Australia news and politics live: Treasurer Jim Chalmers reveals 10 most important productivity reform areas
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Key Events
Chalmers, O’Brien clash over government spending
Treasurer Jim Chalmers and his shadow counterpart Ted O’Brien had a heated exchange over spending levels during the roundtable discussion this morning.
ACTU secretary Sally McManus called it “a political exchange … that felt a bit like question time” and said the rest of those in the room thought it wasn’t the time or place.
“It was like, okay guys, like, you can do that in question time, the rest of us don’t get to do that,” she said.
“It was a bit of a backwards and forwards on that and two very different views about … whether or not you need to have (spending) rules.”
Outside the room, Mr O’Brien said that he had “set a test for the Treasurer today to stop the spending spree, which starts with the introduction of quantifiable fiscal rules”.
‘Crossed a line’: Blow up over hospital crisis
The NSW government has come under fire over the state’s hospital bed crisis and the delivery of a $120m expansion to beds in Blacktown and Mt Druitt hospitals.
During state budget estimates on Thursday morning, Labor Health Minister Ryan Park clashed with opposition MPs over claims the government was delaying on much-needed investments into public hospitals in Western Sydney.
Liberal MP Susan Carter questioned why the minister was “playing politics” with a $120m rollout of 60 beds between Blacktown and Mt Druitt hospitals.
She accused the government of delaying the rollout, which is forecast to be delivered in the 2027-28 financial year but listed with a financial completion date of 2029.
“I’m more interested in what we should be saying to a 70-year old grandfather Raymond Ryan forced to sleep on the floor of the hospital ED after waiting more than 24 hours for a bed,” Ms Carter said.
“That was in July … what do we say to Raymond Ryan?”
Unions says damage already done despite Commbank’s backflip on AI
The Finance Sector Union claims they’ve forced Commonwealth Bank to “back down on AI-driven job cuts.”
It comes as CBA reverses its decision to replace 45 customer service roles with AI.
The FSU says the damage is already done for the 45 workers who endured weeks of unnecessary stress, not knowing if they would be able to pay bills or support their families.
“CBA has been caught out trying to dress up job cuts as innovation. Using AI as a cover for slashing secure jobs is a cynical cost-cutting exercise, and workers know it,” Finance Sector Union National Secretary Julia Angrisano said.
“Our members want to be part of the conversation about how new technology is used in banking. They want secure jobs today and the training needed for the jobs of the future, not to be discarded under the guise of efficiency.”
Netanyahu: When Hamas congratulates Albanese ‘something is wrong’
Israeli Prime Minister Benjamin Netanyahu has intensified his attacks on Anthony Albanese, accusing the Australian leader of showing “weakness” in the face of Hamas.
Speaking to Sky News’ Sharri Markson in an interview to air tonight, Mr Netanyahu reportedly renewed his criticism over the Albanese government’s decision to revoke the visa of an Israeli politician and formally recognise a Palestinian state.
The remarks follow a letter in which the Israeli leader accused Mr Albanese of betraying both Australia’s Jewish community and its ally, Israel.
“I’m sure he has a reputable record as a public servant, but I think his record is forever tarnished by the weakness he has shown in the face of these Hamas terrorist monsters,” Mr Netanyahu told Sky News.
“When the worst terrorist organisation on earth – these savages who murdered women, raped them, beheaded men, burnt babies alive in front of their parents and took hundreds of hostages.
“When these people congratulate the Prime Minister of Australia, you know something is wrong.”
Kevin Rudd says Australia ‘critical’ for US to break China’s grip
Australia is key to Donald Trump’s goals of weaning the US off cheap Chinese critical minerals, Australia’s envoy in Washington says.
Critical minerals are just that – minerals, such as lithium, vital for manufacturing advanced technologies, from smartphones and cars to wind turbines and defence systems.
Currently, China dominates the space, but Australia has emerged as a challenger, ruffling some feathers in Beijing.
