Chalmers Highlights Tax System Rebalancing in Budget
Jim Chalmers, the federal treasurer, stated that the ongoing conflict in the Middle East has significantly influenced the budget, exacerbating inflation challenges and exerting pressure on economic growth due to its impact on fuel prices.
"We’ve made sure that our policy decisions are making a positive contribution to the budget rather than detracting from the budget position. And we’re showing spending restraint as well. And so, what that means is the budget tonight will be stronger than it was in December … It will be focused on resilience and reform."
The treasurer further addressed issues in the housing market, describing it as dysfunctional and criticized the current tax system related to housing as "out of whack." He emphasized the need to realign tax treatment between income earned from employment and other sources.
"There will be efforts to rebalance the tax system so that we can better align the treatment of income from people who work with the people who earn their income in other ways. … The fairer the tax system is and the stronger the tax system is too.
Overwhelmingly, the tax system and the housing market is not working, particularly for younger Australians. There is an urgency now to fixing this."
NSW Government Proposes Stricter Bail Laws to Combat Organised Crime
The New South Wales government announced reforms aimed at making it more difficult for organised criminals to obtain bail. The legislative package also targets the recruitment of children into crime and the use of "kill cars" in criminal activities.
The legislation, introduced to parliament, mandates courts to consider whether offences are linked to organised crime and any breaches of Serious Crime Prevention Orders or Firearm Prohibition Orders when deciding bail applications.
Additionally, the reforms permit courts to delay bail decisions for certain serious firearm offences or aggravated kidnapping by up to three days, extending the current provision which applies only to offences such as murder, sexual assault, and domestic violence.
NSW Attorney-General Michael Daley stated, "These comprehensive reforms will help keep the community safe, and hold organised criminals to account for the destruction and harm they inflict on our streets."
Following bail law changes for domestic violence offenders in 2024, NSW has seen a record number of prisoners on remand, totaling 6,081 as of December. Although sentenced prisoner numbers have decreased, the overall jail population, approximately 13,100 in December, has been increasing since the pandemic.
The reforms include creating a new aggravated offence for destroying vehicles by fire after their use in serious crimes such as firearms supply, drug trafficking, and illicit tobacco offences. The maximum penalty for recruiting children under 16 into criminal activities will increase to 15 years.
Shadow Finance Minister Advocates for Housing Supply Over Tax Increases
Claire Chandler, the shadow minister for finance, expressed concerns regarding potential changes to the capital gains tax discount and their impact on housing supply during an interview on RN Breakfast.
"You don’t make more of something by increasing taxes on it. Taxes are inherently a disincentive to create more of something.
If we need more houses in this country, let’s build more houses. Let’s not start taxing them."
Finance Minister Emphasizes Comprehensive Housing Initiatives
Katy Gallagher, the finance minister, spoke on RN Breakfast, clarifying that the budget changes complement existing government housing policies aimed at assisting young Australians to enter the property market.
"It’s all of our housing programs, 5% deposit, the Housing Australia Future Fund, the partnership we’ve had with the states and territories, the announcement made … on the weekend or yet around enabling infrastructure, $2bn to do the kind of the back end of housing development, all the connections and all of that kind of thing that state and territory and local government struggle with."
Addressing concerns from older Australians about the changes, Gallagher urged them to consider the implications for younger generations.
"I think there is a lot of understanding across the community about governments needing to respond to try and make housing more affordable.
This isn’t about generation versus generation."
Anglicare Report Finds Rental Affordability Crisis Across Australia
Anglicare Australia’s Rental Affordability Snapshot revealed only 10 federal electorates where median rent is affordable for a household earning the median income, based on the standard affordability benchmark of 30% of income.
The analysis compared median rents against median household incomes across federal electorates, finding that households would experience rental stress in 140 electorates.
The electorates identified as affordable include McEwen, Gellibrand, Lalor, Gorton, La Trobe, and Ballarat in Victoria, and Canberra, Fenner, and Bean in the Australian Capital Territory.
Some of the least affordable areas are regional and coastal electorates traditionally considered more affordable. Richmond, on the New South Wales north coast, ranked as the least affordable, with median rent consuming 69% of median household income.
