What we learned today, Tuesday 4 July
With that, we’ll wrap up our live coverage of the day’s news. Thanks so much for following along.
Here’s a summary of today’s main developments:
The Reserve Bank paused its cycle of lifting interest rates, leaving its official cash rate unchanged at 4.1%. This marks the second pause since May 2022 and while borrowers have been given a break, it may only be temporary.
Finance minister and acting treasurer Katy Gallagher said the pause was “welcome news” for households and that the RBA’s decision was likely based on the uncertainty around Australia’s economic outlook.
Shadow treasurer Angus Taylor said the government must use “every policy lever at its disposal” to take the pressure off inflation, arguing the government is showing “at best indifference and at worst incompetence” around the matter.
Prime minister, Anthony Albanese, hosted Indonesian president, Joko Widodo, in Sydney today, where the leaders announced a range of measures to boost trade and investment between the two countries.
Hong Kong police have issued arrest warrants for eight overseas activists in a move foreign affairs minister Penny Wong labelled “deeply concerning”.
Albanese celebrated the Australian men’s and women’s cricket teams opening match victories against England in The Ashes. Meanwhile, some Labor MPs have used the Australia-UK Ashes feud to further the republic movement, with Matt Thistlethwaite tweeting this is “Old Britain reminding new Australia of our place”.
Landlords are making bigger profits than ever, and more landlords than ever are making a profit, data from Better Renting has shown. The number of landlords making a profit was at an all-time high in 2020-21, with 53% of landlords making a net profit, totalling over $10bn.
Australia remains on alert for an El Niño developing later this year that increases the risks of drier and hotter weather, according to an update from the Bureau of Meteorology.
Updated
RBA pause welcomed but don’t expect it to last, economists say
The Reserve Bank’s decision to leave its key interest rate unchanged naturally brought a lot of relief for many (while irking those hoping for higher deposit rates).
A few economists are now predicting the RBA will raise the interest rate in August to 4.35% and that will be all it needs to do.
Those ranks include CBA, Australia’s biggest mortgage issuers, and UBS’s George Tharenou whose forecast of a July pause extended his streak of getting the rate call right to a neat 12 RBA meetings in a row.
Those smarting a bit include Westpac, which had predicted a rate rise today. They are sticking with a terminal rate (sounds painful) of 4.6%, with hikes to come in August and September.
The ANZ, which also had forecast a rise for July, is wavering a bit.
With the April pause followed by back‑to‑back rate hikes in May and June, we are reluctant to back away from our call of a 4.6% peak just yet,” said Adam Boyton, ANZ’s head of Australian Economics. “When and whether we get to that level is a little more uncertain in the wake of today’s pause.
Warren Hogan, Judo Bank’s chief economist, reckons the RBA will probably hike again in August but then wait a few months to see how inflation is travelling.
This blog, of course, will have all the key information as it comes to hand.
Updated
NSW health workers threaten to strike over pay increase
Health workers in New South Wales are threatening to strike if the state government does not come to the table with an increased pay offer by Friday.
The Minns government has offered a 4% pay rise to public sector workers as part of its election promise to abolish wage caps set by the previous government.
But the Health Sectors Union is seeking a 6.5% pay increase, inclusive of super, or a flat increase to base rates, and for health workers to get the full benefit of salary packaging. The union’s delegates endorsed escalating industrial action from Monday if the terms are not met by Friday.
It comes a day after NSW treasurer, Daniel Mookhey, was heckled at a health union conference over the proposed 4% increase, with health workers claiming the rise would not cover the rising cost of living.
The union’s NSW secretary, Gerard Hayes, said:
The delegates have had their say and decided that a 4% pay increase does not add up when the cost of everyday essentials such as food and rent are soaring well beyond that.
Our members, including hospital cleaners, wards people, therapists and security officers, put their lives on the line to keep the community safe during the Covid-19 pandemic. They deserve more than a real-terms pay cut.
We are prepared to negotiate but the government needs to put an offer on the table for our members to consider.
Updated
Behind the scenes, the Australian government has repeatedly underlined to Indonesia and others across the region that the submarines will be nuclear-powered, not nuclear-armed, and that Australia is committed to transparency about the project. Albanese has also been arguing that every country has a responsibility to contribute to regional stability and that Aukus will be a part of this effort.
The joint statement issued late today says:
Leaders agreed that each country must contribute to the common effort to attain an open, stable and prosperous region …
Leaders highlighted their ambition for a world without nuclear weapons and their commitment to strengthening the global nuclear non-proliferation and disarmament regime, including its cornerstone, the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Australia and Indonesia were founding members of the International Atomic Energy Agency (IAEA) and remain steadfast supporters of its vital role and mandate in upholding the NPT. Leaders welcomed cooperation in the context of the Asia-Pacific Safeguards Network to build practical safeguards capabilities in the region.
On other issues, the two leaders “noted with deep concern the worsening crisis in Myanmar, and called on the Myanmar military to cease violence, engage in dialogue, and allow unimpeded access for humanitarian assistance”. They also “strongly deplored the aggression by the Russian Federation against Ukraine” and said the prolonged war was “causing immense human suffering and exacerbating existing fragilities in the global economy”. The pair urged all parties to work towards a peaceful resolution through diplomacy.
Updated
Let’s return briefly to the talks between the prime minister, Anthony Albanese, and the Indonesian president, Joko Widodo, in Sydney today.
The formal joint statement has now been published. There is no mention of the nuclear-powered submarines under Aukus, an issue that was a source of concern in Jakarta in 2021 when first announced, but which the Indonesian government increasingly sounds like it accepts or at least understands.
But the joint statement alluded to a desire for the US and China to responsibly manage their tensions. Both leaders “underlined the importance of an open, stable and prosperous region, where collaboration is strong, where competition is managed responsibly, where sovereignty and territorial integrity is respected, and where countries can exercise their agency free from coercion”. They also “reaffirmed the importance of working together to promote peace and stability across the Indo-Pacific region, reiterated their opposition to any unilateral changes to the status quo, and emphasised the importance of diplomacy to avoid the risks of miscalculation”.
The leaders “reaffirmed their shared commitment to maintaining and promoting security and stability in the South China Sea and underscored their strong support for freedom of navigation and overflight and unimpeded trade”.
Updated
As always, my colleague Antoun Issa has put together a fantastic wrap of today’s top stories for those needing to catch up on the latest:
The Australian Council of Social Services (Acoss) has also welcomed today’s RBA decision, saying that every additional interest rate rise leads to job losses down the line.
An Acoss spokesperson said:
To assure the community that more people won’t be sacrificed to unemployment to curb inflation, the government and RBA should urgently reach a new agreement on monetary policy that includes a clear commitment to full employment – that is, enough jobs for all who seek them.
The peak body is also urging the government to take action to prevent people facing additional financial distress and address inflation at its source.
They’re calling for better regulation of rents, further action to reduce energy costs, and strengthening competition in markets where a handful of companies dominate, and abolish the stage three tax cuts.
These tax cuts will hand an extra $9,000 a year to people on more than $200,000 and will needlessly fuel inflation.
Updated
ACTU welcomes rate pause but says workers ‘bearing the brunt of inflation and low wage growth’
The Australian Council of Trade Unions has welcomed today’s Reserve Bank decision to keep the cash rate on hold, but says this is “small comfort” to workers “bearing the brunt of inflation and low wage growth over the last decade”.
The ACTU secretary, Sally McManus, says:
Another rate rise would have seen already stretched family budgets cut to the bone.
A pause in the rate rises provides some small relief to workers out there doing it tough. We are still very mindful however, that workers have fallen way behind.
From 2013-2023 Australian workers suffered the lowest wage growth on record and in fact real wages are now 3.1% lower than they were in 2013.
We know that workers have borne the brunt of inflation and these rates rises, while corporate profits have risen, and CEO pay packets grown.
Updated
Kearney says Labor keeping a close watch on childcare price rises
Appearing on the ABC, the assistant health minister, Ged Kearney, is asked whether increases to the childcare subsidy will be enough to help ease cost-of-living pressures for families, given that childcare centres are raising their prices.
Kearney says the government will keep a close watch on the situation, and the prime minister has asked the ACCC to monitor prices rises:
We know that normally this time of year there is an indexation of childcare fees, but we are confident and all our modelling shows that the budget initiative we announced will definitely go a long way to help households.
