What we learned today, Tuesday 6 June
That’s where we’ll leave the blog for today – thanks so much for joining us. Here is a wrap of the day’s biggest stories:
The Reserve Bank of Australia lifted interest rates for a 12th time in just over a year by 25 basis points, bringing the cash rate to 4.1%, its highest in 11 years.
The RBA governor, Philip Lowe, justified his decision by saying inflation, although past its peak, was still too high at 7%, and warned of further increases to come.
The treasurer, Jim Chalmers, sought to distance the federal government from the decision, saying “the war against inflation is far from won”.
In response the Greens urged the government to intervene, and the Coalition blamed Labor’s budget for adding to the “inflationary fire”.
Kathleen Folbigg enjoyed her first night out of prison after 20 years, mesmerised by new technology and spending time with close friends. In a video statement, she said she would always grieve for her children and that her pardon was a victory for science and truth.
Western Australia’s acting premier, Roger Cook, announced he had been endorsed as premier, and Rita Saffioti as deputy premier.
The NSW government signalled it would not withdraw any additional Covid fines, despite a supreme court decision finding a huge volume of pandemic-related infringements were unlawful.
The Bureau of Meteorology placed Australia on “El Niño alert”, warning there was a 70% chance of the climate system developing before the end of this year.
Updated
The federal Labor MP for Perth, Patrick Gorman, has congratulated Roger Cook on being endorsed as the new Western Australian premier:
Congratulations to WA’s 31st Premier - Roger Cook.
— Patrick Gorman MP (@PatrickGormanMP) June 6, 2023
He will lead with compassion, purpose and with the interests of Western Australians in his heart.
I have known Roger for decades. WA and Labor are fortunate to have his experience and his passion leading our state. pic.twitter.com/PYtmNZjnxa
Updated
[continued from previous post]
From AAP:
Spit hoods were banned in NT youth detention facilities five years ago and in October were the subject of an operational ban by territory police.
While there had been no evidence of their use since, police confirmed they had been employed 27 times in the period between 2018 and the 2022 decision, including once on a 12-year-old child.
In its paper, the office of the Children’s Commissioner said a range of other measures could be used, including de-escalation techniques, and called for frequent and mandatory training in such methods.
The paper acknowledged that police officers had a right to be safe in their workplace, but said there was overwhelming evidence that spit hoods were not effective in preventing the spread of any communicable diseases.
Ultimately, these restraints are ineffective and inhumane.
Spit hoods do not meet the asserted needs of police or increase the safety of the community. Our children deserve better.
Responding to the paper, the minister for territory families, Kate Worden, said the government was satisfied that spit hoods were no longer in use in detention centres and police cells. She told reporters:
We’ve already got that in place. That won’t be changing.
Updated
Call to outlaw ‘inhumane’ use of spit hoods on children
The use of spit hoods on children should be banned through legislation in the Northern Territory with the region’s youth commissioner describing the devices as dangerous and dehumanising, AAP reports.
The Children’s Commissioner’s office on Tuesday released a position paper on the use of spit hoods, calling for the bans currently imposed by police and corrections to be enshrined in law.
The paper said the devices were not safe under any circumstances and were highly likely to harm the child.
It found there was no evidence spit hoods had a calming or therapeutic effect. The paper said:
Hooding of any child can be panic-inducing.
A child who is in a situation where police find it necessary to use a spit hood are also likely to have experienced trauma in their childhood or have a physical and mental impairment.
To use a spit hood on a child in this context is dehumanising and dangerous. There is no safe way to use a spit hood on a child.
Westpac the first big bank to announce interest rate rises
In response to the RBA’s decision to increase the cash rate by 0.25%, Westpac has become the first major bank to announce interest rate changes.
In a statement, Westpac announced:
Home loan variable interest rates will increase by 0.25% per annum for new and existing customers, effective 20 June.
Customers will be able to access a new special term deposit offer of 4.50% pa for 12 to 23 months, effective 9 June. Savings rates are under review.
Westpac’s chief executive of consumer and business banking, Chris de Bruin, said:
We understand interest rate increases put more pressure on household budgets.
The majority of our customers are managing OK, but we know with each rate change it’s getting more challenging.
Updated
Catch up on the day’s biggest headlines so far with this wrap from my colleague Antoun Issa:
Government in talks with Ukraine on providing support to Kyiv
The Australian government says it is continuing to hold talks with Ukraine and allies and partners on ways to provide “meaningful support” to Kyiv.
The comments follow a report in the Australian Financial Review today that Australia, the US and Ukraine were discussing the option of sending retired Royal Australian air force F/A-18 Hornets to Ukraine.
One obstacle to this idea is the length of time required to train pilots to operate the aircraft.
Defence has since issued what is known in the business as “holding lines” – comments that are careful not to say anything specific.
A defence spokesperson said:
Defence continues to retain possession of former Royal Australian air force (RAAF) F/A-18A/B Hornets.
The Australian government remains committed to delivering on its current contribution to Ukraine.
Australia continues to engage with the government of Ukraine and our allies and partners to ensure meaningful support continues to be provided to Ukraine in its ongoing battle against Russian aggression.
Updated
Vanuatu hopes to sign security agreement with Australia by end of year
Vanuatu says it hopes to ratify a security agreement with Australia by the end of this year.
The foreign affairs minister, Penny Wong, announced the signing of a bilateral security agreement during a bipartisan visit to Vanuatu in December – but the ABC last month reported of concerns that domestic political fallout could delay the deal.
The deputy prime minister and defence minister, Richard Marles, is in Vanuatu today. The status of the proposed bilateral security arrangement was raised during a press conference.
The prime minister of Vanuatu, Alatoi Ishmael Kalsakau Ma’aukora, said:
Well, I can answer that where it concerns Vanuatu. We are just near, it is at the national security council at the moment, just going through the text and it’ll go towards the council of ministers. And it will be presented for ratification before the end of this year in parliament.
Marles added that he was “really happy with the discourse that we’ve had with both the prime minister and the deputy prime minister today”.
He said it would be “a really important agreement between our two countries” and Australia was “very happy with the progress”.
A very productive meeting with Vanuatu’s Prime Minister the Hon Alatoi Ishmael Kalsakau Maakoro to discuss our shared priorities.
— Richard Marles (@RichardMarlesMP) June 6, 2023
Our partnership with Vanuatu is strong and enduring 🇦🇺🇻🇺 pic.twitter.com/HjmyVjVb7S
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Australia deserves ‘a world-class rail system,’ says shadow transport minister
Shadow transport minister Bridget McKenzie just appeared on the ABC and is asked about the inland rail:
… Australia does deserve a world-class rail system. What we don’t need is more delays and what the government has done in 12 months since coming to power is cancel the faster rail authority and replaced it with the high-speed rail authority, put a half $1bn on the table to set this up and have consultations and land acquisition but do not actually get on with laying the track.
We know that congestion is increasing, we know that people are moving outside capital cities and doing that long commute and so we need to get on with it rather than pipe dreams and more delays.
Earlier, my colleague Paul Karp reported that McKenzie and her Nationals colleague Mark Coulton were being criticised by the construction union for a visit to the inland rail without permission.
Asked about this on the ABC, McKenzie said:
We are on public land at a crossing …
Updated
Prime Minister Anthony Albanese has congratulated Roger Cook on his endorsement as the new Premier of Western Australia:
Congratulations @RogerCookMLA.
— Anthony Albanese (@AlboMP) June 6, 2023
Looking forward to working with you as Premier of Western Australia to build a better future. pic.twitter.com/ARcMowUCvi
RBA going ‘rogue’ on interest rate hikes, Greens senator claims
McKim is now appearing on the ABC and said this of the RBA’s rate hike:
The Labor Party and the Labor governor, Mr Chalmers, Mr Albanese, they have to wear their fair share of the responsibility for this. The RBA act gives the Government of the day the power to intervene and override the RBA on interest decisions and that is what they should be doing in this case because frankly, the RBA has gone rogue.
But secondly, what the Government should be doing is putting in place things like a corporate super profits tax, attacks on the super wealthy in this country and use the revenues generated from those taxes to fund genuine cost relief for Australians. Wiping student debt, putting dental in Medicare, increasing income support, things that would make a meaningful material difference in people’s day-to-day lives.
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Greens senator calls out Labor for ‘refusing to intervene’ on RBA decision
Greens Senator Nick McKim has described today’s RBA decision as an “absolute shocker” that will see renters and mortgage holders “getting smashed yet again”.
He said on social media:
The RBA has gone rogue and Labor is culpable because of its refusal to intervene.
