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The Guardian - AU
The Guardian - AU
National
Rafqa Touma and Natasha May (earlier)

Myer to close flagship Brisbane store – as it happened

Myer will close its Brisbane store in Queen Street mall after 35 years.
Myer will close its Brisbane store in Queen Street mall after 35 years. Photograph: Jono Searle/AAP

What we learned: Thursday 16 March

And that wraps our news for this evening. Here is what hit the headlines today:

Updated

Qantas and Jetstar Covid credits extended

Qantas has made a statement on extending its Covid credits, saying:

Qantas and Jetstar are giving customers an extra 12 months to use their Covid credits, which are a carryover from the unprecedented upheaval to borders and travel during the pandemic.

Credits have been extended three times since 2020 and this final extension to the travel date is designed to make it easier for customers to use their remaining credits for domestic or international travel.

Before today, customers had to book and complete their travel by 31 December 2023. Following this change, they will still have to book by 31 December this year but have until December 2024 to complete their travel

The travel date extension makes the Qantas and Jetstar Covid credit program more flexible than our main domestic competitor and one of the most flexible among global carriers – some of which have already expired their Covid credits.

Updated

Myer to close flagship Brisbane store

Myer will shut its flagship department store in Brisbane’s Queen Street mall after more than three decades, AAP reports.

The retail giant announced it would vacate its five-floor store that became the namesake of the Myer Centre. It has been the centrepiece of Myer’s holdings in Queensland since it first opened in 1988 as Australia’s second-largest department store.

Myer chief executive John King says talks broke down with landlords:

Whilst we remain committed to the Brisbane market, we have been unable to negotiate a reasonable commercial outcome with the landlord and as such will continue to look for an alternative CBD location.

Myer’s store in Queen Street Mall, Brisbane
Myer will close its Brisbane store in Queen Street mall after 35 years. Photograph: Jono Searle/AAP

Updated

Sydney surfer goes for world record for charity

At Cronulla beach in Sydney, Blake Johnston is attempting to withstand the longest surf session anybody has ever attempted, AAP reports.

The current record is 30 hours – Johnston is aiming for 40. He plans to catch 500 waves by Friday evening.

The 40-year-old former pro surfer could face blindness, infected ears, dehydration, sleep deprivation, hypothermia and drowning, but he says he is prepared for the challenge.

Johnston hopes to raise $250,000 for youth mental health and suicide prevention. Nearly $200,000 has already been donated.

Updated

Andrew Forrest’s gas import terminal still a plan despite operator downgrade

Much has been made today about the warning from the Australian Energy Market Operator about possible gas shortages during extreme weather, particularly winter, in south-eastern Australia (as reported here).

Most of the gas in eastern Australia is exported, some of it from Victoria despite its declining gasfields. In a slightly incongruous move given the apparent abundance of gas, there are plans to import the fuel, including at Andrew “Twiggy” Forrest’s proposed Port Kembla energy terminal.

Well, the delay in the PKET, as it’s known, was one reason why shortages in gas supplies may emerge over the next couple of years.

AEMO in its latest report said it “no longer considers PKET as an anticipated project”.

That prompted Forrest’s Squadron Energy to respond.

“Squadron Energy will deliver crucial gas in 2026 to ease the forecast shortfall,” said CEO Jason Willoughby.

Port Kembla energy terminal will play a critical role in supplying the east coast energy market and it will be a strategic asset for Squadron Energy, providing firming capability as we develop our Australia-leading 20-gigawatt renewable project pipeline.

We also asked Squadron if they were concerned their proposed LNG import facility might have to compete with a nuclear-powered submarine base one day. (Port Kembla, near Wollongong on the NSW south coast, is considered to be one of the preferred sites for a base.)

Sadly, we didn’t get a response to that one.

Updated

South Sydney coach criticises ‘fear-mongering’ on concussion

South Sydney NRL coach Jason Demetriou has told his players not to buy into the “hysteria” surrounding concussion, AAP reports.

As the NRL makes the biggest changes to its concussion policy in a decade, Demetriou applauds the NRL for safeguarding its players and sticking to the science.

Now any player who suffers a head knock will be subject to an 11-day layoff. Current head injury assessment protocols will remain, where an independent doctor conducts mid-game testing for players experiencing symptoms.

The new rule comes after Newcastle five-eighth Kalyn Ponga suffered a fourth concussion in 10 months.

Demetriou said:

There’s a lot of hysteria around concussion at the moment and a lot of it’s fear-mongering, to be honest.

Players that play the game need to understand that it is a contact sport.

There’s risk in contact sport and these players are looked after better now than they’ve ever been, and rightfully so.

These problems that players have had from the old days, these guys that are playing now, they won’t have these problems because the game – as it should be – is looking after them.

A lot of ex-players are getting involved and having an opinion on a lot of things that they don’t have the medical training to have advice on.

The comments come a day after a class action lodged in the Victorian supreme court against the AFL chases up to $1bn compensation for alleged long-term concussion damage to AFL players.

Jason Demetriou
Jason Demetriou: ‘There’s a lot of hysteria around concussion.’ Photograph: Mark Kolbe/Getty Images

Updated

Ancient eagle named Australia’s largest-ever bird of prey

More breaking animal news in: an eagle with talons large enough to grab a kangaroo has been confirmed as Australia’s largest-ever bird of prey, AAP reports.

Fossil hunters from Flinders University have pieced together the eagle’s story, and named it Dynatoaetus gaffae. Fossil remains in South Australia’s Mairs Cave connected to bones previously found in Naracoorte Caves, Wellington Caves and near the Lake Eyre Basin.

The eagle had a three-metre wingspan and 30cm talons, making it twice the size of a modern-day species.

Closely related to the old-world vultures of Africa and Asia, it is now known to be the top avian predator in the late Pleistocene period.

Palaeontology researcher Ellen Mather said:

We were very excited to find many more bones from much of the skeleton to create a better picture and description of these magnificent, long-lost, giant extinct birds.

It’s often been noted how few large land predators Australia had back then, so Dynatoaetus helps fill that gap.

Updated

Blue-ringed octopus bites woman at Sydney beach

A potentially deadly blue-ringed octopus has bitten a woman in her 30s in Sydney’s north shore, AAP reports.

Paramedics were called to Chinamans Beach at 2.45pm today and the woman was taken to Royal North Shore hospital for treatment.

The name “blue-ringed” comes from iridescent blue markings that glow on the octopus’ skin when threatened. They produce a toxin that causes paralysis and can be fatal.

Although a bitten person will stay conscious, the octopus’ toxins paralyse muscles such as in the respiratory system – meaning some victims can die from a lack of oxygen. If a victim of a bite is given air manually, they will generally make a full recovery.

At least two Australians have died from a blue-ringed octopus bite, according to the Australian Institute of Marine Science.

The octopus is native to much of the Australian coastline, but only attacks when provoked.

Updated

Lehrmann grilled over delay in launching defamation case

Bruce Lehrmann has just been cross-examined by Sue Chrysanthou SC, representing Lisa Wilkinson, on the reasons he delayed bringing a defamation claim against her client, as well as Network Ten, News Corp and Samantha Maiden.

Lehrmann is arguing he had delayed bringing the claim because of prior legal advice, which told him not to launch defamation proceedings, and due to the prospect of a criminal trial.

Chrysanthou put it to Lehrmann that he had wanted to sue Wilkinson from the night her interview with Brittany Higgins aired on 15 February 2021 and had formed the view from 18 June 2021 that there would soon be a resolution to clear the criminal allegations against him.

Lehrmann agreed.

Bruce Lehrmann entering the NSW supreme court in Sydney on Thursday
Bruce Lehrmann entering the NSW supreme court in Sydney on Thursday. Photograph: Lisa Maree Williams/Getty Images

Chryanthou said:

You were acutely aware ... that you were in a position to sue for defamation?

Lehrmann responded:

I reject that I was in a position to sue for defamation.

The court also heard Lehrmann kept a “blue book”, in which he noted what he had seen in the media and planned his fightback against news outlets.

He listed friendly journalists – including Andrew Clennell and Andrew Bolt, of Sky News – who may be willing to share his version of events, the court heard.

Updated

Treasurer pours cold water on tax overhaul call

Still on Jim Chalmers and the treasurer was asked to respond to former treasury secretary Dr Ken Henry’s assertion that Australia’s tax system needs an overhaul.

The Howard government handed out a lot of treats in the form of tax concessions and tax breaks for people, particularly higher income earners, and trying to reform that system is like, well, taking candy from a baby – loud and uncomfortable.

Henry told the Taxation Institute of Australia (as reported by the AFR) that “the interests of the most disadvantaged are not being served by a tax system that is punishing innovation, denying people opportunity, undermining economic growth and denying the sustainability of government service provision”.

Moreover, there can be no ignoring the extraordinary intergenerational inequity inherent in our present tax system.

And that meant, as Henry and other economists who have turned a serious mind to this have found, that the young are being burdened with having to pay a debt that hasn’t particularly benefited them, while being weighed down with their own debt, including for education – and unable to break into the housing market.

It’s a recipe for disaster.

Ken Henry
Ken Henry: tax system has ‘extraordinary intergenerational inequity’. Photograph: Lukas Coch/AAP

So, will Chalmers look at reform anytime soon?

Chalmers:

I think for all of you that observed some of the frankly hyperventilating about what was a very modest change to superannuation tax concessions would understand, as they do, that tax reform is difficult in this country.

So, in my view, make your priority known – in our case multinational taxes, we were working very closely with friends around the world on multinational tax. We have a proposal out there on superannuation tax concessions which allow for the concessions to still be allowable to everyone but slightly less generous for people who are in that top 0.5% of superannuation balances – some pretty modest change, a meaningful one when it comes to the structure of the budget.

