Treasury considering changes to Australia’s contentious tobacco excise, as calls grow for a freeze

Experts say a freeze on the federal government’s contentious tobacco excise should be considered, after the Treasury revealed it was modelling the impacts of cigarette prices on demand amid a booming black market.Lachlan Vass, a research manager at the e61 Institute, said the Treasury’s examination of “price elasticity” and demand for tobacco would be a necessary step to costing potential reforms to the excise.Jim Chalmers, the treasurer, and Mark Butler, the health minister, have previously rebuffed any suggestion that reducing the sky-high cost of cigarettes was the solution to curbing the black market trade, which has ballooned over the past five years and smashed a $17.8bn hole in the budget since 2020-21.Sign up: AU Breaking News emailBut when asked at Senate estimates last week why a cut to the excise couldn’t be considered as part of a wider strategy to curb the illegal tobacco trade, Katy Gallagher, the finance minister, left the door open to a change in excise policy

Starmer has chance to put overseas aid and debt relief on G20 agenda | Heather Stewart

If Keir Starmer wants to win back disillusioned voters deserting his party for the Liberal Democrats or the Greens, he could do worse than rediscover Labour’s longstanding moral commitment to international development.Since cutting the overseas aid budget to fund higher defence spending – losing the excellent Anneliese Dodds in the process – Labour has had little to say on the subject, aside from the fact that 0.3% of national income is the new normal.But despite the cuts, Foreign Office sources insist that behind the scenes there is a renewed commitment to winning the argument for “the impact and benefits of international development”. If so, it could not come at a more propitious moment

Firm that went bust owing £650k to HMRC offers staff Las Vegas trip after being bought by ex-owner

A recruitment business that went bust owing the tax authorities and other creditors almost £3m has promised to send its staff on an all-expenses paid trip to Las Vegas after being repurchased by its former owner for an initial £10,000.Premier Group Recruitment went into administration in September with debts of £2.9m – including £647,000 owed to HM Revenue and Customs (HMRC), which had commenced enforcement proceedings against the company.The recruiter’s assets were acquired three days later by a new company, PGGBR Ltd, founded by Andrew Woosnam, Premier’s 99% shareholder.Shorn of its debts, the new company has been active on social media, posting on LinkedIn: “END OF YEAR TRIP 2026

BrewDog could be broken up as craft beer business put up for sale

The beer-maker BrewDog could be broken up after consultants were called in to help find new investors.The Scotland-based brewer, which makes craft beer such as Punk IPA and Elvis Juice, has appointed consultants AlixPartners to oversee the sale process.BrewDog last month announced it was closing its distilling brands, prompting concerns for jobs at its facility in Ellon, Aberdeenshire.The company, which was founded in 2007 by friends James Watt and Martin Dickie, said it made the decision to focus on its beer products.No decision has been made in respect of the sale process

Did you buy a coffee machine with a tax refund? It may have affected Australia’s interest rate

One of the first things many Australians did last year after receiving a tax refund or a lower mortgage rate was to buy an armchair, an air fryer or a coffee machine.The purchases, evident in company earnings published this week, came after households had endured years of high living costs – and consumption had been weak up until that point.And policymakers didn’t think homeowners or renters had the spare capacity.This pickup in demand – along with rising prices – for such goods turned out to be an important factor in the Reserve Bank’s decision to raise interest rates, because it was concerned inflation was broadening.“The things that are driving the uptick in inflation really are housing, durable goods and market services,” Michele Bullock, the RBA’s governor, said last week

Reeves appoints higher pay advocate to fight skills shortages as chief economic adviser

Rachel Reeves has appointed a labour market expert who has repeatedly called for better pay and conditions in key sectors, such as social care, to reduce the UK’s reliance on migrant workers as her new chief economic adviser.Prof Brian Bell, who chairs the independent Migration Advisory Committee (MAC), which advises the government, has been announced as the new chief economic adviser in the Treasury – a senior civil service role.He will take up the post just as the UK economy is adjusting to a plunge in net migration, which fell by more than two-thirds, to 204,000, in the year to June 2025.Some economists have predicted a further decline, towards zero net migration – but Bell rejects that forecast, expecting it to bounce back towards 300,000 a year by the end of the decade.A professor of economics at King’s College London, Bell has used his role on the MAC to make the point that the “skills shortages” bemoaned by UK employers may often reflect the failure to offer good enough terms and conditions to domestic workers