The RBA admits that inflation is predominately supply side driven yet stubbornly insists on a demand side response. Labor has completely succumbed to central bank orthodoxy and is sitting back and refusing to intervene.
The interest rate rises will disproportionately hurt young people, who are more likely to rent or have large mortgages, and who are more likely to feel the brunt of the coming job losses. The RBA and Labor Party are waging an intergenerational war.
— Nick McKim (@NickMcKim) June 6, 2023
Updated
The Parenthood calls for government support for struggling families amid interest rate hike
CEO of The Parenthood, Georgie Dent said that the RBA’s rate hike will increase financial difficulties for many families across Australia who are already struggling with the surging costs of living.
In a statement, The Parenthood said although the childcare subsidy is set to rise on 1 July, the assistance has been eroded by rising costs of living, including interest rates, while other families are missing out altogether on assistance.
Dent said:
Without bold and urgent support from the Government, these families will often be forced to make incredibly unfair choices, with young children potentially having to miss out on the many benefits of high-quality early learning and care.
Universally accessible, affordable and quality early childhood education and care is a vital way of providing cost of living relief that’s effective and non-inflationary.
Supporting families in this critical time will not only ensure their wellbeing and prosperity but will also help secure the future of Australia’s children.
She pointed to measures such as universal three-year-old preschool across all states and territories, and abolishing the childcare subsidy Activity Test, as ways the government can allow greater access to early childhood education while alleviating financial pressure on families.
Updated
Australian stocks suffer hammer hit after rate hike
Australian shares recorded a sharp selldown after the Reserve Bank lifted the official cash rate on Tuesday, as investors weigh up the prospect of further hikes.
The benchmark S&P/ASX200 dropped 1% almost immediately after the RBA lifted borrowing rates by another 25 basis points. The market failed to rebound after the central bank indicated it may raise rates further to bring inflation down.
Trading platform IG described the rate rise as “another RBA hammer hit” to the market. IG said:
Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve.
A tightening of monetary policy refers to higher rates.
The cash rate is now at 4.1%, its highest level in 11 years.
While many Australian companies, including the big banks, have benefited from rising interest rates, at some point, increased borrowing costs could trigger enough bad debts and a pullback in spending that will weigh on their profitability.
Australia’s consumer discretionary sector, headed by Bunnings-owner Wesfarmers, suffered some of the steepest falls on Tuesday, given their sensitivity to household budgets.
The Australian dollar spiked against the US on the rate decision, given higher interest rates are generally enticing to investors.
Updated
Chalmers defends government’s role in fighting inflation
The treasurer, Jim Chalmers, is currently appearing on the ABC following the RBA’s rate hike.
Chalmers is asked if he is comfortable with the “weight of responsibility” falling to the RBA each month without “any subsequent action by you” since the budget was handed down in May.
He responds:
It was only a few weeks ago and most of the budget measures have not come into effect yet …
I don’t accept the Reserve Bank is doing this job on their own, certainly they’re taking decisions about interest rates independently and they can explain and defend how they came to this decision today.
I take responsibility for my part of managing the economy and that’s dealing with issues in the supply side, showing Australia’s finding savings and providing that cost-of-living relief in the budget, which is what I am doing.
Updated
Construction union on Inland Rail visit
The construction union has criticised the Nationals MPs Mark Coulton and Bridget McKenzie for a visit to the Inland Rail without permission. The MPs say it wasn’t trespass because they were on a public road at a level crossing.
The CFMEU national secretary, Zach Smith, says:
The hypocrisy of Coalition members who attack the rights of union members knows no bounds. It’s pretty rich for two people with a shameful track record of backing attacks on unions’ rights being denied permission to enter a rail site, and then doing it anyway.
Because of the former government’s ideological war on unions, it became harder than ever for our officials to attend building sites for life-saving safety checks ... [The Coalition’s] years of supporting attacks on the rights of workers to be represented in the workplace must now end after this embarrassing incident.
Smith also questioned whether the visit was safe. Coulton told Guardian Australia:
You could see 2km either way, the idea it was dangerous is just a nonsense.
Updated
Adele Ferguson to join ABC as investigative journalist and business commentator
The ABC has announced Adele Ferguson will be joining the broadcaster as an investigative journalist and senior business commentator.
Ferguson will join the ABC Investigations team led by Sean Nicholls. She will also offer expert analysis on business issues in a regular column for ABC News online and regular appearances on 7.30.
She said:
I am thrilled to be joining Australia’s largest investigations team.
There has never been a more important time for investigative journalism to give a voice to vulnerable people and hold the powerful to account.
Updated
Blame game begins over latest RBA rate rise – from all sides
Higher interest rates are bad news for many, but who should take the blame?
We just heard the treasurer, Jim Chalmers, saying the federal government isn’t to blame (echoing comments made by Philip Lowe to Senate estimates last week that the 2023-24 budget was “broadly neutral”).
Angus Taylor, Chalmers’ shadow, says the increase is Labor’s to own:
We needed a budget that was fighting inflation first.
On this point, we have to take Lowe’s view since he was ultimately briefing the board.
The ACTU (Australian Council of Trade Unions) and ACCI (Australian Chamber of Commerce and Industry, though, are pointing the blame bone at each other.
The ACTU says the RBA’s decision was “wrong” and comes amid record profit announcements from the big four banks, with the Commonwealth bank posting a $5.15bn half-year profit alone. Other half-yearly profits include Coles posting $616m, Ampol over $440m and Qantas $1.4bn.
The ACTU says:
In February research by the Australia Institute economist Dr Jim Stanford showed that inflation would have stayed within the RBA’s target band had companies not pumped-up prices and squeezed consumers.
(The RBA, though, says there is no sign of a “profits-price spiral”).
The ACCI was blunter, heading its reaction statement: “Rate rise brought to you by the ACTU”.
It said:
Last week’s decision to increase award wages by 5.75% has forced the hand of the Reserve Bank, with the board delivering a further 0.25% increase in the cash rate today.
Andrew McKellar, the ACCI’s CEO, said:
The result of the ACTU’s irresponsible wages claim could not be clearer – wages growth not supported by productivity gains risks entrenching inflationary expectations and inflationary pressures.
Suspect more will weigh into this one.
Updated
Taylor continues:
Labor has been in government for a year. It’s delivered two budgets now, and the truth of the matter is that they are forcing the Reserve Bank to do the heavy lifting.
The Reserve Bank has got the foot on the brake at exactly the time when the government has put the foot on the accelerator with $185bn of additional spending in this budget.
… We just heard from Jim Chalmers who couldn’t explain where inflation and these interest rate increases have come from. The answer is clear. Coming from Canberra … we need a government to take responsibility, or else Australians will continue to pay a high price.
Updated
Coalition blames Labor’s budget for latest rate rise
The shadow treasurer, Angus Taylor, has just responded to the RBA’s decision.
He argueds the rate hike is the result of “a couple of policies that we’ve seen from Labor”:
… fiscal policy, energy policy, industrial relations policy, which are combining to create an inflationary fire, and the truth of the matter is that’s where these interest rate increases have come from.
He says the rate hike “has made it very clear that the budget did nothing to fight inflation”.
Prior to the budget, market expectations and economists’ expectations were that there were unlikely to be additional rate rises.
Since the budget we’ve seen a dramatic turnaround in those expectations … [it] is no coincidence that that change in expectations coincided with a budget that didn’t fight inflation, that didn’t deal with the inflationary fire that we’re seeing in the economy right now.
Updated
Bureau of Meteorology says 70% chance of El Niño developing this year
The Bureau of Meteorology has placed the nation on “El Niño Alert” saying there is now a 70% chance of the climate system developing before the end of this year.
In the winter and spring, El Niño tends to reduce rainfall and push up daytime temperatures, also increasing the risk of bushfires, heatwaves and coral bleaching on the Great Barrier Reef.
Until this afternoon’s update, Australia had been on “El Niño Watch” for several months.
One key factor for an El Niño is the sea surface temperatures in the equatorial Pacific. The bureau says that in the central and eastern Pacific, those temperatures are at least 0.8C above the long-term average – a threshold for El Niño.
All seven international climate models surveyed by the bureau – including its own – show sea surface temperatures will continue to rise in the Pacific in the coming months.
Updated
Greens urge Labor to freeze mortgage and rent rises
Following the RBA’s decision, the Greens are calling on the government to intervene:
RBA has hiked the cash rate to the highest level in 11 years, punishing mortgage holders & renters for an inflation crisis driven by corporate profiteering. It's well past time for the Fed Gov to use its existing powers to freeze interest rates & coordinate a freeze on rents.
— Max Chandler-Mather (@MChandlerMather) June 6, 2023
Enough.
