97; 102–104)

Research and Development tax incentives (pp. 97–99; 106–108)

Recording of ministerial advice (pp. 100–102)

ASIC review of RG 97 (pp. 104–106)

Use of external labour by the ATO (pp. 108–109; 110)

ATO statement of expectations (pp. 109–110)

Australian Prudential Regulation Authority (APRA)

2.7Topics examined by the committee included:

Regulatory action taken in regard to Diversa Trustees and Equity Trustees (pp. 111–113)

Regulations applying to high-risk loans (pp. 113–116)

Consideration of climate risk by insurance companies (pp. 116–117)

Australian Securities and Investments Commission (ASIC)

2.8Topics examined by the committee included:

Whistleblowers within ASIC (pp. 117–118)

Penalties for corporate corruption (pp. 118–120; 121–123)

Conflict of interest provisions around outgoing ASIC Chair (pp. 120–121)

Responsible lending (‘Wagyu and Shiraz’) decision (pp. 123–124)

Australian Competition and Consumer Commission (ACCC)

2.9Topics examined by the committee included:

Gender-affirming care (pp. 124–125)

Actions taken by the ACCC under Section 46 (pp. 125–128)

Rules for a future Digital Competition Regime (p. 128)

Conflict of interest provisions for departing ACCC staff (pp. 129–130)

Australian Office of Financial Management (AOFM)

2.10Topics examined by the committee included:

Average yields for Treasury bonds (pp. 131–132)

Liquidity of the AOFM (pp. 132–133)

Personnel and office culture (pp. 133–137)

Debt issuance (pp. 137–138)

Treasury Portfolio, 12 February 2026

Reserve Bank of Australia (RBA)

2.11Topics examined by the committee included:

Recent changes in the macroeconomic outlook (pp. 2–4)

RBA commentary on fiscal policy (pp. 4–7)

Credit growth (pp. 7–9)

Economic forecasts, including inflation and productivity (pp. 9–10; 10–12; 15–18)

Social impact of inflation (p. 10)

Housing supply and investment (pp. 12–15)

Performance and engagement of RBA boards (pp. 18–21)

Housing Group; Housing Australia

2.12Topics examined by the committee included:

Investment in new dwellings and performance against housing targets (pp.21–23; 25–27)

Freedom of Information (FoI) requests (pp. 23–25)

Housing policy specific to South Australia (pp. 27–28)

Five Per Cent Deposit Scheme (pp. 28–29; 33–34; 37–38)

Board meetings and governance of Housing Australia (pp. 29; 30; 41–44; 47–50)

Appointment of the Chair of Housing Australia (pp. 29–30)

Urban policy (pp. 31–33)

Help to Buy Scheme (pp. 34–35)

Housing Australia Future Fund (pp. 35–37; 44–47; 50–53)

Social Housing (pp. 38–39)

National Housing and Homelessness Plan (pp. 39–40)

National Rental Affordability Scheme (pp. 40–41)

Conflict of Interest provisions for ministerial advisers (pp. 53–54)

International comparisons on the relation between housing and migration policy (pp. 54–55)

Industry Portfolio, 12 February 2026

Department of Industry, Science and Resources

2.13Secretary of the Department of Industry, Science and Resources (Industry), MsMeghan Quinn PSM, appeared before the committee, along with officials for the examination of the Industry Portfolio.

Corporate, Enabling and Business Services

2.14Topics examined by the committee included:

Provision of ministerial transcripts (pp. 59–61)

Production tax credit (pp. 61–62)

Lithium hydroxide production (pp. 62–63)

Departmental appropriations and budget variations (pp. 63–70; 83–85; 92–94)

Cuts to the Industry Growth Program (pp. 71–73; 77–78)

Grants for Glencore Mount Isa facility (pp. 73–77; 83)

Liberty Bell Bay Aluminium Facility (pp. 78–80)

Major Project Status (pp. 80–83)

The Whyalla Steelworks (pp. 86–90)

Tomago Aluminium Facility (pp. 90–92)

Australian-made battery precinct (pp. 94–95)

National Reconstruction Fund Corporation

2.15Topics examined by the committee included:

Crowding-in finance and risk in relation to specific investments (pp. 95–101)

Outcome 1 – Program 1.2

2.16Topics examined by the committee included:

Artificial Intelligence policy (pp. 102–106)

Net Zero Economy Authority (NZEA)

2.17Topics examined by the committee included:

Community engagement by NZEA (pp. 106–109)

Facilitation of private sector investment (pp. 109–110)

Commonwealth Scientific and Industrial Research Organisation (CSIRO)

2.18Topics examined by the committee included:

GenCost Report (pp. 111–112; 116)

Ongoing funding and budget of the CSIRO (pp. 112–114

Animal testing (pp. 114–115)

Australian Centre for Disease Preparedness (pp. 115–116

Outcome 1 – Program 1.3

2.19Topics examined by the committee included:

COP31 Conference/Belem Declaration (pp. 116–119)

Engagement by DISR in Timor-Leste (pp. 119–120)

EPBC reforms (pp. 121–122; 127–130)

Fossil fuel exports (pp. 122–124)

First Nations workforce in mining sector (p. 124)

Gas Market Review (pp. 124–126)

East Coast gas market (pp. 126–127; 130–131)

Decommissioning of oil rigs (p. 127)

Australian Radioactive Waste Agency (pp. 132–133)

National Offshore Petroleum Safety and Environmental Management Authority (NOPSEMA)

2.20Topics examined by the committee included:

Role of Environmental Protection Agency in regard to NOPSEMA (pp.134–135)

Project assessments and timelines (p. 135)

Coal and gas forecasts (pp. 135–136)

Senator Lisa Darmanin

Chair

Labor Senator for Victoria

Footnotes

[1]Ms Jenny Wilkinson PSM, Secretary, Department of the Treasury, Opening Statement (tabled 11 February 2026).