I know in my electorate around 6,200 families will benefit, saving around $1,700 a year on childcare fees, which is a long way for some people. That might even mean an extra day of the week that they don’t have to rely on grandma to mind the kids, or broader family village …
The shadow health minister, Anne Ruston, says any reprieve is welcome, but the subsidy is a “temporary reprieve”:
Any credible economist you speak to is expecting we will see more interest rate rises between now and Christmas, so I don’t think you can read too much into today’s hold as being terribly good news for Australians.
The cost-of-living pressures facing Australians at the moment are [enormous] and this government is relying almost entirely on the Reserve Bank to pull its levers to get inflation under control. It is like the Reserve Bank has their foot on the break when it comes to inflation and this government seems to have its foot on the accelerator.
Updated
‘Another great reason for a republic’: Labor MPs weigh in on Ashes feud
In the continuing Australia-UK Ashes feud, two Labor MPs are using this as a basis for furthering the republic movement.
Matt Thistlethwaite said this is “Old Britain reminding new Australia of our place”:
If you ever want an illustration of why Australia should become a republic it's a frothing & possibly pickled member of the MCC targeting Usman Khawaja in the Long Room at Lords. Old Britain reminding new Australia of our place.
— Matt Thistlethwaite (@MThistlethwaite) July 4, 2023
Meanwhile, Rob Mitchell said:
The English carry-on crowd complaining about Carey’s stumping of Bairstow is another great reason for [an Australian republic].
The English carry-on crowd complaining about Carey’s stumping of Bairstow is another great reason for @AusRepublic #Ashes2023
— Rob Mitchell (@RobMitchellMP) July 4, 2023
Updated
Australia remains on El Niño alert, weather bureau says
Australia remains on alert for an El Niño developing later this year that increases the risks of drier and hotter weather, according to an update from the Bureau of Meteorology.
Australia has been on El Niño alert since last month. Linked to above average sea surface temperatures in the tropical Pacific, El Niño events increase the risk of drought, heatwaves, bushfires and coral bleaching for Australia.
The bureau also revealed sea surface temperatures for the Australian region last month were the warmest for any June on record.
Despite sea surface temperatures already surpassing the El Niño threshold, the bureau said changes in winds, clouds and atmospheric pressure also associated with El Niño “have not yet been observed”. The bureau said:
This means the Pacific Ocean and atmosphere have yet to become fully coupled, as occurs during El Niño events. El Niño typically suppresses winter–spring rainfall in eastern Australia.
The US government’s National Oceanic and Atmospheric Administration declared an El Niño was in place last month.
The agency has slightly different parameters for an official declaration, including a lower threshold for sea surface temperatures in the equatorial Pacific.
Last month a study led by CSIRO scientists said human-caused global heating had likely been making El Niño and La Niña events more frequent and more extreme since the 1960s.
Updated
Albanese announces visa changes and climate finance after meeting Indonesian president
Indonesians will be able to visit Australia on five-year business visas, compared with three years at present, in a move aimed to encourage more trade and investment between the two countries.
The extended business visa was one of the measures announced by the prime minister, Anthony Albanese, after a meeting with the Indonesian president, Joko Widodo, in Sydney this afternoon.
Albanese also said visa processing times – a longstanding irritant in the relationship – had been substantially reduced since mid-last year.
Other outcomes include:
Australia will provide $50m to help attract private climate finance to Indonesia, with a focus on small and medium-sized enterprises. This is the first tranche of funding under the $200m Australia-Indonesia Climate and Infrastructure Partnership; the Australian government expects to attract $3 in private investment for every $1 of capital invested by Australia.
Export Finance Australia and the Indonesian government-owned PT Perusahaan Listrik Negara are working on a $200m capital financing facility to support Indonesia’s energy transition.
The leaders also discussed cooperation in the electric vehicle sector and directed their officials to advance collaboration on the issue.
Three Australian universities – Western Sydney University in Surabaya, Deakin University in Bandung and Central Queensland University in Balikpapan – intend to open campuses in Indonesia, in addition to Monash University that did so in Jakarta last year.
Updated
Anthony Albanese has taken to social media to share some more photos of the Indonesian president Joko Widodo’s visit to Australia:
Indonesia and Australia are working together to keep our region safe, boost our economies and transition to net zero. pic.twitter.com/584TqPMlVS
— Anthony Albanese (@AlboMP) July 4, 2023
We’re working together to get more electric vehicles on our roads.
— Anthony Albanese (@AlboMP) July 4, 2023
We’re changing visa rules to help more business people work and drive growth in each other’s countries.
And we’re continuing to work together on defence. pic.twitter.com/ZYGco5fpul
President @jokowi and I are stepping the Australia-Indonesia relationship up a gear. pic.twitter.com/5RbA1T1dsD
— Anthony Albanese (@AlboMP) July 4, 2023
Updated
Wages growth will make ‘a real difference’ to working people, Gallagher says
Gallagher says she welcomes the increase being seen in wages growth:
Wages had been stagnant for a decade. We are seeing some improvements in that for the first time in a long time and I think that will make a real difference to working people around the country that, you know, get a few bucks extra an hour for the work they do.
She says the government wants wages to rise but also wants a productive economy, and points to initiatives such as the jobs and skills summit and the investment in skills and training in the budget:
You can’t flip the productivity switch overnight. We have had, you know, again, a decade of worst productivity growth in 60 years, so we need to start turning that ship around. And our policies are designed to do that.
Updated
RBA rate pause due to uncertainty on economic outlook: Katy Gallagher
The finance minister and acting treasurer, Katy Gallagher, says she believes the RBA decided to pause the interest rate based on uncertainty around Australia’s economic outlook:
Speaking on the ABC, she says:
I think it’s largely going as we expected and as we forecast in the budget. We are seeing growth in the economy slowing, we are seeing through a whole range of economic data, whether it be consumption data or confidence data, that we’re seeing the effects of 12 months of tightening monetary policy, and the pressures that people are under.
My reading of it, and I don’t want to put words in the mouth of the Reserve Bank, but my reading of it is that they made a decision to pause based on some of the uncertainty about the economic outlook.
Updated
River search fails to find any sign of missing Belgian tourist Celine Cremer
The search for the Belgian tourist Celine Cremer, who has been missing for two weeks in remote Tasmanian wilderness, has still not yielded any sign of her, police say.
Specialist police search and rescue personnel have spent the last 24 hours conducting a swift water search at Philosopher Falls, near Waratah.
Insp Anthea Maingay says the search has not uncovered any signs of Cremer, who is assumed to be dead.
Maingay says:
Unfortunately, today’s search efforts did not provide us with any further answers about Celine’s whereabouts.
Celine’s car has been in the Philosopher Falls car park since at least Tuesday 20 June and last week we received expert medical advice indicating Celine could not have survived the conditions she has been exposed to since then.
Our information to date indicates Celine could have been in the area even earlier than that, and we’re asking anyone who was in the Philosopher Falls area on the 17 and 18 June to contact us, whether they think they have relevant information or not.
We are continuing to review the search effort so far to determine next steps, and our thoughts continue to be with Celine’s family and loved ones at this difficult time.
Updated
Shadow treasurer urges government to focus on combating inflation
Angus Taylor continues:
We know from history that beating inflation requires government policy to be absolutely focused on the task and not leaving the job to the central bank.
…[The government] shouldn’t be spending the money they’re spending.
We’ve seen significant additional spend … just since the budget … it’s adding fuel to the fire.
We want to see downward pressure on inflation, that is good for everybody.
Updated
Angus Taylor: ‘government is showing at best indifference and at worst incompetence’
The shadow treasurer, Angus Taylor, is speaking on the RBA’s decision to hold interest rates. He said the “battle” to address inflation is “far from over”:
We know that there’s more pain in the pipeline with almost half a million Australians who are going to see a shift from lower fixed rate mortgages to higher mixed (variable) rate mortgages in the second half of the year.
Productivity is in free fall and that is a very significant problem in fighting inflation.
He said the government needs to step up in addressing inflation as its biggest priority:
The Reserve Bank will do what it must but the government is showing at best indifference and at worst incompetence.
The truth of the matter is that interest rates are a very blunt instrument for addressing inflation and they disproportionally impose pain on those hard-working Australians with a mortgage.
The government needs to pull every policy lever at its disposal to take pressure off inflation.
Updated
Widodo: Australia and Indonesia to cooperate on joint production of EV batteries
Indonesian president Joko Widodo spoke next and said that Indonesia and Australia “must build a more substantiative and strategic economic cooperation” through the joint production of EV batteries.
He also spoke on increasing trade and working together to reduce carbon emissions.
I look forward to Prime Minister Albanese’s visit in Jakarta this September.
The two leaders then shook hands.
