Gallagher says government remains committed to RBA reforms
Katy Gallagher was also up on ABC RN this morning, where she was again asked about the Greens’ position regarding the RBA reforms. She responded:
Well, I just think the Greens are out of control at the moment, full of self importance and out seeking populist approach to everything. It’s crazy what they’re saying to us.
So if that’s their ultimatum – and you know, it’s a bit unseemly, Nick McKim going around issuing ultimatums – you know, no, we won’t work with that, because that is crazy. It’s economically irresponsible, and we won’t do it.
Gallagher said that the government remained committed to the RBA reforms:
They remain on the table. We’re pretty keen on them. So is the bank, and we certainly thought that the Reserve Bank support for these reforms would sway the Liberal Party… The treasurer has been working with the shadow treasurer closely on it, but they’ve dealt themselves out, for whatever reason…
Key events
Blood demand is at a 12-year high and plasma is even more in need, AAP reports, sparking a call for Australians to roll up their sleeves.
The Red Cross is urging 100,000 Australians – the same number who will fill the MCG for the AFL grand final on Saturday – to donate for the first time over the next year.
More than 560,000 people actively donate to maintain the population’s blood and plasma supply. However new donors are needed to keep up with the growing nation.
Executive director of donor experience Cath Stone said:
We know 100,000 people will show up if they have a compelling reason to do so, like cheering on their team at the MCG. We’re calling on 100,000 people to find their reason to show up to donate blood and plasma.
Demand for blood has increased 10% in the past four years while the demand for plasma is even more, reaching an all-time high. The Red Cross now collects more blood than plasma with the substance used to treat more than 50 serious medical conditions.
Stone said with Australia’s ageing population and advances in treatment options, more donors are needed.
Gallagher claims negotiation not happening ‘behind office doors’ with Greens on help to buy scheme
Circling back to Katy Gallagher’s interview on ABC News Breakfast: she was asked about negotiations around the help to buy scheme, and if the government would work with the Greens to pass this?
The finance minister responded:
We’ve been trying to negotiate with them. I think the housing minister, [Clare] O’Neil, has met with their housing spokesperson. They’re not trying to negotiate. They are saying we want to negotiate in the media, but behind the office doors there’s none of that happening.
She said that Peter Dutton and Adam Bandt were “working together” to stop the scheme.
I mean, I don’t know how you … say you’re after improvements in housing and then vote against a help to buy scheme which is about trying to get people into home ownership. But that’s what happened last week. The RBA waving the threat around this morning is just another example of the Greens political party and the Liberal Party working together.
For more on this, Paul Karp spoke with Full Story host Nour Haydar on all things housing last week:
Anthony Albanese is returning from the Quad summit to a close battle with the opposition for voter sentiment, according to the latest polls.
As AAP reports, support is equal for the prime minister and the opposition leader Peter Dutton, with each notching 35% in one gauge of voter sentiment.
The remaining 30% remain undecided, according to Resolve Political Monitor analysis for the Sydney Morning Herald, based on responses from 4,620 voters between July and September.
Albanese leads Dutton in the two most populous states of Victoria (39% to 33%) and NSW (36% to 34%), the newspaper reports.
As parliament resumes after the winter break, the latest Newspoll conducted for the Australian has Labor and the Coalition neck-and-neck on a two-party-preferred basis for the third time since May 2022.
Cost-of-living and inflation pressures are continuing to add pressure to the Labor government, while the Coalition has increased its primary vote lead to an equal post-election high. However, its seven-point lead on first preferences isn’t enough to put the Liberals and Nationals into an election-winning position.
Indeed, the majority of voters – 57% – believe a minority Labor or minority Coalition government is the most likely outcome at the next election.
Gallagher on national debt, latest polling data
Katy Gallagher was also asked about news the final budget outcome will show gross debt in 2023-24 is $149.1bn lower than what Labor inherited at the time of the election, as Paul Karp reported earlier.
The finance minister said it was “a huge difference”.
So we continue to chip away at that. The less we have to borrow, the less interest we pay, the better the budget shape is in. And you know, that’s been a key part of Jim [Chalmers] and my approach to the budget is looking at ways we can invest in good, high quality services, but at the same time, getting the budget in much better shape than when we came to government.
Host Patricia Karvelas asked if the “economic story” the government is telling is resonating with voters, given the Coalition has lifted to a stronger position nationwide? Gallagher responded:
I don’t think it’s any surprise that people, when they’re feeling those cost of living pressures, will will seek to attribute responsibility. Our job, though, is to turn up and continue to make the right economic decisions for the times that we’ve got right now… I’m not going to pretend it isn’t a complicated story to tell, and that, you know, the numbers that you’ll be talking about in the papers today, I think, reflect people’s experience of of doing it tough at the moment.
We’ll have more details on the latest polling numbers in a moment.
Gallagher questioned on prospect of minority government
Katy Gallagher was also asked about the prospect of a minority government, and where this places the government in terms of being able to work with the Greens. This was her full response:
In the Senate, it’s a minority chamber. You work with everybody in in that chamber. It’s the Greens, there’s a very large crossbench, there’s the National Party and the Liberal Party. That is not unusual to have minority government in the Senate. So, in order to do anything PK, we’ve got 25 votes, we have to get 39, so it requires us to talk to people and work with people.
