What we learned today, Wednesday 25 February
It’s time to wrap things up for the day. Here’s what’s been keeping us busy:
Two men were arrested in relation to the alleged kidnapping and murder of 85-year-old Chris Baghsarian, police said. Police also confirmed that remains found yesterday were those of Baghsarian.
Inflation remained at 3.8% in the year to January, but a lift in underlying price pressures added to fears of another interest rate hike.
The treasurer, Jim Chalmers, said that while he was reluctant to go into what Australians may expect from May’s budget, there would be “belt tightening” involved.
WiseTech Global is planning to cut 2,000 jobs over two years as the Sydney-headquartered firm bets big on the ability of artificial intelligence to replace humans.
The prime minister, Anthony Albanese, urged people “to turn the heat down, for goodness sake” after a suspected bomb threat at his Canberra residence last night. Chalmers echoed Albanese, saying politicians were “unfortunately and increasingly” more exposed to threats from the public.
Nearly 60% of Australians would be open to voting for One Nation at the next federal election, including nearly half of those currently backing Labor, according to the latest Guardian Essential poll.
The foreign minister, Penny Wong, was in Samoa this afternoon, her first visit since the country changed government in 2025.
Finally, Politico, a US political news site, is set to launch in Australia later this year.
Thank you, as ever, for joining us. We’ll be back bright and early tomorrow.
Updated
Gambling self-exclusion scheme needs improvements: report
The communications minister, Anika Wells, has released the latest review of the BetStop scheme, which allows individuals to self-exclude from telephone and online gambling products.
Led by Richard Eccles, the review found BetStop was delivering well on its objectives for people with gambling addiction, but warned it was too easy to bypass and failed data matches between the scheme and information held by betting companies were too common.
The report said there was scope for greater uptake of BetStop, with only 33.5% of regular gamblers aware that it exists. Among the general population, the figure is only 26.5%.
The report called awareness levels “worryingly low”.
It said users seeking to cancel their participation in the exclusion scheme should face higher barriers, and better coordination with other exclusion programs should be considered.
Eccles called for a widespread marketing campaign and targeted awareness-raising efforts among health providers, mental health workers and emergency relief organisations.
The report said BetStop should be extended to online Keno games and other online rapid play gambling products.
Updated
Australian man sentenced in US for selling secrets to Russian-linked broker
An Australian man has been sentenced to more than seven years behind bars in the US for selling secrets to a Russian-linked broker.
Peter Williams was sentenced in a District of Columbia court to 87 months’ imprisonment for selling his employer’s trade secrets, which included sensitive cyber material, to a Russian cyber-tools broker, AAP reports.
The US attorney for the District of Columbia, Jeanine Pirro, said the powerful cyber-tools would have given Russia the power to access millions of digital devices.
“By betraying a position of trust and selling sensitive American technology, Williams’ crime is not only one of theft, it is a crime of national security,” the attorney said.
“Our nation’s defence capabilities are not commodities to be auctioned off.”
Williams will also be supervised for three years with special conditions after his release and will forfeit US$1.3m (A$1.8m) worth of assets, including cryptocurrency, a house and luxury items like watches and jewellery.
The highly sensitive cyber capabilities were sold to a broker who deals with the Russian government, the FBI said.
It was alleged he sold the secrets for millions of dollars’ worth of cryptocurrency.
The financial loss to his employer was valued at US$35m (A$49m).
Williams pleaded guilty to theft of trade secrets on 29 October 2025.
The state department confirmed the Russian broker accused of selling US government cyber secrets was Matrix LLC, also known as “Operation Zero”, when it announced sanctions on the entity on Wednesday (Australian time).
“From 2022 to 2025, Peter Williams, an Australian national, stole eight trade secret ‘zero-day exploits,’ techniques that leverage software vulnerabilities for which there are no patches, from his employer, a US defence contractor,” the state department said, adding:
Those components were meant to be sold exclusively to the US government and select allies.
The US also sanctioned the Russian director and sole owner of Operation Zero, Sergey Sergeyevich Zelenyuk.
Updated
Chalmers hopes security concerns will not make politicians reluctant to engage with their communities
Jim Chalmers says politicians are “unfortunately and increasingly” more exposed to threats from the public because of their work, after Anthony Albanese was last night evacuated from his Canberra residence over a suspected bomb threat.
Speaking with the ABC a short time ago, the treasurer said he “100%” agreed with the prime minister “who said that, collectively, we all need to turn the temperature down”.
He said the Australian federal police considered “more attention to [politicians] to be a bit more warranted, and so that obviously changes the way that we go about things,” but he hoped security concerns would not make politicians reluctant to engage with their communities.
He added:
One of the great things about this country is how accessible our leaders are, being out and about talking with real people, in real communities, about real issues. We don’t want to wind that back. It’s not something I’m intending to do.
Updated
Chalmers signals ‘belt tightening’ to come in May budget
Jim Chalmers has avoided explicitly saying whether Australians should prepare for another rate rise after today’s inflation figures.
Speaking on the ABC just now, the treasurer said the 3.4% inflation figure was “still higher than we would like” before going on to list the government’s cost-of-living measures. He said “a big reason” for the high inflation number was because electricity rebates had ended.
When asked about potential cuts to frontline services, he said he was reluctant to go into what Australians may expect from May’s budget but there would be “belt tightening” involved.
When asked about tax reform and cuts, he said:
At this stage of the budget process, we consider a range of options, and we seek a range of views. There’s no decisions taken on that. We don’t write the budget for May in the second half of February, but obviously we are considering ways to make the tax system fairer.
Updated
Labor to introduce legislation to incentivise universities to enrol disadvantaged students
The federal education minister will introduce legislation in the coming months to expand commonwealth-supported places to tertiary education for students from disadvantaged, regional and remote backgrounds and provide additional funding support to universities who enrol them.
Addressing the Universities Australia gala dinner in Canberra on Wednesday evening, Jason Clare is expected to say the demand-driven system for students from poorer families and needs-based funding “will change what the system looks like”.
The newly established Australian Tertiary Education Commission will be tasked with implementing the future reforms.