Updated
PM Anthony Albanese says to President Joko Widodo:
I hope that you have very much enjoyed what we have seen as a productive occasion and excellent meeting between our ministers as well today.
I look forward to our discussions over a one-on-one dinner tonight … and continuing to work together for a better future.
Updated
Albanese and Widodo address media after Australia-Indonesia meeting
Anthony Albanese is addressing the media after meeting with Indonesian President Joko Widodo today. He said that as Australians feel the pressure from global economic pressures, it’s important to engage with international partners:
There are few more important trading partners to us than Indonesia.
Albanese spoke on the trade agreement Australia has with Indonesia and said it has “fully recovered”:
Over the last year it’s become stronger than ever, up 37% over the past two years. Last year our two-way goods and services trade reached a record $23.3bn.
Albanese said there’s still more to do and announced a number of incentives, including:
Indonesians will gain access to extended business visa from 3 to 5 years, and epassport holders will be prioritised to access smart gates.
Indonesians will gain access to a frequent travellers visa with a 10-year validity.
$50m invested in startups focused on mutual benefits for the transition to clean energy.
Western Sydney, Deakin and Central Queensland universities will join Monash in bringing education to Indonesian students and professionals.
Updated
Greens welcome RBA decision to keep rates on hold
The Greens senator Nick McKim says today’s Reserve Bank of Australia decision to keep rates on hold is “welcome”, but that inflation still needs to be reined in to assist mortgage holders and renters.
On Twitter, he said:
Rates on hold is welcome, but significant damage is still being done to mortgage holders and renters because Labor won’t use the tools it has at its disposal to rein in inflation.
Recent history shows that the RBA may well go again – Labor needs to act.
Rates on hold is welcome, but significant damage is still being done to mortgage holders and renters because Labor won’t use the tools it has at its disposal to rein in inflation. Recent history shows that the RBA may well go again - Labor needs to act. https://t.co/AlaF5dgIns
— Nick McKim (@NickMcKim) July 4, 2023
Updated
Finance minister: focus on budget surplus helps with challenge of inflation
Gallagher also spoke of the budget surplus and why it has been such a key priority for the government:
It is important when we look at the work that we’ve done to repair the budget, where we’ve put the effort into returning upward revisions to revenue, and bank that at a point where inflation was highest.
We did that for a purpose; we think it’s important to put back in place those fiscal buffers you need for when the next time comes around you need them.
Getting the budget back in shape is a core priority for the government, but we don’t also sidestep the issue that we need to keep an eye on … [the] cost of living.
… There are good reasons why we have been so strong on the budget repair side of things and again, it helps with the inflation challenge.
Updated
Gallagher agrees with RBA assessment on unemployment target of 4.5% to control inflation
A reporter asks Gallagher if she agrees with the RBA’s assessment that the unemployment rate will need to climb to 4.5% to bring inflation back to target.
She responded:
Our budget had unemployment ticking up to about 4.25% in 2023-24 and 4.5% in 24-25 and that aligns with the returning of, over the next 18 months, of inflation back to the target range.
That’s in our forecast, they largely align with the banks forecasts, and I think that speaks to the challenge that’s ahead of us as we manage the inflation challenge.
As part of that we will see more people out of work and the government needs to respond to that at the right time too.
Updated
Finance minister positive on ‘reasonable wage increase’
Gallagher continues, speaking on the economy more broadly:
On the productive side of the economy we’ve seen a wasted decade on that as well and we’re doing what we can.
You won’t overturn some of those challenges … in a year.
Gallagher said the government has a series of initiatives to help boost productivity, but “we think it doesn’t need to come at the expense of people getting a reasonable wage increase”.
Updated
Finance minister says today’s RBA decision ‘welcome news’ for households
Finance minister Katy Gallagher is speaking now following today’s RBA cash rate decision.
She said today’s news is “welcome news” for households across Australia and that the government remains “absolutely focused on the job we have to do”, which she says is addressing the cost of living without adding to inflation.
Updated
RBA thinks economy can keep growing but consumer spending among the uncertainties
The Reserve Bank’s statement will please a few people, not least borrowers who have been spared another interest rate rise for now at least.
The treasurer, Jim Chalmers, must be a bit disappointed he took this week off (to run marathons or similar) because he would have been tired of standing up every first Tuesday sharing the pain of households doing it tough. Katy Gallagher, the finance minister, gets this month’s happy presser.
But there are other positive pointers in the statement. For one thing, the RBA’s governor, Philip Lowe, seems less fussed about wage increases.
“At the aggregate level, wages growth is still consistent with the inflation target, provided that productivity growth picks up,” he said – so no sign of a wage-price spiral here.
The RBA board, “will continue to pay close attention to both the evolution of labour costs and the price-setting behaviour of firms”, adding a warning of sorts to businesses not to get too aggressive in their profit seeking.
And for those worried about a recession, Lowe said the board “is still expecting the economy to grow as inflation returns to the 2–3% target range, but the path to achieving this balance is a narrow one”.
Who might push us off that path? We might.
“A significant source of uncertainty continues to be the outlook for household consumption,” he said, noting the combination of higher interest rates and cost-of-living pressures “is leading to a substantial slowing in household spending”.
So we’re not out of the woods as far as the economy stalling or inflation not falling as fast as the RBA wants ... but for this month at least, the central bank is willing to be patient.
Updated
Peter Dutton also meets with Indonesian president Joko Widodo
Meanwhile, the opposition leader, Peter Dutton, has also met with the Indonesian president, Joko Widodo, during his visit to Australia.
Sharing an image on social media this afternoon, Dutton said they discussed “even greater cooperation between our two nations in a broad range of areas including trade and security”.
A valuable meeting with my good friend @jokowi to discuss even greater cooperation between our two nations in a broad range of areas including trade and security. pic.twitter.com/3Nh3tE1Tvw
— Peter Dutton (@PeterDutton_MP) July 4, 2023
Updated
Meeting between Anthony Albanese and Joko Widodo begins in Sydney
The formal meeting between the prime minister, Anthony Albanese, and the Indonesian president, Joko Widodo, has begun in Sydney.
In the opening remarks, Albanese said his first bilateral visit as prime minister was to Indonesia, because there was “no more important relationship than the relationship between our two great nations”.
Albanese said that in the first year of his prime ministership, this was the pair’s fourth meeting.
That count included when Indonesia hosted the G20 last year. Albanese said the G20 event “symbolised Indonesia’s rise and presence as one of the major economies and leaders of the world and your personal leadership it must be said at that forum as well”.
The Indonesian president responded that Australia was a “close friend and strategic partner” and he hoped “that this meeting will further strengthen our bilateral cooperation and our collaboration”.
We’re expecting both leaders to address the media - but without taking any questions - in about an hour.
Updated
Finder says homeowners should ‘buckle up for further hikes’ on interest rates this year
The head of consumer research at Finder, Graham Cooke, said today’s RBA decision could have gone either way:
The latest inflation figures made a strong case for the RBA to pause its series of rate hikes.
However, the RBA repeatedly states that its intention is to get inflation all the way to the target rate of 2-3% and we aren’t there yet.
Cooke said that while homeowners have been given a break this month, they should “buckle up for further hikes this year”.
According to data from Finder, 2 in 5 (or 41%) Australian mortgage holders say they struggled to pay their home loan in June. This equates to about 1.35 million households.
This marks the highest proportion recorded since Finder began tracking the question in 2019.
Updated
RBA pauses but some ‘further tightening’ may be required
The markets got it right for a change, with the Reserve Bank opting to leave its key interest rate on hold at 4.1%.
As the RBA’s governor, Philip Lowe, says in the accompanying statement:
The higher interest rates are working to establish a more sustainable balance between supply and demand in the economy and will continue to do so.
In light of this and the uncertainty surrounding the economic outlook, the board decided to hold interest rates steady this month. This will provide some time to assess the impact of the increase in interest rates to date and the economic outlook.
Mind you, as the statement ends, the RBA remains poised to hike again if needed:
Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve.
The Aussie dollar has duly retreated a bit to be below 66.6 US cents and stocks are up about 0.3%.
Read more here:
Updated
RBA leaves official interest rates at 4.1% in reprieve for borrowers
The Reserve Bank has paused its cycle of lifting interest rates for only the second month since May 2022.
As financial markets had expected, the central bank left its official cash rate unchanged at 4.1%. Since it began hiking rates in May 2022, the RBA has only paused at just one previous meeting, in April this year.
