The day that was, Tuesday 5 July
That is where we will leave the live blog for Tuesday.
Here’s what made the news today:
- The Reserve Bank of Australia raised the cash rate by 0.5% to 1.35% as it keeps pushing to get inflation under control. Some experts have tipped it could peak as high as 2.6% in the coming months.
- The treasurer, Jim Chalmers, has said it will get worse over the coming months before it gets better and the economic response will be detailed in the October budget.
- The shadow treasurer, Angus Taylor, has insisted that is too slow, and the government needs to announce its plans now.
- The flood situation in New South Wales is going to continue with rain expected over the next few days, centred towards the mid north coast. There were over 150 flood rescues during the day, and over 200 people turned up to the nine evacuation centres in the state.
- Federal disaster relief payments have been made available to the 23 flood-affected areas in NSW.
- The prime minister, Anthony Albanese, will visit flood-ravaged areas of NSW on Wednesday with the NSW premier, Dominic Perrottet.
- Albanese returned from his trip to Europe and his visit to Ukraine, defending his overseas trips, stressing the importance of international relationships, and the work his team is doing back home.
- Train delays are set for Sydney on Wednesday after the NSW government failed in its case with the Fair Work Commission to have the strike stopped.
- There were at least 46 Covid-19 deaths in Australia reported on Tuesday.
Until next time, stay safe.
Novak Djokovic not included.
20 inmates at youth detention centre in Perth to be moved to new facility at Casuarina prison
About 20 inmates at a youth detention centre in Perth will be moved to the Casuarina prison after what the Department of Justice says has been months of disruption and damage, AAP reports.
The director general, Adam Tomison, said the young offenders at the Banksia Hill detention centre had been destroying infrastructure, assaulting staff and harming themselves.
They will now be moved to a new standalone facility at Casuarina so they can be more safely managed and less disruptive to the other Banksia Hill detainees.
“This newly-built unit will operate as a separate youth detention facility within the prison grounds ... allowing other detainees at Banksia Hill to return to their normal education, programs and recreation activities that have been affected by the ongoing disruptions,” Tomison said.
The corrective services commissioner, Mike Reynolds said there had been a constant stream of contractors at Banksia Hill this year trying to keep up with the destruction of cells, with the damage bill now more than $1.8m.
“The short-term youth detention centre will provide a safe environment for the 20 young men while we restore Banksia Hill to a safe working environment for staff and detainees and complete the necessary infrastructure works,” Reynolds said.
“We examined all possible options within WA’s custodial estate for the short-term facility.
“The Casuarina site, with its new, secure units, was the only safe and suitable option to ensure the young men were able to be kept in a location away from the adult population.”
The recent issues at Banksia Hill had left more than 100 of its 260 cells seriously impacted and more than 30 unfit for use.
Updated
Modelling predicts spike in Covid cases for South Australia but no mask mandate likely
South Australians are being urged to wear masks more often to help combat a looming spike in Covid-19 cases, which is expected to put more pressure on the state’s already-stretched hospital system, AAP reports.
But there will be no widespread mandates, despite updated modelling confirming case numbers are likely to top 5,000 a day within the next few weeks after the recent arrival of the latest Omicron strains.
The modelling also predicts a rise in hospital admissions.
The chief public health officer, Nicola Spurrier, said people should consider wearing masks in indoor crowded places, including supermarkets and shopping centres.
As people know, the wave comes through and then it reduces again, but there’s a lot that we can do as South Australians to reduce the height of that curve. So it is within our own personal power to do something about it.
I want people to think about getting the masks out of their back pocket or their handbags and start putting it back on their face again.
Spurrier said she hoped mask-wearing would become more “normalised” across the community given the likelihood of more Covid-19 waves.
But she said the community had moved on from widespread restrictions, including mask mandates and lockdowns.
Updated
For those of us who may need a quick explainer on the RBA’s latest moves today, here’s Matilda Bosely – and the Guardian’s ace video team – breaking it what exactly the cash rate is, and how it affects, well, everything:
Updated
Unions call on government to support hundreds of workers at Lismore ice cream factory
Unions are calling on the federal and NSW governments to support hundreds of workers at a Lismore ice cream factory, saying job losses will have a profound effect on the flood-ravaged community, AAP reports.
