Chalmers says budget will include efforts to ‘rebalance’ the tax system
Jim Chalmers, the federal treasurer, said the war in the Middle East has been a “big influence” on the budget, saying the crisis and its impact on fuel prices had made the inflation challenge much worse and put pressure on economic growth.
Chalmers told RN Breakfast:
We’ve made sure that our policy decisions are making a positive contribution to the budget rather than detracting from the budget position. And we’re showing spending restraint as well. And so, what that means is the budget tonight will be stronger than it was in December … It will be focused on resilience and reform.
The treasurer went on to say that the housing market “isn’t working” and that the tax system surrounding it is “out of whack”:
There will be efforts to rebalance the tax system so that we can better align the treatment of income from people who work with the people who earn their income in other ways. … The fairer the tax system is and the stronger the tax system is too.
Overwhelmingly, the tax system and the housing market is not working, particularly for younger Australians. There is an urgency now to fixing this.
Key events
Josh Butler
Chalmers says budget will help address One Nation surge
Treasurer Jim Chalmers admits the housing and tax systems are “not working for a lot of Australians”, saying tonight’s budget has an eye on addressing the factors driving voters to One Nation.
The government is promising bold reform, and the budget will contain changes to negative gearing and capital gains tax, in a move to level the playing field between ordinary people and wealthier classes or investors. Prime minister Anthony Albanese has said that the surge to right-wing populists like One Nation is “what happens when people don’t think they have a shot at a fair go”, comments Chalmers also echoed when asked on Tuesday morning.
“I think the housing market and the tax system is not working for a lot of Australians, and tonight, we seek to address that. I don’t dismiss or deny the very real concerns that a lot of Australians have about their ability to get a toehold in the housing market or to get a toehold in the economy more broadly,” he said.
Chalmers said the budget was “not a political document or a political strategy, it’s an economic plan”, but said it would respond to some of those concerns.
“At the same time, it will respond to a lot of the pressures and anxieties that people are feeling, which is driving them to consider some of the parties outside the mainstream,” he said.
The Australian Labor party is the last one standing in the sensible centre of Australian politics, but we’re not standing still.
Benita Kolovos
Victorian Greens criticise failure to introduce donation reforms
The Victorian Greens leader, Ellen Sandell, has criticised the government for failing to introduce donation reforms to parliament this week.
Speaking outside parliament, she told reporters the Greens have heard “very little” from the government in the last few days after weeks of negotiations. Sandell went on:
I do not know what is holding Labor back. I can only conclude that Labor is not interested in stopping dark money flowing into politics, and want to keep a whole bunch of corporate and billionaire donors for themselves, because the Greens we have an open door, and we’ve said, come and talk to us and we would be happy to talk about laws that actually stop this dark money flowing into Victorian politics.
While the major parties are mulling increasing the donation cap, she said it shouldn’t be increased:
We think that the donation cap, which is just under $5,000, is fine where it is. That allows people to make a small donation but it does not allow corporations and billionaires to donate tens of thousands, hundreds of thousands or millions of dollars to influence our politics.
Sandell said there was a “pathway” to pass reforms via the Greens and the crossbench:
We are happy to move very quickly if they bring legislation that closes these dodgy loopholes and puts a cap on political donations, we’re happy to do that, and I don’t understand why they haven’t brought that legislation this week or last week.
More here:
Benita Kolovos
Democracy Counts criticises delay in introducing new donation laws in Victoria
Democracy Counts campaign director Tom Mooney commented on our report this morning that the Victorian government won’t introduce legislation to parliament this week to plug a gap left by a high court decision that ruled the state’s donation laws unconstitutional.
The high court ruling last month invalidated the entire section of Victoria’s electoral act governing political donations – including a ban on foreign donations, caps on how much candidates and MPs can receive and disclosure requirements.
The Victorian premier committed to fast-tracking legislation through parliament but negotiations between Labor, the Liberals and Greens have stalled.
Mooney says waiting another month to reach an agreement “means another month that dodgy political donations could flow without any limit, oversight or transparency”. He went on:
With Victorian parliament sitting today we were hoping and anticipating a bill that would plug the hole allowing undisclosed donations to flow into politics ahead of the state election.
Victorians deserve to know who is funding the parties and candidates vying for their votes in November.
In the long run, we need to take a considered look at all aspects of electoral funding. But in the meantime, restoring transparency should be the number one priority for all parties.