While borrowers have been given a break, it may only be temporary. The latest headline inflation rate was running at 5.6% as of May, well outside the RBA’s inflation target range of between 2% and 3%.
More soon.
Updated
Police investigate embassy dead possum incident
Police say they are investigating allegations a dead possum was thrown into the Russian embassy site in the Canberra suburb of Griffith.
The claims were first aired last when the Russian ambassador, Aleksey Pavlovsky, told the Canberra Times a pro-Ukraine protester outside the existing diplomatic compound, “choosing a moment when police were not around, threw a dead possum body over the fence to the embassy territory”.
A spokesperson for ACT policing urged anyone with information regarding the incident to contact Crime Stoppers:
On Friday, 9 June 2023, ACT policing received a report of an incident where a dead possum was allegedly thrown into a premises on Canberra Avenue, Griffith.
Police understand the alleged incident occurred on Saturday, 3 June, and are investigating the circumstances of the incident, including what offences may have been committed.
Marusya Jacyshyn, a coordinator for the group Friends of Ukraine, said:
Friends of Ukraine have been peacefully protesting outside the embassy of the Russian Federation since 27 February 2022. We protest six days a week, with a rally each Saturday.
While we don’t condone the action of the enthusiastic person, and which I didn’t see personally, we would ask the ambassador to show equal concern for Ukrainians whose country has been invaded, with a brutal war since 24 February 2022. The loss of life, torture, rape [and] deportation are war crimes. Russia must be stopped.
Updated
Markets poised, borrowers nervy ahead of RBA rates decision
As keen followers of this blog, you’ll know the Reserve Bank is due to reveal its latest monthly rates decision in just under half an hour. (2.30pm AEST, IT snafus excluded.)
Markets have barely budged through the day, with the Australian dollar levitating at about 66.75 US cents and shares also trading in a narrow band to be pretty flat for the day.
Investors are anticipating the RBA will also be unmoved, leaving its official interest rate unchanged at 4.1%. The pause, if that’s what we get, would be only its second monthly bout of inertia since the central bank began lifting the cash rate in May 2022.
If the RBA surprises, however, with another rate rise (the 13th in 14 meetings), expect the dollar to surge and stocks to sink. (Higher rates make our dollar more attractive and typically dent companies’ profits.)
Anyway, we’ll find out soon enough.
Updated
England-Australia ashes feud continues
The West Australian newspaper has offered to appear on Piers Morgan’s program “Uncensored” to speak on the cricket feud crossing borders between Australia and the UK.
In a tweet, Morgan said:
We can’t get a single Australian cricketer or journalist to come on [Piers Morgan Uncensored] to defend yesterday’s outrage. Any takers? Or should I assume you’ve all realised it’s beyond defending?
In response, the West Australian told Morgan to “just name the time and place and we’ll stick it to you!”
Pfft! You haven't asked us mate ... just name the time and the place and we'll stick it to you! @piersmorgan @PiersUncensored https://t.co/U6HcdJMYqG
— The West Australian (@westaustralian) July 4, 2023
Meanwhile, Labor MP Anika Wells – the minister for sport – had this to say of the match:
And just remember Australia bowled England out despite our spinner the #goat Nathan Lyon being injured. #twonil
And just remember Australia bowled England out despite our spinner the #goat Nathan Lyon being injured. #twonil https://t.co/p6rqWh76K6
— Anika Wells MP (@AnikaWells) July 4, 2023
Updated
The agriculture minister, Murray Watts, has shared some photos on social media from Delhi, where he is currently leading a delegation to promote Australian produce and push for greater trade ties with India:
Warm meetings in Delhi with Indian Minister for Agriculture & Farmers’ Welfare @nstomar & for Animal Husbandry, Dairying & Fisheries @prupala. 🇦🇺 🇮🇳 trade agreement delivering wins for producers & opportunities for cooperation to lift agricultural productivity & sustainability. pic.twitter.com/VMniDspTPO
— Senator Murray Watt (@MurrayWatt) July 4, 2023
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Lindsay MP concerned community won’t get ‘fair consultation process’ over Western Sydney flightpaths
The Liberal MP for Lindsay, Melissa McIntosh, is concerned her community won’t get a “fair consultation process” on the preliminary flight paths announced for Western Sydney airport.
In a statement, McIntosh said her electorate of Lindsay wasn’t included in the list of consultation locations announced today.
I hope the Lindsay electorate being missed off the list is an oversight, and I’ll be asking the department to rectify it … I want to ensure our community is engaged in a true consultation process where our concerns are heard. We deserve fair and balanced flight paths.
Last Tuesday it was revealed that a 20km stretch surrounding the future Western Sydney airport would be subjected to noise levels similar to, or louder than, a washing machine or vacuum cleaner more than 100 times a day by 2040, according to preliminary flight path analysis.
You can read our full report here:
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Melbourne’s Montague St Bridge claims another truck
Yet another truck has joined the ranks of hundreds before it to get stuck under the Montague Street Bridge in South Melbourne, with its notoriously low clearance:
Hey @MontagueStBridg 👋👋 pic.twitter.com/8m3Wpe4WEB
— Tom Kelly (@tpwkelly) July 4, 2023
According to VicTraffic, the right lane was closed citybound under the bridge around 12pm, however the incident was cleared at 12:50pm.
VicTraffic said:
Please know the height of your truck before you travel.
The right lane is closed citybound under the Montague Street Bridge, South Melbourne due to an overheight truck stuck under the bridge. Emergency services are on scene. Allow extra time past the incident. Please know the height of your truck before you travel. #victraffic pic.twitter.com/n4yyq7w1r8
— VicTraffic (@VicTraffic) July 4, 2023
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Australia won’t meet net zero goals without a national approach to home thermal efficiency: RMIT report
Improving the thermal performance in Australian homes is key to easing cost of living pressures and reducing energy consumption and emissions, according to a new RMIT University-led report.
The thermal performance of a home refers to how well a dwelling can be both energy efficient and comfortable for occupants during different seasons.
The report makes several recommendations, such as improving how new homes are built and how thermal upgrading of current homes is undertaken. Lead researcher Prof Priya Rajagopalan said:
A thermally efficient home is also an energy efficient one given that heating and cooling represents up to 50% of energy used.
A poorly constructed building shell uses more energy to keep people warm or cool, which leads to an increase in carbon emissions and expensive power bills.
Rajagopalan said that the introduction of the new seven-star energy efficiency building standard is a necessary step to improve new homes, and that government assistance is urgently needed in rolling out an affordable thermal performance assessment program to start retrofitting existing homes.
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Australian government expresses alarm over Hong Kong targeting democracy advocates
The foreign affairs minister, Penny Wong, said she is “deeply concerned” by reports of Hong Kong authorities issuing arrest warrants for democracy advocates, including those in Australia.
In a tweet, she said:
Freedom of expression and assembly are essential to our democracy and we support those in Australia who exercise those rights.
Australia is deeply concerned by reports of Hong Kong authorities issuing arrest warrants for democracy advocates, including those in Australia.
— Senator Penny Wong (@SenatorWong) July 4, 2023
Freedom of expression and assembly are essential to our democracy and we support those in Australia who exercise those rights.
The home affairs minister, Clare O’Neil, shared similar concerns, writing that freedom of expression and assembly rights are “essential to Australia’s democracy”:
Reports of Hong Kong authorities issuing arrest warrants for democracy advocates, including those in Australia, are deeply concerning.
— Clare O'Neil MP (@ClareONeilMP) July 4, 2023
We support those in Australia exercising their freedom of expression and assembly rights. These rights are essential to Australia's democracy. https://t.co/OY6pTBMJYo
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RACGP welcomes rural medical student boost
The Royal Australian College of General Practitioners (RACGP) has welcomed the federal government’s rural medical student boost.
Earlier, it was announced $114m will be spent over four years to deliver new medical commonwealth-supported places for rural-trained medical students.
RACGP’s rural chair, Associate Prof Michael Clements, hopes the initiative will improve access to essential healthcare in regional and remote communities:
We need more future doctors not only studying in the bush but having a positive experience immersing themselves in a rural community. Only then can we hope to break the magnetic bind that cities have our future workforce.
The next challenge ahead of us is encouraging them to take up a career in general practice. I think if more medical students had greater exposure to general practice and we were able to improve the portability of entitlements through GP training, we could boost the GP workforce.
Clements said Australia is estimated to face a shortfall of more than 11,000 GPs by 2032, and this would be particularly felt outside of major cities.