Norco, a century-old dairy cooperative owned by farmers, has warned it will have to stand down 240 workers from its ice cream facility when initial government support runs out on 15 July.
The support package has paid workers in the months since the factory was badly damaged during catastrophic floods in February. They have been part of clean-up efforts across the regional city and at local farms.
Norco’s chief executive, Michael Hampson, last week joined other major Lismore employers in calling for the federal government’s $44m Anchor Business Support grant program to be increased and expanded.
Hampson said the co-op’s farmer members do not have the capacity to cover workforce costs while there is no commercial output.
The situation has prompted calls from the Australian Manufacturing Workers Union, the Australasian Meat Industry Employees Union and the Electrical Trades Union for governments to step in.
The unions have written to the state and federal governments, urging them to save the workers’ jobs.
Updated
From July 1 to 9am on the 5th parts of #NSW received almost 700mm of rain. Places in Illawarra had record July rainfall in just a few days, while moderate to major flooding continues in some parts. Latest warnings @ https://t.co/Ss766eSCrL
— Bureau of Meteorology, New South Wales (@BOM_NSW) July 5, 2022
Rain stations: https://t.co/Nkszyvt42C pic.twitter.com/8JeyqUCdcw
Bushfire survivors launch legal action to block coalmine expansion
A group of bushfire survivors has launched legal action to try and block a major expansion of a coalmine in New South Wales that would make the project one of the dirtiest in Australia.
The group, called Bushfire Survivors for Climate Action, is challenging the decision of the state’s Independent Planning Commission (IPC) to approve Whitehaven Coal’s Narrabri extension.
The approval was “unreasonable, irrational and illogical and not in the public interest” and should be overturned, lawyers for the group will argue in the state’s land and environment court.
The $400m expansion extends the mine’s life by 13 years to 2044 and burning the coal would add almost half a billion tonnes of CO2 to the atmosphere.
Fiona Lee, a spokesperson for the group who lost her home in the 2019 and 2020 black summer bushfires, said the challenge came as thousands were battling rising floodwaters in the state.
Homes, businesses, farms, infrastructure are being destroyed and lives are being lost and imperilled. As bushfire survivors we stand shoulder to shoulder with all climate survivors, determined to fight for safer communities.
Elaine Johnson, the director of legal strategy at the Environmental Defenders Office, which is representing the group, said:
This case marks a line in the sand. The IPC has a duty to make legally reasonable and justifiable decisions. Our client says that it cannot be reasonable, rational, logical or in the public interest to approve a mine which will be a major new source of climate pollution in 2022.
Johnson said the IPC had been presented with scientific evidence on the impact of the emissions that would come from burning the project’s coal.
Decision-makers can no longer ignore the huge body of undisputed scientific evidence that says we must rapidly reduce emissions and leave coal and gas in the ground if we are to have a liveable planet.
Updated
Victorian government unveils Yuma Yirramboi Indigenous employment strategy
The Victorian government has unveiled a new Indigneous employment strategy to help boost job opportunities for the state’s First Nations people.
To coincide with Naidoc week, the state government has announced a new $25m Aboriginal employment and economic strategy. The strategy is titled Yuma Yirramboi, meaning “invest in tomorrow” in Woiwurrung language.
The scheme will aim to create culturally safe workplaces for Indigenous Victorians and reduce other barriers to employment.
The state employment minister, Jaala Pulford, said the path would help support Traditional Owners and Aboriginal businesses to reach their business goals:
Progressing Aboriginal employment and economic development is a long term priority, and this strategy is enabling Aboriginal communities to take control of the matters affecting them.
Updated
NSW government loses bid to stop train strike
Sydney is set for more train delays on Wednesday after the Perrottet government lost its bid to suspend planned industrial action by the state’s rail union.
The New South Wales government launched a case in the Fair Work Commission on Monday hoping to for orders that would force the Rail, Tram and Bus Union not to go ahead with a planned ban on operating some overseas-built trains.