I think inevitably every budget, whether it is a Labor government or a budget handed down by the other side of politics, needs to contemplate some combination of three things: spending restraints, which we were able to show in October; trimming spending where that spending is not especially productive, where we are not getting value for money; and modest, meaningful tax reform in areas like super and multinational taxes. That is the approach we have taken.

Ken is in favour and on the record multiple times over a long period of time for something more comprehensive. We’ve got a different set of priorities when it comes to that.

So that’s a no then.

Updated

Hello from Canberra on this warm afternoon – I hope everyone is staying hydrated!

You may have seen Josh Butler’s report this morning on Jim Chalmers’ speech to Ceda. Chalmers was previewing the Productivity Commission’s five-yearly report, which is due to be released tomorrow – and the short version? Things are not great.

You can read Josh’s take here:

But without some major change, then we will be even further behind than we are, when it comes to boosting productivity. And that’s not the fault of workers, but the system.

The report’s not yet out but Chalmers has been doing what they call in the business “managing expectations”. Which means laying out the bad news ahead of time.

Updated

Australia can’t afford not to be in Aukus deal – PM

On Aukus’ anticipated $10bn annual cost over three decades, Anthony Albanese says Australia cannot afford to “not do it”:

The question here is, can we afford to not do it? And the answer to that is no. We need to give ourselves the best capability.

It is like if you go for an inferior product, you don’t want buyer’s remorse. What you want to do is to make sure that we increase the capability of our defence force.

Asked about whether the government will need to cut in spending, or raise taxes to afford Aukus, Albanese says recent changes to superannuation will go towards the budget.

We understand that there are real fiscal pressures. One of those is defence, another is the NDIS, another is Medicare and health with the ageing of the population. Another is the increased interest payments … Governments are going to have to make difficult decisions. And we have shown with this that we are prepared to make a difficult decision. We have shown with the superannuation decision that we made that we are prepared to make a difficult decision.

We are having the open conversation about the costs of this policy. But as I said, it is when you actually take a step back and look at this – under 10% of the defence budget, and it produces a quantum leap in the capacity of the defence force, and then I think that it is the right thing to do. It is an investment in our security. And nothing is more important than looking after our national security. That’s a precondition for a successful economy.

Anthony Albanese
‘We need to give ourselves the best capability’: Anthony Albanese. Photograph: James Ross/AAP

Updated

Aukus deal will have ‘massive spinoff’ – PM

More from the prime minister on 2GB – Albanese says Aukus “ticks all the boxes”.

This is not just a defence policy. This is about Australian sovereignty and our manufacturing capacity.

What this will do is have a massive spinoff because this is the most highly sophisticated machinery that you can think of – a nuclear powered submarine. So there will be not just 20,000 direct jobs created in Australia, there will be many more indirect jobs. And so it’s about our economy. It’s about our national sovereignty. It’s about defence. And it ticks all the boxes.

Updated

‘We have done the right thing’ – PM

On 2GB Anthony Albanese assures that the Aukus engagement is “the right decision for Australia”.

I take my responsibility very seriously indeed, to listen to Defence and national security experts to determine what is the best way to keep Australians safe. And the best way to keep Australians safe is to invest in improving our capability, but also invest in our relationships.

This is a long-term investment with our traditional friends and allies, the United States and the United Kingdom, and it is the right thing to do. I’m very confident that we have done the right thing.

Updated

PM says his government has turned international perceptions of Australia around

Anthony Albanese moves away from Paul Keating’s criticism of Aukus by pointing to Australia’s improved international relationships since coming to office in 2022:

In that year, what we have done is turn around the way that Australia is perceived in the international community. We are a trusted partner. We want to trade with our friends. We want to trade in the region.

That is why I spent time in India as a guest to prime minister [Narendra] Modi … That is why I called in on Fiji and spoke to the newly elected prime minister there just yesterday …

That is why I’ve engaged … in the Indo-Pacific. Australia is back in the international community around the table.

Of course, the entry fee for credibility is action on climate change. And that is why my government’s position on climate change has been so important in transforming the relationship we have with Indo-Pacific neighbours.

Updated

‘This debate about sovereignty is absurd’: Albanese

Anthony Albanese tells reporters in Aston concerns around Australia’s sovereignty as he joins the US and Britain in Aukus nuclear submarine agreements is “absurd”:

Australian sovereignty is a short full stop, exclamation mark. That is what happens. This debate about sovereignty is absurd.

… We will determine our sovereignty with all our assets. And that is very clear.

Albanese says he respects views of former parliamentarians, but assures there has been no disagreement around Aukus in his team:

There is no disagreement amongst anyone who has received any of the national security briefings in my team … This overwhelmingly has received support when the announcement was made originally about Aukus.

Updated

Anthony Albanese says China relationship is improving

The prime minister tells reporters “the relationship with China is improving and that’s a good thing”:

We are about building investing in our capacity, but we are also about investing in our relationships.

I had a very successful meeting with President Xi [Jinping]. Our foreign minister visited China at the end of last year to commemorate the 50th anniversary of relations between Australia and the People’s Republic of China.

I look forward to engaging China. We will cooperate where we can, we will disagree where we must, and we will engage in our national interest.

Australia has had a turbulent relationship in the past few years with China, its largest trading partner.

At the height of diplomatic tensions between China and Australia in 2020, Beijing blocked phone calls and meetings between Australian government ministers and their direct counterparts in the wake of the Morrison government’s early push for a Covid origins inquiry.

The Morrison government accused Beijing of engaging in “economic coercion” by rolling out tariffs or unofficial bans on a range of Australian exports, including wine, barley, red meat, lobsters and coal.

The Albanese government maintains that it has not given ground on Australia’s national interests or policy positions, but it has pursued a deliberate effort to engage in dialogue to try to get the relationship on a better footing.

For more context on the relationship between Australia and China, read my colleague Daniel Hurst:

Updated

‘I have no intention of engaging in a public argument with Paul Keating’: PM

The prime minister, Anthony Albanese, has joined a press conference with Mary Doyle, the Labor candidate for Aston, an electorate in Victoria with a big Chinese community. Albanese answers a question about the former Labor prime minister Paul Keating’s criticism of Labor’s Aukus involvement by saying he has “no intention of engaging in a public argument” with Keating.

Paul Keating is a big guy. He is entitled to his opinion.

I think on those issues he is wrong; I’m acting in the national interests. I’m acting in the national interest by investing in Australia’s capability, but I’m also investing in our relationships …

He has my respect and I have no intention of engaging in a public argument with Paul Keating … We praise our heroes for the contributions that they’ve made, but my responsibility in 2023 is to give Australia the leadership that they need now, not what they might have needed in the 1990s.

Updated

Protests should not ‘inconvenience people’, Perrottet says after climate protester’s jail term overturned

The NSW premier, Dominic Perrottet, says there is no place for disruptive climate change protests after climate protester Violet Coco’s imprisonment was appealed yesterday.

Perrottet said he wasn’t aware of the court’s decision until questioned today, AAP reports. He told reporters:

I’ll make this point – there’s no place in our state for that type of behaviour.

If you want to protest in NSW, you’re free to protest. But when you protest, you do not inconvenience people across NSW.

That’s exactly what occurred in that situation.

A 15-month jail sentence was imposed on Coco for blocking a lane on the Sydney Harbour Bridge with a truck amid morning traffic in April last year. Yesterday she was placed on a 12-month good-behaviour bond after a district court judge Mark Williams overturned the jail term.

Williams noted that she had been initially imprisoned on false information provided by the NSW police.

Coco was one of the first people charged after the NSW parliament introduced greater penalties and reach of laws targeting those who block traffic on major routes.

Updated

Thanks to Natasha May for feeding the blog through the day! I’ll be taking it into the evening.

Updated

Chalmers says 3.5% unemployment rate a ‘pleasing result’

The treasurer, Jim Chalmers, has also responded to the jobs figures released today saying the fact more Australians are in work and the unemployment rate is around historic lows is a “pleasing result”.

Since the Albanese government came to office, 278,000 jobs have been created.

We’ve got a lot coming at us but we’ve got a lot going for us, including unemployment at 3.5%.

A slowing global economy and higher interest rates will inevitably impact our own economy and labour market.

We expect employment growth to moderate over coming months on the trajectory we outlined in the budget.

Updated

Lehrmann tells court text about potential to receive ‘millions’ in defamation claim was a fabrication

Bruce Lehrmann is being cross-examined about the vast delay in bringing his defamation claim against News Corp, Network Ten, and two journalists over their coverage of Brittany Higgins’ allegations.

Lehrmann has said that his legal advice immediately after the publications was that he should not pursue defamation action, and instead wait for the resolution of any criminal trial. He blames the delay, partly, on that legal advice and wants the usual 12-month time limit on defamation claims extended.

But text messages show that on the day of the initial publications, 15 February 2021, while Lehrmann was in the office of his then lawyer Warwick Korn, he was texting his then girlfriend about the potential to receive “millions” in a defamation claim.

He said in the text:

If I’m named tonight, he says I’m up for millions as defamation.

Lehrmann today said that text had been a fabrication. He said Korn had never told him that.

He said he was fabricating the conversation with Korn to placate his girlfriend.

Lehrmann has also blamed the delay in bringing a defamation claim on the prospect of criminal proceedings.

But the court has heard that Lehrmann, also on 15 February 2021, texted his then girlfriend suggesting he had been advised the matter would never get before a criminal court.

Lehrmann said on Thursday that that text was also a fabrication. Lehrmann denied that Korn had given him any such advice.

Dr Matt Collins KC, representing Network Ten, responded:

Your evidence is that you fabricated a conversation with Mr Korn for the purpose of conveying it to [your then girlfriend]?

Lehrmann agreed he had fabricated the conversation.

Rome was burning and I was trying to put on a brave face.

Collins asked:

So you made up a conversation with a lawyer?

Lehrmann said:

Yes.

