Morning everyone. Angus Taylor has pledged to index income tax brackets to inflation as he attempts to set up the battleground for the next election by depicting Labor as the party of tax hikes.
Experts think yesterday’s court defeat could cost Coles $200m in fines, and Keir Starmer faces more political turmoil in the UK as rival Andy Burnham is on manoeuvres to join the leadership fray.
Australia
Coles risk | Coles’ landmark federal court loss could signal the end of “fake discounts” according to two former competition watchdog chiefs, with the supermarket giant at risk of record fines exceeding $200m.
Tax gambit | Angus Taylor will impose a fiscal straitjacket on a future Coalition government, promising to tackle bracket creep and invest the majority of all commodity windfalls into a new fund for future generations to pay down debt. He also said welfare payments such as jobseeker, the age pension and disability support would be restricted to Australian citizens.
Iran denial | A University of Melbourne academic has denied collaborating on research with the speaker of Iran’s parliament – who has been leading Tehran’s peace negotiations with the US – saying he was named as an author on a journal article without his knowledge.
Bus death | One person is dead and at least two people are fighting for their lives after a coach rolled on one of Australia’s most dangerous roads, leaving one passenger trapped beneath the vehicle.
Homeward bound | Four Australian citizens who were aboard the MV Hondius, the cruise ship at the centre of the hantavirus outbreak, are due to land in Perth this afternoon after the government secured a suitable aircraft and crew for the journey.
World
UK Labour | The UK health secretary, Wes Streeting, has quit the cabinet and called on Keir Starmer to resign as prime minister, opening up the prospect that he will challenge for the Labour leadership. But he must beware the pretender in the north, Andy Burnham, who plans a dramatic return to parliament.
Summit signs | China’s president, Xi Jinping, has warned of “clashes and even conflicts” with the US over Taiwan as he met Donald Trump in Beijing. The US president was uncharacteristically silent afterwards, which might be a good sign for Taiwan.
Latvia slip | Latvia’s prime minister has resigned over her government’s handling of Ukrainian drones that strayed into Latvian territory from Russia, bringing down her coalition government months before elections in October.
Busted out | A Philippine lawmaker wanted by the international criminal court for his alleged role enforcing Rodrigo Duterte’s bloody anti-drugs crackdown has secretly fled the Senate after days holed up in the building to avoid arrest.
‘Miraculous’ | A military rescue crew in Florida has spoken of the “pretty miraculous” survival of all 11 people it saved from a plane crash in the Atlantic Ocean, and its own scramble to safety with five minutes of fuel left.
Full Story
Newsroom Edition: Labor broke a promise. Does it matter?
Reged Ahmad is joined by Mike Ticher, Patrick Keneally and Sarah Martin to discuss whether broken promises matter in politics. And our economics editor writes about how Labor’s budget will benefit the young but not do much to woo One Nation voters.
In-depth
How to explain the counterintuitive fact the stock market keeps going up despite a succession of major global crises? Our writers try to make sense of it, pointing to the role of Donald Trump’s Taco trickery, the assumption of state intervention in the event of a crash and AI expansion. Or investors could just be wrong and we’re heading for disaster.
Not the news
Genesis Owusu’s third album, Redstar Wu & the Worldwide Scourge, is seething with righteous anger and moshpit-ready tracks, writes Jack Tregoning, who gives a five-star review of a record that proves there is life in the LP format yet.
Sport
Rugby league | New South Wales claimed the women’s State of Origin crown with a tight 10-14 win over Queensland in Brisbane last night, but they had Teagan Berry to thank for a try-saving tackle in the last minute of a thunderous contest.
Tennis | Jannik Sinner reached the semi-finals of the Italian Open after seeing off Andrey Rublev and beating Novak Djokovic’s record of consecutive wins in Masters 1000 tournaments.
Golf | Cam Smith has made a strong start to the US PGA in Pennsylvania. Follow it live here.
Media roundup
Support for One Nation has surged past Labor in the first major poll since the budget, according to the Herald Sun. Cracks have appeared on the Victoria Pass detour route as authorities work to keep traffic flowing between the central west and Sydney, according to the Western Advocate. Meteorologists have been explaining the science behind Hobart’s “Bridgewater Jerry” fog to the Mercury as the phenomenon made a reappearance this week.
What’s happening today
Sydney | Judgment in appeal over transgender user being removed from women-only app.
Courts | Full court appeal judgment for live export cattle ban class action at federal court in Sydney.
Adelaide | Deputy prime minister Richard Marles and South Australian premier Peter Malinauskas will headline the 2026 Defending Australia summit.
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Brain teaser
And finally, here are the Guardian’s crosswords to keep you entertained throughout the day. Until tomorrow.
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