Politics live: RBA concedes Australians ‘furious’ about cost of living; Victorian energy bills may rise by $100 a year under Coalition | Australian politics
RBA governor: inflation is still the major problem Australia’s economy
Adeshola Ore
The Reserve Bank’s deputy governor has acknowledged Australians are “furious” about inflation while warning it is the “one big problem” the country’s economy is facing.
The RBA board is due to meet at the end of the month, as fears grow that it will hit mortgage holders with a fourth rate hike this year after inflation eased in July but less than expected.
Speaking to the ABC’s 7.30 on Tuesday evening, Andrew Hauser, the RBA’s deputy governor, said while the economy was doing “quite well” on low unemployment and real household incomes, inflation remained “too high”:
People want inflation down. People are furious about inflation and I understand why. It’s unfair… It hits people on low incomes. It damages price signals. It makes the job of companies difficult.
What they want us to do is our job and bring inflation down.
Hauser pointed to the ongoing Middle East conflict, the “unexpected global boom” driven by AI and the weakness of supply potential in Australia’s economy as risk factors for driving inflation.
While Hauser said a rate hike was not inevitable, he said the RBA was focused on bringing inflation down.
Key events
Albanese dismisses concerns over powers in digital duty of care bill
Anthony Albanese says the Nationals leader, Matt Canavan, is being “disingenuous” over his criticisms that the communications minister, Anika Wells, will have too much power to broaden the content that platforms will have to protect users from under the new digital duty of care legislation.
Speaking to the Today Show, the prime minister says the changes will be disallowable, meaning the Senate would have the power to vote against and reject rule changes.
Yesterday Wells outlined six areas that platforms would have to protect children from and ensure adults aren’t shown illegal content.
Albanese says:
The eSafety commissioner will of course provide the advice, but Matt Canavan actually knows that he’s being disingenuous because all of these things will be disallowable. That is, will be up to the whole parliament, like the other previous laws have been.
Otherwise, what you’ve got to do in order to make a change, is to change the legislation, so to be coming forward over and over again.
Migration fuelling almost half of regional growth
Migration is accounting for almost half of regional Australia’s population growth, a new report has revealed, as healthcare services warn of major workforce shortages if the intake is cut, AAP reports.
Research from the Regional Australia Institute shows migrants made up 46.2% of growth in 2025, with the largest cohort arriving in areas outside the nation’s capital cities being people aged between 25 and 44.
The institute is calling for increased regional migration pathways to be placed at the centre of the nation’s population planning in a bid to address skills shortages, and support new economic activity.
Regional Australia received just over 17% of overseas migrants in the 2024/25 financial year, well below its 36% share of the national population.
Under current policy settings, 28% of Australia’s population growth is projected to go to the regions, according to the institute.
But it argues its modelling shows that figure could reach as high as 72% under a “nation-building approach” that prioritises the regions as a primary destination for population growth.
Grants program for target seats an idea ‘as old as ancient Greece’, says Clare
Jason Clare has denied accusations of pork-barrelling against the government over an “invite-only” community infrastructure grants scheme that handed the majority of its money to safe, marginal or key Labor seats.
Clare says it’s “democracy” that election promises – like funding for a new park or sports oval – are kept by a government.
He says:
That’s democracy … if you’re in an election campaign and you make a promise as the local member, people expect that you’ll deliver on it. And that’s what this fund does.
Clare is asked point blank whether this is the way Labor wins elections, through these sweeteners for voters. He says this isn’t a new tactic.
I don’t think that that is new. This is probably as old as ancient Greece. Good politicians know that you don’t necessarily win elections by having a chat on the telly. You do it by having a chat on the front door of people’s homes and meeting people where they are.
Kids need a ‘digital detox’ says education minister, as global report shows decline in reading and maths
The education minister, Jason Clare, says the results of a global study released overnight shows Australian students who are online more do worse in class, and need a digital detox.
The 2025 Programme for International Student Assessment (Pisa) results found year nines were going backwards in reading and maths, despite maintaining above-average OECD results, and that public school students are more than two years behind their independent counterparts.
Speaking to ABC News Breakfast, Clare says:
The experts call this cognitive stunting, that technology can be used as a crutch in the classroom. Or it also can be a distraction.
We’ve taken mobile phones, personal phones out of schools. But you go into the average classroom today and you’ll see tablets and laptops on every desk in every classroom … And the evidence is telling us that we probably need a good digital detox in our schools.
It doesn’t mean that there’s no place for technology. Our kids need to learn digital skills, and that includes AI. They need to know how to use it and how not to use it. But if it’s everywhere, then it’s having negative impacts on our kids.
Clare says the UK, which improved its scores since the last test three years ago, implemented phonics and other key changes to their curriculum 10 to 15 years ago which Australia is doing now. He says the next meeting of state and territory education minister will consider reforms to the maths curriculum.