The court also heard he had called a friend from lobbyist firm Barton Deakin on the same day, seeking a reference for a lawyer. That call took place after he had already organised to meet Korn, a criminal lawyer.

Lehrmann denied that he was asking his friend for a referral for a defamation lawyer. He said he was seeking a recommendation for a second criminal lawyer.

But the court heard the friend later sent him a text saying that she bet the lawyer she had recommended was grateful.

Lehrmann responded:

You have no idea.

Lehrmann told the court there was no second lawyer.

Collins said:

You fabricated conversations with a non-existent lawyer?

Lehrmann said:

Yes

Lehrmann denied raping Higgins in the office of their then boss, Linda Reynolds, and pleaded not guilty. His first trial was aborted due to juror misconduct and a retrial was discontinued due to fears for Higgins’ mental health.

Updated

The temperature is rising in Sydney, with the CBD hitting over 35C as of 2.40pm, and even higher in western Sydney where Penrith has hit 37C.

According to the bureau of meteorology the hot air is being dragged over eastern Australia from heat building inland.

The hot, dry and windy conditions are also bringing elevated fire danger, especially in Western NSW.

Chalmers says ‘expanded research agenda’ can produce productivity commission suited to the times

As Chalmers flagged in his essay in the Monthly (which Dutton continues to lampoon for its length as recently as his press conference today), the treasurer wants to see the productivity commission itself improved and made more relevant for contemporary challenges.

Chalmers says an expanded research agenda should be essential in this reform:

To elevate the economic reform discussion, we need to ensure we’ve got a productivity commission suited to the times.

This could mean a more strategic focus on how we maximise opportunities in areas of economic transformation, including the shift to net zero. It could mean building a better understanding of how we measure productivity and the magnitude of the challenge.

What it must mean, is the evolution of a more meaningful, expanded research agenda and a stronger reform blueprint. This is something I’m giving further thought to, and will have more to say about, later in the year.

We all want to turn headwinds into tailwinds. We all want better living standards. We all recognise the central role of productivity growth in that effort.

How we go about it is contested, as it should be when so much is at stake. That’s why so much of our government’s time and effort has been spent building a serious reform agenda here – one that can pair better productivity with a full employment economy that offers more opportunities, to more people, in more parts of the country.

Chalmers ends on the note that improving productivity is not only the government’s task but a collective one which involves business, investors, all levels of government, workers and their unions, “pulling together in meaningful ways on multiple fronts to move further and faster towards our destination and collective mission”:

Improved living standards for our people, decent incomes – and a better, more secure and productive future, built together.

Updated

Government implementing two thirds of productivity commission’s reform directives

Chalmers says “Obviously, no government is expected to pick up and run with every recommendation of the productivity commission,” calling out the previous Coalition government for implementing “precisely zero” recommendations from the last five yearly review.

He says the Albanese government is working on more than two-thirds of the 29 reform directives outlined in the report and is “methodically” considering the specific recommendations.

Thirty-six lie at least in part with the states – and I’ll be discussing these with my counterparts at our next meeting in June.

We already have a really comprehensive reform agenda to grow our economy and lift living standards by investing the right way in productivity growth.

(Chalmers gives a whole lot of examples but I will spare you the entire list.)

Chalmers highlights there are more ways than one to satisfy the objectives in the productivity report.

We don’t believe productivity gains come from scorched earth industrial relations, for example, or from abolishing clean energy programs.

Instead, we’ll get productivity gains from investing in our people and their abilities, from fixing our energy markets, from making it easier to adapt and adopt technology so it works for us, not against us – and by creating the stability and certainty necessary for capital to flow towards areas where we have advantages and opportunities to underpin a more modern industrial base.

We want to maximise opportunities in energy, not just minimise costs. We want more cooperative workplaces, not more insecurity and conflict. But I hope these points of difference don’t dominate the coverage, especially when there is so much common ground to be recognised and progress to be made.

Updated

Ageing population and move to net zero will require investing in workforce: Chalmers

Chalmers expands on these challenges and how the workforce needs to adapt in order to overcome them:

In the [productivity commission’s] view, the non-market services sector, including the care economy – which has averaged zero productivity growth since 2000 – will naturally expand and drag on productivity as our population ages.

That transition will be happening in the context of another – a move towards net zero that will require billions of investment by 2050. This will help us avoid some of the worst impacts of climate change and help create new sources of growth that will lift our productivity performance over time.

These transformations will require investments in a highly skilled workforce. For that, we’ll require better education and training systems that can supply the skills and labour we need, and which can enable the digital revolution to happen in a way that enhances rather than just replaces work – helping to diffuse ideas and digital technology across more of our economy.

The productivity commission report proposes five ways to respond, Chalmers says:

  • One, building an adaptable workforce to supply the skilled workers for Australia’s future economy.

  • Two, harnessing data, digital technology and diffusion to capture the dividend of new ideas.

  • Three, creating a more dynamic economy through fostering competition, efficiency and contestability in markets.

  • Four, lifting productivity in the non-market sector to deliver high quality services at the lowest cost.

  • And five, securing net zero at least cost to limit the productivity impact caused by climate change.

Updated

Chalmers optimistic economic headwinds can be turned into tailwinds

The report I’m releasing tomorrow refers often to the headwinds in our economy that contribute to this – and it’s true that much of what we confront can be problematic if mismanaged or ignored.

But in a spirit of optimism, I want to suggest to you today that we can turn the headwinds identified by the [Productivity Commission] into tailwinds.

Chalmers says the report identifies five key trends and transitions:

  • One, the large and growing services sector.

  • Two, the costs of climate change.

  • Three, the need for a more skilled and adaptable workforce.

  • Four, our use of data and digital technology.

  • And five, economic dynamism in a changed world of geopolitical tension and uncertainty which is putting up barriers.

Chalmers acknowledges:

These are hard areas for a reason. All are complex, and none will respond to quick-fix, easy win, whack-a-mole policymaking.

Updated

Last decade's productivity growth slowest in 60 years, treasurer says

Chalmers says he wants to share what he think are “five pretty stunning facts” from the Productivity Commission report to put in context the challenges the Australian economy is facing:

  • “First, our productivity growth in the past decade has been the slowest in 60 years, averaging just 1.1% a year – worse than the decade before and barely half the rate achieved during the 1990s.

  • “Second, between 1970 and 2020, Australia slipped 10 places in productivity rankings, falling from 6th to 16th in the OECD.

  • “Third, this means our productivity is now 22% lower than the US.

  • “Fourth, if we’d kept up with the 60-year average for productivity growth, national income would have been about $4,600 higher in 2020.

  • “And fifth, if we stay stuck on the current course, the Productivity Commission projects future incomes will be 40% lower and the working week 5% longer.”

Chalmers says the figures are “useful illustrations of the productivity challenge – but they are not forecasts, or pre-determined outcomes”.

But it’s clear and it matters, that on every traditional measure of productivity Australia has been flatlining.

Australia has a productivity problem.

Updated

Treasurer gives address on productivity performance review

The treasurer, Jim Chalmers, is giving a major economic address at the meeting of the Committee for Economic Development of Australia (Ceda) in Brisbane.

Chalmers welcomes the guests in the audience, including “somebody who is more important to me than the prime minister, the chairman of the Broncos, Karl Morris”, who is sitting in the front row.

There are a number of reasons why now is an absolutely perfect time to share some thoughts and perspectives about the national economy. One of those reasons is that tomorrow, I will be releasing the Productivity Commission five yearly review of Australia’s productivity performance.

Today I wanted to tell you what to expect with that important report, how the Albanese government is grappling with its major themes and directions, what we are interested in progressing and where we think we already have a better way forward when it comes to satisfying some of these important economic objectives.

I wanted to warn you when you see tomorrow this report it’s almost a thousand pages long, there are nine volumes and 71 recommendations. I received last month, I have been getting my head around it and briefing my ministerial colleagues on it since then.

I’m not obligated to release until after budget … but I’m putting it out there a couple of months early because I want you to be able to work your way through it as well, to engage with it and make your own mind up about its key conclusions.

Updated

Gladys Berejiklian joins NSW Liberals' campaign trail

Former New South Wales premier Gladys Berejiklian has lent her assistance to a political ally’s re-election bid days after skipping out on the Liberals’ state election campaign launch, AAP reports.

The senior Optus executive was photographed outside a Penrith Chinese restaurant after having dinner with Stuart Ayres and his wife, Senator Marise Payne, on Wednesday night.

Ayres, a former cabinet minister, faces a battle to retain the lower house seat of Penrith, which he holds on a margin of 0.6%.

It comes days after Berejiklian was a notable absentee from the Liberals’ campaign launch on Sunday.

But the premier, Dominic Perrottet, denied he was snubbed. He said today:

Not at all, it’s great to have Glad as part of the campaign.

She was a great premier of NSW and to see her campaigning in Penrith, I know will make a real difference.

The premier joked that if she headed to his seat of Epping “that would say something”, and hoped to see more of her in marginal seats the coalition must hold to retain minority government.

He said:

She’s obviously very busy but … Glad knows the Liberals and Nationals have the long-term economic plan.

While enjoying soaring popularity through the initial months of the pandemic, Berejiklian’s final year in power was overshadowed by an anti-corruption inquiry that exposed her romantic relationship with another Liberal MP, Daryl Maguire.

She denied any wrongdoing and the Independent Commission Against Corruption’s report is not expected until after the election.

Updated

The endangered long-footed potoroo is bouncing back since the black summer Bushfires, the Victorian environment department says:

The endangered long-footed potoroo has been detected at around 80% of the sites they were found pre-fires.

Updated

Chinese officials attend Australian government Aukus briefing

Chinese embassy officials have attended an Australian government briefing about the Aukus nuclear-powered submarine plans.

The Department of Foreign Affairs and Trade (Dfat) has conducted multiple briefing sessions over the past 24 hours for representatives of dozens of countries, including from within south-east Asia and the Pacific.