Clare will say the legislation will guarantee a place at university for “everyone from a poor family, or from a regional or remote location that has what it takes to take on a Bachelor degree”.
He continued:
If you get the marks, or you’ve got the skills, you will get a spot. You will get a place. A Commonwealth Supported Place. From next year the Atec will provide every university with a set number of funded places for Australian students. That number will be capped. But the ATEC will be able to lift that cap for students from poor families and students from regional and remote locations.
The more students a university has that meet the criteria, the more funding they will receive. The more students there are at a regional campus, the more funding that university will receive as well.
Updated
Police seize haul of drugs – and Pokémon cards
Victorian police have charged a man after seizing a haul of methylamphetamine and Pokémon and One Piece cards.
The 26-year-old was today charged as part of an investigation into alleged drug trafficking between NSW and Victoria, police said in a statement.
Police said officers intercepted a vehicle, arresting the driver on the Hume Highway in Kalkallo at about 1.20pm yesterday.
After searching the vehicle, police allegedly found and seized about 43kg of methylamphetamine, valued at $2.5m.
“Officers executed a search warrant at the man’s St Albans residence, seizing approximately $50,000 cash, Pokémon and One Piece cards worth an estimated $100,000 and mobile phones,” police said.
He was charged with trafficking and possessing a large commercial quantity of methylamphetamine and for possessing suspected proceeds of crime.
He was remanded to appear at Melbourne magistrates court today.
Updated
Greens suggest curb on capital gains tax discount could be first step on fairer tax system
The Greens senator Nick McKim says his party is up for a broad discussion on making the tax system fairer for working Australians, suggesting a push to curb the capital gains tax discount might be a first step.
McKim is leading a parliamentary inquiry into the 50% CGT discount, a process which is being closely watched by Labor. The treasurer, Jim Chalmers, could make changes as soon as the May federal budget.
The Greens hold the balance of power in the Senate and Labor needs their support to pass legislation opposed by the Coalition.
“Momentum for change is growing and this is a historic opportunity for this parliament to deliver a tax package that is progressive, that makes Australian society fairer and more equal and is of genuine ambition,” McKim said today.
We’re in a situation at the moment in Australia where if you go to work as a carpenter or a bartender or a nurse you’re paying significantly more tax than someone who makes the same amount of money sitting on the couch flipping investment properties. So all of these things should be on the table.
McKim said Labor should bring forward a tax package “that is genuinely ambitious and addresses the soaring income and wealth inequality”.
Updated
Wong says disruption in Pacific is ‘permanent’
The foreign minister, Penny Wong, is in Samoa this afternoon, her first visit since the country changed government in 2025.
Wong has met with Samoa’s new prime minister, Laaulialemalietoa Leuatea Polataivao Fosi Schmidt, and signed a new agreement on cyber cooperation.
Wong also announced a new $12m partnership to build Samoa’s climate resilience and $2m for cyber-capacity development.
She sailed on an Australian-gifted Guardian-class patrol boat to open the Australian-funded Tuasivi police maritime office.
Wong’s next stop is Niue.
“The strategic environment in the Pacific isn’t getting easier – the disruption and contest is permanent,” she said, adding:
We know China will continue trying to reshape the region according to its own interests.
The Liberals and Nationals slashed Australia’s development assistance, reduced our influence and left a vacuum for others to fill.
The Albanese government has worked to rebuild trust with Pacific partners, and rebuild Australia’s development budget and national power.
We will keep pressing Australia’s national interest every day.
Updated
Experts predict August rate hike
The Reserve Bank will now be forced to hike rates another two times this year after new data flashed “warning signals” that inflation would stay stubbornly high, says Jo Masters, the chief economist at investment bank Barrenjoey.
Masters is now pencilling in a rate hike in August, on top of an existing call for a hike in May, which would completely reverse the monetary policy relief the RBA delivered in 2025 and return the cash rate to its previous peak of 4.35%.
This morning’s consumer price figures showed inflation stuck at a high 3.8% in January, while the central bank’s preferred measure of underlying inflation ticked up to 3.4%.
Financial markets have upped their bets on a May rate hike to 95%, from 84% immediately before the ABS data, according to National Australia Bank.
The chance of a second rate hike before the end of the year climbed from about 40% to 60%.
“Our rate calls have leaned heavily on core housing and market services … and the January CPI flashed warning signals, particularly for new dwelling purchase prices,” Masters said.
An unemployment rate at a low 4.1%, accelerating domestic demand, high labour costs in the context of low productivity, and evidence that the economy was running beyond its capacity was part of a “broader economic picture” suggesting the central bank would need to hike rates more than previously thought.
Masters said there was a chance that the rate of inflation in rents and construction costs stayed higher than expected over the coming months, contributing to persistent price pressures.
“Taken together, the picture is one of an economy that needs more restrictive policy to come back to balance and lower inflation” to the RBA’s 2.5% target.
Updated
Victorian premier asked about her poor polling
Back at the Future Victoria Summit in Melbourne, the premier, Jacinta Allan, was asked by the Herald Sun’s state political editor, Shannon Deery, what she makes of her personal approval rating and Labor’s primary vote both sliding in a series of recent polls.
She said:
We are seeing a lot of volatility at the moment in those polls that outlets like yours publish on a fairly regular basis. You could equally ask the question, why are so many Liberal voters going across to One Nation?
Allan conceded the political landscape had “changed and changed dramatically” in recent years, with both major parties losing their historical share of primary votes:
Politicians say polls come and go. The focus I have every single day is making sure that the decisions we are making [will] make people’s life easier, give them better access to public services, to health and education, because when we’re talking about the future of Victoria at this summit, that is what I want to see.
Updated
Protesters at Albanese speech were with climate group Rising Tide
The protesters who interrupted Anthony Albanese’s speech in Melbourne earlier this afternoon were affiliated with the climate action group Rising Tide.
The group said in a statement the members unfurled a banner that said “No New Coal and Gas” and asked Albanese: “Why are you selling my future to gas companies in the Otway basin?”
Security escorted the two protesters from the room.
