Social Media Ban Takes Effect as Minister's $100K Travel Expenses Overshadow Launch, Energy Report Projects $128B Grid Overhaul
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Australia's $33B deficit sparks calls to cut spending, not raise taxes
Australia’s budget deficit has ballooned to nearly $33 billion, with Treasurer Jim Chalmers set to release a mid-year update next week. Government spending on wages and programs like the NDIS is outpacing revenue growth, triggering debate about whether to cut costs or increase taxes.
The budget deficit has hit $33 billion. Here’s what that means for under-35s.
Australia’s federal budget is bleeding red ink. As of October, the deficit reached nearly $33 billion—and Treasurer Jim Chalmers will release the full mid-year update next week that could show it’s even worse.
The core issue: government spending, especially on public sector wages, is growing faster than the revenue coming in to pay for it. That creates a fiscal gap that has to be filled somehow—either by cutting spending, raising taxes, borrowing more, or selling assets.
Australia Bans Under-16s From Social Media: World-First Law Takes Effect
Australia’s world-first social media ban for under-16s became law on December 10, 2025, forcing tech platforms to prevent children from accessing Facebook, Instagram, TikTok, Snapchat, X, YouTube, Reddit, Threads, Twitch and Kik or face fines up to $50 million.
What happened
Prime Minister Anthony Albanese announced December 10, 2025, as the official start date for the social media age restriction law at a Sydney press conference attended by bereaved parents, campaign advocates including 36 Months co-founder Michael Whipfli and News Corp’s Let Them Be Kids campaign lead Mel Pilling, and South Australian Premier Peter Malinauskas, who commissioned the initial legal framework from former High Court Chief Justice Robert French.
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Australia's Grid Needs $128 Billion — And Coal Isn't Going Anywhere Until 2049
The Australian Energy Market Operator released its Draft 2026 Integrated System Plan on December 10, outlining a 25-year blueprint requiring $128 billion in capital investment to transform the national electricity grid. The report extends the operational timeline for coal-fired power stations to 2049 — more than a decade longer than previous forecasts — while maintaining that renewable energy backed by battery storage and gas remains the lowest-cost pathway to achieve net zero emissions by 2050. AEMO CEO Daniel Westerman warned that urgent action is needed to prevent supply gaps as ageing coal plants retire, stating there is "a real risk that replacement generation is not available in time." The plan calls for tripling renewable generation capacity, doubling dispatchable storage, and constructing 5,000 kilometres of new transmission lines over the next decade.
The release has reignited political debate over Australia's energy transition, with One Nation leader Pauline Hanson claiming the extended coal timeline vindicates her party's push for new coal-fired power stations and nuclear energy. The report lands amid mounting cost-of-living pressures, with AEMO data indicating 45 percent of Australian businesses are experiencing energy stress and approximately 130,000 households are in energy poverty. The troubled Snowy 2.0 pumped hydro project, now estimated at $20 billion compared to its original $2 billion budget, continues to draw scrutiny as a test case for large-scale energy infrastructure delivery. Public consultation on the draft plan remains open until February 13, 2026, with the final blueprint expected in June.
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