Tom McIlroy
Taylor the right person to lead, Hastie says
Andrew Hastie says Angus Taylor is the right person to lead the Coalition, despite a “significant battering” received in Saturday’s Farrer byelection.
Taylor has been plagued by poor polling results since ousting Sussan Ley in February.
“Angus is the right man to lead,” Hastie told Sky. “Our party made that very clear only three months ago.”
The expectation for Farrer was always that we were going to struggle, and the vote that we achieved, which was a significant battering from the people of Farrer on the weekend, was about what we expected.
So we’ve got work to do. It’s early stages. We’re going to keep building.
Tom McIlroy
One Nation doesn’t want a coalition with the Liberals: Hastie
Senior Liberal Andrew Hastie has ruled out a coalition or governing agreement with Pauline Hanson, days after the One Nation won the critical Farrer byelection.
“I’m not open to that,” Hastie told Sky.
I don’t think One Nation wants us as a coalition partner. I don’t think we want One Nation as a coalition partner.
The feeling is mutual. We don’t want to be in coalition. They don’t want to be in coalition with us and that’s the reality.
Some Liberals flagged a possible agreement to form government with One Nation but frontbenchers including Ted O’Brien and Tim Wilson sought to walk back the comments yesterday.
Jordyn Beazley
Police suspect Julian Ingram died by suicide
Police believe the gunman suspected of killing his pregnant former partner in remote New South Wales took his own life likely “some time ago”.
Yesterday police found 37-year-old Julian Ingram’s body in a “decomposed state”, ending a four-month long manhunt that had been under way since January when he allegedly shot and killed Sophie Quinn, her new boyfriend and her aunt in Lake Cargelligo, about 450km west of Sydney. Ingram was on bail at the time for alleged domestic violence related offices against Quinn.
Ingram, also known as Julian Pierpoint, was last seen driving a Ford Ranger ute with council signage from the town on 22 January, shortly after the alleged shootings.
Assistant commissioner Andrew Holland told 2GB a short time ago that “there’s certain indications at this point” that Ingram took his own life.
He said it was difficult to say when he died but “given the decomposition of the body, it would appear to be some time ago”. He said the timing would form part of the coroner’s investigation.
Holland said liaison officers were in contact with the families of the three people Ingram allegedly killed immediately after his body was found. Holland said:
Obviously they have a sense of relief, but obviously there’s a sense of anger as well. It’s going to take a long time for the community and the families to get over this tragedy.
Leaders making’massive mistake’ by sucking up to Trump, says Turnbull
As Donald Trump prepares to meet Xi Jinping this week in Beijing, Malcolm Turnbull has been urging global leaders to “stand their ground” when dealing with US president and China.
Turnbull, who was speaking on BBC Radio 4’s flagship Today program while on a trip to the UK, said leaders were making a “massive mistake” by “sucking up” to the great powers.
You simply have to be true to yourself. This is critically important both with China and Washington. In the imperial capital they regard deference as their due so people who go to Washington and suck up to Donald Trump will frankly do the same in Beijing. They are making a massive mistake.
The bottom line is, sovereignty matters and you have to stand up and defend your sovereignty … and all of the flattering and grovelling is a massive mistake, particularly with Trump.
Turnbull recalled how he had “a very big row” in his first encounter with Trump during the latter’s first term.
I stood my ground. He started off saying no way … ended up grudgingly and unhappily agreeing to stick with an agreement [on immigration] I’d done with a predecessor. But that won his respect.
There’s no need to be rude or performative. Stand your ground. Whether in the playground or geopolitics
If you are dealing with strong men, bullies … the only way to do that is respectfully stand your ground. Do not take a backward step.
Butler says Australia will likely have ‘strongest quarantine response’ of any country taking passengers back from hantavirus ship
Mark Butler, the federal health minister, just spoke about quarantine arrangements for those who were stuck aboard the MV Hondius, the ship at the centre of the hantavirus outbreak.
The four Australian citizens, one Australian permanent resident and one New Zealand citizen were due to land in the Netherlands this morning before their repatriation flight to the country is secured. Butler said the arrangements had been difficult to sort out, including finding crew willing to isolate at the end of the flight. He told the ABC:
We’re confident they’ll be back over course of this week. And it’s important that we’ve put those quarantine arrangements in place, ready to go when they do land in Australia.
Butler said the crew will need to quarantine as well on arrival. He said Australia will have strong quarantine requirements and those from the ship will need to quarantine for three weeks in purpose-built facilities before receiving advice about how best to move forward at the end of that period for the reminder of the potential 42-day incubation period for a hantavirus infection.