Updated
CGT discount turns homes into a tax shelter for the rich, Ken Henry says
Ken Henry, an influential former Treasury secretary, says the capital gains tax discount has driven intergenerational inequity by turning rental properties into a tax minimisation strategy for wealthier Australians and contributing to unaffordable housing.
Henry, who led a review into the tax system in 2010, pushed back against the view that reforms to CGT should just be seen just through the lenses of tax equity and efficiency, rather than affordability.
“The intergenerational inequity lies in a lack of opportunity” to buy a home.
There is a loss of opportunity there that does a great injustice to a younger generation of Australians.
He said one of the outcomes of the current tax system, with a relatively high top marginal income tax rate, was that “rental property investments are primarily under Australian tax law a vehicle for sheltering wage and salary income from tax”.
The mix of the 50% tax discount on capital gains and negative gearing had turned homes into a speculative investment, Henry said.
What you see is typically once house prices start to move in the upwards direction, more and more of the purchases at any auction are investors. And it’s no coincidence therefore that the proportion of housing stock owned by owner-occupiers has been falling over time. That’s what’s driven it.
Earlier, independent economist Saul Eslake said the changes to CGT in 1999 had led Australia to “becoming even more a nation of property speculators than we already were”.
Widely cited modelling has suggested that cutting the CGT discount would only move property prices by 1-3%, but would boost home ownership by approaching 5% over time.
Updated
Good afternoon, readers – and, thank you, Nick Visser. Let’s get on with the remainder of the day’s breaking news.
That’s all from me. Daisy Dumas will take things from here. Take care.
Marks said the case was “up there” with one of the worst he’s worked on.
He told reporters:
It’s somebody’s worst nightmare. The fact that an innocent man was taken from his home is not acceptable … people need to be held to account for that.
And we hope that it doesn’t happen again.
Updated
Police confirm Chris Baghsarian’s remains found on the outskirts of Sydney
Det Acting Supt Andrew Marks with NSW police is holding a press conference after two men were arrested in relation to the alleged kidnapping and murder of Chris Baghsarian.
He confirmed the remains found yesterday are those of Baghsarian after forensic testing.
Marks said the two men, aged 29 and 24, arrested this morning were expected to be charged “in connection with the [alleged] kidnapping and murder of Mr Baghsarian”.
The two men were known to police, but for “insignificant matters”.
Updated
Greens call on Watt to revoke Alcoa national interest exemption for forest clearing
The Greens have called for the environment minister, Murray Watt, to revoke a national interest exemption granted to US mining giant Alcoa to allow continued clearing of swathes of Western Australia’s northern jarrah forest.
It comes after Guardian Australia revealed the federal environment department had been telling the company since 2011 its Huntly and Willowdale bauxite mining operations required approval under Australia’s nature laws.
Watt announced he had granted the exemption last week at the same time as handing Alcoa an “unprecedented” $55m penalty for unlawful clearing at the site between 2019 and 2025. The exemption was granted in part due to a critical minerals deal reached between Australia and the Trump administration last year that would involve Alcoa supplying gallium to the US for the defence and renewables sectors.
The Greens environment spokesperson, Sarah Hanson-Young, said:
Minister Watt’s decision to give Alcoa a free pass to continue strip-mining the precious Northern Jarrah Forest is all the more staggering in light of evidence that the company has been unlawfully clearing for up to 15 years with no consequences.
Hanson-Young said the Greens would ask questions at a hearing of a Senate inquiry examining changes to Australia’s nature laws. The laws passed the parliament late last year after the Albanese government and the Greens reached a deal:
There should be a one-strike-and-you’re-out rule. These big Trump-backed US companies cannot be trusted with Australia’s native forests and our Environment Minister should not be handing out free passes for them to do so.
Watt said last week the penalty was the largest conservation-focused commitment of its kind and the government had significantly strengthened environmental compliance and enforcement.
Updated
Jacinta Allan says airport rail will save ‘Victorians time every single day’
The Victorian premier, Jacinta Allan, spoke earlier at the Victorian Chamber and Herald Sun’s Future Victoria Summit in Melbourne.
She began her speech by saying while everyone she speaks to loves their community and calls Victoria a “great place” to live, work and raise their kids, “pride doesn’t mean life is easy”.
Allan said:
Right now, families are under pressure from global cost-of-living forces and from the demands of modern life – work, school, kids, healthcare, commuting. People are doing everything right and are still feeling stretched. And when life feels stretched, the future can feel further away. So my vision of the future starts there, because unless life works for families today, the future will feel out of reach.
She pointed to her government’s commitments, including allowing pharmacists to dispense more medications without a prescription, increasing housing, legislating a right to work from home and building a new Sunshine station that will connect rail to Melbourne airport.
Allan said:
Last year at this same event, I said that funding secured with the prime minister will deliver airport rail. Well today, and you’ve just heard the PM steal the thunder a little bit … Work has started on these new lines [that] will get people to the airport faster, to speed up trains through Sunshine and Tottenham, saving Victorians time every single day. Fast trips aren’t just about convenience. They free up hours in a family’s week. They give people time back that modern life has taken from them.
Here is a render of the new Sunshine hub released this morning by the federal infrastructure minister, Catherine King, and Victorian transport infrastructure minister, Gabrielle Williams.
Updated
No charges over art posters seized from Canberra music venue
No charges will be laid against the owner of a Canberra music venue who was shut down for a night last week by ACT police for potentially breaching hate symbol laws after displaying art posters depicting world leaders and others, including Donald Trump and Elon Musk, wearing Nazi uniforms.
In a statement on Wednesday afternoon, ACT police said it had now assessed the posters and no charges would be laid.
Following assessment, it has been determined that while the posters satisfied certain aspects of the legislation, other aspects were not met. As such, criminal proceedings will not occur. The posters will be returned to the owner in due course and this matter finalised.
ACT Policing remains committed to ensuring that alleged antisemitic, racist and hate incidents are addressed promptly and thoroughly and when possible criminality is identified, ACT Policing will not hesitate to take appropriate action.
David Howe, the owner of Dissent Cafe and Bar in Canberra’s CBD, told Guardian Australia his venue was shut down for about two hours last Wednesday night as police investigated a complaint about hate imagery relating to five posters in the window.
