National cabinet met on Wednesday to discuss the federal government’s plan for new AI datacentre development, with Queensland and the Northern Territory securing a carve-out allowing their facilities to be powered by coal and gas rather than renewables.
Coal and gas carve-out for AI datacentres
The exemption means the two jurisdictions can bypass the national renewable energy target for AI infrastructure, a move that has sparked debate about the environmental and economic trade-offs. The decision follows Prime Minister Anthony Albanese’s reported backdown on requiring all AI datacentres to use renewable energy, a policy shift first flagged in earlier coverage.
Political editor Tom McIlroy discussed the implications with Dr Aruna Sathanapally, CEO of the Grattan Institute, and economics editor Patrick Commins on the Australian Politics podcast.
GST dispute between WA and Productivity Commission
The ongoing fight between Western Australian Premier Roger Cook and the Productivity Commission over the state’s generous GST deal remains unresolved. The dispute centres on the commission’s criticism of the arrangement, which gives WA a higher share of GST revenue due to its mining boom.
Sathanapally and Commins analysed the fiscal implications of the carve-out and the GST conflict, noting that the Productivity Commission has previously argued the deal distorts national fiscal equity.
Migration numbers fuel political debate
Migration arrival numbers continue to spur debate across all political parties, with the podcast panel discussing how the figures are shaping policy positions. The issue remains a key point of contention in federal politics, particularly as the government balances economic needs with community concerns.
The panel also touched on broader policy challenges facing the Albanese government, including the intersection of energy policy, state-federal relations, and migration management.
The full discussion is available on the Australian Politics podcast, which this week features McIlroy, Sathanapally, and Commins. The episode also references a related article by Ben Doherty on the refugee intake debate, which argues that contemplating a cut to Australia’s refugee intake during this period of need is “cruel populism”.