The action, planned for Wednesday and Friday, would severely hamper the state’s rail network and cost millions to the state’s economy, the government had argued. But in interim orders handed down on Tuesday afternoon, the commission sided with the union, meaning the action can go ahead.
In a statement shortly after the decision, the RTBU’s secretary, Alex Claassens, welcomed the decision, but said the union had also agreed to “ensure additional services would be available this week to assist during the current weather conditions”.
Claassens insisted commuters would be “unlikely to notice any impact at all” from the reduced action.
He said:
One of the protected industrial actions that will continue between Wednesday and Friday is ban on transit officers issuing fines to people. With everything facing the people of NSW at the moment, rail workers have decided to put a stop to the NSW government taking money from people in the form of fines on public transport.
Throughout this whole dispute, we’ve always been as fair and reasonable as possible while still making it very clear to management and the NSW government that we are serious about fighting for the safe railway commuters and workers deserve.
We never want to inconvenience commuters. This whole dispute is to ensure commuters get the safe trains they deserve. However, the NSW government’s continued political game playing means that we’ve been left with no choice.
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Opposition responds to latest cash rate rise
The shadow treasurer, Angus Taylor, is up now on the ABC responding to the interest rate rise.
He says the government needs a “strong plan” to respond to it. But wouldn’t say what that plan should be, saying that’s for the government to do. He says the government needs to “manage spending” so it is not competing with households for spending.
He repeats his earlier line that the plan needs to be announced now.
He says the economic fundamentals when the Coalition left government were strong, but would not say whether it will remain strong, just that there needs to be a clear plan.
On whether the prime minister should have been travelling, is just that he’s concerned about “getting the job done here” in terms of the economic and flood response.
Updated
Chalmers dismisses criticism from the Coalition about the prime minister, Anthony Albanese, travelling overseas. He says the new government has had to repair relationships abroad, but that hasn’t taken away from the domestic focus.
He says:
Premier [Dominic] Perrottet from the other side of the political fence made it clear today how ridiculous that criticism is. They’ve been in opposition for a few weeks and managed the spend the last dregs of credibility they had remaining. We would rather not have to repair these relationships that been run down. It hasn’t prevented us from doing important things on the domestic front.
Chalmers says wages are not what is causing inflation:
If you made a list of all the things that are contributing to this country, wages wouldn’t be on it.
A lot of people, when inflation is low, say wages can’t go up because inflation is low. And when inflation is high, we can’t go up.
We have a series of other challenges. And I think the union movement and the business community are prepared to work together and the best way to do that with the government’s help is to ensure we get that decent wages growth that’s been missing for the best part of a decade, and we do that by making our workplaces more productive. And that’s why skills and training are so important.
Updated
Treasurer says economy is growing but warns of 'difficult times ahead'
The treasurer, Jim Chalmers, is on ABC’s Afternoon Briefing.
He says he, the RBA, and the public are worried about rising inflation, and it will get worse before it gets better. He says there will be “difficult times ahead” in the next few months before it gets better next year.
He says Australians are known for their resilience:
We’ve got the right kind of economic plan, which is all about making the budget and the economy as resilient as the Australian people, making sure that we’re doing things like dealing with ... skills shortages, making sure we’re making supply chains stronger to add more value here, childcare reforms to make the a pool of available workers bigger – all of these policies and plans are about growing the economy without adding to these inflationary pressures.
Our economy is growing, but so are our economic challenges in the near term, but we have the capacity to deal with them together.
He says the government has the right plan, and that will be implemented in the October budget. He says Australia has low unemployment and strong demand, and that some Australians have a buffer of savings and the economy is still expected to grow into the future.
Updated
Landslip forces suspension of Blue Mountains train line
A major landslip near Mount Victoria has forced parts of the Blue Mountains train line to be suspended as fallout from the New South Wales floods continues.
Incredible photos posted by @SamFarraway of a landslip in Mount Victoria affecting train services. pic.twitter.com/r1nZeoHDz3
— Sarah Keoghan (@sarah_keoghan) July 5, 2022
The Blue Mountains train line has been suspended until further notice between Katoomba and Mt Victoria due to the landslip. Transport NSW said limited replacement buses would run in both directions.