“I think it’s ludicrous, to be perfectly honest,” he told Guardian Australia, describing the works as an “anti-fascist statement” and noting the shutdown had caused the cancellation of an interstate band’s performance.
By Thursday afternoon, less than 24 hours later, the posters were placed back in the windows, with the contents covered with the word “Censored” in red, and have remained there since.
Read more:
Updated
PM gets rapid-fire questions, calling former prince Andrew a ‘grub’
The prime minister was also asked a series of rapid-fire questions by the Herald Sun editor, Sam Weir, and was asked to give one-word answers. They were:
Sussan Ley: “Best wishes”
Angus Taylor: “Leader”
Andrew Mountbatten-Windsor: “Grub”
Craig Tiley: “Legend”
Oscar Piastri: “Winner”
One Nation voters: “Frustrated”
Pauline Hanson: “Divisive”
Australia Day: “Great”
Grace Tame: “Difficult”
Donald Trump: “President”
Barnaby Joyce: “I can’t do that in one word, I am just looking forward to Barnaby Joyce v Pauline Hanson – you know it’s coming”
Women with Islamic State links: “They made their bed, they’re lying in it”
AFL or NRL: “Unfair”
Rabbitohs or Hawks: “I was on the board of Rabbitohs … but I support both”
His response on Mountbatten-Windsor received applause from the crowd.
Updated
High inflation the ‘political payback of a populist policy’, economist says
High inflation is “the political payback of a populist policy” by federal and state governments to subsidise energy prices from mid-2023, an economist says.
Stephen Smith, a partner at Deloitte Access Economics, said this morning’s evidence that inflation remains too high “means a pre-budget rate rise remains on the table”.
Smith made the same point as the Australian Bureau of Statistics that the 3.8% headline inflation figure “is heavily influenced by the end of energy bill relief, which has triggered an 18.5% increase in electricity prices in the month of January alone”.
While the federal government deserves credit for not continuing the electricity subsidies beyond December, today’s spike in headline CPI [consumer price index] was always going to be the political payback of a populist policy.
For Smith, the combination of relatively soft growth and high inflation are a hallmark of an economy struggling with low productivity growth, and highlighted the urgency of the reform challenge.
Unless the federal budget meets the moment and outlines significant economic and tax reform, growth will stagnate and inflation will persist for longer than necessary.
Cherelle Murphy, EY’s chief economist, said the latest inflation figures showed “persistent” price pressures, and reinforced the likelihood of further rate hikes.
“The Reserve Bank has its work cut out to get inflation back within the target band” of 2-3%, Murphy said.
Jim Chalmers in a statement said the latest inflation figures “are another important reminder that the coming budget will have the right focus on inflation and productivity against a backdrop of global uncertainty”.
Updated
Albanese says government ‘always’ looking at economic reform
Asked about the prospect of changes to capital gains tax, Albanese said the government was “always” looking at economic reform. He went on:
What we have been very keen to do, because in part, we know there is a lot of frustration of the way that the political system works, is to deliver on the commitments that we took to the election.
We’ve been ticking them off one by one, but we’ve also said that’s the floor, not the ceiling, that’s not the limit of our ambition, and you’ll see reform in the budget.
You’ll have to wait to see.
Updated
Albanese reminds everyone to ‘turn the heat down for goodness sake’ after bomb threat
We’ve now moved to a Q&A, facilitated by the Herald Sun editor, Sam Weir, and chief executive officer of the chamber of commerce, Sally Curtain.
Weir has begun by apologising about the protesters and thanking him for continuing on with his speech. Albanese responded:
The objective should always be to keep going.
Weir then asked him about the “scare” at The Lodge last night, which was evacuated due to a bomb threat. He joked the prime minister’s cavoodle, Toto, was a “fearsome guard” and asked whether Albanese could dispel the rumour Karl Stefanovic had been “lingering too long in The Lodge after his podcast”.
Albanese replied:
I can do that.
The prime minister added “a reminder to take every opportunity to tell people to turn the heat down, for goodness sake”.
Updated
Albanese envisions high-speed rail one day making its way to Melbourne
The prime minister later turned to high speed rail, following the announcement of $230m for planning work for the first phase from Newcastle to Sydney. He says he envisions the project continuing all the way down to Melbourne in the future:
As a former infrastructure minister I can tell you, the only thing that moves fast in this process is the train. But let me be clear: for high-speed rail to deliver its full economic and national benefits, it cannot terminate at Sydney. Australia is the only inhabited continent on Earth that doesn’t already have high-speed rail.
And Melbourne to Sydney is one of the busiest flight corridors in the world. I accept that I will not be the prime minister when high-speed rail is finished. But I am determined to be the prime minister who starts it.
This final line received a heap of applause from the crowd.
Albanese was asked why we need high-speed rail and how are we going to afford it. He responded:
The first thing to say is that Sydney-Newcastle, makes most sense in terms of density … but it’s also the hardest. A lot of Sydney to Melbourne is actually a lot easier by definition. Essentially, think about that getting through the Hawkesbury and across what is pretty, pretty hard terrain, and would have to largely be under the ground rather than over. The big thing that makes sense between Sydney and Melbourne and changes the economics of it is the uplift of regional economic development that you would have along the route.
He says the vision would be Sydney to Melbourne in “under three hours”:
It’s not just a transport policy, it’s an economic development policy, it’s a housing policy. It’s a growth strategy as well, with huge productivity benefits. If you think about the time that it takes people travelling to an airport, sitting waiting, boarding all of that. There’s a reason why, around the world, high-speed rail has taken off. No one now flies from London to Paris.
Updated
Albanese talking about efforts to help first home buyers and other infrastructure efforts
Albanese’s speech in Melbourne has largely covered his usual ground – covering off the commitments his government took to the last election. This includes the federal government’s new 5% deposit scheme, which he says has helped 71,000 Victorians buy their first home.
He says in the last year, one in every three Australians who bought their first home was a Victorian:
What’s happening in Victoria underlines an important fact. When it comes to housing affordability, the most important thing is supply. More Victorians have been able to buy a home, because Victoria is building more homes.