— Adam Bandt (@AdamBandt) June 6, 2023
Labor & the RBA are using everyday people as cannon fodder in the war on inflation.
Time for government to intervene.
Labor must back the Greens’ push to freeze mortgage & rent increases.https://t.co/4T1NGn5KK9
Updated
‘Upside’ inflation risks prompted the RBA to hike again
There are 577 words to pore over in the RBA’s statement announcing today’s 12th rate rise in 13 board outings. Perhaps oddly, we won’t get the full minutes until 20 June, which seems to suggest they need faster typists in Martin Place.
Anyway, it seems the key to today’s rate rise is how the board interpreted the swag of economic data they’ve had to consider.
“Recent data indicate that the upside risks to the inflation outlook have increased and the Board has responded to this,” Philip Lowe, the RBA governor, said in statement. (Emphasis added by us.)
While goods price inflation is slowing, services price inflation is still very high and is proving to be very persistent overseas.
Unit labour costs are also rising briskly, with productivity growth remaining subdued.
In a nod to those about to be pummelled by another rate rise, Lowe said “if high inflation were to become entrenched in people’s expectations, it would be very costly to reduce later, involving even higher interest rates and a larger rise in unemployment”.
You can also follow our reporting here:
Updated
Guardian Australia reporter Paul Karp asks whether the government will consider introducing higher taxes or revisiting the stage-three tax cuts.
Chalmers says it is not something the government is considering:
That’s not something we’ve been contemplating in response to this interest rate rise, or even in anticipation of movements in interest rates.
You know we had a budget last month, which I’m pretty confident did all of the things that you would do in the inflationary environment that we find ourselves in, particularly the fact that we’ve focused most intently on those areas which are causing people the most grief …
Updated
Chalmers says he doesn’t want to see cost-of-living “pain” prolonged longer than necessary for low- and middle-income earners:
The most vulnerable people in our country are people on low and middle incomes and fixed incomes. They bear a disproportionate share of these interest rate rises. I don’t want to see them blamed for it. And I don’t want to see the pain prolonged any longer than is necessary.
I do understand that people are really seriously under the pump because of a range of different pressures that they feel, and the job that I take responsibility for is to try and take some of the edge off that.
Updated
A reporter asks Jim Chalmers if he understands why the RBA has made this decision, following his remarks that Australians will find the decision difficult to understand.
Chalmers says he goes out of his way to “cherish and respect the independence of the Reserve Bank”:
And indeed the Reserve Bank review that you and others in this room have written a lot about over the course of the last year, and a bit has been about enhancing its independence, not undermining it.
What I’m acknowledging is that this interest rate rise will put more pressure on people who are already under the pump.
It’s for the Reserve Bank and its board in the usual way to explain and defend the decisions that it takes independently, but I think out there in the community, people who are under pressure will find this decision hard to cop and they will need help understanding it.
Updated
Chalmers continues from his last point:
You know, it wasn’t that long ago in this country that we recognised during the worst of the pandemic that we’re all in this together, and what was true of the pandemic is true of this inflation challenge as well.
That’s why I don’t want to see working people, for example, who have been denied decent wages growth for the best part of a decade, bear the blame for this interest rate increase today.
He says he doesn’t want to see people profiteering or price gouging based off these hikes:
… people are under enough pressure as it is without landlords or others doing the wrong thing by them.
Updated
People on low and middle incomes are already bearing the brunt of these interest rate rises and shouldn’t bear the blame as well, Chalmers says.
He says he wants to see “responsible wages growth”:
… we want to see strong, sustainable [and] responsible wages growth in our economy, the absence of which for the best part of a decade, has been a sign of weakness … not a sign of strength.
We want to see wages growing strongly in a responsible and sustainable way in a more productive economy …
Updated
Chalmers says a substantial slowing of the economy over the next 12 to 18 months is forecast, as an “inevitable consequence” of higher interest rates at the same time as “the global economy is [in] a precarious place”.
The job that the independent Reserve Bank has is to try and get on top of this inflation challenge in our economy without crashing our economy. And we’ve known for some time that is a difficult path to tread and we see in some of the country today, in the statement issued by the Reserve Bank, that there are a number of factors weighing heavily on our economy.
Updated
Chalmers says that fighting inflation is still the primary focus of the government:
We have acted decisively in the budget … to address the cost-of-living pressures in our economy without adding to inflation.
The Reserve Bank governor has made it really clear that our budget is taking the pressure off inflation, rather than adding to it, but this is a difficult day for Australians …
This is the key reason why fighting inflation is still the primary focus of the government – the primary focus of the budget and the primary focus of our economic plan.
Updated
Jim Chalmers continues:
This rate rise today is not because of the budget, and it’s not because people on the minimum wage are being paid too much, and we should be really clear about that.
This rate rise today is because inflation is more persistent in our economy than any of us would like, particularly in those areas that the budget has been carefully calibrated to address, whether it’s rent, whether it’s energy, whether it’s out-of-pocket health costs.
Updated
Treasurer says a lot of Australians will find rate rise ‘difficult to understand’
The treasurer, Jim Chalmers, is speaking on the RBA’s rates rise decision.
He says he expects there will be a lot of Australians who will find this decision “difficult to understand”.
The Reserve Bank’s job is to squash inflation without crashing the economy.
They will have lots of opportunities, of course, to explain and defend the decision that they’ve taken today.
My job is different. I take responsibility for my part of managing [this] and that’s why the budget and our economic plan takes as its central focus, taking some of the edge off these cost-of-living pressures without adding to inflation.
Updated
Interest rate hike puts borrowers into new financial territory
Australia’s 12th interest rates hike in 14 months has put many borrowers into financial territory they never thought they’d see in the life of their loan, “let alone in just over a year”, RateCity research director, Sally Tindall, said.
She said the RBA is “doing what it can with a very blunt instrument”.
Some borrowers are well into the red with limited avenues out. Others are either splashing the cash or squirreling it away in the bank. At what point should the government reassess the instrument rather than the Board using it?
In less than two weeks’ time, the majority of borrowers will be charged a higher interest rate as a result of this RBA decision, yet, in many cases, the extra money won’t come out of their bank accounts for another three months – depending on their bank.
The seemingly haphazard approach to increasing customers’ monthly repayments is causing confusion among borrowers who are just trying to make the dollars and cents add up.
She said RateCity research shows that most variable borrowers have “no idea” what rate hike they’ve started paying for and which ones are still to come, making it “next to impossible” to budget.
If you’ve got a variable home loan, call your bank and ask them what your repayments will be if it passes on this latest hike. Throw another one in for good measure and start paying that amount today.
If you can’t afford these higher repayments, you’ll have time on your side to do something about it.
Updated
Prospect of more rate rises to come adds rocket fuel to Aussie dollar
Reserve Bank governor Philip Lowe has made it clear inflation remains a problem and that more rate rises might be needed to quell it.
He said in the accompanying statement:
Inflation in Australia has passed its peak, but at 7% is still too high and it will be some time yet before it is back in the target range.
This further increase in interest rates is to provide greater confidence that inflation will return to target within a reasonable timeframe.
The 25 basis points rate rise was expected by about a third of economists (the other two-thirds have a bit of explaining to do) but the sting is probably in the tail.
Lowe said:
Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve.
The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that.
Prior to the 2.30pm release, the Australian dollar was trading just above 66.2 US cents, and the prospect of higher rates (which make it relatively attractive to hold certain Australian assets) sent it up to almost 66.7 US cents.
Assets that aren’t so attractive include shares. The benchmark ASX200 index was down about 0.6% for the day before the rate news and they extended their drop to more than 1% before rebounding slightly.
More to come.
Updated
Homeowners to face highest interest rates in 11 years
Homeowners across the country have been dealt a surprise blow from the RBA, as it lifted interest rates for a 12th time in just over a year, by 25 basis points to 4.1%.
In this month’s Finder RBA cash rate survey of 39 experts, 44% correctly predicted a cash rate rise for June.
Graham Cooke, head of consumer research at Finder, said the decision still came as a shock to many.
The RBA continues to operate in the dark, as our panel of economists are split on the bank’s intentions.
Aussies with an average loan size of $577k will be spending over $15k more per year on their mortgage compared to what they were in April last year.
That’s an additional $1,200 every month – a huge amount of extra money to be forking out on your mortgage.
Cooke said according to Finders recent Cost of Living Report, nearly 80% Aussies are reducing their spending to cope with rising costs.
… the RBA’s latest hike is likely to push that closer to 100%.
Updated
Reserve Bank hikes interest rates by 25 basis points to 4.1%
The Reserve Bank has lifted interest rates for a 12th time in just over a year, judging the risk of inflation staying too high for too long outweighed the added financial stress that will hurt households and businesses.
