Australian news and politics live: Jim Chalmers rejects NATO pressure to boost defence spending

In just 48 hours, US President Donald Trump pivoted from an unprecedented bombing of Iranian nuclear facilities to announcing a ceasefire between Israel and Iran, resulting in a flurry of diplomatic activity that left allies and adversaries scrambling to keep up.

Mr Trump’s Monday evening announcement of the ceasefire, which appears to be holding despite breaches by both sides, reflects his mercurial decision-making process, which current and former officials say is unorthodox even by his standards.

The President has largely sidestepped the traditional foreign policy establishment and the intelligence community in dealing with the Iran crisis. And in proclaiming victory and announcing major foreign policy moves, he has posted missives on social media rather than going through diplomatic channels.

Early US intelligence reports have also suggested that the US military strikes did not destroy Iran’s nuclear program and may have only set it back by a few months, with stockpiles of highly enriched uranium relocated to other secure locations.

But some former officials say Mr Trump could have found the slim path between preventing Iran from having a nuclear weapon and preventing US military entanglement in another Middle East war.

Read the full analysis.

US Vice President JD Vance has sung praise for US President Donald Trump after announcing a ceasefire which, for now, appears to be holding.

“For 60 days, he (Mr Trump) negotiated aggressively to encourage that Iranian regime to give up those weapons peacefully,” Mr Vance said at a Republican Party dinner on Tuesday night (local time)

“When the president realised that there was not going to be a peaceful settlement to that problem, he sent B-2 bombers and dropped 12 30,000-pound bombs on the worst facility and destroyed that program.

Mr Vance told “worried” Americans that Mr Trump has resolved the growing tension “quickly”, suggesting that a prolongued war was not expected.

“Not only did we destroy the Iranian nuclear program, we did it with zero American casualties. And that’s what happens when you’ve got strong American leadership.”

Perth MP Matt Keogh has labelled the Korean war the “forgotten conflict” on the 75th anniversary of the multinational event.

Speaking in Canberra after a service at the Australian War Memorial on Wednesday, the Perth MP and Veterans’ Affairs Minister reflected on the occasion.

“It’s been a wonderful opportunity to recognise their service in a conflict that often gets overlooked,” he told Sky News.

“And making sure that we as a nation remember their service and their contribution to defending South Korea against the aggression and invasion of North Korea.”

Opposition leader Sussan Ley says her shadow treasurer Ted O’Brien will attend Jim Chalmer’s upcoming productivity roundtable in August.

Mr O’Brien has been offered one of the few seats at the table.

Ms Ley, however, warned she didn’t want it to be a talk fest, referencing the 2022 jobs and skills summit under the Albanese Government.

“I understand our shadow treasurer Ted O’Brien will be there. It’s important we participate,” she said.

“I could tell you a lot of stories about the results of the jobs and skills summit because I had the skills portfolio in opposition and it felt as though absolutely nothing happened afterwards.

“But in the spirit of goodwill, I’m comfortable we sit at the table and we hear what the government has got to say.”

Opposition leader Sussan Ley says after taking on the new leadership role of the Liberal Party, she’s informed and in contact with former Liberal PMs.

“One of my great mentors, former prime minister John Howard, often said about elections that the Australian people always get it right. I agree with him,” she told the National Press Club on Wednesday.

Despite Malcolm Turnbull being a vocal critic of the party since he left Parliament, Ms Ley said she also engages with him.

“I’m in touch with previous prime ministers. I actually exchanged texts with Malcolm while he was overseas. I have sat down with John Howard, Tony Abbott. I should add Scott Morrison to that list.

“I’m always interested in their instructions (and) advice.

“‘Instructions’ being a little cheeky, because they’re always willing to share their experience. “That’s a good thing.”

Anthony Albanese has confirmed he will be travelling to China on invitation from President Xi Jinping, but has left the door open to a possible meeting with US President Donald Trump before the trip.

Asked on Wednesday during a press conference in Tasmania, Mr Albanese said it’s “not true that I’m going to China before the United States”.

“It’s true that I will be travelling to China later this year,” Mr Albanese said. We are waiting for… confirmation of a visit to the United States as well,” he added.

“I was in the United States last week, so it’s not true that I’m going to China before the United States.”

It comes as Mr Albanese’s scheduled meeting with Mr Trump on the sidelines of the G7 was cancelled after the US President left early due to conflict in the Middle East.

He is due to speak at the UN General Assembly in New York in September and it’s understood Mr Albanese could travel to China in August.

Opposition leader Sussan Ley declares the Liberal leader “must learn” from the diabolical election loss on May 3.

“We respect the election outcome with humility. We accept it with contrition. And we must learn from it with conviction,” she told the National Press Club.

“Our first step is to listen, so we properly understand how we can improve. Last week, we appointed Pru Goward and Nick Minchin to conduct a root-and-branch review of the election result.

“Never has a review been so important to the Federal Liberal Party.

“Their review will be frank and fearless, ensuring a thorough and honest assessment of what went wrong and how we can fix it.”

The review will be finished by the end of 2025 and will be published publicly.

Treasurer Jim Chalmers has rejected calls for Australia to sharply increase defence spending, despite pressure from NATO allies.

“We are actually already very substantially increasing our investment in defence,” Dr Chalmers said.

“We’ve found room in tight budgets for an extra $11 billion over the forward estimates and around 57 and a half billion dollars over the course of the next decade. So to take defence spending from around 2 per cent of our economy to 2.3 per cent by the start of the next decade, represents a very substantial increase in our own defence spending.

“We understand the challenges in the global national security environment. That’s why we’re increasing our spending now.

“Obviously we’ve seen the announcements out of Europe. We’re obviously tracking those developments very closely.”

Deputy Prime Minister Richard Marles has met with Ukraine’s defence minister Rustem Umerov on the sideline of the NATO summit in The Netherlands.

In a statement, Mr Marles expressed Australia’s ongoing support for the embattled nation after the illegal Russian invasion.

“Australia remains steadfast in its support for Ukraine. Pleased to reaffirm our commitment with Rusem Umerov,” he posted to X on Wednesday.

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There are no official meetings planned with Donald Trump on the sidelines of NATO, despite Mr Marles and the US president appearing in the same group photo.

Mr Marles has also commented during the visit that he has a “sense of confidence” in America’s support for the AUKUS submarine deal after the Pentagon launched a review into it.

Mr Albanese had decided not to attend the summit.

Sussan Ley claims the Liberal party will “always be the party of lower, simpler, fairer taxes” and declared she’ll seek to restore its “reputation” as the better budget managers.

The Opposition leader slammed the Albanese Government for their budget management and accused Treasurer Jim Chalmers of being out of his depth on spending.

“I want to restore our reputation as being the party of lower taxes,” she said.

“Every time I hear Jim Chalmers talk about productivity, I think ‘it took him three years to even mention productivity’,” she said.

“He doesn’t talk about the other side of the balance sheet… spending.

“The government is completely silent on that.