Albanese says the federal government confirmed earlier this month that it would sell empty or underused defence land – eight sites in Melbourne and eight in regional Victoria.
He says the state and federal governments were also working to build roads and public transport to service the new homes. He says the federal government has backed the North East Link, Suburban Rail Loop, the redevelopment of Sunshine Station and Melbourne Airport rail. On the latter, he says:
This is a project that has been debated and announced and re-announced for decades. Now it is under way. Plans approved, shovels in the ground. No turning back.
Updated
American political wonks: Donald Trump’s State of the Union is set to begin
You can follow along with Guardian US’s liveblog here:
Protesters ejected from prime minister’s speech in Melbourne
Two protesters were ejected during prime minister Anthony Albanese’s speech at the Victorian Chamber of Commerce and Industry and Herald Sun’s Future Victoria Summit in Melbourne.
The protesters chanted “no more coal and gas” as a heavy security presence escorted them from the event, held at Crown. Albanese continued his speech throughout, with the crowd applauding as the protesters were ejected.
It comes after Albanese was evacuated from his official Canberra residence on Tuesday night as police responded to a bomb threat.
Updated
More than half of Australians open to voting for One Nation despite Hanson’s Muslim comments
Nearly 60% of Australians would be open to voting for One Nation at the next federal election, including nearly half of those currently backing Labor, according to the latest Guardian Essential poll.
The results will ring alarm bells for both the government and Coalition about the march of the rightwing populist party and its leader, Pauline Hanson.
Meanwhile, Angus Taylor’s appointment as Liberal leader has done little to boost the opposition’s electoral fortunes so far, with its primary vote virtually unchanged and voters split about whether his spill of Sussan Ley would make them more or less likely to vote for the Coalition.
The poll of 1,002 Australians last week found a largely unchanged primary vote federally. Labor recorded a 30% primary, one point down from January, while the Coalition ticked up one point to 26%.
Read more here:
Updated
Independent oversight team appointed at Cumberland hospital
The NSW government has ordered an independent team of experts to oversee the management of Cumberland hospital in Sydney effective immediately following separate escapes of two mental health patients.
A man charged with murder after a stabbing attack in Merrylands had allegedly absconded from Cumberland hospital. In an unrelated matter, it has been alleged that another of the hospital’s patients caused a car crash that killed two people earlier in February.
The direction from the minister for mental health, Rose Jackson, “is aimed at improving safety, strengthening governance, and rebuilding public confidence, alongside a formal security review into recent incidents”, a statement from the minister’s office said.
The team of experts will ensure clear monitoring, accountability and escalation frameworks are implemented at the hospital, the statement said.
It follows a recently announced review to examine patient care and treatment, security protocols, and the management of abscondments at the hospital.
Cumberland hospital will be closing permanently at the end of 2027, when the Westmead Integrated Mental Health Complex opens.
“A formal review into these recent incidents is underway, but because we want it to be a thorough process it will not be completed overnight,” Jackson said, continuing:
We don’t want people experiencing mental distress shunted away in small, isolated facilities. The new Westmead Integrated Mental Health Complex will allow us to relocate patients into a modern, integrated network of health facilities.
Updated
Power bills up by nearly a third in the year to January
Climbing rents, electricity bills and building costs contributed the most to inflation in the year to January, according to figures released by the Australian Bureau of Statistics this morning.
As mentioned, inflation in the year to January did not ease as expected, but instead held at 3.8%.
The measure the Reserve Bank pays attention to, which tracks underlying price pressures, actually rose from 3.3% to 3.4%.
Why is the “headline” figure so high?
A big part of the story is that power bills are a huge 32% higher than they were in early 2025, which the ABS said is “mostly related to households using up” federal and state electricity rebates.
In other words: electricity costs were artificially lowered by subsidies, and are now snapping back to “normal”.
Rents climbed at a brisk 3.9%, unchanged from the month before.
Bad news for households: the climbing cost of living is concentrated in essentials.
Non-discretionary goods and services are 4.1% higher through the year, the ABS data showed, while discretionary prices were up 3.5%.
We’ll soon hear what the economists reckon this all means for the chance of further interest rate hikes.
Updated
Software firm WiseTech to cut 2,000 jobs as AI takes over
WiseTech Global is planning to cut 2,000 jobs over two years as the Sydney-headquartered firm bets big on the ability of artificial intelligence to replace humans.
The planned reduction, representing about 30% of its workforce, marks a radical change for a logistics software company that has itself come under heavy pressure from investors over fears its products could be replicated by AI.
This morning, WiseTech’s chief executive, Zubin Appoo, said:
Software development has experienced its most significant shift in decades. I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over.
AI amplifies the productivity of our expertise in logistics and trade, the rich datasets that WiseTech holds, and the network advantage that we have built over 30 years.
Shares in WiseTech have been heavily sold down in recent months as part of the “SaaS-pocalypse”, a term to describe the idea that AI becomes so advanced that bespoke software becomes redundant.
Many software companies, however, have described the sector rout as overdone and believe their businesses will benefit from AI advancements.
Updated
Woolworths reports 16% jump in profit
Woolworths has reported a significant 16.4% rise in profit, helped by expanding its margins in its key supermarket business.
In its half-year earnings report released today, Woolworths recorded an increase in underlying net profit to $859m over the six months to 4 January, up from $739m in the prior corresponding period.
Australia’s largest supermarket chain significantly expanded its profit margins during a period of reigniting inflation, with groceries and other household costs rising strongly again in the second half of last year.
The company’s results come ahead of a planned legal case brought by the consumer regulator against Woolworths.
Read more:
Updated
Rate hike fears as underlying inflation pressures grow
Inflation remained at 3.8% in the year to January, but a lift in underlying price pressures will add to fears of another interest rate hike.
The Reserve Bank’s preferred measure of “core” inflation, which removes large temporary price swings, lifted from 3.3% to 3.4% in January.
The consensus forecast among economists had been for headline inflation to tick lower to 3.7%, and for the trimmed mean measure to be steady.
The RBA in February delivered its first rate hike since late 2023, after a surprisingly strong economic rebound through the second half of last year pushed inflation back above the bank’s 2-3% target range.
