Welcome, readers, to Afternoon Update.
Much of the day’s discussion has revolved around the political storm caused by Labor’s stage-three tax cuts. However, residents in Queensland are facing a real and potentially life-threatening storm, with people in Townsville issued a “shelter in place” order as Tropical Cyclone Kirrily is upgraded to a category 3 system and expected to make landfall on Thursday evening.
Residents have been instructed to stay where they are by Mayor Jenny Hill while the Bureau of Meteorology warned all communities within the warning zone to be alert for heavy rainfall and possible flash flooding.
As well as Townsville, emergency alerts have been issued for Palm Island, Burdekin, Hinchinbrook and Magnetic Island.
Locals are “prepared and ready for the worst” with the Queensland premier, Steven Miles, pre-emptively declaring a disaster, and readying assistance from the federal government and other states.
Top news
PM defends stage-three tax cut changes | At the National Press Club today Anthony Albanese has defended Labor’s plan by arguing it will deliver “a tax cut for every taxpayer” and that modification of the stage-three tax cuts was “the right thing to do” in changed economic circumstances.
ACCC to investigate supermarket prices | The prime minister says the treasurer, Jim Chalmers, will direct the competition watchdog to conduct a 12-month price inquiry into supermarkets.
Stage-three tax cut changes not modelled for inflationary effects | However, the Treasury and RBA have told the treasurer the redistribution of tax cuts to lower- and middle-income earners will not spur price increases.
Sussan Ley retreats from suggestion Coalition would repeal tax changes | The deputy opposition leader has denied promising to roll back the Albanese government’s changes and says Labor “lied” about the tax cuts.
Fourth person dies in mass drowning on Phillip Island | Lifesavers say the tragedy at the unpatrolled beach is the worst in Victorian waters in almost 20 years.
Captain Cook statue sawn in Melbourne on eve of 26 January | Both the statue and a Queen Victoria monument were reportedly spray-painted with “The colony will fall” in apparent protest against the Australia Day date.
Photograph: Agustín Marcarian/Reuters
Argentinians strike against president’s far-right agenda | Tens of thousands of marchers have taken to the streets as schools and businesses closed in protest at Javier Milei’s extreme legislation.
Tuvalu election: what could it mean for Taiwan, China and the Pacific? | Against a backdrop of intense geopolitical competition, the small Pacific island nation of Tuvalu will head to the polls to elect members of its 16-seat parliament.
In video …
Stage-three tax cuts explained
Forget everything you know about the stage-three tax cuts because it’s all about to change. And if you never understood them to begin with – well, good news, Guardian Australia’s Matilda Boseley is here to bring you up to speed. Labor has announced plans to amend the controversial tax cuts in a move designed to offer cost-of-living relief to low- and middle-income earners. Watch the video here.
What they said …
***
“If the cost of essentials is rising too fast, people hardly have time to think about the future, let alone plan and save for it.”
At the beginning of his speech at the National Press Club, Anthony Albanese says at the heart of what his government is seeking to achieve is “economic security to plan for your future [and] to make a good life for yourself and your family”
In numbers
Greg Jericho breaks down the numbers behind Labor’s stage-three tax cuts.
Before bed read
Forty years ago Apple debuted a computer that changed our world, for good or ill. In many ways, the long 21st century began when Apple launched the Macintosh with its “1984” Super Bowl ad.
Siva Vaidhyanathan looks back at four decades of Apple Macintosh.
Daily word game
Today’s starter word is: SUS. You have five goes to get the longest word including the starter word. Play Wordiply.
Sign up
If you would like to receive this Afternoon Update to your email inbox every weekday, sign up here. And start your day with a curated breakdown of the key stories you need to know. Sign up for our Morning Mail newsletter here.