The decision to hike by another 25bp brings the cash rate to 4.1%, its highest level in 11 years. Economists and markets had slightly favoured no change for this month.
More soon.
Updated
The Reserve Bank’s announcement of its latest decision on the cash rate is due at 2.30pm this afternoon, in around five minutes.
We will bring you the latest as soon as information is released.
Update on new Australian support for Ukraine
Given there has been a fresh burst of speculation today about the next round of Australian security assistance to Ukraine, it might be worth taking stock of where things are up to with the government’s planning.
There are growing expectations the government is preparing a package to be announced by the time the prime minister, Anthony Albanese, travels to Lithuania for the Nato summit in July. The Ukrainian defence minister, Oleksii Reznikov, put the July timeframe into the public domain after a meeting with the deputy prime minister and defence minister, Richard Marles, on the sidelines of a security summit in Singapore late on Friday.
The government has not disputed that timeframe. But it is also clear that any fresh package for Ukraine has not been finalised or ticked off by cabinet yet. Albanese told reporters in Vietnam on Saturday that the government made announcements “when they are ready, when they’ve been considered by all of our processes, including our cabinet, because I lead a proper government that governs in an orderly way and produces outcomes”.
The Australian Financial Review reported today that Australia, the US and Ukraine were discussing sending retired Royal Australian air force F/A-18 Hornets to Ukraine. But there are no signs this is likely; the biggest obstacle is the length of time required to train pilots to operate the aircraft.
Meanwhile, the Sydney Morning Herald and The Age reported today that Australia was “set to give Ukraine” Hawkei vehicles, after an interview with Reznikov in which the Ukrainian defence minister said they were the top of his list of “demands” from Australia. But the story itself said this was an “understanding” rather than a finalised formal commitment.
Readers will be aware Ukraine has been mounting a very public campaign for Hawkeis for months. Defence officials confirmed during senate estimates hearings last week that Hawkeis had been “part of the conversation”, but said the Australian government was “still working through the rectification of an ABS braking issue” and supply chain issues.
The head of land systems, Maj Gen Andrew Bottrell, told the hearing:
The capability [Hawkei] is at quite a critical stage right now. Those factors that accumulate mean that we can’t even roll it out to Defence … let alone sustain it on operations. So it’s been my advice into Defence that we could not sustain this vehicle overseas and we certainly couldn’t sustain it if we were also trying to roll it out to the Australian defence force.
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‘Folbigg could not spend another night behind bars,’ NSW premier says
The New South Wales premier, Chris Minns, said there was no way to put a price on what Kathleen Folbigg lost during her 20 years behind bars before she was released yesterday.
Asked about compensation for the mother, Minns said:
You can’t put a price on it. Obviously, Ms Folbigg needed to be offered a pardon, by the Governor and in the circumstances when we’ve had an independent review showing the NSW government that there was in fact reasonable doubt, that the criminal standard had not been met. Kathleen Folbigg could not spend another night behind bars.
He said he would have more to say about any possible legal reforms after the final inquiry report had been released.
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Doctors urge NT government to reconsider Beetaloo fracking
A group of doctors has urged the Northern Territory government to reconsider its decision to greenlight gas production in the Beetaloo Basin.
Forty-six paediatricians from the NT and across Australia have written to the chief minister Natasha Fyles raising concerns about risks to human health from the potential effects of fracking on water, air, the climate and soils.
The letter asks the NT government to prioritise the health of the territory’s vulnerable population and to re-evaluate the health costs – both financial and to wellbeing – if gas projects go ahead.
It comes after Guardian Australia revealed the NT and federal governments knew they could not meet a key recommendation from the Pepper inquiry into fracking to reduce the climate risk of the massive planned gas expansion.
Dr Louise Woodward, a general paediatrician based in Darwin, said the decision to greenlight fracking risked “both direct harm to communities within the Beetaloo Basin from pollution and indirect harm to Territorians on the frontline of the climate crisis due to increased carbon emissions”.
As medical professionals who have lived and worked in the Northern Territory with our families, we are asking the NT Government to seriously consider if the claimed economic benefits of fracking justify the risk to our health, water, environment and climate.
General paediatrician Dr Catherine Boyd said the effects of climate change would “disproportionately affect First Nations and underprivileged children in the Northern Territory – a group who already carry the highest health burden in Australia”
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Incoming WA premier is ‘humbled and honoured’
Incoming WA premier Roger Cook said he is “humbled and honoured” to be taking up the position.
Can I also just say on behalf of the new deputy leader and myself, how much we have been honoured to have served with Mark McGowan in his leadership of WA.
He has played an outstanding role … He has taken us for a period of time of great uncertainty through Covid, provided strength of leadership and has overseen the strongest economy in the nation.
We … thank him for his credible service and also wish him, Sarah, and the family the very best for the future and we are very much looking forward to his further contribution to life in the state.
Cook said his full cabinet will be announced tomorrow, followed by the swearing-in ceremony on Thursday.
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Roger Cook endorsed as Western Australian premier
WA’s acting premier Roger Cook has just announced he has been endorsed as premier.
Rita Saffioti has been announced as deputy premier.
Cook is speaking to the media following a caucus meeting of the WA Labor party:
We have just come from a very positive meeting of the WA state parliamentary Labor Party, the caucus have a great positive vibe and have provided us with a terrific opportunity to thank the Premier [Mark McGowan] for his service.
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Greens senator Peter Whish-Wilson is chairing the senate references committee inquiry into climate-related marine invasive species over the next two days. He is continuing to share the main findings on social media:
Back after lunch break and we now have representatives of recreational fishing peak bodies providing evidence and comment.
— Peter Whish-Wilson (@SenatorSurfer) June 6, 2023
We're hearing that rec fishers want to be part of the solution to manage invasive urchins and restoration of giant kelp forests.
Rec fishers are now telling us they want to work with commercial fishers to prevent more urchin barrens becoming established - with removal of urchins being key to successful habitat regeneration.
— Peter Whish-Wilson (@SenatorSurfer) June 6, 2023
This is encouraging given these two groups don't always see eye to eye.
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Australia’s alcohol industry continues to ‘ignore evidence’ to influence policy, study finds
Australia’s alcohol industry continues to “manipulate, misuse and ignore evidence in attempts to influence policy,” a study which analysed submissions to the development of the national alcohol strategy has concluded.
In light of the study, doctors and health experts say the strategy excludes some of the most effective measures for reducing alcohol-related harm, and have blamed the effect of lobbying that exaggerated the benefits of drinking and misrepresented evidence.
Continue reading:
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‘Victory for science and truth’: Kathleen Folbigg releases video statement
Kathleen Folbigg has said she will always grieve for her children as she marked her release as a victory for science and truth.
In a video statement, Folbigg said she was extremely humbled and grateful for being pardoned and released from prison.
My eternal gratitude goes to my friends and family, especially Tracy and all of her family, and I would not have survived this whole ordeal without them.
Today is a victory for science and especially truth. And for the last 20 years I have been in prison I have forever and will always think of my children, grieve for my children and miss them and love them terribly.
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Transport minister denies myki tender process flawed
The Victorian government has denied claims it ran a flawed tender process before awarding a $1.7bn contract to US-based Conduent to upgrade the state’s public transport ticketing system, AAP reports.
Transport minister, Ben Carroll, said the process was extremely thorough and that claims of unfairness brought by one of the losing bidders, Cubic, are baseless.
He told a budget estimates hearing:
This has been an incredibly thorough tender process.
I understand that different companies, when they aren’t selected and they haven’t been awarded the contract, may be upset.
Earlier, Daniel Andrews said he had “no advice” to suggest there were errors in the tender process.
Carroll said Conduent had a proven track record of operating a successful system in 24 countries:
I’ve seen it, I’ve used it, I’ve experienced it.
I’m very confident about the diligence and procurement process that the Department of Transport and Planning ran.
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‘Line ball’ interest rate decision by the RBA landing this afternoon
As we mentioned in our preview piece, today’s another day of Reserve Bank roulette, with the game currently under way behind the closed doors at Martin Place in Sydney. (Last time we passed by they also had scaffolding up, giving the building an added besieged feel.)
Most economists were leaning to the RBA leaving the cash rate unchanged at 3.85% but if anything the central bank has tended to surprise on the high side since it started lifting interest rates during the federal election campaign in May 2022.
(The Morrison government wasn’t too happy about the time but Anthony Albanese would have done a cartwheel. Try to erase that image.)
An increase would make it 12 hikes in the past 13 meetings of the central bank board, making the first Tuesday of each month a twitchy one for the third of the population with a mortgage and businesses everywhere. (January was the standard holiday month, with April the only pause – so far.)