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Prime minister Anthony Albanese has welcomed the President of Indonesia, Joko Widodo, to Australia, sharing this clip on social media:
Welcome to Australia @jokowi, President of Indonesia. 🇦🇺🇮🇩 pic.twitter.com/NMCY3NzHJh
— Anthony Albanese (@AlboMP) July 4, 2023
Many thanks to Rafqa for taking us through the morning! I’ll be with you for the remainder of the day – let’s get into it.
That is all from me on the blog this morning! Handing over now to Emily Wind who will be rolling updates into this evening.
Twitter rolls back Tweetdeck access
My TweetDeck dashboard in an unusable state:
600 tweet limit impeding my favourite work tab 😔😔😔 pic.twitter.com/yuprUITBcv
— Rafqa Touma (@At_Raf_) July 4, 2023
Turns out TweetDeck – previously free for all to use – will only be available to verified users in 30 days. Which means it is time I bid my favourite work tab adieu.
We have just launched a new, improved version of TweetDeck. All users can continue to access their saved searches & workflows via https://t.co/2WwL3hNVR2 by selecting “Try the new TweetDeck” in the bottom left menu.
— Twitter Support (@TwitterSupport) July 3, 2023
Some notes on getting started and the future of the product…
You can read the full story here:
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Nearly 30 dogs rescued from Victorian house after tip-off, RSCPA says
The RSPCA rescued nearly 30 dogs – including labradors, corgis and golden retrievers – from a Macedon Ranges Shire property in Victoria after a tip-off over animal welfare concerns, AAP reports.
The dogs were taken to a shelter for veterinary assessment.
The rescue comes after two similar cases, that could be linked, amid an investigation into a network of alleged illegal dog breeders.
Shannon Walsh, a senior inspector with RSPCA Victoria, said the rescued pets were now safe and under care.
The animals were found in horrible conditions at the property and we’re now providing care and treatment to the animals while we investigate further.
RSPCA Victoria remains committed to ending the practice of illegal animal breeding, rearing and selling in Victoria.
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American private equity firm poised to takeover Australian horticultural producer Costa Group
Australia’s largest horticultural producer Costa Group has received a takeover offer from New York private equity firm Paine Schwartz Partners, AAP reports.
The proposal, valuing equity at more than $1.6bn, was disclosed in a statement to the stock exchange today.
The unsolicited, non-binding offer to acquire all the shares in Costa it does not already own was received on May 31, the board said. Paine Schwartz Partners acquired 14% of Costa shares in October.
The eventual offer would give shareholders $3.50 per share – a 24% premium on the closing price of Costa stock on Monday.
Costa said further due diligence will continue throughout July. Costa shares had shot up 10.4% to $3.29 just before 11.30am AEST.
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South Australia proposes restrictions on potential employment for serious child sex offenders
South Australia are proposing new laws that would prevent serious child sex offenders, as well as those charged and on bail, from working in any positions where they may have contact with underage employees, AAP reports.
Current laws are limited by a definition of jobs relating directly to children – like childcare, tutoring or coaching.
The proposed changes want the definition expanded to include any work involving contact with a child in any form – face-to-face, by phone or by email, in connection with any business or undertaking in which children are employed. That could include businesses across the retail sector.
The state attorney general, Kyam Maher, said every person had the right to be safe at work, especially children.
This bill will ensure we are doing everything we can to protect our children in the workplace.
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Australia’s weather: June
The Bureau of Meteorology has summed up what Australia’s weather looked like in June. Here are the main takeaways:
Rainfall was 24.6% above average for Australia as a whole
Rainfall was below average for most of central and eastern Queensland, coastal New South Wales, into far eastern Victoria, and for a large area in the west of Western Australia
Australia’s national area-average mean temperature was 1.12 °C above the 1961-1990 average, making it the seventh-highest on record for June
Mean maximum temperatures were warmer than average across Australia’s north and east and the warmest on record for much of Queensland
Mean maximum temperatures were below average for most of the western two thirds of Western Australia
Mean minimum temperatures were above average for the Northern Territory and Queensland away from the south-east, for western and southern New South Wales, Victoria, Tasmania, much of South Australia and for most of the Western Australia’s Kimberley
Mean minimum temperatures were below average for large parts of the central and western Western Australia and for an area in the north-east of New South Wales
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University of New England’s former vice chancellor faces court for allegations of offensive behaviour
The former vice chancellor of the University of New England has appeared in Armidale local court for a hearing into allegations that she behaved offensively toward a teenager at an International Women’s Day event.
Professor Brigid Heywood, 65, a British-Australian biological scientist, is alleged to have wiped her saliva on a teenager’s face and commented on her skin colour at a council-run International Women’s Day event on 8 May 2022. She was a panelist at the event.
Heywood pleaded not guilty in September to charges of common assault and offensive behaviour near a public place or school. She has previously strenuously denied there was any truth to the allegations and said she would defend them.
Detective Keith Aiken, who was assigned the case in May 2022, was the first witness in the hearing on Tuesday. Heywood’s lawyer, Jack Pappas, asked Aiken about a letter sent to police by Northern Tablelands MP Adam Marshall, which allegedly called for “urgent action” in the investigation.
“Were you told when you took over this investigation, by anyone, that the local member of parliament had written to police urging them to charge my client with an offence?” Pappas asked.
Aiken initially said he was not aware of the letters but then said he had later learned about Marshall’s correspondence.
Five witnesses, including the 17-year-old complainant, are expected to give evidence over the hearing which has been listed for three days.
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Government invests another $500,000 into no-interest car loans
A recap on the federal government’s announcement that it would invest another $500,000 in a scheme offering no-interest car loans to low-income families, from AAP.
Demand for the pilot program run by Good Shepherd Australia increased by 33% over the last financial year.
It delivers four-year loans of up to $5000 to motorists on low incomes, those with health or pension cards, and domestic or family violence victims. The loans can go towards cars, mobility scooters, motorcycles or fees associated with keeping vehicles on the road.
Social services minister Amanda Rishworth said the additional funding will help more Australians get to work, access medical care or “undertake caring responsibilities”.
We know vehicles and other related costs such as registration are expensive and not every region has public transport readily available – that’s why (no-interest loans) for vehicles is so important to assist those who need it.
The no-fee, no-interest loans provide a vital boost to help get people on the road and undertake activities that contribute to their wellbeing.
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Government to spend $114m on university spots for rural medical students
The federal government will spend $114m over the next four years to increase the number of university places for rural-trained medical students, in a move to bolster the number of doctors in regional areas, AAP reports.
There will be 80 new medical places a year from next year.
Another $82m will be set aside for rural medical school infrastructure investments.
The funding follows concern regional and rural locations did not have enough doctors in towns.
The health minister, Mark Butler, said:
It’s so important to ensure that opportunities are available for students who want to study in the regions.
We know that if you study at a regional university, you’re more likely to put down roots and become a valued member of the community.
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Collaery’s lawyers claim they faced ‘onerous’ government restrictions during trial
Bernardy Collaery’s legal team have made an extraordinary submission detailing the profound difficulties they faced in running their case under Australia’s secrecy laws.
The national security law watchdog is currently investigating the operation and effectiveness of the National Security Information Act 2004 (NSI Act), which the federal government uses to protect sensitive information during court proceedings. The former government invoked the NSI Act in Collaery’s case, which restricted open justice and threatened to leave significant parts of his since-abandoned trial hidden from the public view.
Collaery’s legal team say they also faced immense practical difficulties in communicating, sharing documents, meeting, and taking instructions due to the NSI Act.
Among other things, the NSI Act forced Collaery to obtain government approval for his lawyer to view evidence against him, communicate with his legal team in-person in secure rooms chosen by the commonwealth, physically transport documents around the country at exorbitant cost and compose drafts on commonwealth laptop computers at pre-approved locations.
The financial cost of meeting the requirements was so significant that Collaery’s team fear less well-resourced defendants would simply not be able to cope. They have recommended a public funding scheme to cover legal costs for defendants in NSI Act proceedings.
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Family member arrested over alleged South Australia double murder
Major crime detectives arrested a woman this morning in connection with the alleged drug toxicity murders of Brenda and Lynton Anderson, according to a statement from South Australia police.
The arrested woman is a family member of Brenda and Lynton Anderson.
Brenda Anderson, 94, died at Flinders Medical Centre on 16 March 2022. Almost a year later, Lynton Anderson, also aged 94, died at the centre on 1 May 2023.
It will be alleged both died from drug overdoses after being deliberately administered medication – in Brenda’s case while she was being treated as a patient at the Noarlunga hospital on 12 March 2022, and when Lynton was at his Hackham home on 30 April, 2023.
