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The question of temporary or semi-permanent inflation shocks is one of the big economic considerations facing investment funds.

The barrage of risks facing Australian superannuation in 2026

Australian Retirement Trust expects the RBA to hike rates in late 2026 as global “sticky inflation” becomes the new economic reality. But that’s not the only threat.

China plies Vanuatu with gifts to foil Australian security deal

China has stepped up attempts to counter Australia’s efforts to lock it out of the Pacific by working to build goodwill in island countries.

The simple reason the experience economy is booming

In a world where more people have more money than ever, modern consumers are choosing to buy memories and social connection instead of yet more stuff.

‘One reform at a time’: Chris Bowen’s ambitious policy plan

At a difficult moment for Labor’s green transition, Climate and Energy Minister Chris Bowen has expanded his responsibilities. Will it come back to bite him?

Australia makes list of 2025’s costliest climate events

Losses caused by ex-tropical cyclone Alfred were about $US1.2 billion ($1.8 billion), making it one of the world’s most economically catastrophic disasters.

‘Tax Grinch’: The secret to saving 10pc on your Christmas lunch

Glazed ham, pavlova and Christmas pudding are all festive staples at a traditional Australian Christmas lunch. But do you know which are taxed?

Opinion & Analysis

Fix the electricity system in 2026 by returning to first principles

Electricity is not a policy construct. It is physics – and the physics have not changed since Michael Faraday and the steam engine.

Stop tinkering, start serious tax reform in 2026

If the PM and treasurer want to be remembered for leading Australia’s next reforming government, their New Year’s resolutions should include tackling tax reform.

Economist

Melissa Bray

Can you beat our experts’ 21 predictions for 2026?

Financial Review writers share their predictions for the new year – from artificial intelligence and interest rate rises to Donald Trump’s peace prize chances.

Staff writers

Contributor

Politicians must call out Islamism to fight antisemitism

If the response to Bondi is to be meaningful, the outcome must be to better protect Jewish people by upping vigilance against Islamist terrorism.

Editorial

The AFR View
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Yesterday

South Australia, the poster child for high renewable penetration, has Australia’s highest prices and has needed synchronous condensers bolted onto the system at consumer expense.

Fix the electricity system in 2026 by returning to first principles

Electricity is not a policy construct. It is physics – and the physics have not changed since Michael Faraday and the steam engine.

December 2025

Prime Minister Hawke said it was time to end the tax system tinkering and committed a returned government to seeking consensus on a comprehensive tax reform package.

Stop tinkering, start serious tax reform in 2026

If the PM and treasurer want to be remembered for leading Australia’s next reforming government, their New Year’s resolutions should include tackling tax reform.

Can you beat our experts’ 21 predictions for 2026?

Financial Review writers share their predictions for the new year – from artificial intelligence and interest rate rises to Donald Trump’s peace prize chances.

RBA governor Michele Bullock admitted she had a clearer message on the economy than in the past, saying the risk of higher inflation had returned.

RBA board losing confidence interest rates are slowing economy

Minutes from the Reserve Bank’s December meeting reveal board members are divided over whether financial settings are tight enough to curb persistent price growth.

Bankstown’s Al Madina Dawah Centre will be shut by the council.

‘No compromises’: Council to shut down Islamic preacher’s prayer hall

Council surveillance has revealed a notorious Sydney cleric never had approval to operate a controversial Islamic prayer hall in Sydney’s western suburbs.

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Naveed and Sajid Akram.

Bondi terror accused recorded video condemning ‘Zionists’: police

Documents tendered in court allege accused gunman Naveed Akram and his father Sajid trained in regional NSW in October and visited Bondi two days before the shooting.

Surfers paddled out at Bondi Beach to pay tribute to the victims of the terror attack.

The battle to claim back Bondi

When Richard Hasten went to pick up his grandson’s pram from the scene of the massacre, it had bullet holes in it. For him and countless others, Bondi will never be the same.

RBA governor Michele Bullock made the tough call.

Why Bullock cancelled the RBA Christmas party

Michele Bullock explains that while some staff members were not happy with the decision, she believes it was not right to hold a big Reserve Bank celebration.

The Chanticleer podcast features James Thomson and Anthony Macdonald.

Chook Awards and stocks to watch in 2026

James and Anthony wrap up the year with their annual awards and look ahead to what will be a huge year on markets with one of Australia’s top fund managers.

The electricity sector is one of the top sources of Australia’s carbon emissions.

Carbon price on electricity would slash transition cost, says PC

The absence of such a mechanism is increasing the expense of Australia’s journey to net zero, the Productivity Commission has told Treasurer Jim Chalmers.

Productivity Commission chair Danielle Wood. Modelling shows a “hybrid” corporate tax system would increase economic growth, investment and productivity.

Corporate tax shake-up could double economic gains: PC

The commission says the benefits from a shake up of the corporate tax system could be doubled if Chalmers relaxes his preference for it to cost the budget nothing.

Treasurer Jim Chalmers and Finance Minister Katy Gallagher released Labor’s mid-year budget update on Thursday, which was boosted by a $40 billion tax boon from a stronger economy.

Gold and AI boom deliver tax boost to Chalmers’ budget

Higher inflation and a turbocharged rally in gold and AI stocks provided a huge revenue lift, yet the nation remains on track for another decade of deficits.

Proposed battery projects in Queensland will face tough new regulations.

‘Baffling’ state battery crackdown adds to transition delays

A suite of critical battery energy developments in Queensland could be hit by delays of up to 12 months under tough new planning laws.

AFP Commissioner Krissy Barrett speaking on Tuesday afternoon.

AFP targets hate preachers as Albanese announces crackdown

Police Commissioner Krissy Barrett accuses hate preachers of sowing dissent, amid calls to shut down a Sydney Islamic centre linked to a notorious preacher.

Jacinta Allan insists her government can increase spending while still reining in debt, which is projected to hit $194 billion by 2029.

Former Victorian auditor warns on federal bailout

The auditor who examined Victoria’s debt-laden finances during the 1990s warns the state appears on track for another bailout.

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Treasurer Jim Chalmers announced yet another downgrade to tobacco tax revenue on Wednesday.

Tobacco tax take to dwindle to almost nothing

Forecasts for tobacco excise revenue have downgraded by $1.6 billion for the 2026 financial year and $8.2b over the four years to 2028-29.

A passionate Josh Frydenberg channelled the anger and frustration of Australia’s Jewish community on Wednesday.

Politicians must call out Islamism to fight antisemitism

If the response to Bondi is to be meaningful, the outcome must be to better protect Jewish people by upping vigilance against Islamist terrorism.

A man lays flowers outside the Bondi Pavilion on Wednesday.

ASIO stretched by competing espionage and terror demands

Former officials say the spy agency’s monitoring of IS sympathisers after October 7 was diverted as it attempted to juggle other activities like counterespionage.