Economic Perspective 1 January 2026

The Latest Trending Economic News Curated for You by Balmoral Group Australia

Good morning readers,

This week’s articles explore market reforms for productivity, specifically for gas, and the implications of scorching hot heat waves. New recommendations from the productivity commission suggest that cutting financial and regulatory red tape, funding skills acquisition and reducing healthcare burdens could save billions. Then, the new Gas Market Review similarly aims to optimize market transactions and secure domestic supply. In hot-weather-news, innovative “phase-change” materials in roofs could cool interiors by almost 10°C, and research finds that heat waves significantly increase road injury risk for various groups. I've also attached a recent map from the U.S. Energy Information Administration to contextualise Australia's liquified natural gas exports. 

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Hope you enjoy the articles and have a great weekend!

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Meeting the productivity challenge 

The Productivity Commission have developed 47 recommendations across five inquiries to revitalise Australia’s stalling productivity growth. The suite of reforms includes shifting to a hybrid corporate tax system, cutting $10 billion worth of red tape, building workforce skills with quality teaching resources and easier occupational entry pathways, preventative health measures and transitioning towards low-cost renewable energy. Read more here.

Roads can become more dangerous on hot days – especially for pedestrians, cyclists and motorcyclists 

Recent research out of Taiwan has identified a sharp jump in road injury risk on very hot days between 30-40°C. In this range, pedestrian risk doubles, cyclist risk rose 80%, motorcyclist jumped 50%, and car drivers experienced a much smaller risk increase. Similar figures can be seen across countries, and other research finds higher risk on rural roads, among middle-aged and older drivers, and on hot, dry, high-UV days. Risks were linked to drowsiness, illness and glare. Read more here.

How smart home materials can shield us from extreme heat and cut energy bills all year 

With up to 50% of Australian household energy going towards heating and cooling, new research points towards innovative building materials to reduce energy demands. One such innovation is “phase change materials” made from waxes, salts, acids and oils stored in panels, microcapsules or pouches. Such materials act as a thermal battery, absorbing heat by melting and releasing heat through solidification. Amazingly, research has shown that reflective roof coatings combined with phase change materials embedded in roof tiles can cool interiors by 7.9–9.7 °C, achieving energy savings up to 80%. Read more here.

Gas Market Review recommends significant reform 

The new Gas Market Review, released by the government in late December, makes three key recommendations. First, reserve a 15-25% portion of gas supply to ensure availability for Australian needs. Second, reform gas market purchase functions to improve efficiency. Third, streamline regulations around gas market reporting and governance. The reforms aim to achieve price stability, protect against surging international gas prices and secure supply during the energy transition. Read more here.

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Australia's liquified natural gas export by destination, 2024 

The December Country Analysis Brief from the U.S. Energy Information Administration reveals Asian markets as Australia's top LNG export destination, with China, Japan and South Korea accounting for the largest shares. These three countries were also the largest LNG importers globally in 2024, with Australia representing their largest source.

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