Australia: Government Policy & Public Finance

As AI adoption accelerates across NSW Government agencies, with 357 tools now in use across major public sector organizations, the need for robust governance frameworks has never been more critical. This bulletin examines the current state of AI implementation in NSW, identifies key barriers to responsible adoption, and provides practical guidance for agencies to strengthen their AI governance, risk management, and assurance processes.

The Australian Department of Home Affairs has introduced new skilled visa processing priorities under Ministerial Directions 121 and 122, fundamentally restructuring how applications are prioritized. Unlike the previous system that prioritized by location, the new framework prioritizes by sector first, placing specified industries at the highest priority regardless of whether applicants are onshore or offshore.

Australia's Environment Protection Reform Act 2025 introduces mandatory greenhouse gas emissions disclosure requirements for projects requiring federal environmental approval, while establishing the National Environmental Protection Agency as the new federal environmental regulator. Despite extensive debate, the reforms stopped short of implementing a "climate trigger" that would have made significant emissions a standalone matter of national environmental significance.

The new regime imposes a $7,500 cap on political donations, bans foreign donations, mandates real-time disclosure and, significantly for business, applies retrospectively from 15 April 2026. Businesses that have made a political donation in Victoria since 15 April 2026, or which are planning to make a donation ahead of this year’s election, should review their donations policies and compliance procedures now.

The Australian Government's 2026 Defence Industry Development Strategy outlines a comprehensive action plan to strengthen the nation's sovereign defence industrial base through procurement reform, industrial growth initiatives, and enhanced export capabilities. How will the establishment of the Defence Industry Hub, Industrial Development Agreements, and the new Defence Delivery Agency reshape Australia's defence sector and accelerate capability delivery?

The Australian Department of Home Affairs has announced substantial changes to visa application charges and salary thresholds effective 1 July 2026, with employer-sponsored and skilled visa fees rising approximately 25 percent—far exceeding standard indexation rates. These increases affect core income thresholds for various visa streams and introduce new financial considerations for businesses sponsoring overseas workers.

The document proposes directions for reform for a targeted, efficient and outcomes-focused migration system.

This NEV strategy demonstrates the keenness of the Federal Government to combat climate change via electric vehicles.

The 2050 de-carbonisation target is an unprecedented infrastructure plan, and one that will impact every Australian.