Slightly inconveniently, the full March quarter GDP figures aren’t available until tomorrow. Still, the RBA has more than enough detail to work with, as do commercial economists.
Some components of that GDP figure have been released by the ABS in the last day or two, such as trade figures, non-farm inventories and expenditure. Combined, the numbers were enough for Westpac, for instance, to elevate their forecast of the economy to have grown 0.3% compared with the December quarter (and for it to be 2.4% up from a year earlier).
The RBA could bowl a googly (we’re here to help cartoonists with ideas too) and lift the cash rate by 15 basis points to make it a nice round 4%. Anyway, we’ll know by 2.30pm AEST.
Here’s that preview just in case:
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A severe weather warning has been issued for parts of western and central Victoria for tomorrow, with heavy rainfall and damaging winds expected:
⚠️A Severe Weather Warning has been issued for heavy rainfall and damaging winds for parts of western and central Victoria for Wednesday: https://t.co/HLs2UYFQyQ⚠️ pic.twitter.com/rG1m83JiAi
— Bureau of Meteorology, Victoria (@BOM_Vic) June 6, 2023
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Drier conditions to drive down agricultural production
Australian agriculture’s record breaking run is set to dry up with winter crop production to plunge more than a third, while overall production is also forecast to fall, AAP reports.
The latest quarterly outlook has been released by ABARES, the agency responsible for agricultural science and economic research.
It predicts agricultural production will drop by 14% to $79bn after three consecutive record years.
ABARES executive director, Jared Greenville, told AAP:
We’re expecting agricultural production to pull back from what has been a peak for quite some time, last year where we reached close to $92bn.
It’s largely being driven by a reversion to a more average to below average yield, particularly across our winter cropping.
While it’s been a mixed start to the cropping season, Greenville said production is still expected to hit 44.9m tonnes, and will be the sixth largest ever.
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Thanks to Natasha for taking us through the morning! I’ll be with you for the remainder of the day.
Thanks for your attention this morning. Emily Wind is taking over the reins – see you tomorrow!
Boy dies after suffering severe burns in house fire
A 13-year-old boy has died and two others remain in hospital as investigations continue into a house fire in Western Australia, AAP reports.
The boy died on Monday after initially being taken to Perth children’s hospital last week in a critical condition.
Police said two other teenagers, aged 12 and 14, remained in a critical but stable condition.
They said investigations into Thursday’s blaze at Mount Tarcoola in Geraldton were ongoing.
Callers reported smoke coming from the roof of the brick and tile house and eight fire crews arrived to find it fully engulfed.
Three boys were found at the scene and a fourth, also aged 13, was located at a nearby home.
He was treated at Geraldton hospital for moderate burns and later discharged.
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Greens senator chairing inquiry into climate-related marine invasive species
In more marine news, invasive long-spined sea urchins are destroying marine ecosystems down Australia’s east coast, a senate inquiry has heard.
Greens senator Peter Whish-Wilson is chairing the senate references committee inquiry into climate-related marine invasive species over the next two days.
The inquiry will have a particular focus on assessing the impact of invasive centrostephanus (long-spined sea urchin) on marine environments, coastal economies and communities.
Whish-Wilson is sharing the main findings on social media:
First up we've been hearing from abalone and urchin divers based in Mallacoota VIC.
— Peter Whish-Wilson (@SenatorSurfer) June 6, 2023
Impacts on abalone total allowable catch (TAC) related to the urchin's decimation of giant kelp forests is a key point raised. Warming ocean temperatures also a key factor in reduction in TAC.
Invasive long-spined sea urchins have been range-shifting down Australia’s east coast with climate change over recent decades, decimating marine ecosystems in their wake, yet virtually nothing has been done by any level of government to research, manage or mitigate this risk.
— Peter Whish-Wilson (@SenatorSurfer) June 6, 2023
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‘Enough to make you sick’: MP says on findings into Morrison-era health department
Independent MP Sophie Scamps says the findings of audit office’s review into the handling of the Morrison-era $2bn Community Health and Hospitals Program (CHHP) “is enough to make you sick”.
In a statement Scamps said the latest news shows why her ‘Ending Jobs for Mates’ private member’s bill is so important:
As a doctor, I find it incomprehensible that health funding could be rorted for a political advantage.
… The Morrison Government defunded the ANAO but it has reinforced its importance to Australia’s democracy in the years since with excellent work calling out unethical and potentially corrupt processes in our democracy.
… It’s time for the Albanese Government to enact my ‘Ending Jobs for Mates’ bill and show it takes restoring integrity to our democracy seriously.
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‘Government continues to put wellbeing and safety of whale rescue crews at risk’, AMCS says
Australian Marine Conservation Society’s shark scientist, Dr Leonardo Guida said:
It beggars belief that the Queensland government is yet to remove shark nets and year after year when whales get entangled, the government continues to unnecessarily put the wellbeing and safety of whale rescue crews at risk.
Successful trials of drones to keep an eye out for sharks and alert lifesavers to swimmers at risk of drowning at Queensland beaches, makes the continued use of a 61-year-old shark net strategy all the more redundant.
Shark nets operating as part of Queensland’s shark control program were responsible for the entanglement of 13 whales last season – equal to the most entangled whales in any migration season in the last 20 years.
In addition to migrating whales, shark nets entrap and kill dolphins, turtles, sharks and rays.
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Conservationists call for immediate removal of shark nets in Queensland
In response to that news of the first entanglement of the whale migration season, conservationists are once again calling for the immediate removal of shark nets in south-east Queensland.
The Humane Society International (HSI) Australia and the Australian Marine Conservation Society (AMCS) said in a joint statement “it is abhorrent that the nets are left in for the duration of the whale migration season”.
HSI Australia Marine Biologist, Lawrence Chlebeck said:
Every single year we see the same predictable and avoidable story play out over and over again.
Migrating humpback whales swimming along the SE QLD coast have to dodge and weave past 27 lethal shark nets and inevitably some are entangled.
For the whales, getting caught in a net is tremendously stressful and these animals on their epic journey just don’t have any energy to spare. Even if freed alive, there’s no guarantee they’ll survive after the traumatic ordeal.
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Humpback whale freed from shark nets
A humpback whale has been freed after getting caught in shark nets on the Gold Coast overnight.
The whale became entangled in the net last night off Mermaid Beach, marking the first entanglement of the young whale migration season according to animal welfare organisations.
The Queensland Department of Agriculture and Fisheries confirmed that crews began work at 6 am this morning and were able to free the animal.
9News reports the crews also zip-tied the damaged shark net together to avoid any more sea creatures from getting caught in it.
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Dingo responsible for child attacks killed
A dingo responsible for two separate attacks on children at a popular national park in Western Australia has been killed, AAP reports.
A four-year-old boy was bitten on the leg on Saturday at Dales Campground in Karijini national park, in WA’s north.
The boy was taken by his family to Tom Price hospital.
The WA parks and wildlife service said the attack happened in the same section of the campground where a two-year-old boy was set upon by a dingo in April.
The toddler suffered serious but non-life-threatening injuries.
The areas where both attacks happened were closed to visitors on Monday but they will reopen today after the dog was humanely killed.
Authorities said:
The decision to destroy a dangerous animal is always a last resort, however the unprovoked, aggressive behaviour exhibited by this dingo over recent months was putting the safety of visitors at risk.
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Thunderstorms, heavy falls and damaging wind gusts are all predicted for the far west of NSW today and tomorrow.
Thunderstorms forecast for NSW 06/06 and 07/06. Isolated thunderstorms are possible in the west today and tomorrow. Some thunderstorms may become severe with a risk of LOCALISED HEAVY FALLS and DAMAGING WIND GUST (>90 km/h). Monitor latest warning at https://t.co/Ss766eSCrL pic.twitter.com/PlBvNFhefY
— Bureau of Meteorology, New South Wales (@BOM_NSW) June 6, 2023
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Andrews denied the government was pulling advertising because the two newspapers were holding it to account via their reporting. Andrews told a Herald Sun reporter:
Why would you continue advertising on your website if that was the case? ... This is about where people get their information ... and where there is the maximum benefit. In our judgment and the judgment of those who advise us [say] it skews much more towards digital [and] television.
Ads will still run in regional newspapers, Andrews confirmed.
Victorian government to cease newspaper advertising
Victoria’s premier, Daniel Andrews, says the government’s plans to cease advertising in the Herald Sun and the Age newspapers is about delivering taxpayers better return on investment.
From 1 July, metropolitan newspaper ads will not be placed by the government unless required by law, costing them millions of dollars in revenue.
