Good morning. Is Anthony Albanese’s cautious, centrist approach enough to tackle the economic and societal challenges facing Australia? We hear from Labor insiders in a deep dive into the direction of the Albanese government as it enters its fourth year in office.
Plus: we weigh up whether the RBA will again raise interest rates this week, and look at the debate over Canberra’s looming budget fundraisers.
And we find out about a new push to save Australia’s most imperilled reptile.
Australia
Interest rates | The RBA is predicted to deliver a third straight interest rate hike this week despite the main inflation driver being a foreign war. Plus: use our loan calculator to check how a rate hike could affect you.
What are we here for? | Restlessness is building in parts of the Labor caucus about the pace and scale of reform – as some party insiders question Anthony Albanese’s appetite for delivering change.
Budget fundraisers | As budget week approaches, the major parties are once again spruiking fundraising dinners and drinks for their most loyal followers – and slugging them for thousands of dollars.
Charges laid | Northern Territory police have charged Jefferson Lewis with murder over the death of five-year-old Kumanjayi Little Baby after she disappeared from her bed in a town camp near Alice Springs.
Farrer byelection | Barnaby Joyce has blamed “the pressure of a campaign” for One Nation’s Farrer candidate contradicting party policy on immigration and appearing to endorse Labor’s intake.
World
Middle East crisis | Donald Trump has said he is reviewing the latest peace proposal from Tehran, but cast doubt on the prospect of a deal by claiming Iran had not yet “paid a big enough price”.
Gaza flotilla | Spain’s foreign ministry has demanded the immediate release of a Spanish national it said was being “held illegally” by Israel after the interception of a Gaza-bound flotilla.
On the move | Trump has threatened to withdraw even more US troops from Germany after stunning European leaders. Meanwhile, Trump’s disapproval rating has reached 62% – the worst of his two terms in office.
Cruise outbreak | Three people have died after a suspected outbreak of hantavirus on a cruise ship sailing in the Atlantic.
Mystery solved? | The mystery sitter in a portrait by the Renaissance master Hans Holbein could actually be Henry VIII’s doomed second wife Anne Boleyn, AI analysis has found.
Full Story
Bondi royal commission: what more could have been done?
The interim report of the royal commission on antisemitism and social cohesion says there is no gap in current laws that could have prevented the Bondi shooting. But the 155-page report also calls for better policing of Jewish festivals after a “high” terror risk was flagged for the Hanukkah event where 15 people were killed. Reged Ahmad and Ben Doherty discuss why the inquiry’s first findings raise more questions than answers.
In-depth
For 50 years the critically endangered Victorian grassland earless dragon was thought extinct. But after the lizard’s rediscovery in 2023, Melbourne zoo’s new custom-built breeding centre is hoping to safeguard the future of Australia’s most imperilled reptile.
Not the news
From gleaming art deco halls to family-run takeaways, 1930s venues run by Greek immigrants introduced American-style classy casual dining to Australian cities and country towns. A new book – Greek Cafes & Milk Bars of Australia by Effy Alexakis and Leonard Janiszewski – celebrates their lasting cultural and culinary influence.
Sport
AFL | The Swans are fast, bold, skilful – and making the most of the AFL’s new rules. It’s a good time to be a forward, Jonathan Horn writes.
Football | Manchester United sealed a Champions League return as Kobbie Mainoo ended Liverpool comeback; Sir Alex Ferguson was taken to hospital before the Manchester United v Liverpool game; Sam Kerr struck against Leicester to become Chelsea’s all time leading WSL goalscorer; Tottenham moved out of the relegation zone with a win against Aston Villa.
Motorsport | Kimi Antonelli produced a gutsy drive to hold off Lando Norris and win the F1 Miami Grand Prix, with Australian driver Oscar Piastri grabbing third.
Tennis | Jannik Sinner made history in relentless fashion with victory against Alexander Zverev at the Madrid Open.
Media roundup
As Australia’s childhood vaccination rates continue to fall, Papua New Guinea’s polio outbreak shows what can happen when herd immunity is lost, the Sydney Morning Herald reports. Experts are warning that lead may be contaminating children’s clothing as fast fashion floods the Australian market with little regulation, ABC News reports.
What’s happening today
Diplomacy | The prime minister of Japan, Sanae Takaichi, is making an official visit to Australia.
NSW | Hearings are scheduled in Sydney for the royal commission on antisemitism and social cohesion.
ACT | A federal parliamentary committee inquiry hearing is scheduled into Australia’s illegal tobacco crisis.
WA | A state memorial service is being held for sports broadcaster Dennis Cometti at the Optus Stadium in Perth.
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Brain teaser
And finally, here are the Guardian’s crosswords to keep you entertained throughout the day. Until tomorrow.