A shuttle train service is running between Penrith and Katoomba and also between Mt Victoria and Lithgow however shuttles do not run to normal timetable. If you are travelling to/from Blue Mountains Line stations, you will need to catch T1 Western Line services between Central and Penrith. Please avoid all non essential travel if possible.
coal trains won't be crossing the mountains for a while yet again. There is a 40m long, 20m wide, 60m deep sinkhole at Mount Victoria next to the main Western train line... pic.twitter.com/miMl0GbmJI
— Declan Kuch (@agentdeclan) July 5, 2022
The NSW minister for regional transport and roads, Sam Farraway, said Moss Vale Road had again been forced to close at Barrengarry Mountain due to landslips from the latest severe weather.
“After the hard work to reopen ... the road has been closed between Bunkers Hill Road and Myra Vale Road to keep people safe,” he posted on social media.
We know just how important it is to reconnect communities as quickly and safely as we can after these flood impacts and want to reassure the community our crews are on the ground doing just that.Please avoid all non-essential travel, even on public transport. If you do need to use the network, please plan ahead. We understand this is frustrating for locals but safety remains our priority.
Updated
The Australian Chamber of Commerce and Industry has said the Reserve Bank decision today is the right one.
ACCI’s CEO, Andrew McKellar, said:
The Reserve Bank is right to front-load rate rises given the recent rapid acceleration of inflationary pressures across the Australian economy.
The process of increasing interest rates will trigger some pain as consumers and businesses face higher loan repayments. However, a failure to do so would only risk embedding high inflation, forcing the Reserve Bank to take more drastic action.
With businesses already struggling with soaring energy costs, congested supply chains and staff shortages, they cannot afford for inflation to become entrenched.
The fundamentals of the Australian economy are solid. Heightened consumer demand, ultra-low unemployment, robust household budgets and strong export income mean that the Australian economy is sufficiently resilient to withstand tougher monetary policy.
It must be remembered that inflationary pressures are as much driven by global supply chain constraints as they are by excess aggregate demand. Persistent disruption in China and ongoing geopolitical tensions in Europe have exacerbated price increases and cannot be ignored.
Elevated interest rates threaten to further derail business investment which has fallen to anaemic levels in the past decade. The federal government must present a longer-term ambition to boost business investment that drives higher productivity, higher wages, and higher growth.
Updated
Another 73 mm over the last 24 hours brings #Sydney's running annual total up to 1769 mm. Not only is this Sydney's wettest year-to-date on record by whopping 191 mm (above 1578.3 mm from 1890), this is also ALREADY the city's 11th wettest year in records dating back to 1859. pic.twitter.com/JvZjIgTrew
— Ben Domensino (@Ben_Domensino) July 5, 2022
SES efforts shifting beyond Sydney to other flood-affected areas
New South Wales SES’s deputy state duty commander chief superintendent, Ashley Sullivan, tells ABC’s Afternoon Briefing there have been over 150 flood rescues in the past few hours and focus is now shifting from Sydney to other affected areas in the state.
He says:
There are ongoing flood rescues for either motorists that continue to drive into floodwaters or are isolated due to the severe weather impacting New South Wales.
As you mention, we have the 103 evacuation orders currently and just under 60 evacuation warnings and obviously we’re asking the communities to remain vigilant. There is still severe weather impacting large areas.
Our attention is shifting out of Sydney. We’re focusing on Sydney, but into the Hunter and Central Coast and tomorrow the mid north coast, which is forecasted to receive heavy rainfall. So, a very busy period.
He says the rain won’t be as severe in the next couple of days, but there will be 100mm of rain on the mid north coast.
Updated
Locals watch for evacuation warnings as floods close off supplies and exit routes
Locals across Sydney’s Hawkesbury River are anxiously watching flood levels as the closure of key roads across the city’s west makes life difficult for those who have not evacuated their homes.
While some parts of Windsor in Sydney’s north-west were ordered to evacuate by 11:30 on Tuesday, many of those living on higher ground in surrounding areas descended on the suburb to observe the more than 14m of water the local bridge over the Hawkesbury was drowning in.
It’s the third time it has happened this year.
As longtime Hawkesbury resident Tracey spoke to Guardian Australia recalling floods in the past two years, she momentarily lost count of how many floods had occurred.