Financial markets and economists are betting on another hike, potentially at the May RBA board meeting.
The Reserve Bank’s deputy governor, Andrew Hauser, recently told Guardian Australia that it appeared that unanticipated pickup in activity had extended into the new year.
Notably, the unemployment rate remained at a low 4.1% in January.
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Capital gains tax discount not to blame for high house prices, former PC boss says
Michael Brennan, the CEO of the e61 Institute, says it would be “brave” to say that the introduction of the 50% capital gains tax discount in 1999 played a major role in the massive boom in house prices since the turn of the century.
Instead, the “locking in of expectations that interest rates would be permanently lower” meant buyers were prepared to pay more for a range of assets, including property. That had a “significant effect” on the housing market, Brennan told a parliamentary committee looking at the CGT.
There was also a big rise in incomes from 2003 as China’s rapid industrialisation sparked a boom in the demand for iron ore. “We had significant population growth at the time; that’s also something that contributed to the run-up in housing prices a bit in that period,” he said.
Brennan doesn’t believe that reforms to the CGT should be viewed through the lenses of housing affordability or intergenerational fairness, despite the fact that much of the talk through the three days of hearings has been on this topic. Instead, it should be about the “twin principles of horizontal and vertical equity”.
Horizontal equity argument is the idea you want to have people with similar incomes taxed similarly. And vertical equity in the sense we have a belief in progressivity: that those on higher incomes make a higher proportionate contribution to revenue than those on lower incomes.
His previous evidence was that the CGT discount in its current form fails on both these counts.
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Albanese’s dog Toto ‘on alert’ but ‘all good’ after bomb threat at Canberra home
Toto, Anthony Albanese’s blond cavoodle, is standing guard at the prime minister’s residence in Canberra after the Lodge was evacuated for a few hours on Tuesday night over a bomb threat.
Albanese took to social media to share a photo of his pup, who also served as a ring-bearer during his wedding last year:
“Toto on alert but all good,” the prime minister wrote on Instagram. “Thanks to AFP for your ongoing work and professionalism and to people who sent kind messages of care and support.”
You can read more about yesterday’s events here:
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Capital gains tax discount too generous to the rich, committee hears
The flat 50% capital gains discount on the sale of assets held for more than a year “undermines progressivity” in the tax system as it favours the very top income earners, the head of the independent e61 Institute says.
Michael Brennan, a former chair of the Productivity Commission, said returning to a pre-1999 approach that adjusted gains for inflation and allowed the profits to be averaged over a number of years (rather than taxed as if the profits all happened in a single year) was a more efficient and equitable approach.
Speaking at a parliamentary committee hearing into the operation of the CGT, Brennan said it wasn’t clear that we should tax wage income less favourably to capital income.
“There are circumstances under which you can effectively substitute what would otherwise be wage income for something that looks like capital income,” he said.
And you’re making a reasonably significant real return out of that because the discount will be pretty kind to you, because you don’t get a discount on your wage income.
He said it was not clear that we should be “artificially encouraging” capital income or business formation through tax breaks.
The broader point is it’s not obvious from an economic point of view that we get more dynamism, innovation, entrepreneurship, etc, by having people buying and selling businesses or going into business.
A lot of that will happen through an employer and employee relationship; there’s a lot of innovation and dynamism to be unlocked within an employment structure as well.
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Chris Baghsarian’s family welcomes recent arrests and asks for privacy
The family of Chris Baghsarian released a statement this morning. They said:
We welcome the news of the recent arrests in relation to the kidnapping of our father and grandfather.
As we continue attempting to come to terms with this incident, we ask that media respect our privacy.
We will not be conducting any interviews and we kindly ask media refrain from filming outside our homes.
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Citizen scientists discover a Great Barrier Reef coral giant ‘like a rolling meadow’
Citizen scientists have discovered what they believe is one of the largest coral colonies ever documented on the Great Barrier Reef.
The coral spans approximately 111 metres in maximum length and covers an estimated area of 3,973 sq m – about half the size of a soccer field.
The Pavona clavus coral was first found by Jan Pope in waters a few hours offshore from Cairns. It was identified as part of the Great Reef Census, a citizen science project run by Citizens of the Reef.
“It was quite glassy and I could see this very strange pattern in the water,” Pope said. “When I jumped in the water, it became obvious to me that I’d found something, that I’d never seen anything like it before.”
Read more here:
Economists predict small downturn in inflation but figures unlikely to ward off rate hikes
Looming inflation figures could change how the federal budget is prepared, but the numbers are unlikely to ward off future interest rate hikes, AAP reports.
Economists are predicting a small downturn in inflation for January as they await the first round of figures for 2026 to be released by the Australian Bureau of Statistics on Wednesday.
Headline inflation, which sits at 3.8%, is tipped to trend down to 3.6%. However, the trimmed mean, which removes volatile price swings, is expected to remain steady at 3.3%.
The trimmed mean is the preferred measure of inflation by the Reserve Bank, which aims for a target of between 2% and 3%.
The biggest contributor to inflation for the month will likely be energy, with electricity rebates from governments coming to an end in December.
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Larissa Waters says threats of violence against MPs ‘must be called out’
Greens leader Larissa Waters has raised alarm about threats to politicians, after Anthony Albanese was forced to leave The Lodge last night due to a security threat.
“The Prime Minister being evacuated from his residence in Canberra due to a bomb threat overnight is shocking, I am glad he is safe and well,” Waters said on X, adding:
The recent escalation of threats against parliamentarians must be called out. Violence has no place in our democracy.
Albanese is expected to speak at an event in Victoria later today, which we’ll bring you as it happens.
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Minns says permanent rapid response force about making sure ‘police are always ready’
NSW premier Chris Minns said the permanent rapid response unit would ensure safety remained the “number one priority” in the state, adding the body would mean the “police are always ready”.
He said in a statement:
Operation Shelter has worked. Making it permanent means we’re building on what we know delivers real results.
People want to see police where it matters, at major events, near places of worship, and in busy public spaces. This ensures that presence is consistent, because our security challenges have changed and our policing model needs to change with them.
NSW police commissioner Mal Lanyon added that it is essential police are “able to provide an enhanced rapid response with long-arm capability”.