Andrews, however, said he made “no apology” for focusing its advertising efforts on television and digital advertising:
That’s where the audience is, that’s where the return on investment for taxpayers is and that’s the decision that’s been made. There might even be more ads on [newspaper] websites than otherwise. The other point too, of course, is we have had peak times of Covid. All the different advertising that we needed to do. We have to rebalance that we have to get back to ... a longer average. I think when all of these arrangements are settled, you’ll see that spending in the coming years will be much closer to what it was in 2017, -18, -19 than what it was during those Covid times because there were extraordinary circumstances.
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Legal expert estimates Folbigg could be entitled to up to $7m in compensation
Dr Robert Moles, a legal academic and researcher from Flinders University, estimates Kathleen Folbigg could be entitled to between $2.5m and $7m in compensation.
Moles gave evidence to the second inquiry into Folbigg’s convictions which has seen her pardoned.
He’s told ABC News if her convictions are quashed and Folbigg can seek compensation, the cases of Henry Keogh and David Eastman would be a “good guide.”
[Henry Keogh] was imprisoned for a similar period of time as Ms Folbigg, 20 years, and after he was – after his conviction overturned, it being understood that the crimes which he was convicted never occurred – he was getting an ex gratia payment of around $2.5m.
In the case of David Eastman in the ACT, he was wrongly convicted for a similar period of time, about 20 years, and he undertook legal proceedings for compensation and he was awarded over $7m.
So given the similarity in the periods of time, an obvious calculation would be something between $2.5m-$7m for Ms Folbigg.
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Andrews defends tender process to overhaul myki
Victoria’s premier, Daniel Andrews, has defended the tender process to award a $1.7bn contract to overhaul the myki ticketing system to US-based company Conduent after a losing bidder warned of “possible errors in the tender process”.
The ABC on Tuesday reported Cubic’s executives wrote to the premier saying their bid was $100m cheaper than Conduent’s and noted their track record of using mobile phones and credit cards for public transport fares. The Guardian has previously reported other bidders could have implemented open payment credit card compatibility faster than Conduent’s proposal.
Speaking at Holmesglen Tafe in Glen Waverley on Tuesday, Andrews said he had been briefed on the contents of Cubic’s letter but said he had “no advice” to suggest there were errors in the tender process:
I’m not here to share correspondence with you or anybody else. What I’m here to do is to simply point out to you that there’s been a process run. There’s a probity auditor that’s been deeply involved in that process. Advice was provided as to who won that process. And the tender has been awarded. Beyond that I’m really not in a position to have anything more than that to say, other than to direct you to the relevant minister, who has been across this from the very beginning.
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AMA says report of children in solitary confinement 'highly concerning'
Australia’s peak medical body say Guardian Australia’s revelations today about children locked in solitary confinement for weeks at a time in a Queensland youth prison are “highly concerning”.
The Australian Medical Association called for Queensland to raise the age of criminal responsibility to uphold fundamental medical and health rights:
It is disappointing the Queensland government is not prepared to raise the state’s age of criminal responsibility.
It must be raised to a minimum of 14 years of age to uphold the fundamental medical and health rights of all people in custody.
On any given night, hundreds of kids aged 10-17 are held in detention facilities in Australia. Evidence shows jailing children under the age of 14 harms their health, wellbeing and development.
The details in this report are highly concerning and show why jail is no place for kids. These facilities are not rehabilitative and have deeply adverse physical, psychological and emotional effects. https://t.co/mlNfpC8M0o
— AMA Media (@ama_media) June 6, 2023
Ben Smee’s exclusive investigation hears from whistleblowers, judges and youth workers who say children are leaving Townsville’s Cleveland youth detention centre scarred, angry and more likely to commit further crime. Read it here:
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How Australian fashion fell to pieces
Remember Alannah Hill? Lisa Ho? Collette Dinnigan? Bettina Liano? Willow? What about Alice McCall, whose business went into liquidation earlier this year?
In the past 10 years, Australia’s luxury and fast fashion markets have approximately doubled in value, meaning we’re spending more on clothes than we ever have. So why did these labels cease trading? And why are so few of the clothes we buy now designed in Australia, and even fewer made here (around 3%)?
We’ve interviewed some of Australia’s most successful designers of the 90s and 00s to find out where it all went wrong for fashion. From tariff reductions and globalised manufacturing, to the rise of e-commerce, it’s a complicated picture with a simple result.
These days money – not talent – rises in fashion, and if you wanted to start a successful fashion brand now, you’d need, as Alannah Hill puts it: “At least a million dollars. At least.”
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Richard Marles signs security agreement with Indonesia
The defence minister, Richard Marles, has signed a defence cooperation agreement with his Indonesian counterpart, Prabowo Subianto, elevating the security relationship between the two nations.
Thank you Minister @prabowo for hosting me today.
— Richard Marles (@RichardMarlesMP) June 5, 2023
🇦🇺 + 🇮🇩 are elevating our security relationship by putting in place a comprehensive and ambitious Defence Cooperation Agreement.
Our conversations today reflect the fact that our relationship is going from strength to strength. pic.twitter.com/HBssvDa90N
A very productive conversation with Indonesian Vice President K. H. Ma’ruf Amin while in Jakarta.
— Richard Marles (@RichardMarlesMP) June 5, 2023
We both observed that the relationship between our two countries has never been in a better place than it is today. pic.twitter.com/zwIhwLrU2d
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In that earlier interview, the minister for workplace relations, Tony Burke, said it wasn’t the Fair Work’s increase to the minimum wage which was leading to higher inflation.
I’ve seen in the last few days since the annual wage review came down, some people effectively wanting to blame workers for any decision that the Reserve Bank might make.
Now, you need to remember last year’s annual wage review was only 10% of the total wage growth in the country.
That’s because the people affected by the annual wage review are the people on the lowest incomes. They’re the people relying on it.
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Angus Taylor says Labor’s ‘cocktail of policies’ worsening inflation
Ahead of that decision, the shadow treasurer, Angus Taylor, has criticised the government’s “cocktail of policies” for creating an inflationary environment and creating pressure for the rate to go up again.
He told ABC News this morning:
The sad reality is the Reserve Bank is under enormous pressure now to raise interest rates.
There is enormous pressure on cost of living out there and that means there’s pressure on interest rates and, sadly, we are in a position where the expectations of markets and economists say we’re going to see more pain.
I certainly hope these pressures come off. But sadly, we’re seeing a cocktail of policies since the budget that, if anything, are inflationary. That means there’s real pressure for interest rates to go up.
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Reserve Bank gears up for another close cash rate call
The Reserve Bank of Australia board is set to make another tough interest rate decision in the fight against persistent but tempering inflation.
Board members will weigh up strong but somewhat unreliable monthly inflation data – which came in at 6.8% in April, up from 6.3% in March – as well as signs of an easing but still robust jobs market.
The central bank is also considering fresh wage data, which revealed pay packets growing at 3.7% in the March quarter.
– AAP
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Folbigg’s lawyer says the system failed her ‘at every step’
Folbigg’s lawyer, Rhanee Rego, ends the press conference saying the legal team wants to ensure right is done by her, after the system failed her client “at every step”.
Expanding on why they have likened the case to Lindy Chamberlain’s, Rego says:
A mother wrongly accused of killing her child. But we’ve got to look at the scale we’re dealing with, with Kathleen. She not only lost one child, she’s lost four. She’s been in jail for 20 years.
The system has failed her at every step. Instead of trying to understand why her children died, potentially through an inquest, which was said should have happened, all the way back in 2001, we threw her in jail, locked her up, called her Australia’s worst female serial killer, put her in solitary.
How would any of you feel to have it happen to you? None of us could put ourselves in Kathleen’s shoes. That’s what makes it so hard to believe. And we, as her legal team, will stand strong with her and stand with her all the way along to make sure her name is cleared and right is done by her.
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Asked if there were any tears when Folbigg arrived at Chapman’s home, she says:
It was weird. I feel like – I don’t know how to explain it. We both wanted to cry. But we couldn’t cry. I don’t know how to explain it. I’m sure once everything settles down, there will be tears. Both of us feel quite animated at the moment. I don’t know if it makes sense to you all.
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What a difference a day makes, Chapman says:
She would be expected to be dressed and doing muster at this time.
She didn’t get to say goodbye to anyone yesterday. It happened so quickly.
She’s definitely going to be missing quite a few people. I know that for sure.
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Folbigg ‘would have appreciated a bit more notice’ of release
Chapman says she and Folbigg would have appreciated more notice of the pardon yesterday, and that Folbigg will have more to say “eventually.”
Kath didn’t find out, I didn’t find out. We would have appreciated a bit more notice.