Butler added:
This is probably the strongest quarantine response of any country that is taking passengers back from this cruise ship.
NSW government introduces tougher bail laws in organised crime crackdown
Penry Buckley
The NSW government will make it harder for organised criminals to apply for bail under a suite of reforms which also target the recruitment of children and the use of “kill cars” to carry out crimes.
Under legislation being introduced to parliament today, courts would be required to consider when an offence has been in committed in the context of organised crime, as well as any non-compliance with Serious Crime Prevention Orders and Firearm Prohibition Orders.
It will allow a decision to grant bail for certain serious firearm offences or specially aggravated kidnapping to be stayed for up to three days, which is currently only the case for serious offences such as murder, sexual assault and domestic violence.
The NSW attorney general, Michael Daley, says:
“These comprehensive reforms will help keep the community safe, and hold organised criminals to account for the destruction and harm they inflict on our streets.”
After changes to bail laws for domestic violence offenders in 2024, there are a record number of prisoners on remand in NSW, or 6081 as of December. Sentenced prisoner numbers are down, but the jail population overall – at about 13,100 in December – has been climbing since the pandemic.
Under the changes, a new aggravated offence will be created for destroying a vehicle by fire after it has been used to commit serious crimes such as firearms supply, drug trafficking and illicit tobacco offences. The maximum penalty for recruiting a child to engage in criminal activity will increase, with a higher maximum penalty of 15 years if the child is under 16.
‘Let’s build more houses … not start taxing them’, shadow finance minister says
Claire Chandler, the shadow minister for finance, spoke a moment ago.
She told RN Breakfast that the Coalition had concerns about the potential changes to the capital gains tax discount and any impacts on housing supply, adding:
You don’t make more of something by increasing taxes on it. Taxes are inherently a disincentive to create more of something.
If we need more houses in this country, let’s build more houses. Let’s not start taxing them.
‘This isn’t about generation versus generation’, finance minister says
Gallagher, the finance minister, is speaking now on RN Breakfast. She said the budget changes aren’t meant to counter housing policies that haven’t worked but are in addition to the government’s other efforts to help young people get into their own homes.
She said:
It’s all of our housing programs, 5% deposit, the Housing Australia Future Fund, the partnership we’ve had with the states and territories, the announcement made … on the weekend or yet around enabling infrastructure, $2bn to do the kind of the back end of housing development, all the connections and all of that kind of thing that state and territory and local government struggle with.
Gallagher was asked about older Australians that may be worried about the changes. She said they should think about their concerns for their children or grandchildren:
I think there is a lot of understanding across the community about governments needing to respond to try and make housing more affordable.
This isn’t about generation versus generation.
Cait Kelly
Only 10 electorates in the country where rent affordable on a median household income, report finds
Anglicare Australia’s Rental Affordability Snapshot has found there are only 10 electorates in the country where median rent is considered affordable for a household on the median income.
Using the standard benchmark of rental affordability (30% of income), the analysis compared median rents by federal electorate against median household incomes, and found that a typical household would be in rental stress in 140 electorates.
It found the only affordable electorates were McEwen, Gellibrand, Lalor, Gorton, La Trobe and Ballarat, all in Victoria, and Canberra, Fenner and Bean in the ACT.
Some of the worst results are in regional and coastal electorates previously seen as more affordable. Richmond on the NSW north coast was the worst in the country, with median rent consuming 69% of median household income.
The executive director of Anglicare Australia, Kasy Chambers, said:
This analysis shows the housing crisis is no longer something affecting only people on the lowest incomes. Even households on median incomes are being priced out of large parts of the country.
In all but 10 electorates, the median rent is now unaffordable for a household on the median income. That should ring alarm bells in every part of politics.
We need governments to stop relying almost entirely on the private market to solve this crisis. Australia urgently needs large-scale investment in public and community housing, alongside reforms that slow the growth in housing costs.
Chalmers says budget will include efforts to ‘rebalance’ the tax system
Jim Chalmers, the federal treasurer, said the war in the Middle East has been a “big influence” on the budget, saying the crisis and its impact on fuel prices had made the inflation challenge much worse and put pressure on economic growth.
Chalmers told RN Breakfast:
We’ve made sure that our policy decisions are making a positive contribution to the budget rather than detracting from the budget position. And we’re showing spending restraint as well. And so, what that means is the budget tonight will be stronger than it was in December … It will be focused on resilience and reform.
