Australian news and politics recap June 2: Greens Senator Dorinda Cox leaves party to join Labor

Nationals MP Barnaby Joyce has called for the removal of Kevin Rudd as Australia’s ambassador to the United States, claiming the former Labor prime minister is “not suited” to the role.

Amid rising trade tensions triggered by US President Donald Trump’s decision to double tariffs on foreign steel imports from 25 to 50 per cent, Mr Joyce argued that someone else should be representing Australia in Washington.

“I think we can do better for the United States,” Mr Joyce told Channel 7’s Sunrise.

“I’m not saying he’s a bad ambassador, but he’s not suited for the United States.

“It’s quite apparent, Trump (and Kevin) Rudd are just not hitting it off.

“The Prime Minister should be adroit enough to say ‘Kevin, you’re off to London’, and someone else is off to the United States.

“That’s an exceptional and important change to make very quickly right at the very top level.”

Half a billion dollars will be splashed on NSW’s beleaguered criminal justice system after tough new domestic violence bail laws resulted in a record number of people locked up on remand.

The funding will include an additional $227m as part of the 2025-26 budget over five years for the Victims’ Support Service, including strict monitoring for high-risk DV offenders as well as $50m for a victim-survivor hub.

Sydney’s main criminal courts, the Downing Centre and John Madison Tower in the CBD, will also be refurbished and upgraded as part of the package, including at least 15 new courtrooms to be located somewhere in the CBD.

Premier Chris Minns said the package, which was announced on Monday, meant well-needed funding would go to making NSW safer and better protecting victim-survivors.

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Social Services Minister Tanya Plibersek has defended Labor’s defence spending, saying the Albanese government doesn’t make “arbitrary” decisions when it comes to military investment.

“We’ve announced that we’ll spend an extra $10bn just over the next four years, and close to $60bn extra over the decade,” she told Channel 7’s Sunrise.

“And the way we decide how much we’ll spend on defence is to decide what we need to keep Australians safe.

“The equipment we need, the personnel we need, and then that’s how much we spend.

“We don’t pick a number out of the air, and then work out how we can spend that many dollars.

“So we’re upgrading our surface fleet, as you know, and modernising our surface fleet.

“We’ve got the very large investment we’re pursuing additional long-range missiles, including being able to make those missiles here in Australia.

“When the Coalition were last in government, they made more than $40bn worth of announcements that were unfunded in the budget.

“So as well as describing to Australians what we need to keep us safe, and investing in those things, we’re actually putting the money on the table to invest, to upgrade the equipment that we have.”

Independent Senator Jacqui Lambie has backed calls to increase Australia’s defence spending in line with a US request, but has slammed the “disgusting waste” in military procurement, particularly the AUKUS submarine deal.

Senator Lambie told Sky News on Monday, “It’d be nice to lift our defence spending. There is no doubt about that,” but argued that “we waste so much money in defence procurement, and that’s where we should be looking.”

She criticised the billions already spent on submarines with nothing to show for it, saying, “We have a lot of waste going on for defence, and when we buy defence material, and the way that we waste, and you’ve only got to see those submarines, $4bn so far, we haven’t got one scrap of bloody still sitting in a harbor yet ready to go. I mean, that is just disgusting waste at its best.”

Senator Lambie also raised concerns about the state of Australia’s military, warning of a “personnel crisis” and the need to address capability gaps amid rising tensions in the region. “Have you seen the size of the Chinese army? That’s the first thing,” she said.

“And the second thing is this, have you seen the condition that ours is in? This is a problem that we’ve had. We’ve seen this.”

The cost of lost economic activity because of natural disasters in 2025 has been estimated at $2.2 billion, after Treasury analysed the impacts of Cyclone Alfred, and floods across NSW and Queensland.

Partial data for the March quarter shows natural disasters have particularly impacted retail trade and household spending.

The $2.2 billion figure is based on Treasury’s initial assessment at the time of the disasters and there may be rebuilding activity in future quarters.

Most of the overall immediate loss in economic activity is expected to impact the March quarter, which will be seen in the March quarter National Accounts, to be released on Wednesday.

Treasurer Jim Chalmers said the government’s first priority was helping fund recovery and rebuilding for communities.

“The human impacts matter to us most but the economic cost is very significant too and we’ll see that in Wednesday’s National Accounts,” he said.

​Read the full story here.​

Resources Minister Madeleine King has said she is “very confident” that Anthony Albanese will have face to face talks with US President on the sidelines of the G7 summit in Canada this month.

The Prime Minister’s trip to the G7 on June 15-17 comes amid ongoing uncertainty about US trade tariffs and following a shock decision at the weekend to double levies on foreign steel from 25 per cent to 50 per cent, which is due to come into effect this week.

It was important for Australia to be in the room at the G7 in Alberta to “take part in a lot of discussions with the Trump administration … but also with other leaders of those G7 countries,” Ms King told ABC Radio National Breakfast.

“Each of them are very important to Australia’s ongoing trade and international relationships,” she said.

“So there’s a lot of a lot to be gained from being in the room with the G7 members and talking to them about the tariff situation, global trade more widely, but also other disputes around the world that are causing angst.”

The Minister called the latest decision on steel “disappointing”, adding that Australia would “keep working calmly and methodically” to advocate for the removal of tariffs.

She said there was no evidence of steel and aluminium dumping in Australia since the original 25 per cent tariffs kicked in earlier this year.

All Sydney ferry services have been suspended due to heavy fog, with commuters advised to seek other options.

“No Sydney ferries are running at all due to the heavy fog,” Sydney Ferries said on X.

“Make alternative travel arrangements.”

Assistant Foreign Minister Matt Thistlethwaite has defended Australia’s defence budget after the US called for an increase to 3.5 per cent of GDP. That’s a significant rise from the current level just above 2 per cent.

“We are increasing our defence spending. Over the next three years, defence spending will rise by about $10.5 billion,” Mr Thistlethwaite told Sky News on Monday.

When asked about the US target, he deflected: “We’ll make decisions based on Australia’s best interests.”

Home values have set a record as falling interest rates send buyers piling back into the property market.

The median dwelling in Australia was worth $831,288 in May - a 0.5 per cent jump on the month before - data released by property analytics firm Cotality, formerly CoreLogic, on Monday showed.

Every capital city, as well as the combined regions, exhibited growth of 0.4 per cent or more, in a broad-based recovery largely down to buyers feeling better about their purchasing capacity.

“Undoubtedly, interest rates have had a positive flow through to housing markets since February,” said Cotality research director Tim Lawless.

“But I certainly wouldn’t call the rate of growth shooting the lights out. A 0.4 per cent to 0.5 per cent growth rate is much more sustainable than what we were seeing, say, in early 2023 up to mid-2024.”

Read the full story here.

Barnaby Joyce has called for a change in Australia’s ambassador to the United States, arguing that Kevin Rudd is not suited to the role and is failing to build key relationships with the Trump administration.

Mr Joyce told Sunrise on Monday morning that Prime Minister Anthony Albanese should act quickly to replace Rudd, suggesting he be reassigned elsewhere.

“The first thing you have to do is give Kevin another job somewhere else. Get an ambassador who actually can work closer with the United States,” Mr Joyce said.

“You can’t have the Australian Ambassador unable to make the connections at the highest level of the United States, and not sort at a level, at the highest level.

“I think we can do better for the United States. I’m not saying he’s a bad ambassador, but he’s not suited for the United States. Quite apparent. Trump and Rudd are just not hitting it off.

“The Prime Minister should be adroit enough to say ‘Kevin you’re off to London’ and someone else is off to the United States. That’s an exceptional and important change to make very quickly right at the very top level.”