The 62-year-old Craigmore woman is expected to be charged with two counts of murder later today, according to police. She will be refused police bail and is likely to appear in the Adelaide magistrates court later today or tomorrow, police said.
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Indonesia’s president Joko Widodo has just received his ceremonial welcome by the Australian governor general David Hurley at the Admiralty House.
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Landlords are making bigger profits than ever
And more landlords than ever are making profit, too.
Just over half (51.1%) of rental properties are owned by landlords with at least 2.6 rental properties – in addition to their own homes, data from Better Renting has shown.
Better Renting executive director Joel Dignam says while renters have been hit with higher rents, landlords are making bigger profits than ever – the number of landlords making a profit was at an all-time high in 2020-21: 53% of landlords made a net profit, totalling over $10 billion.
Dignam said:
We estimate that in 2020-21 taxpayers subsidised landlord losses to the tune of over $2 billion.
It is unclear why our government continues to give tax handouts to wealthy investors while refusing to contemplate action to help reduce the burden that runaway rent increases are placing on the roughly one in three Australians who rent their homes.
Since 1999-00, there was a 20% increase in landlords owning 2-5 rental properties.
Landlords are making bigger profits. In 2020-21 they made $10.46bn ,while in 2019-20 they made $9.33bn, and in 2018-2019 they made $8.77bn
And more landlords are making profit. In 2018 to 2019, 922,172 landlords made net rent neutral / profit. That grew in 2019-2020 to 1,031,696. in 2020-21 it was 1,188,588.
The data comes from recent Australia Tax Office statistics, which were first reported by Guardian Australia and revealed a small minority of wealthy landlords own a significant chunk of Australia’s rental market. You can read more of our work here:
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‘Welcome to Hell, Melbourne’: parent complains game billboard triggers lockdown memories
A parent has complained to Ad Standards that the words “Welcome to Hell, Melbourne” on an advertisement for the video game Diablo triggered memories of “the hell of the two years of lockdowns in Melbourne”:
The words welcome to Hell Melbourne as part of the advertisement for this game and a picture of a devil are offensive to me as a Christian. The imagery is also inappropriate for my children to see and has already given them nightmares.
Even as an adult it brought back memories of the hell of the two years of lockdowns in Melbourne.
lol someone complained to Ad Standards that the Diablo ad reminded them of lockdown?? pic.twitter.com/osqdpLYcms
— Josh Taylor (@joshgnosis) July 4, 2023
The advertiser says:
Welcome to Hell refers to a fictional location that a person will visit as part of the gameplay in their quest to defeat the fictional villain portrayed in the ads. Given the punctuation, it does not state or imply that Brisbane or Melbourne is ‘hell’
The panel concluded that the advertisement was not in breach of the advertising code of ethics.
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Minister for social services puts $500,000 behind Nils for vehicles
The fee-free antidote to buy-now-pay-later for lower-income earners, the no-interest loans scheme, or Nils, has been given a boost by Amanda Rishworth’s office.
The minister for social services has put an extra $500,000 behind the Nils for vehicles pilot program, which allows eligible people to access an interest-free loan of up to $5000 for a vehicle, to be repaid over four years.
Nils is administered by the charity Good Shepherd, in partnership with hundreds of not-for-profits and service providers around the country. The vehicle loans stream is a relatively new expansion of the program, which is accessible for material purchases to anyone earning less than $70,000 annually before tax ($100,000 for someone with a partner or children).
More than 350,000 of these loans have been given to low-income Australians since 2003. Over the past year, 170 not-for-profits have issued more than 36,000 loans worth nearly $60m. You can read more about the scheme here:
In a statement this morning, Rishworth said:
Having a vehicle helps people achieve independence. This includes assisting with the ability to work, to undertake caring responsibilities or seek medical care when necessary.
We know vehicles and other related costs such as registration are expensive, and not every region has public transport readily available – that’s why NILs for Vehicles is so important to assist those who need it.
The no-fee, no-interest loans provide a vital boost to help get people on the road and undertake activities that contribute to their wellbeing.
Good Shepherd’s chief executive Stella Avramopoulos said:
It is clear from our clients that there is a significant demand for NILs for Vehicles.
A vehicle represents so much more than just a mode of transport. It enables our clients to pick up their kids from school, drive to their jobs and to live their lives.
We are extremely grateful to the Australian Government in recognising the impact of this program.
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Julian Assange spends fifth birthday in Belmarsh prison
As WikiLeaks founder Julian Assange spends a fifth birthday in Belmarsh prison, Independent MP Monique Ryan says “our government has not acted effectively enough on his behalf”.
Today is Julian Assange’s 5th birthday in Belmarsh Prison.
— Dr Monique Ryan MP (@Mon4Kooyong) July 3, 2023
He remains imprisoned for acts of journalism.
He is an Australian citizen, and our government has not acted effectively enough on his behalf. pic.twitter.com/NSQss5Wa9X
Foreign minister Penny Wong says “this has dragged on too long” but “there are limits to what Australia can do”:
Ultimately, this is a legal case in another jurisdiction involving another country. That is both the United Kingdom and the United States.
There are limits to what Australia can do. And I know people believe that somehow we can fix this. Actually, there are limits to what Australia can do.
What we can do is continue to advocate to both countries. Our request is that this be brought to a close, and those matters have been raised at the most senior levels of government.
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Weekly confidence gauge ebbs to near Covid-era lows
Not much in the way of economic data out today although the ANZ/Roy Morgan consumer sentiment survey may be of note to the interest rate setters meeting at the RBA today.
As you might imagine, consumer confidence isn’t too flash after 12 rate rises since May 2022 and the prospect of a couple more (if not necessarily at 2.30pm AEST).
Consumer confidence eased back in the past week, and remains near historic lows. (Source: @ANZ_Research, @RoyMorganAus ) pic.twitter.com/1OWne0u2d3
— @phannam@mastodon.green (@p_hannam) July 3, 2023
According to ANZ senior economist Adelaide Timbrell, the 0.8% decline in sentiment in the past week brings the four-week average to its second lowest level in 30 years of gathering the data. Only the first four panicky weeks of the pandemic had it lower.
Perhaps of more interest, so to speak, for the RBA board members will be lack of a decline in inflation expectations. They’ve edged higher in the past week to 5.9%, dragging the four-week rolling average up too:
Less pleasing for the RBA (as board members break for morning tea and sweet biscuits baked just so), is the stubbornly high level of inflation expectations. On a rolling four-week average, they've crept up a bit. pic.twitter.com/KV9p8NX3TJ
— @phannam@mastodon.green (@p_hannam) July 3, 2023
RBA governor Philip Lowe has stated repeatedly that his biggest concern is that people (and businesses) become used to high inflation and start planning the future on it. If the cash rate is lifted 25 basis points today to 4.35%, you can anticipate comments along the lines of the need to keep inflation expectations anchored.
Only about four or so hours until we find out.
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PwC’s divested business starts ‘beautiful’ new life
PwC Australia’s government consulting business, renamed Scyne Advisory, will be backed by a $100m investment from its new private equity owners, Sydney-based Allegro Funds said today.
The new business, sold by PwC to Allegro for a nominal sum of $1, will have its own staff and will solely advise the public sector and their agencies.
Allegro said in a statement:
The new business will be fully independent of PwC with around 1,750 employees overall.
Scyne is an old poetic word that can mean beautiful and brilliant.
The divestment follows months of intense scrutiny of PwC’s Australian business after its now-former international tax chief used confidential information and documents obtained through government contracts for the firm’s commercial gain.
The problems at PwC’s government consulting arm spilled into other areas of its business, with major clients including superannuation funds unwilling to work with the group until issues are resolved.
Allegro has hired former federal court judge Andrew Greenwood as a director of Scyne, where he will oversee governance practices.
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Police treating scene of Parramatta burnt car as suspicious after reports of gunshots
More is in on the human remains found inside a burnt-out car in Sydney’s west.
Superintendent Barry Vincent says police are following up reports of gunshots heard in the area about the time of the fire in North Parramatta. Police are treating the scene as suspicious.
Vincent says:
There may have been a fuel source but what that is, I couldn’t say definitively at the moment.
Homicide detectives are investigating the Parramatta blaze.
Obviously we’re keen to find out who this person is as soon as we can so we can make sure the necessary updates are provided to family who may be well unaware of what happened.
Two hours before the Parramatta fire, emergency services found a Toyota RAV4 ablaze at the Waterfall Flat car park at The Royal national park, south of Sydney.
