A compilation of recent events in Australia includes research findings on housing policy and affordability, a significant seizure of illicit tobacco manufacturing equipment by border authorities, ongoing political negotiations and anticipated resignations, and a downturn in the Australian stock market influenced by international conflict concerns.
Housing Policy and Affordability
Tax Concessions vs. Social Support
Research conducted by the Australian Council of Social Service (Acoss) indicates that projected tax concessions for property investors in Australia are set to cost $12.3 billion in 2025. This figure is compared to the $9.6 billion allocated to combined social housing, homelessness, and rent assistance programs.
Decline in Social Housing
Data from the Productivity Commission shows that the proportion of homes designated for social housing has decreased to 3.6%, a reduction from 5.7% in the 1990s. This current figure is approximately half the average among OECD countries.
The number of households on public housing waitlists has increased to approximately 190,000, up from 141,000 in 2018. Over the past decade, the proportion of these households classified as being in "greatest need"—defined as homeless or at risk—has risen from 26% to 41%.
Soaring Rental Costs and Homelessness
In the rental market, the median asking rent has increased by 43% over the past five years, reaching $681 per week. Households are reportedly dedicating one-third of their income to rental payments, according to Cotality.
The Productivity Commission also reported that persistent homelessness, defined as being homeless for more than seven months in a two-year period, increased from 22% in 2019 to 27% in 2025.
Calls for Policy Change
Jacqueline Phillips, Acoss's acting chief executive, stated:
"The report suggests an exacerbation of housing stress and homelessness, with tax breaks contributing to increased home prices and inequality."
Phillips advocated for government action to reduce capital gains tax concessions and negative gearing, proposing that funds be redirected towards achieving a more ambitious social housing target.
Maiy Azize, national spokesperson for Everybody's Home, highlighted:
"Many Australians are experiencing rental stress, even with maximum government support, and called for a policy shift to phase out property investor incentives in favor of expanding community housing."
Government Response
On January 30, the Albanese government initiated its third and largest funding round for the Housing Australia Future Fund. This initiative aims to deliver 21,000 new social and affordable homes as part of a broader commitment to establish 55,000 new homes by mid-2029.
Illicit Tobacco Production Equipment Seized in Sydney
Major Seizure Details
The Australian Border Force (ABF) conducted an operation at a self-storage facility in Rouse Hill, Sydney, on Thursday. The operation resulted in the seizure of a large tobacco manufacturing machine, reportedly capable of producing up to 3.6 million cigarettes daily.
Authorities also confiscated over 7.5 kg of loose-leaf tobacco, approximately 6,000 vaping devices, and eight boxes of suspected counterfeit tobacco packaging.
ABF's Stance on Organized Crime
Samuel Harnden, acting superintendent of the ABF's illicit tobacco taskforce, stated:
"The agency is targeting illicit tobacco operations at all stages, including importation, production, distribution, and supply."
Harnden noted established connections between local illicit tobacco manufacturing in Australia and organized criminal syndicates, with proceeds funding further criminal activity.
Political Developments
Liberal-National Coalition Reunion Talks Stalled
The Liberal Party is anticipated to reject the latest offer from the Nationals regarding a potential reunion of the Coalition. Four Liberal sources indicated that the Nationals declined Liberal leader Sussan Ley's demand for a six-month backbench suspension for three frontbenchers who voted against Labor’s hate speech laws.
Instead, the Nationals proposed a suspension for all former Nationals frontbenchers until the end of February, during which period the parties would remain separate. Anonymous Liberal sources suggested the offer was not considered serious and was likely to be rejected without revisions. This situation could lead to Ley advancing her deadline for announcing a Liberal-only frontbench, a move that would solidify the Coalition's separation.
Sussan Ley's Anticipated Resignation
Sussan Ley, a former opposition leader, is expected to resign from federal politics as the Member for Farrer, New South Wales, potentially triggering a by-election. Ley has served as the local member for 25 years. Her resignation would occur two weeks after losing the Liberal leadership to Angus Taylor.
Independent Michelle Milthorpe has begun campaigning in Farrer, receiving endorsements from crossbenchers Helen Haines and David Pocock. State Liberal MP Justin Clancy, independent state MP Helen Dalton, and former Albury mayor Kylie King are also reportedly considering contesting the seat. The upcoming by-election will provide an early assessment of Angus Taylor's leadership and recent shifts in public opinion polls.
Australian Stock Market Declines Amid International Concerns
Significant Market Drop
The Australian share market experienced a nearly 3% decline, with the benchmark S&P/ASX200 dropping to 8,576.2 points in early trading. This resulted in an approximate loss of $90 billion from the value of major companies.
Global Conflict and Energy Prices
The market reaction is attributed to expectations of a prolonged conflict involving the US and Iran, which has impacted global oil shipping and increased energy prices. Global oil prices surpassed US$100 a barrel, reaching around US$106.
Widespread Impact Across Sectors
The decline was widespread, affecting 186 of Australia's top 200 listed companies. Major banks recorded a 3% decrease, rare earths producers (Iluka, Liontown, Lynas) fell by 5% or more, and Qantas and Virgin Airlines decreased by 6% each. Companies in the energy sector, including gas companies (Santas, Beach, Woodside), petrol retailers (Ampol, Viva), and coalminers, were exceptions to the general decline.
Currency Depreciation
The economic disruption linked to the Iran conflict also led to an increase in the US dollar's value, causing the Australian dollar to fall below 70 US cents.