Guardian Australia has learned that Chinese officials attended one of these briefings yesterday. One source described the attenders as mid-level representatives; another confirmed that the Chinese ambassador, Xiao Qian, was not in attendance.

The participation in the briefing is a point of interest given the strength of the Chinese government’s reaction to the Aukus plans as soon as they were unveiled by Australia, the US and the UK early on Tuesday morning.

China has demanded that the International Atomic Energy Agency not negotiate an arrangement with the three Aukus countries, and has sought to present the deal as a threat to the region and a threat to the nuclear non-proliferation regime.

The Dfat briefings were intended to reassure countries across the region that Australia was seeking to contribute to peace and stability, was not seeking nuclear weapons, and was committed to the highest standards of non-proliferation.

Updated

Wong tells Keating to look at UN evidence of China’s treatment of Uyghurs

The foreign minister, Penny Wong, has responded to former prime minister Paul Keating’s comments on China’s treatment of the Uyghur community.

In a National Press Club address yesterday, as my colleague Paul Karp reported, Keating brushed aside human rights concerns about China by arguing there are “disputes about what the nature of the Chinese affront to the Uyghurs” is, in reference to documented abuses that the UN has said are likely to be “crimes against humanity”.

Wong today said:

[Keating] may have his views but the government has … we have raised our concerns about the treatment of Uyghurs, with the PRC, with China, at all levels.

I would say to Mr Keating to consider the evidence that was presented to the UN through the UN report on this matter but I do want to say something to the Australian Uyghur community.

I understand this would have been distressing and I recognise the trauma many of them have suffered.

Updated

Burke accuses Coalition of ‘hysteria’ over unemployment

Employment minister Tony Burke says liberal senator Michaelia Cash and the shadow treasurer, Angus Taylor, contributed to “hysteria” around unemployment figures.

I put all of this against some of the hysteria that both my counterpart, Senator Cash, and the Shadow Treasurer, Angus Taylor, put out a month ago in terms of what the test of the previous figures were.

A month ago we were told by Senator Cash the reason the unemployment figures had gone up was because of the new industrial relations legislation. That being the case, I don’t know how she explains they have now gone down now the legislation has been in for longer and that we also have the improvements with underemployment, the improvements in terms of the total number of hours worked.

The unemployment rate has improved in every state and territory, with the exception of Queensland. But you might remember a month ago, the Queensland figure was actually really strong and so what has come back a bit there is more of a correction as to what happened in the previous month.

Updated

Tony Burke says drop in unemployment due to summer holiday breaks

As unemployment dropped from 3.7% to 3.5%, the employment minister, Tony Burke, says the numbers reflect Australians who decided to “take a well earned break over January”.

“As a result we saw an uptick in the unemployment figures over January, and that’s now returned back to 3.5%,” he said.

Burke says the numbers will moderate over time:

Full-time employment is up. The total hours worked is up. The participation rate is up. Of all of that, the unemployment rate is down, and the underemployment rate is down.

Even as there is some moderation, there’s still a situation where we’re talking about a very good labour market where people who want to find jobs should be able to find them.

The pathway to better wages will be through the legislation in the system that the government has been putting into place. The unemployment is not irrelevant to what happens with wages but on its own a low unemployment figure doesn’t do the job.

Burke says he is not worried about a wage price spiral.

A wage price spiral is driven by high wages growth. Australia does not have high wages growth. That’s how I know it’s not driving inflation.

Updated

Australian bank shares fall as global fears mount

Shares in Australia’s big banks fell in early trading on Thursday as concerns over the future of embattled European financial giant Credit Suisse spread through global markets.

The international banking sector was roiled by the collapse of California-headquartered Silicon Valley Bank last week, which suffered a bank run after revealing a hole in its finances caused by rapidly rising interest rates.

That news was followed up by a major selldown of Credit Suisse overnight amid concerns Europe’s 17th largest lender would not be able to recover from a string of scandals that has scared off customers.

Shares in Australia’s big banks were down about 2% in early trading on Thursday, erasing yesterday’s gains and leading the overall market lower. Their share prices are down sharply from the strong levels recorded mid-last month amid the then optimistic mood in the sector.

But Australian bank share prices have fared much better than most of their European and US counterparts, which are weighed down by market concerns that they could be harbouring losses in their investment portfolios caused by rate hikes.

Updated

Whistleblower submission to Queensland youth crime bill ruled ‘out of order’

A whistleblower’s submission to Queensland’s controversial youth crime bill has been “ruled out of order” and not allowed to be tabled in state parliament.

Greens MP for Maiwar, Michael Berkman, tabled the submission of watch house officer Steven Marshall on Wednesday night after it was removed from the parliament website.

Marshall’s submission to the economics and governance committee outlined “human rights breaches” he claims he witnessed in Brisbane City watch house during 2018 and 2019. These included “illegal strip-searches”, adults exposing themselves to children and staff wrapping towels around prisoners’ heads to avoid spit hood protocols.

Berkman said he tabled the submission, so it was “at least on the record” during the heated debate. But on Thursday morning, the speaker of the house, Curtis Pitt, ruled the submission “out of order”, saying he understood the committee “has resolved to make that particular submission confidential”.

He said allowing the submission to be tabled would “subvert and undermine the decision of the committee and its proceedings” and so he deemed the document “not tabled”.

Queensland police confirmed on Tuesday they were reviewing claims outlined in the submission, noting it was published by the committee “very briefly and then withdrawn”.

It comes as the state parliament is debating the youth crime bill this week, which includes making breach of bail an offence for children and expanding an electronic monitoring trial for children as young as 15.

Berkman was also referred to the ethics committee on Thursday morning for not withdrawing his interjections when the health minister Yvette D’Ath rose to speak on the youth justice laws.

Pitt said Berkman had refused “to comply with the deputy speaker’s request” and was “disorderly”, resulting in his ejection from the chamber.

All members have a right to express their views … however, members must do so in accordance with the standing rules and limits.

Updated

Bruce Lehrmann tells court he was ‘not in a good way’ after publication of stories

Bruce Lehrmann has told a court he had continually wanted to fight back against the media as more and more stories appeared in the media.

He says that he had been “not in a good way, to put it lightly” following the initial stories on 15 February 2021.

He checked himself into North Shore hospital and was put on 15-minute observations, the court heard.

He then went to another health facility for 12 days and then did not return to his house, because he had heard that the media were camping outside his house.

There was strong advice from my lawyers and the treating doctors that I retreat back to Queensland to live with my mum.

He says that the stories kept appearing in the media.

Every time an article would come out, or a Four Corners report or whatever, there was outrage, and it was apparent on social media that people knew it was me and it was a mixture of being upset, angry, and I wanted to fight back against the media.

Lehrmann says his then lawyers continued to tell him to wait until the criminal proceedings or investigation was concluded, prior to lodging a defamation claim.

He is attempting to convince the federal court to extend the usual 12-month limit on filing defamation claims. One of his reasons for delay is that he received advice to wait from his then lawyer, Warwick Korn.

Lehrmann denied raping Higgins in the office of their then boss, Linda Reynolds, and pleaded not guilty. His first trial was aborted due to juror misconduct and a retrial was discontinued due to fears for Higgins’ mental health.

Updated

Population growth will boost demand in economy – and supply of workers

As we saw earlier, February’s jobless rate dropped back to 3.5%, or just above the 3.4% recorded in October.

The numbers are close to the lowest in half a century even as the RBA does its best to sap excessive demand from the economy.

The ABS has also released some population numbers showing “we” expanded 1.6% in the year to 30 September. Australians now number 26.1 million people.

Beidar Cho, head of ABS Demography, said the population swelled by 418,500 over the year, with the pace similar to pre-pandemic times.

The natural increase was 114,800, a decrease of 18.1% from the previous year, with 302,900 births and 188,000 deaths in the year to September’s end. Deaths increased 10.8% “mainly due to Covid-19” and births sank 2.3%.

Cho said:

Migrant arrivals have returned to similar levels to those prior to the pandemic but departures remain lower – mainly because there are fewer recently arrived temporary migrants, like international students, who are due to leave.

There were 536,900 overseas migration arrivals and 233,200 departures.

Updated

Lehrmann says he was ‘outraged’ by stories, but lawyers urged him to wait on defamation claim

Bruce Lehrmann is giving evidence in open court for the first time.

The federal court on Thursday began hearing Lehrmann’s application to extend the time limit for lodging his defamation claim, which would allow him to sue Network Ten, News Corp, and journalists Lisa Wilkinson and Samantha Maiden for reporting the rape allegations made by Brittany Higgins.

Lehrmann began his defamation claim two years after the Higgins stories were first published in February 2021 and must convince the court that he was not unreasonable in not meeting the usual 12-month time limit.

He has been called to give evidence about what his lawyers told him in February 2021, which he says caused him to delay filing any defamation claim.

His barrister, Steven Whybrow SC, asked him whether he believed the initial articles referred to him, despite not naming him.

Lehrmann said he did:

It identified the office that the person worked in, elements like the Dock, things like that, however the element of the alleged sexual assault was not me.

He got legal advice about the publications after speaking with a friend, who recommended the lawyer Warwick Korn. He went to meet Korn in Sydney on 15 February, after the News Corp article, but before The Project’s story went to air on Network Ten.

Lehrmann said he did not meet Korn specifically to discuss defamation.

That was not the purpose I engaged Mr Korn for. It was for obvious criminal proceedings or an investigation, it was obvious and apparent that that was about to be undertaken.

But he said he did raise defamation proceedings.

I was outraged from what I was seeing.

He said Korn told him to wait prior to lodging any defamation proceedings.

That advice was that defamation proceedings could happen, but we needed to wait for the resolution of any criminal proceedings or any investigation.

Lehrmann denied raping Higgins in the office of their then boss, Linda Reynolds, and pleaded not guilty. His first trial was aborted due to juror misconduct and a retrial was discontinued due to fears for Higgins’ mental health.