Firefighters extinguished the blaze before finding skeletal human remains inside that vehicle as well.
Vincent says:
It is too early to tell whether those matters are linked in any way.
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Albanese’s Ashes celebration tweet takes a dig at UK PM
Prime minister Anthony Albanese has just tweeted “same old Aussies – always winning”.
The exclamation is as much a dig as it is an exclamation of cricket victory, following a heated final day of the Ashes Test.
Let me explain:
The prime minister of the United Kingdom, Rishi Sunak, attacked Australia’s team overnight, weighing into the row over English cricketer Jonny Bairstow’s controversial dismissal at Lord’s on Sunday.
Sunak believed the Australian team “contravened the spirit of cricket” by stumping Bairstow out when he believed the ball was not in play. His dismissal was pivotal in helping Australia win the match.
Sunak’s spokesperson said:
The PM … simply wouldn’t want to win a game in the manner Australia did.
Albanese’s choice of words is a callback to the UK prime minister, and to the English cricket crowds, who have been chanting “same old Aussies, always cheating”.
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Virgin apologises for cancelling five return flights
Virgin Australia has cancelled five return flights today for operational reasons. A spokesperson has apologised to anyone affected:
We apologise to anyone impacted by delayed or cancelled services and we continue to work hard to ensure our guests reach their destinations.
We continue to communicate with guests whose flights are disrupted and ensure they are accommodated on the next available services.
Customers were notified of the cancellations by 4am, and have been automatically moved to the next available service.
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Another RBA rate rise a possibility as toll on mortgagors keeps mounting
Economists are divided over whether the Reserve Bank will hit the rate rise button again today.
And depending on your market, investors are betting on a pause by the RBA, leaving the cash rate at 4.1%.
By one measure, the chance of an RBA rate rise later today is down to just 16%. Investors, though, have been wrong on the last couple of moves, so a 13th hike in 14 meetings can't be ruled out. pic.twitter.com/sETNevZqku
— @phannam@mastodon.green (@p_hannam) July 3, 2023
The ANU-based “shadow RBA board”, meanwhile, reckons the central bank should hike again, making it 13 increases in 14 meetings. (This board aims to make a case for what the RBA should do, not necessarily what they will.)
Most economists who are tipping a pause today don’t think the RBA will be done, with at least one more rate rise to come before inflation is sufficiently quelled.
Ben Phillips from ANU kindly crunched some numbers for us in the university’s PolicyMod model about how hard current levels of interest rates are biting into disposable income - and how much more pain would follow two more increases to 4.6% by the year’s end:
These are averages, of course, but with housing eating close to 40% of certain households’ income (such as first home buyers), there’s not a lot left over to cover climbing costs for energy, food and other essentials.
Anyway, stay tuned for today’s RBA verdict when it lands at 2.30pm AEST.
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'Same old Aussies - always winning!': Albanese lauds Ashes team
Prime minister Anthony Albanese celebrates the Australian men’s and women’s cricket teams opening match victories against England in The Ashes.
Same old Aussies – always winning!
(A call to the boos by English fans that rang out around Lord’s on day five of the comp: “Same old Aussies, always cheating!)
I’m proud of our men’s and women’s cricket teams, who have both won their opening two #Ashes matches against England.
— Anthony Albanese (@AlboMP) July 3, 2023
Same old Aussies – always winning!
Australia is right behind @ahealy77, @patcummins30 and their teams and look forward to welcoming them home victorious 👏
Updated
Shadow treasurer says government must play role in lowering inflation
Shadow treasurer Angus Taylor says the Albanese government using unexpected revenue to pay down debt is “propaganda” on ABC Breakfast this morning.
Taylor says:
That’s their propaganda. But let’s look at the facts. They’re spending $185bn more than when they came into Government.
Now, the problem with that is that’s fuel on the fire for inflation … It’s putting the foot on the accelerator at exactly the time when the Reserve Bank is putting the foot on the brake. And if you have the foot on the brake and the accelerator at the same time, it breaks the engine.
The best cost of living relief is lower inflation.
Inflation comes from Canberra. Canberra has a role to play in taking pressure off inflation. The job shouldn’t be left to the Reserve Bank.
That’s not what we’re seeing.
Updated
‘Yes’ vote falling in regional and rural Australia
Polling shows the ‘yes’ vote for the Indigenous voice to parliament is falling in regional and rural Australia, AAP reports.
Australian Community Media’s research arm conducted an online poll of over 10,000 voters. 55% indicated “no”, against 38% for “yes”, and 7% undecided.
The poll was conducted of readers across 14 east coast regional and metro publications in Canberra, Newcastle, Wollongong, Tamworth, Orange, Albury and Wagga Wagga in NSW; Ballarat, Bendigo and Warrnambool in Victoria; and Launceston and Burnie in Tasmania.
72% of respondents felt the federal government was not doing enough to explain the voice and how it would work.
Men were more likely to vote ‘no’ than women – 65% of men signalled their opposition to the voice, against 45% of women.
Updated
Greens senator calls on Australia to condemn Israel attacks on Jenin
Greens senator for NSW David Shoebridge calls Australia to condemn the recent attack by the Israeli government on Jenin – the biggest West Bank incursion in 20 years.
“What the Israeli occupation government is doing in the city of Jenin and its camp is a new war crime against our defenceless people.” Australia must condemn this latest attack by the Israeli govt and join the growing global majority against the occupation https://t.co/0ZEZax1WpR
— David Shoebridge (@DavidShoebridge) July 3, 2023
Shoebridge writes in a tweet:
The escalating violent extremism of the Israeli government under Netanyahu and his ultra right coalition is destroying both Israeli democracy and Palestinian lives.
Silence by Australia is complicity in this.
You can read the full story on Israel’s aerial and ground offensive into the occupied West Bank city of Jenin here:
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Acting shadow foreign affairs minister issues statement on Hong Kong arrest warrants
Acting shadow minister for foreign affairs James Patterson has issued a statement on reports of Hong Kong police issuing arrest warrants for Australian citizens Kevin Yam and Ted Hui.
The statement reads:
This represents an unacceptable attempt to silence and intimidate critics of the Chinese government living in Australia.
Statement on @kevinkfyam and @tedhuichifung pic.twitter.com/uXeQ7Y25Zf
— James Paterson (@SenPaterson) July 3, 2023
Foreign minister Penny Wong said Australia has “deep concerns” about Hong Kong’s national security laws on ABC RN this morning.
Wong said:
Australia has deep concerns about the national security laws in Hong Kong, and their broad application.
I want to be very clear. Australia has a view about freedom of expression. We have a view about people’s right to express their political views peacefully. And people in Australia who do so in accordance with our laws will be supported.
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Joko Widodo’s agenda during Australia visit
Here is some detail on what is on the agenda for Indonesia’s president Joko Widodo during his visit to Australia, from AAP.
Widodo will hold business talks in Sydney, then will meet with governor general David Hurley at Admiralty House
A state lunch will be attended by senior ministers from Australia and Indonesia
The two leaders will have formal talks at Taronga Zoo before visiting a Sumatran tiger exhibit
WA Premier Roger Cook will hold talks with Widodo in Sydney, and will probably discuss Indonesia’s transition towards renewable energy and an electric vehicle manufacturing industry
The Indonesian Chamber of Commerce and WA are expected to form an agreement on critical mineral supplies
Discussion on defence issues such as the AUKUS partnership is expected
Visa arrangements between Australia and Indonesia will be part of the bilateral talks in an effort to increase movement between the countries.
Updated
Wong says she is ‘honoured’ by invitation to Kyiv
Ukraine’s ambassador invited foreign minister Penny Wong to Kyiv on ABC Insiders.
Wong says she is “honoured by the invitation” and will “certainly visit when I am able” on ABC RN this morning.
She does not confirm she will go to the capital this year.
There are many ways to support Ukraine and as foreign minister. One of the central ways in which I want to and have supported Ukraine is to build and maintain the international solidarity with Ukraine … and hopefully universal condemnation of Russia’s illegal actions.
The visits that I described that I’ve engaged in, in the region … has included me expressing our view about why Ukraine matters to us, why it matters to all of us. And it might be a long way from the countries of Asean, and … the Pacific, but the principle that a larger country should not unilaterally invade illegally and immorally another country and change its borders and seek to impugn its territorial sovereignty, that matters to all countries small and large.
Updated
Australia will be transparent about AUKUS amid Indonesia concern, says Wong
The AUKUS submarine deal “has been a concern for Indonesia,” Patricia Karvelas puts to foreign minister Penny Wong on ABC RN this morning.