In recent years she moved with her family to a nearby estate, partly because of its placement on higher ground. While it’s built on swamps that have been concreted over, like much of the new suburbs on the floodplain, Tracey’s home will only flood when waters reach 17m.
Their suburb has not been ordered to evacuate and that higher flood limit gives her some comfort, she told the Guardian, as she stood with her toddler looking at a pole above the Windsor bridge marking historic flood events. The frequency of recent floods has been such that two events earlier this year are yet to be inscribed.
“They just shouldn’t have built houses here, I mean it’s a floodplain. What else can they do now to make it better?”
Asked if she would ever consider moving away from the Hawkesbury if the frequency of floods increased, she said she doubt she could afford another home elsewhere in Sydney.
Her main concern, like others in the area, is waters below her suburb rising to cut off their access to supplies and an exit route.
Routes into and around north-west Sydney are dotted with detours due to submerged roads. For the roads that are still open, potholes and other damage are already creating havoc for drivers.
Updated
Windsor Bridge @GuardianAus pic.twitter.com/J4cBIGq6vO
— Elias Visontay (@EliasVisontay) July 5, 2022
Windsor's Flood History, at Windsor Bridge @GuardianAus pic.twitter.com/pVi7rOBgYe
— Elias Visontay (@EliasVisontay) July 5, 2022
The shadow treasurer, Angus Taylor, is responding to the interest rate rise. He says the Labor government needs to announce an economic plan now, not in September or October. He says:
And whilst Anthony Albanese’s circumnavigating the globe, he hasn’t been able to deliver an economic plan. That economic plan is needed right here and right now, because these pressures, inflationary pressures and interest rate pressures have been ... right here. And right now. We don’t need ... a job summit in September, or a budget in October; the response is needed right here and right now.
He says there needs to be “belt-tightening” from the federal government so it is not in competition for money with the public. ABC cut away but Taylor will be interviewed on ABC in the next hour.
Updated
Our #NSWRFS volunteers in the Hawkesbury have been kept busy attending to many calls for assistance in support of the @NSWSES. 📷: Oakville Brigade is responding here to a tree down in Oakville, a common occurrence with such saturated soil. pic.twitter.com/GctdqcmtKm
— NSW RFS (@NSWRFS) July 5, 2022
Analysis: more rate rises likely 'until the price rise genie is back in its bottle'
Philip Lowe, the Reserve Bank governor, has repeated his pledge to do all it takes to curb inflation, which means monthly repayments are going to keep rising for the majority of Australian mortgage holders.
Given that Lowe thinks inflation could top 7% by the end of year (currently it’s at 5.1%), he and his colleagues appear likely to keep lifting rates until the price rise genie is back in its bottle.
Some economists think the cash rate could go as high as 2.6% by next February, so there’s still some way to go. That’s bad news for households with a lot of debt.
The 50 basis point hike this afternoon will heap another $137 or so on typical 25-year mortgages of $500,000 if, as expected, the major banks pass on the cash rate rise to their borrowers.
Analysts at RateCity reckon that by February that same household will be paying $685 more a month than they were in April. Repayments for people with bigger mortgages – and there are plenty of them in Sydney and Melbourne especially – will be eyewatering.
Central bankers don’t go in for that sort of language, of course, but Lowe is already concerned about what higher rates might do to the economy in terms of household spending and house prices, judging by his statement on Tuesday:
One source of ongoing uncertainty about the economic outlook is the behaviour of household spending. The recent spending data have been positive, although household budgets are under pressure from higher prices and higher interest rates.
And although he notes that some people have built up a decent buffer to cope with higher rates, the fact that he is raising the issue shows where the story might be heading in coming months.
Updated
NSW Teachers union says government must fund 100% of the schooling resource standard
The New South Wales Teacher Federation (NSWTF) has endorsed a campaign for a new bilateral agreement pushing for public schools to be funded for 100% of the schooling resource standard, as a stoush with the state government continues.
NSWTF’s president, Angelo Gavrielato:
A key focus of the union in the lead-up to the state election must be securing the funding we need through policy commitments by the major parties.