Updated

Dutton says changes in regional circumstances necessitate Aukus spending

Asked about whether the middle of a cost-of-living crisis is the right time to spend up to $368bn on submarines, Dutton says:

I think Australians understand that the circumstances in our region have changed dramatically. I think every Australian except Paul Keating gets that, and you just can’t be blind to the intelligence, to what it’s saying, and not act on it. I think that would be negligent.

And we entered into negotiations for Aukus knowing that the circumstances had changed, and we want to see peace prevail in our region. We want stability. We want our very important trading partners to continue to have that relationship with us.

We don’t want to see bullying in our region, we don’t want to see coercive activity, we don’t want to see our citizens the subject of data breaches, etc.

So there is a lot that is in Aukus, not just the submarine deal, but it is also the investment in space, in AI and many other elements of that deterrence, which will be very important in the years to come.

As I say, the negotiations that we had at the time were difficult, and it started in 2020, and ultimately it has come to fruition now. So as a coalition, I am very proud of the fact that we authored that, we did the deal.

Updated

Dutton: ‘Labor never ordered a single submarine’ or ship from Australian manufacturers in the past

While the Coalition have been strong on their bipartisan support for the Aukus deal, Dutton goes on to criticise Labor’s record on defence, saying the Coalition government at the time had to overcome “Labor’s valley of death in the shipbuilding industry” in order to get the deal off the ground.

Now I’m incredibly proud of what we’ve been able to deliver under Aukus. It is a huge win for South Australia and for our country. Most importantly, it underpins the security of our country and interest of our neighbours within the Indo-Pacific for generations to come, and that is a very significant outcome.

Simon Birmingham as finance minister was one of those crucial in the negotiations, and obviously in the contemplation of how much money this would cost.

I remember many discussions over many years around the national security committee and the expenditure review committee where we had to work out what we would do with Labor’s valley of death in the shipbuilding industry here in South Australia, as well as in WA.

Labor never ordered a single submarine, not a single ship from an Australian manufacturer when they were in government, and they cut defence spending when they were in government down to 1.5, 1.6% of GDP, so that meant there was no jobs, no opportunities for people in South Australia. We came into government, we restored funding.

Updated

Dutton attributes electricity bill hikes to Labor decisions

While Albanese was talking with 3AW, the opposition leader, Peter Dutton, was speaking in Adelaide about the hike in electricity prices which was announced yesterday:

They will be 14,000 small businesses in South Australia who, from the 1st of July, are going to see yet another increase in their electricity bill.

And it will be about 63,000 households here in South Australia who, from the 1st of July, will pay on average about an extra $400, and I just don’t know where people are going to continue to find this money from.

Because it’s not just their electricity and their gas bills that continue to go up under Labor. We know that inflation is at a 33-year high and that many of the government decisions that they’ve made have actually fuelled inflation, and inflation going higher, of course, means your interest rates are higher and your mortgage rates are higher.

Updated

Hours worked rose last month as sickness, disaster woes receded, ABS says

As per the previous post on jobs, Australia’s economy has looked quite resilient this last month if those latest numbers are any guide.

Bjorn Jarvis, ABS head of labour statistics, said:

The February increase in employment follows consecutive falls in December and January.

In January, this reflected a larger than usual number of people waiting to start a new job, the majority of whom returned to or commenced their jobs in February.

This was particularly evident in the south-east of Australia, with larger than seasonal numbers of people entering into employment across New South Wales, Victoria and the ACT.

NSW kept its lead as the state with the lowest unemployment rate in the nation at 3.2% (if you exclude the ACT’s 2.9%). (Cue a media release from the Perrottet government, ahead of the 25 March election.)

Other signs of the labour market’s strength include a 3.9% rise in the amount of hours worked in February (seasonally adjusted).

Jarvis said:

Following the 2.1% fall in January, when more Australians than usual took annual leave, the hours worked in February bounced back strongly to a level similar to late 2022, and were 5.1% higher than February 2022.

In February, there were also no major disruptions that affected people’s ability to work their normal hours, such as the widespread sickness or natural disasters that we have seen over recent years.

Normal times, can they really be back?

Updated

‘It’s not either-or’, says PM on questions of Medicare funding versus Aukus

On the cost of the Aukus deal, Mitchell also asked Albanese about those comments from Dan Andrews (which Adeshola brought you earlier on the blog) that if the government can afford the submarines they should be ale to fix medicare.

Albanese says “it’s not either-or”:

I have a responsibility to – as prime minister – put in place defence procurement of assets so that our capability is the best it can possibly be.

If people want to discuss about Medicare or other issues, I’m happy to discuss them on their merits.

Medicare, of course, is a Labor creation. Labor will always strengthen Medicare and we’re doing a range of measures including cooperation with Premier Andrews. As you know, I have a very good relationship [with him] and we’ll continue to do that.

Updated

Albanese ‘absolutely convinced’ nuclear subs better than conventional sub options

On why it was necessary to purchase nuclear subs, rather than conventional subs, which are cheaper and faster to build, Albanese says:

The advice is – and I fully accept the advice from our defence experts – that nuclear subs [are] quieter, are less detectable. They’re faster, they’re able to stay away from port longer.

They’re essentially just much, much better. And we should acquire assets which best defend our nation.

I’m absolutely convinced – and this is a bipartisan position – that nuclear subs are far better than conventional submarine options, which, yes, they are cheaper, but if you have an inferior product that’s cheaper, that’s not necessarily the best way to go.

Albanese denies that the nuclear subs are designed to get into the Taiwanese straits, saying that the current Collins class fleet could do so.

Updated

‘We could have … not put figures out there’: Albanese claims price of Aukus deal released for transparency

On the eye-watering price of submarines, Albanese says the figures were released for transparency when the government didn’t necessarily have to, when they are projected so many decades into the future.

Mitchell:

We’re talking about the possibility of $360bn. Did we negotiate that or was it just sort of take it or leave it?

Albanese:

These have all been negotiated through.

Mitchell (chuckling):

We talked them down a bit did we?

Albanese:

If you put it in perspective, now – what we could have done is to not put figures out there because we’re talking about decades in advance. And that’s why the figure that has been put out there for transparency …

Updated

PM dismisses suggestions Australia ignored second French subs offer

Albanese denies that the French came back to Australia with another offer on submarines which Australia ignored, as Keating suggested.

That is not right. I have respectful relations, including with France.

And we had discussions with France. I’ve had discussions directly with President Macron, our foreign minister and defence minister have had a two-by-two meeting with their respective counterparts.

We have respectful relationship with France. We’ve determined to go with the Aukus arrangements. We liaised respectfully with a range of nations and informed them in an appropriate manner.

And none of the announcements that we made just a couple of days ago would have come as any surprise to the nations that we have good relations with them. One of those happens to be France.

Updated

Australia ‘should cooperate where we can but disagree where we must’ with China, PM says

Circling back to Anthony Albanese’s interview with 3AW radio in Melbourne – Mitchell asks the PM if he believes Keating is right to say China is not a threat to Australia.

China has changed its posture and positon in world affairs since the 1990s when Paul Keating was acting a parliamentarian and as a leader. That’s the truth of the matter.

I sat in Parliament when Xi Jinping was welcomed to the parliament. That was by the then liberal governments that was something that was a different time.

Mitchell:

So he is wrong? … Is China a threat to Australia?

Albanese:

Our position on China is that we should cooperate where we can but disagree where we must, and we disagree with China with its attitude towards human rights.

We disagree with some of its actions in the South China Sea. We disagree with its much more forward-leaning position in our region, and we will stand up for Australian values and we will stand up for our national interest.

We don’t seek conflict with any nation. And I have not engaged in any rhetoric aimed at increasing tension.

I want good relations, but I want good relations based upon our values and I won’t shy away from that.

And the truth is that Australia and China [have] very different political systems and have very different values.

And it is China that has seen the fastest and most significant growth in military expenditure in the postwar period of any nation. And that is just a fact.

Updated

Bumper jobs numbers for February may keep RBA on rate rise track

Labour market figures that have just landed from the ABS show the economy added a net 64,600 jobs last month, and the jobless rate sank back to 3.5%.

Economists, as we mentioned, had tipped 50,000 extra jobs and an unemployment rate of 3.6%.

Within the numbers, though, is the jump of almost 75,000 full-time positions (and a drop of about 10,000 part-time ones). Also there were slightly more people in the market for work, with the seasonally adjusted participation rate up by 0.1 percentage points to 66.6%.

The dollar has ticked up a bit against the US variety, pointing to a slight shift (so far) in the expectation the RBA will go again next month. Let’s see.

Updated

Jobless rate drops to 3.5% for February

Australia’s jobless rate in February was 3.5%, seasonally adjusted.

Those figures for February are down from 3.7%.

Updated

If government can afford Aukus submarine deal it can 'fix Medicare', Andrews says

The Victorian premier, Daniel Andrews, says if the Albanese government can afford to spend almost $400bn on the Aukus submarine deal, it can “fix Medicare”, as a spat over the GST carve-up intensifies.

Andrews has this week pushed back against Western Australia’s share of GST, saying Victorians will not be forced to pay for “sweetheart deals” between the state and the commonwealth. Under a 2018 deal struck by then treasurer Scott Morrison, Western Australia will get $5.6bn more than it would have otherwise received next financial year under GST distributions.

Speaking to reporters, Andrews said the GST carve-up should be based on “fairness”:

If we can afford to spend $400bn on submarines, we can afford to fix Medicare. We can afford to make sure that states and territories are supported.

The 2018 deal was struck in anticipation of falling iron ore prices that would shrink WA’s economy. Instead, iron ore prices soared.

Updated

Jobs numbers to give RBA more insight on the strength of the economy

Shortly we’ll get the February labour market numbers from the ABS.

Economists are expecting the economy to have added a net 50,000 jobs last month, with the jobless rate coming in at 3.6%.