But in terms of the election campaign – and I hope that people are engaging on some of these crazy ideas the Greens have, and the fact that Peter Dutton is blocking some sensible areas, like our Help to Buy scheme in the housing program, and see that the government is genuinely trying to push forward on both on all of these issues in the long term interests of this country.
And that’s why we will continue to campaign for majority government. And there’s a lot of what ifs. It’s very hard to speculate what ifs. I mean, the Australian people have their say when the election is held, but we are certainly campaigning for majority government.
Gallagher says government ‘not going to be threatened’ by Greens on RBA reform
Host Patricia Karvelas:
The two groups you need talking to you are not going to deliver what you’ve asked, so [the RBA reforms are] essentially dead. I mean, you might be keeping them on the table, but no one’s picking up what you’ve got on the table.
Finance minister Katy Gallagher:
Well, we remain committed to them, PK, and you know if – and I would say the more likely path is if Peter Dutton stops being stubborn and engages with us – there is a way through on this. I don’t know why they have dealt themselves out on this…
They know this is good, sensible policy, and I would urge them to reconsider their opinion, their position, because we’re not going to go around being threatened, having the finger wave by Nick McKim saying that the government should rip up the way the bank the fiscal and monetary policy systems have worked in this country very successfully without political interference on the monetary policy side for decades.
Katy Gallagher was also up on ABC RN this morning, where she was again asked about the Greens’ position regarding the RBA reforms. She responded:
Well, I just think the Greens are out of control at the moment, full of self importance and out seeking populist approach to everything. It’s crazy what they’re saying to us.
So if that’s their ultimatum – and you know, it’s a bit unseemly, Nick McKim going around issuing ultimatums – you know, no, we won’t work with that, because that is crazy. It’s economically irresponsible, and we won’t do it.
Gallagher said that the government remained committed to the RBA reforms:
They remain on the table. We’re pretty keen on them. So is the bank, and we certainly thought that the Reserve Bank support for these reforms would sway the Liberal Party… The treasurer has been working with the shadow treasurer closely on it, but they’ve dealt themselves out, for whatever reason…
Gallagher accuses Greens of ‘trying to be populist’
During her interview on ABC News Breakfast just earlier, finance minister Katy Gallagher was asked about the Greens’ ultimatum – and whether she thinks that should happen or could happen?
She responded: “I think the Greens are out of control at the moment” and there is “good reason” the bank is independent:
[The Greens are] just trying to be populist, but [that] can cause a lot of damage at the same time… The Greens political party are teaming up with the Liberal Party. I think it’s Peter Dutton and Adam Bandt working together to frustrate sensible challenges that are in the long-term interests of the country.
Our political correspondent Paul Karp has more on this topic, as we await the RBA’s announcement tomorrow:
The Greens have said they won’t help pass Labor’s RBA reforms until interest rates are cut.
In a statement, the party said that by cutting rates by 25 basis points, repayments on an average recent mortgage of $641,000 would reduce by around $100 a month, a saving of $1200 a year.
The Greens said that once interest rates are reduced, the Greens would back the treasurer’s legislation to restructure the RBA – as long as two existing provisions are retained in their current form: the provision allowing the treasurer to override decisions of the RBA, and the provision allowing the RBA to direct the money they advance to commercial banks into productive parts of the economy.
Senator Nick McKim said in a statement:
The Treasurer has the power to step in, he’s just not using it. The Reserve Bank could act, but they are not acting…
For weeks the treasurer has acknowledged the economy is being smashed, and that mortgage holders are being smashed by high interest rates – yet to date he’s done nothing about it despite having the power to reduce interest rates…
We aren’t going to pass Labor’s Reserve Bank reforms until interest rates are cut. The Reserve Bank Board are not infallible high-priests of the economy who are above criticism… The Greens won’t support these reforms until either the RBA cuts interest rates or Dr Chalmers forces them to.
Katy Gallagher questioned on tomorrow’s RBA rate announcement
The Reserve Bank of Australia is meeting again this week, with another decision on rates expected tomorrow. The finance minister, Katy Gallagher, has been making the rounds this morning, speaking with ABC News Breakfast on this.
Asked if she is worried the RBA will wait too long to cut rates, Gallagher responded that “we don’t comment on the decision of the Reserve Bank” – whose job is to bring down inflation while “our job is to make sure [we’re] helping people with cost of living”.
Gallagher was asked if she is worried she will cop more blame and this could see a result at the ballot box? She responded:
Governments have to deal with the economic circumstances that are there before us. We inherited an inflation challenge with a six in front of it, it’s moderated in welcome ways, but we get that people are doing it tough … We’re doing what we can whilst we’re trying to wrangle with this inflation challenge to make sure we’re helping people with the cost of living pressures they’re under.
Damaging wind warning for parts of Tasmania
In more weather news, a severe weather warning is in place for damaging winds across much of Tasmania today.
The Bureau of Meteorology says an approaching cold front is tightening the pressure gradient across the state, resulting in vigorous westerly winds.