The treasurer went on to say that the housing market “isn’t working” and that the tax system surrounding it is “out of whack”:
There will be efforts to rebalance the tax system so that we can better align the treatment of income from people who work with the people who earn their income in other ways. … The fairer the tax system is and the stronger the tax system is too.
Overwhelmingly, the tax system and the housing market is not working, particularly for younger Australians. There is an urgency now to fixing this.
Finance minister says budget will look at all the ‘levers available’ to address housing crunch
Katy Gallagher, the finance minister, is doing the rounds this morning before the release of the budget.
She told ABC News Breakfast the budget was all about seeing deficits fall, the budget in a stronger position as well as dealing with “some of these really difficult challenges across the economy, including housing”. She added the budget was about putting “fairness at the centre”:
We’ve made it clear that we’ve been trying to look in housing. Our focus had been on supply and it remains on supply. We need to build more houses in this country.
But we also need to look at all of the different, I guess, impacts and levers available to government to respond to this housing challenge.
It’s an entrenched issue and we need to make sure that we’re all pulling all the levers available to make sure younger people can realise that dream of home ownership.
Good morning, Nick Visser here to snag the blog. Let’s dive into budget day.
Hume won’t rule out Coalition-One Nation alliance
Caitlin Cassidy
Asked last night about a possible Liberal/National alliance with One Nation, Jane Hume refused to reject the idea outright.
Pressed on the possible scenario, she said “only One Nation are in favour of that” and wouldn’t talk about “what is going to happen after the next election”.
It came after the shadow treasurer, Tim Wilson, said he had “never ever” and “never ever” would make a statement in favour of the hypothetical alliance.
Hume said:
The most important is to get the primary vote up for the Liberal and National party … There are so many hypotheticals … I will say that the Coalition are determined and dedicated to present to the Australian public a platform that they can vote for.
There is no one in the Coalition party room today that is telling us we need to expand the Coalition to include One Nation.
On the Coalition’s decision to preference One Nation over the independent candidate, Hume said it was a decision for the “party organisation, not for the parliamentary team”.
The message we sent in Farrer was that the teals vote with Greens, 70% of the time and for the people of Farrer that wasn’t going to represent their interests … We will always put our preferences where we think the national interests lies, where we think the interests of the electorate lies and that is what we did in Farrer.
Caitlin Cassidy
Jane Hume says ‘no one wanted’ Farrer byelection
The deputy Liberal leader, senator Jane Hume, says the Coalition should be listening “very carefully” to the people of Farrer after facing a thumping loss at this weekend’s byelection.
Appearing on ABC’s 7.30 program last night, Hume acknowledged it was a “tough night” for the Coalition and “the message that we heard from voters was loud and clear”.
They wanted change. Standing on a booth with teals in orange on one side and One Nation in orange on the other, both of them were saying ‘vote for change’.
Asked if the Liberal party would be “squeezed out of existence”, Hume said that’s “not our intention” and added the Coalition had been responsible for “years of prosperity and progress”.
This is … a byelection that nobody wanted. It occurred only a year after the election, after a local member had retired, after a quarter of a century which is a long time to have a seat … There was no love lost for the Labor party either. It is just that the Labor party didn’t have the balls to turn up … The Liberal party lost its way. The Coalition lost its way. We split twice in the last 12 months. There is frustration out there. We will take the result with humility.
Australians on hantavirus-hit ship to be repatriated via Netherlands
Australians among the remaining 22 passengers on board the MV Hondius were scheduled to be evacuated on a Dutch flight to the Netherlands overnight.
The repatriation operation had evacuated 94 people of 19 different nationalities on Sunday, said the Spanish health minister, Mónica García.
García said it was decided to fly the Australians to the Netherlands because of timing problems with a second plane that was to fly passengers back to Australia from Tenerife.
Instead all the remaining passengers were evacuated on the Netherlands flight.
Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories and then it will be Nick Visser with the main action.
The deputy Liberal leader, senator Jane Hume, says the Coalition should be listening “very carefully” to the people of Farrer after facing a thumping loss at the weekend’s byelection.
As Donald Trump prepares to meet Xi Jinping this week in Beijing, Malcolm Turnbull has been urging global leaders to “stand their ground” when dealing with the US president and said doing otherwise was a “massive mistake”.
And of course, the federal budget is due to be handed down today – and one commentator thinks it could mark the end of the Howard era. We’ll be bringing you a lot more on that, and all today’s stories as they happen.
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