These figures can jump around a bit. January’s reported jobless rate was 3.7%, seasonally adjusted, up from 3.5% in December.

However, the ABS noted that the jump in the unemployment rate masked a larger-than-usual rise in the number of unemployed people who had a job to go to in the future.

The jobs numbers will be examined closely by the Reserve Bank to determine whether it needs to lift its key interest rate again at its next gathering on 4 April. Such a move would mark 11 rate hikes in a row.

Anyway, stay tuned.

Updated

Albanese rules out introducing taxes or levies specifically to fund Aukus

Mitchell asks if Albanese can guarantee that no taxes or levies will be introduced to pay for Aukus:

Look, what we can guarantee, of course, is that this stands in its own right. We will have a range of policies put out there that aren’t connected with this. I’ve seen some comments, for example, about the NDIS says to be cut for this. That’s not what this is about.

What we have done here is, on its own merits, come up with the best way to defend our nation and put out there in a transparent way what the costs will be.

We have at the same time had a defence strategic review by Angus Houston and that will be released next month. And what that will do as well is look at: what are the assets we need? Where do we need them? What’s the timeframe for it? And people will see some of those measures in the budget that will be handed down in May.

… I can guarantee that this stands on its own merit. We don’t have a hypothecated* system so if you’re asking me about hypothecated revenues to pay for this, the answer to that is no. We’ll continue to do what we need to do to defend Australia.

*A hypothecated tax system is one where revenue from specific taxes is dedicated to particular purposes, as opposed to our system where all tax revenue is pooled as government funds and then allocated.

Updated

Australia-US relationship ‘can’t be stronger’: Albanese

Mitchell:

Doesn’t it embarrass Australia to have [Keating] attacking India, and saying of President Biden he can barely put three sentences together?

Albanese deflects the questions, pointing to the strong relationship between Australia and the US:

… What he said about India, what he said about Joe Biden what he said about China, what he said about our intelligence, I think … Well, I think that people like President Biden, towards Australia’s leadership, and my relationship with him, can’t be stronger.

It’s as strong as any relationship has ever been between an Australian prime minister and a president of the United States, and that’s something I’m battling with him, and I listened four times.

Updated

Keating's attacks on Wong and Marles 'diminish him', Albanese says

Asked specifically about Keating insulting two of his most senior ministers, Penny Wong and Richard Marles, Albanese says he will defend himself and his ministers “for the job that we’re doing”.

Paul Keating wasn’t complimentary about all three of us yesterday. But that is his prerogative to do so. I fundamentally disagree with his view, and I disagree with his attitude towards the state of the world in 2023.

Neil Mitchell:

Have you spoken to Penny Wong or Richard Marles to reassure them of that?

Albanese:

They know that. Neither of them were shocked by Paul Keating’s statements. He has had views that he’s put privately before.

I think it is unfortunate that Mr Keating chose a very strong personal statement against people.

I don’t think that that does anything other than diminish him, frankly. But that’s a decision that he’s made.

Updated

‘Paul Keating at Paul Keating’s best’: Albanese brushes off Aukus savaging

The first question is unsurprisingly about Paul Keating’s savaging of the Aukus deal in his national press club address, which also included some pretty pointed personal attacks on the PM, the defence minister, Richard Marles, and the foreign minister, Penny Wong.

I’m not going to get into an argument with Paul. Paul is someone who has my utmost respect for what he achieved as a treasurer and as prime minister of Australia.

My job is to govern Australia in 2023 based upon what we see as the facts before us, and the world has changed, with respect for him yesterday.

That was Paul Keating at Paul Keating’s best, if you like.

Updated

PM returns to Australia after Aukus announcement

The prime minister, Anthony Albanese, is back in Australia after his Aukus announcement in San Diego as well a visit to Fiji on the way back.

He’s now speaking to 3AW radio station in Melbourne:

It’s good to be home. I’ve got to say it was a very, very big trip and a really important one, building the relationship with India.

But also, of course, the important announcement that we made in San Diego just a couple of days ago and then calling in on the new prime minister of Fiji … to cement that relationship in the Pacific that’s so important for Australia at the moment.

Updated

Andrews says gas ‘should be reserved for our needs first’

The Victorian premier, Daniel Andrews, has renewed calls for a domestic gas reserve as the state prepares for household bills to rise by almost a third in the coming months.

The state’s Essential Services Commission on Wednesday published its draft decision, proposing household energy bills will rise by 31% from July.

Andrews – who has long-called for a percentage of the nation’s gas to be reserved for domestic use – said struggling Australians should not be forced to pay European gas prices.

We should not be competing with the other side of the world for something that starts here and is ours – belongs to us. That should be reserved for our needs first.

Updated

Australian lender Latitude Financial suffers major cyber-attack

Consumer lender Latitude Financial has been hit by a “sophisticated and malicious cyber-attack” that has resulted in the theft of more than 100,000 identification documents and 225,000 customer records.

The financial company, that offers personal loans and credit cards, said in a statement to the market on Thursday that most of the identification documents were copies of drivers’ licences.

The company said it had detected unusual activity on its systems over the last few days.

The company said:

While Latitude took immediate action, the attacker was able to obtain Latitude employee login credentials before the incident was isolated.

The attacker appears to have used the employee login credentials to steal personal information that was held by two other service providers.

The breach is the latest in a series of significant cyber-attacks on Australian companies, following hacks at Optus and Medibank, among others.

Share trading in Latitude is suspended as the lender tries to contain the incident. The company is headed by Ahmed Fahour, a former chief executive of Australia Post.

Updated

Lehrmann told friends he was ‘up for millions’ if named in Higgins’ stories, court hears

The federal court is hearing Bruce Lehrmann’s application to extend the time limit for lodging his defamation claim, which would allow him to sue Network Ten, News Corp, and two journalists for reporting the rape allegations made by Brittany Higgins.

Lehrmann is suing the media outlets almost two years after they initially published the Higgins’ stories in February 2021, meaning they must convince the federal court to extend the usual 12-month time limit.

His barrister, Steven Whybrow SC, will argue that Lehrmann was acting on prior legal advice from his previous firm not to initiate defamation proceedings in the immediate period after publications. He will also argue that Lehrmann faced the prospect of a high-profile criminal case, which would have necessarily delayed any defamation proceedings, and that his mental health was suffering considerably.

Network Ten and News Corp are opposing Lehrmann’s efforts to extend the time limit. They also want to call Lehrmann to cross-examine him about the delay, which could mark the first time Lehrmann has given evidence in open court.

The court heard on Thursday that a full report containing the contents of Lehrmann’s mobile phone has been made.

Lawyers for the media outlets are arguing some text messages sent by Lehrmann to his friends are directly relevant to his state of mind at the time immediately before and after the publications, and may contradict the reasons he has given for delay, namely that he was advised by his then lawyers against pursuing defamation proceedings.

In one message, Lehrmann contemplated suing as early as 15 February 2021, the day the initial Higgins stories were published.

Lehrmann told a friend:

If I’m named tonight, I’m up for millions as defamation.

In others, he said one of his lawyers “says I’m up for a bit of money”.

He also suggested to a friend that he would never face criminal proceedings.

In one text, he said:

One it’s false and second they have nothing.

Sue Chrysanthou SC says the text messages appear to be at odds with the representations Lehrmann has given to his current lawyer, Paul Svilans, who has submitted an affidavit in support of the application to extend the time limit.

In another message, Lehrmann is approached by friends after publications, who asked “do you know who the guy was?”.

Lehrmann responded:

Not the faintest idea, I haven’t been approached by anyone.

The hearing is continuing before justice justice Michael Lee.

Updated

Australians to learn final wording of voice referendum question

Australians will soon receive more important details about an Indigenous voice as decision makers prepare to meet for the final time, AAP reports.

The referendum working group will gather in Adelaide today before releasing their final advice.

South Australia’s deputy premier and Indigenous affairs minister will address the group about their proposed state-based model for a voice.

The Labor state government is hoping to have its legislation passed by Easter.

The Indigenous Australians minister, Linda Burney, said she was looking forward to hearing what lessons could be learned. She said:

We want to build on the strengths of the South Australian model and make sure Indigenous communities have their voices heard.

Legislation to set up the referendum will be introduced to federal parliament by the end of this month, while a second bill will outline the question to be put to Australians at the national vote, which will take place later this year.

Last year, the prime minister, Anthony Albanese, recommended three sentences to be added to the constitution.

They would confirm the voice could “make representations to parliament and the executive government” on matters relating to Aboriginal and Torres Strait Islander people, and that parliament would decide on the “composition, functions, powers and procedures” of the voice.

He also proposed the question: “Do you support an alteration to the constitution that establishes an Aboriginal and Torres Strait Islander voice?”

The National party has declared it will oppose the voice while the Liberals are yet to land on a formal position.

Updated

Australia and India to trade avocado and okra

In exciting news for lovers of okra, more of the vegetable should be on its way from India thanks to a trade deal which will also help Australian avocado growers access the Indian market in return.

In a media release entitled “India ‘Hass’ a taste for the best,” the minister for agriculture, Murray Watt, has announced a two-way agricultural trade will provide new market access for Australian Hass avocados to India and access for Indian okra to Australia.

Watt said the opening of a new export market was a significant opportunity for Australian producers, with industry estimating a potential market value of approximately $25m.

Watt said the deal comes as part of the opportunities opened up by the Australia-India Economic Cooperation and Trade Agreement. As well as adding to the $34.3bn trade relationship between the two countries, Watt highlighted the benefits would flow through to Australians’ kitchens:

I’m pleased Australians will now be able to enjoy Indian okra which is known for its nutritional benefits and versatility in cooking.

Successful completion of 10 trial ‘Hass’ avocado shipments to India will be required before the trade protocol with India is finalised.

