Australia This Week: Heat, Missiles and a Shifting Economy
Suzan Seherin 
Australia closed the first week of summer with headlines spanning defence, the economy, climate risks and an intense cost-of-living debate.
AUKUS review and defence industry expansion
Defence Minister Richard Marles confirmed Australia has received the Trump administration’s review of the AUKUS nuclear-powered submarine deal and is now “working through it.” The $368 billion program, Australia’s largest-ever defence project, remains strongly backed by Washington and will be overseen by a new Defence Delivery Agency to keep it on schedule.
At the same time, Australia has formally joined the global missile-manufacturing club. A new Lockheed Martin facility at Port Wakefield, north of Adelaide, has begun test production of Guided Multiple Launch Rocket System (GMLRS) rockets, only the second such plant in the world and the first outside the United States, boosting jobs and sovereign capability.
Economy back in growth, but pressures remain
New national accounts data showed the economy growing 2.1 per cent over the year to September, up from 0.8 per cent a year earlier. A boom in data-centre investment linked to artificial intelligence, along with higher household spending on essentials like power and rent, helped push quarterly GDP up 0.4 per cent.
However, once population growth is included, GDP per person barely moved, underlining why many households still feel squeezed despite stronger headline numbers. Much of the extra income helped by lower interest rates and rooftop solar savings is being swallowed by electricity, health and insurance bills instead of discretionary spending.
Cost-of-living politics dominate Canberra
Federal politics in Canberra continued to revolve around living costs and trust in government. ABC analysis highlighted how voters remain focused on prices heading into Christmas, even as Labor celebrates a strong election result and a larger majority in parliament.
The Albanese government is weighing whether to extend energy bill rebates at next week’s mid-year economic update, while also responding to a scathing “jobs for mates” report on political appointments. Critics argue that rejecting key integrity recommendations risks eroding public confidence, at a time when support for minor parties and independents has reached record levels.
Heatwave and bushfire season warnings
As the political year winds down, emergency services are gearing up. Sydney recorded its hottest day since January 2024 on Friday, with temperatures near 38 degrees and severe to extreme heatwave warnings across much of New South Wales, where firefighters battled dozens of bush and grass fires.
National bushfire outlooks warn that large parts of Western Australia, Victoria and inland New South Wales face heightened fire danger this summer after months of hot, dry and windy weather. Climate agencies say climate change is increasing the risk of dangerous fire weather, making heatwaves longer and bushfires more frequent and intense.
Gas investment highlights energy transition tensions
In Western Australia, Chevron and its partners approved a A$3 billion expansion of the Gorgon LNG project, known as Stage 3, to connect new offshore gas fields to existing export and domestic gas facilities. The development will drill six subsea wells and is expected to support hundreds of construction jobs while extending gas output towards 2070.
Supporters say the decision secures energy supplies for WA and key Asian customers as coal plants retire, but environmental groups warn it locks in higher emissions for decades. The move underlines Australia’s difficult balancing act: keeping lights on and exports flowing while trying to meet ambitious climate targets at future UN climate talks it hopes to host.
Featured image: SBO
About The Author
Sultanul Arefin 