Similar specialised police units are already operational overseas and form an important part of public safety operations in several countries in Europe.
Our priority is not only ensuring the community is safe, but that people also feel safe, while providing a deterrence to anyone who wants to do harm and support our frontline operational police.
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NSW police makes heavily armed rapid response unit permanent after Bondi attack
A heavily armed rapid response unit is now a permanent fixture of policing, after it was created to counter hate-driven violence following the Bondi Beach terror attack, AAP reports.
About 250 NSW police officers will transform Operation Shelter, established in 2023 to crackdown on antisemitism and Islamophobia, into a lasting dedicated hate crime unit.
The Australian-first unit means police will be out and about with long-range firearms to patrol high-profile public buildings, places of worship and protests around Sydney with a 24/7 specialised police operations centre to back them up.
The centre will support the unit with real-time coordination and surge management, including training, logistics and intelligence to sharpen targeting and prevention.
They will also be equipped with a fleet of specially modified rapid-response vehicles.
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Mother-daughter fashion duo inspired by country Queensland win Australia’s National Designer award
In 2024 Grace Kelly closed her Brisbane-based brand Joaen to reassess its viability. On Tuesday night during Melbourne Fashion festival, she won the National Designer award – the most prestigious award for emerging talent in Australian fashion.
“It’s such a whirlwind,” said Kelly. “I didn’t expect this so quickly.”
Kelly established Joaen at the end of 2020, a “risky” time to start a business. Her relaunch in 2025 came with a renewed clarity, where she honed in on her family’s fashion history.
The name Joaen is a combination of her maternal grandmother and great-grandmother’s names – Joan and Jean. “I felt [Joan] doing that collection,” said Kelly. “And before things go into production, I go, ‘Yep, she’d be proud of this.’”
Read more here:
Should you sanitise your strawberries?
For Prof Enzo Palombo, an expert in food microbiology and gastroenteritis viruses at Swinburne University of Technology, the key to fruit and veg hygiene is to “be cautious, but don’t be paranoid”.
He acknowledges concerns about the presence of bugs or dirt, pathogens that can cause diseases like listeria or salmonella, and the use of chemicals and pesticides. But he says: “We tend to think we need to consume 100% sterile food – you don’t. Our body is designed to deal with these things, within reason.”
Scurr says Australia has stringent regulations in place to protect consumers from pesticides and disease, “particularly if you supply a major retailer”.
Read more about ideal fruit behaviour here:
Bowen says renewables and new infrastructure key to lowering power prices
Chris Bowen, the minister for climate change and energy, said the report echoed what the government had been saying about fossil fuels: big spikes in energy prices linked to gas and coal can have an “oversized impact on general prices”.
He told RN Breakfast this morning that renewables can help bring prices down on average, but the country is still seeing difficulties with those benefits flowing through to retail prices “when you have so much ageing infrastructure influencing supply prices”.
What all that means is it’s even more important to keep on with the job of replacing that ageing infrastructure with new infrastructure, with the very well-balanced commonsense plans we have in place, to ensure as much new supply [is] coming on as quickly as possible.
He conceded that shift will “take a while”, but the government would continue to press forward with that transition.
Australia’s largest coal-fired power plant, Eraring in New South Wales, recently said it will stay open until 2029 amid concerns about the grid’s ability to satisfy demand.
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Australia ‘heavily reliant’ on ageing fossil fuel infrastructure which is pushing up power prices, report finds
A new report from the Climate Council finds Australia remains “heavily reliant” on ageing coal-fired power stations and gas, which in turn is pushing power prices higher.
The report found a surge in domestic gas prices is the primary reason electricity prices are so high, adding that although gas provides only 5% of electricity in Australia’s main grid, it sets the wholesale electricity price up to 90% of the time.
The report also found millions of Australians are paying too much for electricity in a system that penalises loyalty. Those households could, the Climate Council said, save $291 on average by switching to a better offer. South Australians who stuck with their retailer paid the biggest loyalty tax of $408 annually.
The Climate Council said in a release:
This year, many of us will be paying significantly more than we have been over the past 18 months as the energy bill rebates come to an end. It’s clear that the way we power ourselves is no longer working for Australian communities and businesses.
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Latest inflation data coming this morning
The Australian Bureau of Statistics will release the latest inflation data this morning, at 11.30am Sydney time.
Last month’s data showed inflation jumped 3.8% in the year to December, from 3.4% in the month before. The data led the Reserve Bank to raise the cash rate to 3.85%.
Reuters reports the central bank has said it is focused on the quarterly trimmed mean measure to gauge inflation trends, noting the new monthly figures are volatile and it would take some time for seasonal adjustments to catch up.
Michael Plumb, head of the economic analysis department at the Reserve Bank, said the central bank would continue to focus on the quarterly data and use the “trimmed mean measure” to assess underlying inflationary pressures.
We’ll bring you live updates from that announcement as soon as it lands.
US news site Politico to launch in Australia
Politico, a major US news company, is set to launch in Australia later this year.
The company announced a move into the Australian market and the launch of a new product called Canberra Playbook when parliament returns in the third quarter of 2026, after the winter recess.
The company said:
POLITICO’s expansion to Australia will bring its signature ahead-of-the-curve, insider political and policy journalism to help the country’s most influential audiences cut through the noise in a vibrant democracy.
The expansion will further POLITICO’s mission of linking global power centers and help readers in North America and Europe understand the decisions made in Australia that affect them and vice versa.
Politico first launched in Washington DC in 2007 and expanded to Europe a decade ago. The latest iteration will be anchored by editor Ryan Heath, an Australian native.
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More on the discovery of human remains yesterday
Police believe the body of missing 85-year-old Chris Baghsarian could have been dumped on Sydney’s outskirts just 40 hours after he was kidnapped in a case of mistaken identity.
New South Wales police said they had found human remains near a golf club in Pitt Town about 8am on Tuesday. Baghsarian, a widowed grandfather, was kidnapped from his North Ryde home just after 5am on Friday 13 February.