The Australian high commissioner to India, Barry O’Farrell, is also pretty excited, saying the deal will provide greater access to high-quality produce for consumers in both countries.

Updated

Labor looks to privately owned land for conservation targets

The Albanese government is calling for feedback on what privately owned and other parts of the country could be counted towards a target of conserving 30% of land by 2030.

The environment minister, Tanya Plibersek, said the government planned to set up a framework that would recognise biodiversity conservation outside formally recognised parts of the country such as national parks and Indigenous protected areas.

She said to be recognised the areas must have important biodiversity values and the owners must voluntarily commit to maintaining these values in the long-term. The idea is based on a global initiative, used in countries including Canada and South Africa, known as “other effective area-based conservation measures”.

Plibersek said about 22% of Australia’s landmass was currently protected.

That means that we still need to protect or conserve an additional 60m hectares, roughly nine times the size of Tasmania. High quality conservation areas or other effective area-based conservation measures can help us get there.

A consultation paper can be found here.

Updated

Labor attacks regional grants program that delivered 96% of funding to Coalition-held seats

Labor has taken aim at a regional grants program that delivered 96% of its $272m of funding to Coalition-held electorates, despite projects being selected through an open, competitive process.

Julian Hill, the chair of the parliament’s audit committee, said “the so-called Regional Growth Fund was yet another giant rorted slush fund”, delivering 16 projects in Coalition-held electorates and just one in a Labor-held seat, the Coalition target of Lingiari.

Australian pets produce pile of poo ‘19 times heavier than Harbour Bridge’

Each year, Australian pets produce a pile of poo 19 times heavier than the Sydney Harbour Bridge, which can have serious implications for the environment, AAP reports.

As well as the more than 1m tonne of excrement generated annually, plastic bags and non-compostable cat litter fill up landfill and pollute the environment, leading to dire health consequences.

Single-use plastics break down into microplastics, which can be eaten by organisms and work their way up the food chain, Central Queensland University PhD candidate Emily Bryson said.

There is still a lot we don’t know about how microplastics impact human and animal health. The best thing to do is try to avoid using them in the first place.

But leaving pet poo where it lies can be even more damaging. Run off from nutrient-rich animal waste leaches into the soil, damaging microscopic organisms and marine life.

The poo can also contain harmful bacteria and parasitic eggs that can spread to other animals or humans.

Eco-friendly options such as compostable poo bags are gaining in popularity but pet owners need to know how to use them, Bryson said.

Compostable plastic bags really do need to be put into compost for them to break down.

Compostable bags left in the environment or put in landfill aren’t any better than regular plastic bags as they can still break into microplastics and contribute to greenhouse gas emissions.

In the past year alone, sales in compostable cat litter and poo bags have jumped by almost a third, according to retailer Pet Circle.

In some areas, particularly South Australia, dog poo can be included in organic waste bins where it is taken to be composted at industrial facilities.

But in most parts of the country, pet owners will have to do their own composting at home.

Updated

Following the prediction from the energy market operator of gas supply shortages, Independent MP Allegra Spender is calling for the acceleration of electrification of households with solar.

Workers face longer hours for less pay without productivity boost, treasurer says

Jim Chalmers says Australians’ incomes will fall and the working week will get longer without major boosts to productivity, and the nation must boost service delivery in the care sector to offset some “woeful” economic indicators.

Before releasing the Productivity Commission’s five-yearly report on Friday, the treasurer again downplayed the prospect of major cost-of-living relief in the May budget but said it would be soon become a focus for the government.

Updated

High to extreme fire danger across most of NSW

In NSW there is extreme fire danger in the Central and Southern Ranges where a total fire ban is in the place.

Remote renters head to high court over housing neglect

The Northern Territory’s failure to provide adequate public housing will be examined in the high court, with implications for the nearly 3m Australian households that rent.

In question will be whether the territory’s government should compensate tenants in the remote community of Santa Teresa for distress caused by lack of reasonable living conditions.

The executive director of advocacy group Better Renting, Joel Dignam, said:

Landlords should be held accountable for making sure rental homes are habitable. This means more than just a few walls and a roof, it means people should be able to live a full and decent life in their homes.

The case comes after multiple bodies, including the NT supreme court, found the territory government was obliged to provide tenants in Santa Teresa with housing that was not only safe but also reasonably comfortable.

Residents of the Arrernte community near Alice Springs first brought their case to the NT civil and administrative tribunal in 2018.

Many reported dealing with a lack of electricity, hot water, cooking and functioning toilets for extended periods.

Jasmine Cavenagh had a blocked toilet for eight months while Enid Young, the lead tenant in the case, had no air conditioning for 17 months and no door for five years.

The nearly 70 tenants will be represented by Australian Lawyers for Remote Aboriginal Rights and not-for-profit litigators Grata Fund.

Lawyer Dan Kelly said:

Housing is a human right and the deplorable state of housing in remote communities, its impacts on health, education and employment opportunities, should not be tolerated in a country as wealthy as Australia.

Territory Families, Housing and Communities said in a statement it was committed to ensuring remote public housing was safe, habitable and appropriate but declined to comment further.

It is expected a decision by the high court will be reached later this year.

– AAP

Updated

Queensland minister says reports of 13-year-old in solitary confinement for 45 days are incorrect

The Queensland youth justice minister, Liane Linard, is claiming that it is not true that a 13-year-old boy was held for at least 45 days in solitary confinement.

RN Breakfast host Patricia Karvelas:

Last Friday the children’s court in Cairns heard of a 13-year-old Aboriginal boy referred to as Jack who spent a total of 45 days locked in a cell while awaiting trial. We know that between February 1 and February the 23rd this year he did not leave his cell for 22 days. Do you think that’s acceptable?

Linnard:

I’m certainly aware of those media reports. And of course, as soon as I heard them, I asked my department to review that case.

The advice I received is that it was not the case that that young person was in solitary confinement. What was indeed released, the department reviewed a small sample of logbooks and records, reviewed these and have confirmed for me that the young person was attending programs and interacting with peers and staff.

So of course I looked at those allegations they were very serious and on that advice is that they’re not the case.

the court was provided with a download of information that I believe did not provide as fulsome a picture as it could have.

When asked what state the child was in if he was not in solitary confinement, as Linnard confirmed, she said:

Well, the young person was subject to a separation, and the separation is an event defined in the act, it could be the child is ill or the child’s request. It could be on the basis of health safety or security requirements, where it’s required, the young person is still participating in health services, education services, cultural programs, they can still access phone calls.

This story was an exclusive that Guardian Australia’s Ben Smee brought you and other media have subsequently followed:

Updated

O’Connor ‘surprised by the tone’ of Keating’s comments about Penny Wong

O’Connor says he “fundamentally” disagrees with Keating’s criticisms of Penny Wong’s diplomacy as running around the Pacific Islands with a lei handing out money:

I fundamentally disagree with that description. Penny Wong has been mending our relationships in the region and beyond.

In a very short space of time, the foreign minister has been working assiduously with not only Pacific Island countries but around the world to stabilise and improve our relationships.

I think some of the relationships Australia had with other countries wasn’t in the best possible shape. … I think therefore the criticism is unwarranted. And no way accurate.

Lisa Millar:

Are you disappointed a former Labor prime minister was speak like that about your colleagues?

O’Connor replies that Keating has the right to say what he wishes but admits he is “surprised by the tone of his comments”:

Well, Paul Keating is, you know, when he decides on a particular view, may say things that we don’t always agree with. But he’s got every right to say what he wishes.

But I would actually – I believe most people would agree that the government has done a very good job in the foreign policy space, improving relationships, mending, I would argue, relationships with some countries within our region and beyond. And that’s been critical in terms of our standing in the world.

I would have to disagree with him. I’m somewhat surprised by the tone of his comments. But he’s got – he has the right to say when he said yesterday but I disagree with him entirely.

Updated

Brendan O’Connor disagrees with Paul Keating’s Aukus views

The interview with O’Connor turns to Keating’s savaging of the Albanese government for making the “worst deal in history”.

O’Connor said he disagrees with Keating’s belief the majority of rank and file Labor members would share his concerns of the Aukus deal.

18 months ago the federal parliamentary Labor party made the decision to support the in-principle position of Aukus. This is not new, the Aukus proposition was put in September 2021. I have to say the briefing to caucus was one that was overwhelmingly supported at the time.

And indeed, the shadow cabinet supported it at the time. Without dissent. So there’s been strong support within the federal parliamentary Labor party. I would believe within the Labor party generally, because of the need for us to build capability to protect our interests, and to make our region more stable and secure.

And I think for the reason we have made the right decision and I have enormous respect for Paul Keating. But on this occasion I don’t agree with him. And as I say, it’s not anything new, it’s something that was in-principle supported a year and a half ago.

Updated

Minister says gas export contracts must be honoured as Aemo warns of supply gaps

The minister for skills and training, Brendan O’Connor, is speaking to ABC News Breakfast about the energy market operator’s announcement this morning there could be shortages of gas supply this winter, extending for several years.

Asked about whether it’s a sign that the transition to renewable energy supplies is not happening fast enough, O’Connor says Australia is undertaking the “massive transformation” as quickly as possible.

It’s fair to say we as a nation should have moved quicker to transform the sector in order to bring down energy – well, to provide secure and certain energy but to reduce prices.

But we know also some of the more recent very significant and very difficult increases in energy costs are a result of other factors, including the invasion by Ukraine of Russia and it’s been a significant price increases across the world, including Australia. But we put something in place as recently as late last year to bring – to put downward pressure on prices.

Lisa Millar:

Minister, I do just want to stick with gas, because we’re going to be speaking to an expert very shortly and others concur, we don’t have a shortage of supply in this country, it’s been exported. So, when does the domestic market take the priority? When does the government have to actually pull that trigger to ensure the domestic market is served?

O’Connor:

As a responsible country of course we need to fulfil our obligations in so far as contracts we have entered into. Some of these go back many, many years and they’re ones that we must honour.