Winds will start to ease once the front has crossed the state late this afternoon, however winds will remain gusty.
Damaging westerly winds around 60-70km/h with gusts around 100km/h are likely across southern, central, and eastern parts of the state, including over Hobart.
Meanwhile peak gusts around 120 km/h are possible about the eastern coastal strip district between Scamander and Swansea, as well as exposed and elevated areas of the state.
Locations which may be affected include St Helens, Swansea, New Norfolk, Hobart, Geeveston and Dover.
Prepare to leave warning for Queensland town amid fire
A “prepare to leave” warning remans in place for the rural Queensland town of Lakeland, amid a fast-moving fire.
According to the Queensland Fire Department, the fire is burning along Mulligan Highway towards Peninsula Developmental Road. Conditions may get worse quickly, it said, with firefighters working to contain the blaze.
The department said some properties are at risk and the fire is likely to impact the community in the coming hours.
Meanwhile, a fire ban for southwest Queensland is in place from today to Wednesday, due to heightened fire conditions. This will cover Toowoomba, the Southern Downs, Western Downs, Goondiwindi, Maranoa, Balonne, Murweh, Paroo, Quilpie and Bulloo LGAs.
Daniel Hurst Australia has jumped one place in the Lowy Institute’s annual Asia Power Index, largely due to Russia going backwards as a result of its war in Ukraine.
The thinktank ranks 27 countries and territories to rank their relative power in Asia. It is based on 131 indicators across eight broad themes: military capability, defence networks, economic capability, economic relationships, diplomatic influence, cultural influence, resilience and future resources.
In its 2024 report, released last night, the Lowy Institute continued to rank the United States in first place and China in second place, although Beijing was steadily eroding Washington’s comparative military capability advantage:
For the first time, experts surveyed for the Asia Power Index judged that China is better able to deploy rapidly and for a sustained period in the event of an interstate conflict in Asia.
The report said India’s power in Asia was growing and it had overtaken Japan to take third place for its comprehensive power for the first time. After Japan in fourth place, Australia was ranked fifth in the 2024 index, an improvement from the sixth place it held last year.
Australia has traded places with Russia, the report said, because the latter’s “relevance to Asia is declining as its war on Ukraine saps resources and focus”.
This increase in ranking, Australia’s second since the inception of the Asia Power Index (it surpassed South Korea in 2020), is more a function of Russia’s decline since 2018 than Australia’s rise.
The report also noted that south-east Asia’s most populous countries, Indonesia and the Philippines, were becoming more influential.
Paul Karp The treasurer, Jim Chalmers, has revealed that the final budget outcome will show that gross debt in 2023-24 is $149.1bn lower than what Labor inherited at the time of the election.
It will show gross debt at the end of 2023-24 was $906.9bn compared with the pre-election fiscal outlook which projected gross debt would exceed a trillion dollars last year.
Yesterday, Chalmers also revealed the final budget outcome will be a surplus in the “mid teens” rather than the $9.3bn projected in May.
In a statement, he said:
Through responsible economic management and spending restraint we’ve been able to get rid of a big chunk of the debt left to us by the Liberals and Nationals. Lower debt saves taxpayers on interest costs, helps in the fight against inflation and makes more room in the budget for what matters most like Medicare, aged care and defence.
Our economic plan is all about easing pressure on people at the same time as we fight inflation and get the budget in much better nick and this shows we’re making meaningful progress.
Back-to-back surpluses are helping in the fight against inflation and reducing the interest costs on a trillion dollars of Liberal party debt we inherited. We’re the first government to post back-to-back surpluses in nearly two decades.
Emily Wind Good morning, and welcome back to a new week on the Australia news live blog. I’m Emily Wind, and I’ll be with you most of this Monday as we bring you our rolling coverage.
The treasurer, Jim Chalmers, has revealed a $149bn cut to national debt under Labor. The final budget outcome will show gross debt at the end of 2023-24 was $906.9bn, compared with the pre-election fiscal outlook which projected gross debt would exceed a trillion dollars last year, he said.
Back-to-back surpluses are helping in the fight against inflation and reducing the interest costs on a trillion dollars of Liberal Party debt we inherited. We’re the first government to post back-to-back surpluses in nearly two decades.
Paul Karp will bring us the full details in a moment.
Meanwhile, Australia has jumped one place in the Lowy Institute’s annual Asia Power Index, largely due to Russia going backwards as a result of its war in Ukraine. The thinktank ranks 27 countries and territories to rank their relative power in Asia, based on 131 indicators across eight broad themes. Daniel Hurst will have more on Australia’s position soon.
As always, you can reach out via X, @emilywindwrites, or email, emily.wind@theguardian.com, with any story tips, questions or feedback.
Let’s get started.
Call for thousands of blood donors as demand skyrockets
Latest polls show equal weighting for PM and Dutton in eyes of voters
Gallagher says government remains committed to RBA reforms
Greens won’t pass Labor’s Reserve Bank reforms until interest rates are cut
Australia overtakes Russia in Asia influence rankings
Chalmers reveals $149bn cut to national debt under Labor
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