There’s so many things she’ll say about that eventually.
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Chapman says she and Folbigg want to see reform in the justice system:
There’s a lot of things that could have been done better with this case.
So, we would like to see a significant amount of reform in the system. A lot more empathy in the space.
… There’s been so many things that the system could have done better, even yesterday, for example.
So, yeah. A bit more humanity, I always say. Kath and I are very much that person.
Chapman says Folbigg is looking forward to being able to make her flat her own:
She thought her flat was pretty good when she went into it yesterday.
Last night she stayed with us. I think she’s looking forward to making her flat her own. Being able to choose her own furniture and do her own thing.
She’s only got things we have given her. She’s looking forward to starting afresh.
Chapman:
There’s no hate in her heart. She just wants to live a life she has missed for the last 20 years and move on.
Chapman says Folbigg has not heard from her former husband:
I must say I was quite disappointed, personally, with the comments made in the media yesterday. But look, at the end of the day, you know, that’s between Craig and … well, she probably won’t speak to him, I’d say.
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Chapman says news of Folbigg’s pardon came as a surprise
Chapman explains a bit more how yesterday morning unfolded with the news of Folbigg’s pardon coming as a surprise:
Yesterday was pandemonium. I was in chaos yesterday morning. Literally running around, it was like my hair was on fire kind of stress moment.
I didn’t get much notice. I basically knew she was coming out the door and she would be there in 40 minutes.
I was kind of cursing – ‘this is not how it’s supposed to happen!’ In my mind it was all beautiful and calm and organised. And the steak was out. Nah, none of that. It was just chaos.
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On how Chapman is explaining the past 20 years of changes to Folbigg, Chapman said:
The phones have bamboozled her a bit. She was a bit ‘How do I use this?’
She hasn’t actually tried. She said to me yesterday, ‘I am going to leave that to you’. She has watched in awe.
Even the television she was going, ‘oh my God, look at the television, it’s got so many capabilities! What’s iview?’
We were explaining we can watch all these television shows and you don’t need to sit there at 7.30 and watch the show anymore. She was like ‘this is amazing. I’m going to watch some binge TV.’
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Chapman says Folbigg is “running on adrenaline”.
She’s so grateful to be surrounded by her friends and her family and her legal team. She actually said to me this morning, “my face muscles hurt from smiling so much”.
She just wants to catch up on some long lost sleep and be surrounded by the people she cares about. It’s hard to explain how she’s felt, you know, incarcerated for all these years.
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Chapman says neither she nor Folbigg could believe it when they were able to hug each other in person:
It was this moment where there was just this complete – it was in slow motion yesterday. Just this lull and it was sort of like, oh my God, you’re here.
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Rego says it’s too early to talk about compensation – “Kathleen is still having a cup of tea” – but they’ll be considering all options available to her.
She’s trying to focus on taking one step in front of the other and not rushing to things. She has just been waiting to feel the grass on her feet, look at the sky, and watch a sunrise for the first time in 20 years. And we won’t be rushing her and pushing her to do anything she doesn’t want to do, until she’s ready.
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Folbigg’s lawyers have asked for case to be referred to court of criminal appeal
Reporter:
If it doesn’t get referred to the court of appeal, is there any other avenue for compensation?
Rego:
Mr Bathurst has really only one power, he can refer to matter directly to the court of criminal appeal. We have asked him to do so.
And we are very much hope we’ll make that referral when that report is provided.
If Mr Bathurst doesn’t refer it, we’ll be asking the governor to refer it, because she has the power.
Failing that, we’ll be making an application to the court of criminal appeal.
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Folbigg’s lawyer says ‘we’ll have her convictions quashed’
On next steps, Rego says:
The legal team, Dr Robert Kavanagh, Dr Greg Woods and I, will be talking to Kathleen about next steps. It’s too early to say anything other than we’ll have her convictions quashed.
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Folbigg’s lawyer says system of post-conviction review needs change
Folbigg’s lawyer, Rhanee Rego, steps up next and says Australia must review its system of post-conviction review if it “wants to make some good from a tragic story”:
Yesterday was a huge moment in a really long and painful journey. That Kathleen has been on for 24 years, with Tracy, and Robert behind me, who started this 10 years ago with other colleagues.
The state has done the unimaginable to Kathleen Folbigg. They have put her in prison when she lost her four children. This is a tragic story but Kathleen is an example of a broader problem in the system.
If Australia really wants to make some good from a tragic story, they’ll seriously consider reviewing the system of post-conviction review, the same system that took too long to get to today.
Kathleen Folbigg is grateful, she has no hatred, she’s grateful she’s released today. And we urge everyone to give her privacy while she enjoys the first bit of freedom and also she’ll be honouring the memory of her children as she’s done every day for 24 years.
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Tracy Chapman says last night the first time Folbigg’s ‘been able to sleep properly in 20 years’
Chapman says sleeping in a real bed last night was the first night Folbigg slept properly in 20 years.
And slept in a real bed last night. She’s actually – she said it was the first time she’s been able to sleep properly in 20 years.
Even though it was brief last night, because we were all on adrenaline.
She was able to turn over in her bed and not wake herself up. So, I don’t know if that’s – for anyone that slept in a really uncomfortable bed, think about what it’s like for 20 years for her. She’s been grateful to sleep in a good bed last night.
We’ve had a lovely morning. We’ve been out with the horses. She’s eaten her breakfast cereal in real crockery.
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Kathleen Folbigg ‘grateful’ after release, friend says
Chapman says Folbigg’s first night out of prison has been about enjoying the little things in life:
We just enjoyed each other’s company. She spent a lot of time with my dogs and getting to know my animals.
We didn’t get our steak for dinner, which was a bugger. So we’ve had pizza last night.
We had a bit of a flashback to 20 years, she asked for a Kahlua and Coke. It was a flashback to the last 20 years.
Garlic bread and pizza for dinner, I feel pretty shamed for that, but that’s what you get.
She slept for a first time in a real bed, had a cup of tea in a real crockery cup, real spoons to stir with.
That sounds basic to you all, but she’s grateful. Decent tea, real milk.
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Tracy Chapman says Folbigg’s release was ‘surreal’
Chapman:
I guess you all want to know what Kath’s doing right now. OK, yesterday was such a rush, which Mr Daley didn’t really appreciate that yesterday.
I was so unprepared. We had – it was one of those surreal days where you just kind of threw all your plans out the window.
Kath and I were grateful, though, and we just got on with having – it was just surreal. I can’t actually say more than it was a surreal day.
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Friend Tracy Chapman speaks about Kathleen Folbigg's release
Kathleen Folbigg’s friend Tracey Chapman steps up the mic at Coffs Harbour saying it’s a surreal morning:
I’m kind of lost for words.
It’s been a very hard, long slog.
It’s quite surreal, this morning. Forgive me. I’m usually full of things to say.
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We are standing by for a press conference with Kathleen Folbigg’s lawyers and her friend Tracy Chapman in Coffs Harbour. We’ll bring you what they have to say as soon as they step up.
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Health grant program not pork-barrelling, Cash says
Cash also denied that this blistering audit report into the Morrison government, which she was part of, constituted pork-barrelling.
That program itself was actually developed to deliver local health and hospital services in every state and territory.
The Albanese Labor government has continued to use this grant program to support health services across the country.
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Cash was at a loss, expressing several times, why Burke is “insulting employers.”
Shadow employment minister Michaelia Cash making the same point over and over about "Mr Burke INSULTING the employers of Australia" on @RNBreakfast.
— Rachel Withers (@rachelrwithers) June 5, 2023
Hamish Macdonald: "We heard that the first couple of times, with respect, Senator."
While Burke said there’s no intention to do what the business community is describing, Cash says business’ campaign is “absolutely not” an over-reaction.
Cash says the consultation paper on the “same job, same pay” changes goes further than labour hire:
He clearly has not read his consultation paper.
It goes much further than labour hire, it goes beyond the standard definition and covers service contractors. Any business that engages service contractors will be captured.
If it’s about closing a loophole it should be very, very narrowly defined.
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Michaelia Cash attacks ‘same job, same pay’ changes'
The shadow industrial relations minister, Michaelia Cash, is now speaking with ABC Radio, and she is not impressed by Burke’s defence of the “same job, same pay” changes.
Why would the minister for industrial relations insult the employers of this country? The employers are the job creators of this country and perhaps instead of insulting them, he should actually sit down with them properly, as opposed to a sham consultation that they were undertaking at the moment.
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Burke says the loophole only applies to where the business has agreed on a minimum rate of pay:
The loopholes are really simple … which is, if an employer agrees with their workforce and registers, this should be the rate of pay.