But I agree we need to examine the domestic consumption of gas … and make sure we are able to provide energy to households and businesses and they’re the sort of things we can look at that. But we can’t do that at the cost of breaking contracts that have been entered into many years ago.

Updated

Breaking news out of West Gippsland, where “Happy” the calf has been born with a smiley face pattern in its fur on a dairy farm in Ripplebrook.

Turnbull concerned about UK economic situation

Malcolm Turnbull rounded out his concerns there with one shared with Paul Keating – although the language he used was a little more moderated than the former Labor PM is famous for.

Turnbull noted that the UK economy was not in a good place. And because of that there are questions over whether Britain can sustain investment in its defence force over the years and what that will mean for the Aukus deal.

The bottom line is their economy is sick. It’s got fundamental, sort of existential problems. And you’ve got to ask yourself, whether Britain is going to be able to sustain investment in its navy and its military in the years ahead, given this huge demand that they’ve got elsewhere, not least the National Health Service.

Updated

French submarines better because they used low enriched uranium – Turnbull

Turnbull says France’s submarines were better suited in terms of cost and crew size, but also because they used low enriched uranium – which is about the same as a civilian nuclear power plant. But the US and UK reactors use weapons grade. His concerns also extend to what will happen once the naval staff who are nuclear trained retire, as Australia doesn’t have a nuclear industry. So where do they go?

Updated

Cancelled French submarine deal a ‘tragic omission’, Turnbull says

The list of former prime ministers lining up to criticise the Aukus deal is growing – Malcolm Turnbull has joined the list.

He says he thinks it is a “tragic omission” that the option of a nuclear propulsion submarine with France was not pursued.

And we will be paying for it … in dollars, in years lost and in a very, very high risk of execution.

Turnbull says he accepts that it’s a done deal but it’s going to take a lot more time than the French program that “[Scott] Morrison recklessly cancelled”.

Updated

Turnbull on Aukus

Malcolm Turnbull is speaking to ABC Radio about the Aukus submarine deal, starting off with the proviso he is “sorry my concerns can’t be expressed as colourfully as Paul’s” – referring to Keating’s savaging of the deal at yesterday’s National Press Club address.

Keating called Aukus “the worst deal in all history” yesterday but Turnbull says he doesn’t “buy into that”:

I accept this Aukus deal is done and it’s set. I don’t think there’s any transit turning back from it.

But he is concerned Aukus will take more time and cost a “great deal” more money than the French deal would have.

Updated

Heating demands

Aemo chief executive Daniel Westerman spoke to ABC Radio this morning. Asked whether consumers should be worried this winter if it’s really cold, Westerman said:

These risks do present themselves when there is high demand for heating and for power generation at the same time.

We saw the same thing in the middle of last year when we had some disruptive period in the national electricity market.

That is why we are calling for new investment to increase capacity and increase gas supply.

Updated

Gas supply warning

Risks remain for Australia’s winter gas supply in the southern states, according to the latest official forecasts.

The Australian Energy Market Operator has released an update that calls for urgent investment to ensure supply, with all future scenarios forecasting long-term demand for additional gas.

The 2023 gas report released today anticipates gas production will meet customer demand in central and eastern Australia.

But it says supply risks remain in the southern states as gas production declines, particularly in Victoria where production is forecast to almost halve by 2027.

It will be important for production from liquefied natural gas exporters, in excess of existing export contracts, to be available.

The operator said in its report:

The risk of supply gaps increases if excess northern production is exported as spot cargoes rather than used to meet domestic demand.

From 2026, without additional commitments to expand domestic supply, or hydrogen or biomethane coming online as an alternative, gas contracted for export by Queensland LNG producers may need to be used to maintain domestic gas adequacy.

Australia’s energy ministers have already extended the market operator’s powers to tackle immediate east coast supply shortfalls.

Taking effect for winter 2023, these new powers are intended to secure the gas and electricity markets and protect domestic gas consumers.

The Australian domestic gas security mechanism and heads of agreement between the federal government and LNG producers are tipped to be important for domestic supply.

The objective of the mechanism is to ensure there is enough gas to meet the needs of consumers by – if necessary – controlling LNG exports.

Aemo chief executive Daniel Westerman said:

Existing instruments, such as the heads of agreement with LNG exporters, which includes the gas supply guarantee, to offer additional gas into the east coast domestic market in 2023 will help in managing supply adequacy.

– AAP

Updated

Good morning!

Natasha May reporting for blog duty.

The energy market operator is warning of gas shortages on Australia’s east coast this winter as supply is declining faster than demand.

The industry and science minister, Ed Husic, is set to launch the Responsible AI Network, which will support companies in using and creating artificial intelligence systems safely and ethically.

In NSW there is extreme fire danger in the Central and Southern Ranges where a total fire ban is in the place.

Former prime minister Malcolm Turnbull will be giving his two cents about the Aukus deal on ABC Radio this morning after another former PM, Paul Keating, absolutely savaged the deal yesterday in a National Press Club address.

Turnbull has previously raised concerns about whether the nuclear submarines built with the US and UK could compromise Australian sovereignty.

Let’s get into it.

Updated

Marles defends Aukus deal

An attack by the former Labor prime minister Paul Keating on a landmark military deal has not shaken the government’s confidence in the security arrangement, the defence minister says, according to Australian Associated Press.

Keating condemned the $368bn price tag and questioned Australia’s sovereignty within the arrangement.

He also fired shots at senior federal government ministers including defence minister Richard Marles, and issued withering assessments of US President Joe Biden and UK prime minister Rishi Sunak.

The landmark military deal is largely seen as an arrangement to combat China’s rising influence but Keating said it was unnecessary.

Marles said Keating remained a revered figure within the Labor party.

He told ABC 7.30 no matter what the former prime minister said about him, Anthon Albanese or Penny Wong, the government would not say a bad word about Keating:

The Hawke-Keating government was the great peacetime, reformist, long-term government in our history.

It’s a government that finished in 1996 [and] our responsibility is to be governing the country in the national interest in 2023.

Marles said the government had worked hard to stabilise Australia’s diplomatic relations with China:

We want to have a productive relationship with China but we do observe that we are seeing the biggest conventional military build-up in the world today since the end of the second world war.

Opposition leader Peter Dutton said the former prime minister’s comments showed there was division within the Labor party over Aukus. He told reporters in Melbourne:

“I think it is incumbent upon Richard Marles and others ... to rebuke the unhinged comments of Mr Keating.

[The government] should be taking the advice of the military and intelligence chiefs as opposed to Paul Keating.

Updated

Acoss calls for jobseeker increase

The Australian Council of Social Service called for the increase to jobseeker and youth allowance payments, a disability and illness supplement of $110 a fortnight and a 50% boost to commonwealth rent assistance.

In a pre-budget submission, Acoss said boosting the jobseeker payment for single people to the rate of the pension ($1,026 a fortnight) would require a $350 a fortnight rise, while the increase would be worth $232 for single people on youth allowance. The policy would cost $10.5bn in 2023-24.

The peak body said payments should be indexed to whichever measure would deliver the highest increase out of wages or inflation. While recent increases, including a $24.70 a fortnight rise to jobseeker payments due on 20 March, have been larger than usual due to rising inflation, jobseeker has already fallen well behind the age pension, which has more generous indexation rules.

The Acoss chief executive, Cassandra Goldie, said it was a “disgrace” Australia’s unemployment benefit was among the lowest in the OECD given it was one of the wealthiest countries in the world:

We say now is the right time for us to be fixing the adequacy of our key social protection for people who are on the lowest incomes who are being locked out of paid work.

The Acoss proposals also included an extra 25,000 social housing dwellings a year for 10 years, which would cost $10bn over the decade, and a subsidised jobs offer for people experiencing long-term unemployment.

Acoss also proposed a range of revenue measures, including scrapping the stage-three tax cuts, saving $18bn in 2024-25 alone. Another option was proceeding with some aspects but keeping the 37% rate and keeping the 45% threshold at $180,000. It said this would “leave in place a tax cut of up to $37 per week for individuals on incomes up to $120,000”.

The submission comes before a statement from the Albanese government’s independent economic inclusion advisory committee, which will report on the adequacy of working-age payments including jobseeker before the May budget.

Updated

Welcome

Good morning and welcome to our rolling news coverage. I’m Martin Farrer and I’ll be bringing you some of the top breaking stories before Natasha May fires up her work station to take charge.

The defence minister, Richard Marles, has defended the Aukus submarine deal in the wake of a blistering attack from the former labor prime minister Paul Keating who dubbed it the “worst deal in all history”. Speaking on 7.30 last night Marles declined to criticise Keating personally but pointed out he had last been in government in 1996 when the world was very different. Marles said the government had worked hard to stabilise Australia’s diplomatic relations with China but “we are seeing the biggest conventional military build-up in the world today since the end of the second world war”.

There is fresh uproar this morning about Scott Morrison’s secret ministries after an FOI request revealed that his former assistant minister Ben Morton was appointed to administer the home affairs department in March 2021. The move was not disclosed at the time in official ministry lists or a swearing-in ceremony and follows the shocking revelations that Morrison secretly appointed himself to run five ministries during the pandemic without telling the relevant ministers.

A group of Indigenous leaders will meet in Adelaide today to finalise advice to the government on the voice to parliament referendum, including what they want the constitutional amendment to say. The voice referendum working group – which was set up by the government – will make recommendations on the referendum question that will be posed to Australia. We’ll have all the updates as they happen.

The Albanese government has been urged to lift the jobseeker payment to the same rate as the pension, offering a $350-a-fortnight lift to the main unemployment benefit. In a pre-budget submission, the Australian Council of Social Service said youth allowance payments should be increased and called for a disability and illness supplement of $110 a fortnight, and a 50% boost to commonwealth rent assistance.

With all that, let’s get going …

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