The fact that all NSW public schools are currently resourced at around 88% of the SRS is to be condemned, and is an indictment on the former Coalition government in Canberra – and its counterpart in NSW – who agreed to underfunding public schools in the current bilateral agreement. Effectively, this means one in eight public school students go without funding.
The next bilateral funding agreement between NSW and the commonwealth, due to be negotiated in the next 12 months, must include a joint commitment to have all public schools achieve 100% of the SRS by its conclusion.
"An urgent investment is required not only to cater for growing enrolments, but to rebuild ageing schools and ensure all classrooms and facilities are of an appropriate standard for 21st century teaching and learning." @AGavrielatos #TFAC2022 https://t.co/uUhkFbXBCQ
— Teachers Federation (@TeachersFed) July 5, 2022
Updated
Jetstar halts Darwin to Singapore route
The NT News is reporting Jetstar has suspended its popular Darwin to Singapore route for a somewhat cryptic “range of reasons”.
In a statement to the NT News, a Jetstar Asia spokesman didn’t confirm why the route would be halted from next month but said refunds would be issued:
Due to a range of reasons, we are suspending our services between Singapore and Darwin from the 6th of August.
We sincerely apologise to customers for the inconvenience and frustration this causes and will be in contact in coming days to offer them a range of options, including a refund.
Updated
Returning to the weather, get out your hot water bottles in Victoria, you’re in for a frosty one:
⚠️ Frost Warning ⚠️ has been issued for ALL districts for WEDNESDAY morning, with large parts of #Victoria expected to see sub-zero temperatures overnight, and minima as low as -4°C forecast in the NE. ❄️🥶#VicWeather
— Bureau of Meteorology, Victoria (@BOM_Vic) July 5, 2022
Warning details: https://t.co/0gMP6QbgOT pic.twitter.com/EJuvkQDRZm
Meanwhile, roads in New South Wales are sustaining damage from the ongoing torrential rainfall.
There are five major flood warnings present in the state. Stay safe out there.
BARRENGARRY MOUNTAIN: Moss Vale Rd remains closed between Bunkers Hill Rd and Myra Vale Rd. Crews are on site working to reopen the rd as soon as possible. pic.twitter.com/46z4yHXInc
— Live Traffic NSW (@LiveTrafficNSW) July 5, 2022
Current flood situation at Wisemans Ferry.
— Monish Nand (@MonishNand) July 5, 2022
The @NSWSES continuing their efforts to help people evacuate from their homes. People are advised to take heed of warnings and stay safe as flood waters continue to rise.#NSWFloods pic.twitter.com/Nf2S6f8Q9i
Weather delays attempts to rescue cargo ship stranded off Sydney coast
Wild weather is continuing to hamper efforts to tow the stricken cargo ship MV Portland Bay to deeper waters after the vessel lost power south of Sydney.
The Port Authority of NSW warned there would be “long days ahead” for the operation as the multiagency response team prepares for “slow and steady progress” amid torrential conditions.
The Port Authority’s CEO, Captain Philip Holliday, said the vessel remained at anchor 1.2 nautical miles off Botany Bay, near Cronulla beach, where it would remain as the crew awaited improved weather to bring the ship into Port Botany.
The crew is taking every opportunity while in this situation to undertake repairs to their engines. Two tugs remain on site with the vessel today and I’m pleased that in the currently stable environment all crew have had the opportunity to refresh and get some rest after working in these extremely difficult and hazardous conditions throughout yesterday and overnight.
The third emergency tow vessel (ETV) Glenrock has also arrived onsite after punching through southerly headwinds and over 10m seas during the passage from Newcastle. The specialised vessel with additional deep sea response capability, Glenrock, will be key in the next phase when moving the Portland Bay to safety.
The priority of this operation remains the safety of all involved and protecting the NSW coastline. All agencies involved are being extremely vigilant in planning every step we take to this end. The plan today is to keep the vessel stable in the current location with tugs ready and available so we can affect a tow if needed, but otherwise keep her where she is as we await an improved weather window to bring her into Port Botany.
Updated
The Victorian premier, Daniel Andrews, will take leave from tomorrow afternoon and will return on Monday, 18 July.