Police on Monday said forensic evidence linked to Baghsarian had been found in a burnt-out car in Westmead, with officers subsequently searching bushland at Glenorie. The car involved, a grey Toyota Corolla, was seen in Glenorie on the night of Saturday 14 February and then in Pitt Town Bottoms Road at 9.05pm.
Marks said this week that officers had discovered evidence inside the car that had also been linked to an abandoned and derelict property in Dural, where it was believed Baghsarian was held.
Police raided the Dural property on Thursday evening, later saying it had been used as “a makeshift stronghold by the kidnappers”.
Read more here:
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NSW police arrest two men after death of Chris Baghsarian
Two men have been arrested “in relation to the alleged kidnapping and murder of 85-year-old Chris Baghsarian”, police have said.
NSW police said a man, 29, was arrested in Kenthurst and a man, 24, was arrested in Castle Hill. They have been taken to Riverstone police station as inquiries continue. No charges have been laid.
Human remains suspected of being those of Baghsarian were found on Tuesday morning near a golf club in Pitt Town, NSW, about 45km northwest of the Sydney CBD.
Early inquiries after his disappearance on Friday 13 February established Baghsarian was not the intended target and had been taken in a case of mistaken identity.
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Tennis Australia CEO Craig Tiley to leave role for US
Craig Tiley is adamant his successor will continue filling the twin roles of running Tennis Australia and the Australian Open after confirming he will take up the same post in America, AAP reports.
After months of speculation, the Australian governing body on Wednesday announced Tiley was stepping down as TA chief executive to join the USTA later this year.
Having started as TA’s player development chief in 2005, Tiley became the Australian Open tournament director the following year and CEO in 2013.
Tiley will remain in his current role to help TA appoint his successor and support a smooth transition, and says the winning candidate will likely – but not certainly – come from within the tight-knit tennis community.
“The most important characteristics for what the board will look at for a new leader will be absolute cultural alignment,” he said.
Australia’s highest-paid sports administrator acknowledges he is leaving behind a luxurious lifestyle in Melbourne to uproot his young family to alligator country in Orlando, Florida.
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Finance minister says bomb threat reflects ongoing need to ‘take the temperature down’
Katy Gallagher, the federal finance minister, said the security incident at the prime minister’s residence was “very troubling”, echoing Albanese that the country needed to “take the temperature down”.
“This is just another reminder that there are threats out there,” she told ABC News this morning.
Gallagher said politicians were well supported by police and security services, but said the events were a moment to reflect on the need for Australians to “peacefully make your point” rather than opt for violent threats.
I can say that certainly, in my time in politics, I haven’t experienced some of the turbulence and some of the push against politicians at the moment. I think certainly the online world is alive and flourishing … and yeah, it’s difficult.
More on the bomb threat at the prime minister’s home in Canberra
Prime minister Anthony Albanese was evacuated from his home in Canberra, The Lodge, after a bomb threat on Tuesday night.
Following an extensive search, which saw Albanese moved to a secure location, the Australian Federal Police said “nothing suspicious was located” and that there was “no current threat to the community or public safety.”
The AFP said early Wednesday morning there were no updates on the incident. Albanese’s office referred enquiries to the AFP.
Albanese is scheduled to make a speech at an infrastructure forum in Victoria on Wednesday.
In a post on social media, the opposition leader, Angus Taylor, said he was pleased to hear Albanese was safe after the threat.
“Threats against any parliamentarian are utterly abhorrent, especially in a country built on expressing our differences through debate,” he wrote on X.
We’ll bring you more through the day.
Good morning, Nick Visser here to pick up the blog. Let’s see what Wednesday holds.
Australian climate pollution down 1.9% as renewables boom
Australia’s climate pollution was down 1.9% across the year to September 2025 as renewable energy reached record levels and the burning and venting of gas dropped.
The latest quarterly greenhouse gas inventory found annual emissions were 444.3m tonnes, down from 452.8m a year earlier. This is 27.4% less than in 2005.
The climate change minister, Chris Bowen, said this placed the country on track to meet its legislated 2030 target – a 43% cut – “if we stay the course and continue to lift our efforts”.
That picture is complicated by adjustments to earlier emissions estimates. Despite the annual fall, the report says Australia is further away from the 2030 goal than it was in the last report, covering the year to June 2025. Then, emissions were estimated to be 28.5% less than in 2005.
But Bowen said there was evidence emissions were coming down in several areas. Changes included:
A 3.1% fall in pollution from electricity grids, mainly due to renewables displacing coal.
A 3.8% drop in fugitive emissions from fossil fuel operations. Less gas was vented into the atmosphere, more CO2 was captured and stored, and underground coal mining production dipped.
A 1.7% fall in emissions from fossil fuel use in manufacturing, mining and buildings, in part due to people using less gas in their homes.
After years of increases, a 0.4% drop in transport pollution as petrol consumption fell. It coincided with more people driving electric and hybrid cars.
Nearly half of universities have spent most of the last five years in deficit, report finds
Australia’s universities are operating on increasingly thin margins, a new report from Universities Australia reveals.
The report, titled Critical challenges in Australia’s university sector: securing a sustainable future, found over 40% of universities have spent most of the past five years in deficit.
The average funding per commonwealth supported student place has fallen by 6% in real terms since 2017, the report found. It said research is also at risk as universities increasingly have to fund it themselves as investment in research and development has fallen to a 20-year low (1.7% of GDP).
Universities Australia’s chair, Prof Carolyn Evans, said:
Our universities are not just economic engines – they are places where people build their futures, where talent is nurtured and where opportunity is expanded for the next generation.
However, chief executive officer Luke Sheehy said the report was a reality check.
There’s a myth that universities are awash with money. The numbers tell a very different story. You can’t ask universities to educate more students, deliver more research and drive productivity while steadily reducing funding per student. At some point, the maths catches up.
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Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories and then Nick Visser will take over.
The big story this morning is the bomb threat that forced Anthony Albanese to be evacuated from The Lodge at around 6pm last night. He returned three hours later after a search of the residence was completed. We’ll have the latest from Canberra.
And elsewhere, Australia’s universities are operating on increasingly thin margins, according to a new report which found over 40% of universities have spent most of the past five years in deficit. More coming up.
