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Australia supplants China as Pacific’s biggest lender

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Australia has supplanted China as the dominant lender and infrastructure investor across the Pacific as the government ploughs billions of dollars into the region through both foreign aid and loans.

The latest version of the Lowy Institute’s Pacific Aid Map also shows that Australia has also maintained its position as by far the largest aid donor in the region, with the federal government providing around 37 per cent of all development spending across the Pacific in 2024. That puts Australia well ahead of the other countries, with New Zealand sitting at 11 per cent, the US at 8 per cent, China at 6 per cent and Japan at 3 per cent.

Much of Australia’s new infrastructure funding has been funnelled through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), which has already committed more than a billion dollars in loans as well as more than $850 million in grants since being established in 2019. The Lowy Institute estimates the government has signed new loan agreements worth $US2.4 billion ($3.44 billion) since 2021.

The map’s lead author, Riley Duke, said the latest data showed a “striking” shift, with China’s lending to the region continuing to fall away. “Historically this has been an area very much dominated by China. Beijing has built a lot of relationships and influence through these big loan finance infrastructure deals.” But he also said it was far too early to judge the success of Australia’s push into the infrastructure space, because it was still a newcomer.

A small number of Pacific countries, particularly Tonga, have struggled with the financial implications of Chinese loans, and the issue has generated political controversy over several years. The shift means that Australia will face growing pressure to show it can deliver major infrastructure effectively without saddling Pacific nations with unsustainable debt.

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Albanese announces $60m for Ukraine at Zelenskyy meeting

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Prime Minister Albanese has announced that Australia will provide an additional $60 million in support for Ukraine following a high-level meeting with President Volodymyr Zelenskyy on the sidelines of the UN General Assembly in New York.

During the meeting, Albanese emotionally praised Zelenskyy’s leadership, referring to him as “my friend,” and signed a 10-year bilateral security agreement. The new support package allocates $45 million in ADF defense equipment, $10 million for Ukraine’s energy support fund, and $5 million in humanitarian aid. This brings Australia’s total commitments to Ukraine to $1.9 billion since the 2022 Russian invasion. The agreement also outlines long-term security cooperation, including enhanced military training and joint production initiatives for drones, missiles, and air defense systems.

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Victoria’s crime rate continuously falls

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Youth crime has dropped in Victoria as the state’s record crime rate continues to fall, new figures show.

The latest crime data, released today, reveals that in the past year to June, the state’s crime rate dropped by 3.8 per cent. Police say organised crime, repeat offenders, mental health and drugs are the main drivers of crime, with trafficking and dealing drugs such as cocaine, meth, ecstasy and prescription drugs spiking by 18.5 per cent.

While police say crime in Victoria remains “unacceptably high” at more than 13 per cent higher than three years ago, several major crimes decreased. Crime Statistics Agency Chief Statistician Fiona Dowsley told 774 ABC Melbourne that a 20 per cent drop in burglaries and break-ins was “really significant”, but that the cause of the fall was difficult to determine.

Regional Operations Deputy Commissioner Bob Hill said the drop in the state’s crime rate was promising, but more work still needed to be done to make Victorians feel safe.

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Medicare portal being hacked by OpenAI according to Albanese

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Speaking in New York, Prime Minister Albanese said an OpenAI agent gained unauthorised access to the Medicare statistics reporting service portal administered by Services Australia on June 18.

The AI agent accessed both public and non-public files, but Albanese said it did not appear anyone’s personal Medicare details were accessed.

It is known that OpenAI accessed non-public aggregate health statistics and internal files from an old Australian government website that carried Medicare statistics.

It is also understood an AI crawler, which is an automated program that scans websites and collects information from them, was able to find a security workaround to access the data.

Albanese also said he had a “frank” discussion with OpenAI’s chief executive Sam Altman, saying the company took three months to notify the government of the breach and, when it did, the notification was in an email sent to the Services Australia public inbox.

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