Because of their importance to modern tech, Western countries are increasingly viewing critical minerals as a matter of national security and scrambling to bolster sovereign stockpiles and production.
In an interview overnight, Australian Ambassador to the US Kevin Rudd said that Xi Jinping’s “ideology” on China’s long-term economic development was “to ensure that the world is dependent on China while China is not dependent on the world”.
Flood warnings issued as NSW cops drenching
Wet and freezing weather is smashing the east and west coast of the country, bringing prolonged rain and flood warnings across three states for the rest of the week.
NSW and Queensland residents are particularly set for a gruelling Thursday, with rainfall totals forecast to nudge triple digits across the two days.
Isolated falls of up to 120mm are forecast on Thursday for the east coast and tablelands, while the city’s rain gauge collected nearly 70mm overnight. Canterbury recorded more than 50mm, and Richmond and Terrey Hills each received over 40mm.
“Large patches on the NSW east coast will continue to receive that prolonged rainfall, particularly around the Northern Rivers and Mid North Coast area, as well as Sydney and the Illawarra,” Bureau of Meteorology senior meteorologist Angus Hines said.
Big four bank reverses decision to replace jobs for AI
Commonwealth Bank will reverse its controversial plan to cut dozens of jobs and replace them with an AI chatbot, admitting the move was a mistake.
Australia’s largest bank revealed last month that it would axe 45 call centre positions after rolling out an AI voicebot to handle customer queries.
But the bank has since backtracked, telling affected staff they could remain in their current roles or opt for a voluntary redundancy payout.
The decision came as CBA, despite insisting its voicebot had cut call volumes by 2000 a week, was forced to concede that calls had risen, with managers resorting to overtime and team leaders being pulled onto the phones, the Australian Financial Review reports.
A spokesperson for CBA said the decision to cut 45 roles was an “error”.
Chalmers preview tax reform debate at economic summit
Treasurer Jim Chalmers said tax reform wasn’t just about revenue, it was also about incentivising investment, boosting productivity and tackling intergenerational equity issues.
“If you think about spending and you think about revenue, it’s really us recognising that when it comes to budget repair over the medium term, we know that it’s not just about pulling one lever and ignoring the others,” he said.
The mood in the room was jovial as the roundtable participants entered their 20th hour locked in together with no phones or distractions.
Nearly half clutched coffees as the long days of talks started to catch up.
Chalmers kicks off third day of talks at economic roundtable
Treasurer Jim Chalmers has launched the third day of his economic roundtable by urging attendees to continue the spirit of openness and willingness to try and understand different points of view that wound through the first two days, even as talk turns to the tough topic of tax reform.
The Treasurer gave a big shoutout to Health Minister Mark Butler, who on Wednesday announced surprise plans to massively rein in the NDIS eligibility and further cut the growth rate of the ballooning scheme.
He said that of the seven big pressures on the budget, five were related to the care economy (interest payments on debt and Defence are the other two).
“Obviously, the spending side of the budget is key and that’s why we’re beginning there today. But there’ll also be an opportunity today to talk about our revenue,” Dr Chalmers said, noting that the revenue base was shifting both because of demographics but also shifts in the global economic shape.
Butler says children enrolled before 2027 can stay on NDIS
Health and Disability Minister Mark Butler has clarified the reasons behind his proposed NDIS reforms.
He reiterated that the scheme was originally designed for people with permanent disabilities, not for children with mild to moderate developmental delays. However, he stressed that children with permanent or significant autism will continue to be eligible for NDIS support.
“We’ve seen something of a mission creep by the NDIS here into an area it wasn’t intended to cover. And that’s really because parents had no alternative,” Mr Butler told ABC News Breakfast.
He added that these reforms should not come as a surprise, given the NDIS review commissioned in 2022. When asked whether some children might lose support during a transition period, Mr Butler reassured parents they would not be left “to slip between stools.”
“If you’re on the NDIS now, if you enter before 2027, your child will be entitled to remain on the NDIS, subject to all the usual arrangements,” he said.