Labor’s digital duty of care bill risks ‘malicious compliance’, Greens say
Greens senator Sarah Hanson-Young says the government’s digital duty of care legislation is too vague on whether it allows users to opt-in or opt-out of algorithms, and says that risks manipulation or malicious compliance by the platforms.
Speaking to RN Breakfast this morning, Hanson-Young says the fines of up to $100m also won’t be enough to deter big tech.
It’s neither opt-in nor opt-out. And what I’m concerned about is how the tech platforms will manipulate that. Unless the rules are tight, unless there’s no gaps, big tech is going to spend a lot of money fighting these laws in the first place and finding every which way to get around them. Malicious compliance at best.
I think the fines element is one of those areas that I think is just not good enough … you need to hit them really where it hurts, and that’s their revenue. So it should be a percentage of global revenue.
Asked about the Coalition’s claims that the laws amount to censorship of free speech, Hanson-Young says Angus Taylor is “wrong”.
I don’t know whether this is deliberate misinformation by the opposition leader or he just doesn’t know what he’s talking about. He hasn’t really spent much time engaging on these issues. Either way, it’s wrong.
Krishani Dhanji
Good morning, Krishani Dhanji here with you as we tick over the halfway mark of the sitting week!
There’s plenty to get to this morning so let’s get stuck in.
RBA governor: inflation is still the major problem Australia’s economy
Adeshola Ore
The Reserve Bank’s deputy governor has acknowledged Australians are “furious” about inflation while warning it is the “one big problem” the country’s economy is facing.
The RBA board is due to meet at the end of the month, as fears grow that it will hit mortgage holders with a fourth rate hike this year after inflation eased in July but less than expected.
Speaking to the ABC’s 7.30 on Tuesday evening, Andrew Hauser, the RBA’s deputy governor, said while the economy was doing “quite well” on low unemployment and real household incomes, inflation remained “too high”:
People want inflation down. People are furious about inflation and I understand why. It’s unfair… It hits people on low incomes. It damages price signals. It makes the job of companies difficult.
What they want us to do is our job and bring inflation down.
Hauser pointed to the ongoing Middle East conflict, the “unexpected global boom” driven by AI and the weakness of supply potential in Australia’s economy as risk factors for driving inflation.
While Hauser said a rate hike was not inevitable, he said the RBA was focused on bringing inflation down.
Victorians could pay almost $100 a year more for electricity
Benita Kolovos
Victorians could pay almost $100 a year more for electricity under a state Coalition policy to halt two key transmission projects, according to new analysis that suggests it would result in a near 40% increase in wholesale prices by 2031.
Analysis by consultancy Nexa Advisory, commissioned by non-profit group Environment Victoria, has found postponing the Western Renewables Link and the VNI West would delay other renewable energy projects. Such a move could force the state to rely on using more gas.
As a result, the average wholesale electricity price could rise from $52.9 to $85.20 per megawatt hour – an increase of 37% – between 2027 and 2031. This would flow through to households, adding $472 to the power bills of a typical household – and up to $4,719 for a small business and $11,797 for a large business – over the five-year period.
By 2050, delaying the projects could add $33bn to wholesale electricity costs and produce an additional 8.6m tonnes of carbon dioxide emissions – akin to about a quarter of the state’s current annual electricity emissions.
Chalmers: One Nation would ‘diminish or destroy’ super
Patrick Commins
Jim Chalmers says the Coalition and One Nation would “diminish or destroy” a compulsory super regime that this month’s intergenerational report will confirm is key to long term budget sustainability in a rapidly ageing society.
In remarks to the Super Members Council later this morning, the treasurer will condemn as “crazy” the right wing parties’ plans to give workers early access to their super savings, which he said would leave Australians poorer in retirement and weigh on the nations’ finances.
New Treasury projections show the number of retirement-age Australians will nearly double to around 9 million by 2066.
But the intergenerational report, to be released on 21 September, will show the share of older people on the aged pension is expected to fall from 66% to 52% in 40 years’ time.
As a result, spending on age and service pensions is projected to fall from 2.3% of GDP last year, to 1.8% in 2066, the IGR will show.
This is much lower than other nations, which are struggling to meet their pension obligations: aged pension costs in the UK will account for nearly 10% of GDP by 2060, 8% in Canada, 7% in New Zealand, and 6% in the US.
“Super takes serious pressure off social security outlays, and makes the budget much more sustainable as a consequence,” Chalmers will say.
We cannot let One Nation, the Liberals and Nationals diminish or destroy one of the best things Australians and Australia have going for us now and in the decades to come.
They would put at risk the fiscal sustainability, higher living standards and stronger economy that the IGR shows will be supported by a strong and maturing super system.
Welcome to Guardian Australia’s live news coverage for Wednesday.
Our terrific liveblogger Krishani Dhanji will be with you shortly.
Let’s begin.
