Australia in May 2026: the most important developments in economy
In May 2026 the Australian economy was shaped by an oil shock linked to tensions with Iran, a tax-changing federal budget and a wave of deals in mining. On 18 May Anglo American agreed to sell its Australian coal mines for $3.9 billion, and a UK mining company was reported to be entering Australian coal, which some in the industry viewed with apprehension. Australian Rare Earths company Arafura received approval for a $1.6 billion project aimed at challenging China's dominance in the sector, with construction due to begin in September. Zijin Mining's $4 billion acquisition of Allied Gold faced a second delay from regulators in China.
Fuel and gas dominated policy. The government committed $7 billion to boost fuel stockpiles and create a government reserve, and Prime Minister Anthony Albanese announced a $10 billion fuel security package aimed at raising the emergency stockpile to 50 days. Australia recorded its first trade deficit since 2017, and the government ordered liquefied natural gas exporters to reserve 20 percent of gas for the domestic market. On 25 May reports said existing export contracts would be included in the scheme, which set up a clash with producers such as the Santos-backed GLNG project. Strikes hit two LNG facilities on 20 May after wage talks collapsed. The Reserve Bank raised interest rates on 5 May for a third straight meeting, and on 19 May it warned the country risked slipping into a recession like that of the 1990s.
The budget on 12 May changed negative gearing and capital gains tax. Bank stocks came under pressure, real estate stocks rose on measures for first-home buyers, female founders criticised Treasurer Jim Chalmers over the capital gains changes, and Australia's biggest bank later backed changes to the plan. Sydney and Melbourne property values fell in May.
Other news included the resignation of KPMG Australia's chief executive after whistleblower claims, BHP abandoning an iron ore processing project as unprofitable, a delay to Qantas's Project Sunrise flights because of Airbus supply problems, and the scrapping of Australian Trump Tower plans after the developer said the brand had become toxic.
by WorldBrief & Maksim Micheliov | AI-generated summary
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