Wong says Indonesia is “keen to ensure that non-proliferation is observed” – nuclear material is not allowed to increase.
We’re very conscious of Indonesia’s interest. We share the same motivation. We both want a peaceful and stable region. And we acquire the new submarine capability and participate in AUKUS with that objective in mind, just as we participate so deeply in the central region.
Wong says Australia will continue to be transparent with Indonesia.
We’re in the process of acquiring a new submarine capability. And we’re focused on doing that.
Updated
Wong says 'big changes' are coming to make business travel from Indonesia easier
Foreign minister Penny Wong says the focus of Indonesia’s president Joko Widodo’s visit to Australia will be on strengthening economic ties between the two countries, on ABC RN this morning.
One of the things we’re focused on is how do we improve our economic ties. Obviously, the nation is an increasing economic power and will be over the next decade. We want to make sure we’re partners in that. So there will be a great focus on the economy and the economic relationship.
You’ll see some big changes to make sure we make business travel easier.
Wong says prime minister Anthony Albanese will “have more to say” about Australia’s visa system later today, after Patricia Karvelas asks about difficulties for Indonesians to get an Australian visa.
Updated
Another body found inside alight vehicle, in separate incident in Sydney
Police have confirmed a second incident of human remains being found inside an alight vehicle in Sydney overnight.
At 2.15am, officers were called to Webb Street in North Parramatta, where a hatchback was alight.
Fire and Rescue attended to extinguish the vehicle before locating a body within the vehicle.
The remains are to be forensically examined.
The two incidents are not thought to be linked at this stage.
Updated
Australian women break breast cancer screening records
Record numbers of women are lining up for quick breast cancer screenings, AAP reports.
The month of May saw 37,000 women take mammograms at BreastScreen NSW clinics – the highest monthly figure in the state’s history.
Bookings also rolled in at an average of 10,000 a week, setting another record.
This comes after screening rates fell in 2020 and 2021, responding to the worst of the Covid-19 pandemic. In 2022, rates nationally were three per cent lower than in 2019.
One in seven women will develop breast cancer over their lifetime.
Acting NSW premier Prue Car encouraged women to keep the momentum going and not wait until it was too late:
If you’re over 50 and haven’t had a mammogram since June 2021 – don’t wait for a letter in the mail.
Pick up the phone or go online to book in your breast screen – it could save your life.
Updated
Human remains found in burnt-out car in Sydney
Human skeletal remains have been found inside a burnt-out vehicle in Sydney’s Royal national park, AAP reports.
Emergency services found the Toyota RAV4 ablaze at the Waterfall Flat car park just after midnight.
Officers from the NSW Rural fire service put out the blaze before finding the remains inside.
NSW Police have established a crime scene. The remains will be sent for forensic examination to determine the identity of the victim.
Updated
Tasmania police to conduct water search for missing Belgian woman
Tasmania police will conduct “swift water searching” in the Philosopher Falls area at Waratah today, before the search for missing Belgian woman Celine Cremer is scaled back.
Cremer was reported missing last Monday but was last seen on 17 June near Cradle Mountain.
The search has involved ground crews, police drones and helicopters, specialist search and rescue rappelling, and ATVs, inspector Anthea Mangay said yesterday.
No further signs of Celine have been located since her car was found in the Philosopher Falls car park last Tuesday.
Mangay said:
Weather conditions have been challenging, with personnel facing freezing temperatures, snow, rain and strong winds over the past week.
Today, search and rescue efforts “will utilise more resources to conduct swift water searching in the area”.
We’re doing this in a bid to find some answers for Celine’s family, before we begin to scale back the search.
Last week we received expert medical advice indicating Celine could not have survived the conditions she has been exposed to.
More to come.
Updated
Thank you Martin Farrer for manning the blog this morning!
I’m Rafqa Touma, and I’ll be rolling your news updates through the day. Let’s get into it.
‘Not in the spirit of cricket’: UK PM criticises Australia’s actions in Ashes Test
British prime minister, Rishi Sunak, has appeared to criticise Australia’s Lord’s win after Jonny Bairstow’s controversial dismissal helped them take a 2-0 lead in the Ashes series.
His official spokesperson said:
The prime minister agrees with Ben Stokes. He said he simply wouldn’t want to win a game in the manner Australia did.
Asked whether Sunak thinks Australia’s actions were not in keeping with the spirit of cricket, his spokesperson said: “Yes”.
Less surprisingly, English cricket’s great curmudgeon, Geoffrey Boycott, used his newspaper column to call on the Australian team to apologise “if they are man enough”.
Will Anthony Albanese be obliged to defend the country’s honour?
We’ve got a full story here:
Pilot program to boost rates of Indonesian speakers in Australia to be announced
A pilot program to get more Australian students to speak Indonesian is due to be unveiled as president Joko Widodo begins his visit, AAP reports.
The Indonesian president touched down in Sydney on Monday night for a three-day trip to Australia.
Widodo will meet with prime minister Anthony Albanese on Tuesday for one-on-one talks where trade, regional security and climate will be on the agenda.
It is expected a pilot program to boost rates of Indonesian speakers in Australia will also be announced, as the federal government looks to expand ties with the Southeast Asian nation.
Widodo will hold business talks in Sydney to start the day on Tuesday, before meeting with Australia’s governor general David Hurley at Admiralty House.
A state lunch will then be held, also attended by senior ministers from both countries.
The two leaders will then travel to Taronga Zoo, where formal one-on-one talks will take place before the pair visit a Sumatran tiger exhibit.
The West Australian premier, Roger Cook, will also hold talks with Widodo in Sydney, with the pair likely to discuss Indonesia’s transition towards renewable energy and its aspirations for an electric vehicle manufacturing industry.
Updated
Wong 'deeply disappointed' by Hong Kong arrest warrants for activists
The foreign affairs minister, Penny Wong, says the Australian government is “deeply disappointed” by moves from Hong Kong authorities to issue arrest warrants for democracy advocates in exile, including two in Australia.
Hong Kong police yesterday said they had issued arrest warrants for eight overseas activists, accusing them of contravening the city’s national security law and offering a reward of HK$1m ($A191,726) per person, as my colleague Amy Hawkins reported here.
This list includes Australian citizen Kevin Yam, a former Hong Kong lawyer and democracy activist who is based in Melbourne. Yam has been critical of foreign judges taking up judicial appointments in Hong Kong, arguing they could be inadvertently “lending credibility to an authoritarian regime”.
The list also includes Ted Hui, a pro-democracy figure who fled to Australia via Europe in 2021.
In a statement issued late last night, Wong expressed her deep disappointment at the reports. She said Australia had “consistently expressed concerns about the broad application of the national security law to arrest or pressure pro-democracy figures and civil society”. Wong said:
The government will continue to speak out on issues that matter to Australians, including human rights. Freedom of expression and assembly are essential to our democracy, and we will support those in Australia who exercise those rights. Australia remains deeply concerned by the continuing erosion of Hong Kong’s rights, freedoms and autonomy.
The comments come at a time when the Australian government is seeking to “stabilise” the relationship with China.
Yam told Guardian Australia last night:
I’m heartened to see that the Australian government has stood up for Australians’ right to free expression in Australia.
Welcome
Good morning, and welcome to our rolling coverage of all the day’s news. I’m Martin Farrer and I’ll get things rolling with some breaking overnight stories before my colleague Rafqa Touma fires up and takes up the main business.
An Australian citizen and an Australian resident are among eight exiled Hong Kong democracy activists named in arrest warrants issued by the city state’s police accusing them of contravening the national security law and offering a reward of HK$1m ($200,000) per person. Foreign minister Penny Wong said the government was “deeply disappointed” by the warrants and said Australia would continue to speak out against human rights abuses in the China-controlled territory. More on this coming up.
Pressure on borrowers could be ratcheted up again today when the Reserve Bank meets to decide its next move on interest rates. Economists are split as to whether members will go for a 13th rate hike in little more than year as they bid to tame inflation – or place the hikes on hold in recognition of an easing of price pressures. It comes as first home buyers face paying out 40% of their average disposable income on mortgage repayments – a “huge amount” according to one expert – if the Reserve Bank lifts rates twice more this year. More coming up on the story as well.
Pauline Hanson has threatened to send her own 2,000-word anti-voice essay to Australian voters unless a parliamentary committee includes her contributions in the official referendum pamphlet for the no side. She is not alone in her frustration about probably being overlooked because minor parties in general appear likely to be edged out by the no and yes committees dominated by the Coalition and Labor respectively.