Kasy Chambers, executive director of Anglicare Australia, commented, "This analysis shows the housing crisis is no longer something affecting only people on the lowest incomes. Even households on median incomes are being priced out of large parts of the country.
In all but 10 electorates, the median rent is now unaffordable for a household on the median income. That should ring alarm bells in every part of politics.
We need governments to stop relying almost entirely on the private market to solve this crisis. Australia urgently needs large-scale investment in public and community housing, alongside reforms that slow the growth in housing costs."
Finance Minister Discusses Budget Measures Addressing Housing Challenges
Katy Gallagher participated in interviews prior to the budget release, emphasizing the government's commitment to reducing deficits and strengthening the budget position while addressing economic challenges, including housing.
"We’ve made it clear that we’ve been trying to look in housing. Our focus had been on supply and it remains on supply. We need to build more houses in this country.
But we also need to look at all of the different, I guess, impacts and levers available to government to respond to this housing challenge.
It’s an entrenched issue and we need to make sure that we’re all pulling all the levers available to make sure younger people can realise that dream of home ownership."
Nick Visser is providing live coverage on budget day.
Jane Hume Does Not Exclude Coalition-One Nation Alliance
When questioned about a possible alliance between the Liberal/National Coalition and One Nation, deputy Liberal leader Jane Hume declined to dismiss the possibility outright.
She noted that only One Nation supports such an alliance and refrained from speculating about post-election scenarios.
This followed shadow treasurer Tim Wilson’s statement that he has "never ever" supported such an alliance.
"The most important is to get the primary vote up for the Liberal and National party … There are so many hypotheticals … I will say that the Coalition are determined and dedicated to present to the Australian public a platform that they can vote for.
There is no one in the Coalition party room today that is telling us we need to expand the Coalition to include One Nation."
Regarding the Coalition’s decision to preference One Nation over an independent candidate, Hume stated this was a decision made by the party organisation rather than the parliamentary team.
"The message we sent in Farrer was that the teals vote with Greens, 70% of the time and for the people of Farrer that wasn’t going to represent their interests … We will always put our preferences where we think the national interests lies, where we think the interests of the electorate lies and that is what we did in Farrer."
Jane Hume Reflects on Farrer Byelection Loss
Jane Hume acknowledged the Coalition’s significant defeat in the recent Farrer byelection and emphasized the importance of listening to voter sentiment.
"They wanted change. Standing on a booth with teals in orange on one side and One Nation in orange on the other, both of them were saying ‘vote for change’."
When asked if the Liberal party risked being "squeezed out of existence," Hume rejected the notion, highlighting the Coalition’s record of prosperity and progress.
"This is … a byelection that nobody wanted. It occurred only a year after the election, after a local member had retired, after a quarter of a century which is a long time to have a seat … There was no love lost for the Labor party either. It is just that the Labor party didn’t have the balls to turn up … The Liberal party lost its way. The Coalition lost its way. We split twice in the last 12 months. There is frustration out there. We will take the result with humility."
Australians on Hantavirus-Affected Ship to Be Repatriated via Netherlands
Australians among the remaining 22 passengers aboard the MV Hondius are scheduled for evacuation on a Dutch flight to the Netherlands overnight.
Spanish Health Minister Mónica García reported that 94 passengers of 19 nationalities were evacuated on Sunday. Due to timing issues with a second plane intended to transport passengers directly to Australia from Tenerife, all remaining passengers will be flown to the Netherlands.
Live News Overview
Martin Farrer introduced the live news blog with key overnight stories, followed by Nick Visser covering the main developments.
Deputy Liberal leader Jane Hume urged the Coalition to heed the message from Farrer voters after the byelection loss.
As US President Donald Trump prepares to meet Chinese President Xi Jinping in Beijing, former Prime Minister Malcolm Turnbull has called on global leaders to "stand their ground" in dealings with Trump, warning that otherwise it would be a "massive mistake."
The federal budget is scheduled for release today, with expectations of significant developments. Comprehensive coverage will be provided as events unfold.
