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Australia has abundant energy resources. It is a leading exporter of coal, uranium and liquefied natural gas (LNG), much of which is destined for Asia’s growing markets. At home, Australia’s energy sector is undergoing a significant transformation. The power system is seeing higher shares of variable wind and solar power; South Australia leads the deployment. Yet despite this wealth of resources, energy security concerns are on the rise. As domestic oil production is dwindling, dependency on oil product imports and the oil supply chain are growing steadily. Gas supply in the east coast market has become tight, leading to higher prices in that market. Australia’s power system finds itself exposed to concerns over reliability, particularly amid extreme weather events. While its carbon intensity is in decline, it is still the highest among IEA countries. For natural gas to play a role as a transition fuel to a low-carbon economy, resource development, additional pipeline capacity and market integration are critical. The government is implementing reforms to foster reliability and security of supply, prompted by the South Australia system wide blackout of September 2016 and the Finkel Review. However, a consistent energy and climate framework up to 2030/50 is needed at the Commonwealth level to ensure continued and adequate investment in the energy sector. With the intention of helping to guide the country towards a more secure and sustainable energy future, this 2018 in-depth review analyses these and other energy policy challenges facing Australia, and provides recommendations for further policy improvements.

Australia has a strong voice on the global stage. It actively and consistently advocates for the interests of small island developing states and the Pacific region and on issues such as disaster risk reduction and gender equality. In line with this focus, the government has introduced a clear overarching policy vision and associated strategies and guidance for development co-operation. A robust performance framework reflects Australia’s strategic orientations, with value for money at the forefront. Among other issues, this review also looks at how the Australian government has managed the integration of aid within the Ministry of Foreign Affairs and Trade, and the resulting opportunities and challenges.

Australia’s overall performance in the Survey of Adult Skills (PIAAC) ranges from average to very good. However, three million adults, representing one-fifth of the working age population, have low literacy and/or numeracy skills. Building Skills for All in Australia describes the characteristics of the low-skilled and discusses the consequences that low skills have on economic and social development for both individuals and Australian society. The review examines the strengths of the Australian skills system, highlighting the strong basic skills found in the migrant population, widespread proficiency in use of ICT and the positive role of workplaces in skills development. The study explores, moreover, the challenges facing the skills system and what can be done to enhance basic skills through education, training or other workplace measures. One of a series of studies on low basic skills, the review presents new analyses of PIAAC data and concludes with a series of policy recommendations. These include: increasing participation of women in STEM fields, addressing underperformance of post-secondary VET students and preventing drop-out, improving pre-apprenticeships, enhancing mathematics provision within secondary education and tackling poor access to childcare facilities for young mothers.