You shouldn’t then be able to go to a labour hire company and completely undercut what you’ve just agreed to.
Now, that’s a loophole but yesterday in that business media conference, people [were] saying ‘oh, this will affect family farms.’
You’re hard pressed to find too many local family farms that have got an enterprise agreement in place.
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Tony Burke says ‘same job, same pay’ laws about closing loophole
The government is also seeking to introduce “same job, same pay” laws, which would close loopholes allowing companies that have negotiated a pay rate with their workers to then pay labour hire contractors less for the same job.
It isn’t law yet, or even before parliament but the government is facing push back from an alliance of business, mining and farming groups who have launched a national campaign arguing it would deny contract workers the ability to negotiate “more pay for harder work”.
Burke says the campaign being launched has got it wrong:
Yesterday was one of the one of the strangest debates I’ve ever found myself in – because business was running a passionate campaign against a policy that the government is not proposing, that the government’s not going to do. And to me, it would sound like a bad idea anyway.
Effectively the way business were arguing yesterday – there was someone on PM yesterday afternoon, claiming that somehow this would prevent hairdressers from being able to pay different rates of pay for the people in their employment. Just not true.
What we’re trying to fix here is a loophole.
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The employment relations minister, Tony Burke, says he “couldn’t be happier” that the first multi-employer bargaining case is being brought forward by the early childhood education industry.
Burke told ABC Radio:
Seeing today that the first industry that’s going to have a go at using these laws to try to get better rates of pay for the workforce is early childhood education, I couldn’t be happier.
It’s not just getting wages moving – when it’s a feminised industry, it also helps close the gender pay gap.
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New bargaining system for workers kicks into action
The first multi-employer bargaining case will be brought before the industrial umpire under new federal laws allowing workers from different businesses to band together to negotiate higher pay rises, AAP reports.
Unions representing workers at 20 different early childhood education employers across New South Wales, the ACT and Victoria will go before the Fair Work Commission on Tuesday – the first day the new laws come into effect.
Meanwhile, the ACTU is challenging business groups opposed to the federal government’s planned labour hire worker reforms.
The government is seeking to introduce “same job, same pay” laws, which would close loopholes allowing companies that have negotiated a pay rate with their workers to then pay labour hire contractors less for the same job.
Eight industry groups – including the Australian Chamber of Commerce and Industry, the National Farmers Federation, the Minerals Council and the Business Council of Australia – have united to oppose the reform, arguing it would deny contract workers the ability to negotiate “more pay for harder work”.
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Conservationists seek review of Plibersek mining decisions
Conservationists have launched a legal challenge to environment minister Tanya Plibersek’s decision to allow the proposed extension of two coalmines in New South Wales to be considered for approval under national environment laws.
The Environment Council of Central Queensland (ECoCeQ) had asked the minister last year to reconsider and effectively reject 19 proposed new coal and gas projects because of their potential effects on the climate.
Last month, Plibersek decided three of those projects, two in NSW and one in Queensland, could proceed to the next stage of the assessment process.
Environmental Justice Australia (EJA), on behalf of the environment council, has filed federal court proceedings seeking a judicial review of the minister’s decision for the two NSW mines – a proposed extension of Whitehaven’s Narrabri underground coalmine and MACH Energy’s proposed extension of its Mount Pleasant mine in the upper Hunter region.
The environment council is arguing the minister made “key legal errors when she refused to accept the climate harm these projects are likely to cause, as demonstrated in thousands of scientific reports, including from the IPCC and her own department”.
The council’s president, Christine Carlisle, said the council believed the decision “to treat the climate harm from these mega-mines as insignificant was wrong in law and in science”.
EJA senior lawyer Retta Berryman said new coalmine proposals posed serious and irreversible threats to the climate and threatened plants and animals:
If successful, this case could mean all new coal and gas plans must be properly assessed for their climate risk to our environment.
A spokesperson for Plibersek confirmed the environment department was notified of the legal challenge on Monday. They said because it was a legal matter the government could not comment further.
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Good morning! Thanks to Martin for getting us started. I’ll be with you into the afternoon.
Australians warned over tax scammers
As tax time draws closer, the government is warning there will be an increase in scam activity, urging people to be vigilant for “‘sinister scammers.”
The financial services minister, Stephen Jones said:
We know these sinister scammers are targeting people at tax time, looking to get their hands on people’s personal information impersonating the ATO and promising ‘tax refunds’.
We urge people to remain vigilant to scams all year round, but especially at times when scammers are more likely to prey on individuals, including tax time.
He said scammers will be impersonating the ATO, offering to help with tax returns and super questions. They could also be offering a fake refund or collecting your personal data.
The top ways you can protect yourself against scammers this tax time is to:
Remember that the ATO will never send you a link to log in to their online services or ask you to send personal information via social media, email or SMS.
Do not respond if the contact seems suspicious. Instead, call 1800 008 540 to check if it was the ATO speaking with you.
Report any suspicious contact claiming to be from the ATO to ReportScams@ato.gov.au and Scamwatch.
Delete suspicious correspondence from your account or block the account on social media.
In 2021-22 the ATO received more than 20,000 scam reports from taxpayers and has already received 19,843 reports in 2022-23.
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Kathleen Folbigg may be owed compensation over jailing
As Kathleen Folbigg chalks up her first day of freedom in two decades, attention has turned to whether she is owed compensation for her long ordeal, Australian Associated Press reports.
Robyn Blewer, director of the Griffith University Innocence Project, has pointed to two recent cases to indicate how Folbigg could be compensated for her 7,300 days in jail.
Western Australian man Scott Austic in May received $1.3m on top of an earlier payment of $250,000 after serving nearly 13 years in jail before being acquitted of murdering his pregnant secret lover.
David Eastman was awarded $7m in damages by the ACT supreme court in 2019. He served almost 19 years over the 1989 shooting murder of federal police assistant commissioner Colin Winchester, only to be acquitted at a second trial.
“The difference is it was in ACT, which has a human rights act, and under that there is an entitlement for compensation under human rights,” Blewer said.
Lindy Chamberlain was awarded an ex gratia or grace payment of $1.3m in 1992.
Given NSW lacks a human rights act like that of the ACT, Blewer said Folbigg could end up reliant on what the NSW government is willing to pay.
Folbigg’s lawyers will await the final report of former chief justice Tom Bathurst into her convictions. An application to the NSW court of criminal appeal to quash her convictions is likely to follow shortly afterwards.
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China leading world in Aukus-related technologies
China is leading the world in high-impact research in 19 out of 23 technologies relevant to the Aukus technology partnership and has a commanding lead in hypersonics, electronic warfare and in key undersea capabilities, the Australian Strategic Policy Institute warns today.
However, the combined strength of the Aukus countries is superior to China when it comes to technologies such as autonomous systems operation technology, advanced robotics, adversarial AI-reverse engineering and protective cybersecurity.
Aspi said the fact that Aukus countries still trail China in some fields “underscores the value of the technology-sharing agreement, whose aim is to accelerate shared technological development by enabling the partners to leverage one another’s strengths”.
The new analysis found that for some technologies, such as autonomous underwater vehicles, almost all of the leading research institutions are based in China, where they generate nine times more high-impact research papers than their closest competitors in the United States.
The new research looked at 23 critical technologies that are integral to the advanced capability areas of Aukus Pillar 2. (Pillar 1 is the nuclear-powered submarines).
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Welcome
Good morning and welcome to our rolling news coverage. I’m Martin Farrer and I’ll be flagging the main overnight news stories before Natasha May takes the helm.
One of the main stories today will be the Reserve Bank’s announcement at 2.30pm of its latest decision on the cash rate. As we are reporting this morning, economists are split about whether the bank will make its 12th hike in 13 months and take the rate above 4%, or whether it will hold off in light of falling inflation. It’s a big moment for many thousands of Australians facing ever-increasing mortgage payments.
Before that we’re expecting a media conference at 8am with the lawyers of Kathleen Folbigg, who was pardoned and released from prison yesterday, 20 years after being found guilty of killing her four children. Tracy Chapman, Folbigg’s best friend, will join the press conference in Coffs Harbour and ahead of that you can catch up with the case with our newly published feature here, and read an explainer about the new evidence that led to her release.
China is leading the world in high-impact research in 19 out of 23 technologies relevant to the Aukus technology partnership and has a commanding lead in hypersonics, electronic warfare and in key undersea capabilities, the Australian Strategic Policy Institute warns today. However, the combined strength of the Aukus countries is superior to China when it comes to technologies such as autonomous systems operation technology, advanced robotics, adversarial AI-reverse engineering and protective cybersecurity. More coming up on this story.