Jacinta Allan, who was recently appointed deputy premier after James Merlino announced he will not be recontesting the November state election, will be acting premier in Andrews’ absence.
Updated
I will now hand you over to my colleague Caitlin Cassidy, who will guide you through the next little while.
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Jim Chalmers responds to RBA rate hike
The treasurer, Jim Chalmers, has responded to the RBA’s decision, saying it comes as “very challenging news for hardworking Australians already doing it tough.”
Mortgage repayments are now eating up a bigger part of already stretched budgets.
Average homeowners owing $330,000 will now have to find another $90 a month at the same time as they try and keep up with the costs of petrol, electricity, groceries and other essentials.
The government changed hands at a time of high and rising inflation, skyrocketing interest rates and falling real wages and we have inherited a trillion dollars in debt which is now more expensive to service.
We’ve been upfront about the combination of challenges in our economy and their impact on the Budget.
Updated
RBA governor Philip Lowe’s statement on the 0.5 basis point cash rate rise
Lowe’s statement goes on to say that more inflation is anticipated:
Inflation is forecast to peak later this year and then decline back towards the 2–3% range next year. As global supply-side problems continue to ease and commodity prices stabilise, even if at a high level, inflation is expected to moderate. Higher interest rates will also help establish a more sustainable balance between the demand for and the supply of goods and services.
Medium-term inflation expectations remain well anchored and it is important that this remains the case. A full set of updated forecasts will be published next month following the release of the June quarter CPI.
Lowe also explained the global factors affecting the rise in Australia, but said domestic factors are also playing a role:
Global inflation is high. It is being boosted by Covid-related disruptions to supply chains, the war in Ukraine and strong demand which is putting pressure on productive capacity. Monetary policy globally is responding to this higher inflation, although it will be some time yet before inflation returns to target in most countries.
Inflation in Australia is also high, but not as high as it is in many other countries. Global factors account for much of the increase in inflation in Australia, but domestic factors are also playing a role. Strong demand, a tight labour market and capacity constraints in some sectors are contributing to the upward pressure on prices. The floods are also affecting some prices.
Updated
Reserve Bank of Australia announces 0.5% increase in the cash rate target
At its meeting today, the Reserve Bank Board has decided to increase the cash rate target by 50 basis points. The rise lifts the official cash rate from 0.85% to 1.35%.
This will be the third consecutive rate rise in as many months.
In a statement Philip Lowe, the governor of the RBA, said:
Today’s increase in interest rates is a further step in the withdrawal of the extraordinary monetary support that was put in place to help insure the Australian economy against the worst possible effects of the pandemic. The resilience of the economy and the higher inflation mean that this extraordinary support is no longer needed.
The Board expects to take further steps in the process of normalising monetary conditions in Australia over the months ahead. The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market.
The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.
Updated
National Covid summary
Here are the latest coronavirus numbers from around Australia today, as the country records at least 46 deaths from Covid-19:
ACT
- Deaths: 1
- Cases: 1,199
- In hospital: 136 (with 2 people in ICU)
NSW
- Deaths: 14
- Cases: 10,504
- In hospital: 1,782 (with 58 people in ICU)
Northern Territory
- Deaths: 0
- Cases: 342
- In hospital: 21 (with no people in ICU)
Queensland
- Deaths: 11
- Cases: 5,698
- In hospital: 710 (with 14 people in ICU)
South Australia
- Deaths: 1
- Cases: 3,141
- In hospital: 234 (with 10 people in ICU)
Tasmania
- Deaths: 2
- Cases: 1,588
- In hospital: 76 (with 2 people in ICU)
Victoria
- Deaths: 16
- Cases: 8,740
- In hospital: 543 (with 28 people in ICU)
Western Australia
- Deaths: 1
- Cases: 5,234
- In hospital: 238 (with 9 people in ICU)
Albanese ends the press conference by saying it was not the time yet to talk about building resilience to the disasters.
He says:
We will take advice and work with the New South Wales government in a constructive way. The concern at the moment is getting through the existing crisis which is there right now, we are working very effectively between the federal government and the state government with the authorities and we will be on the ground ... I’ll be on the ground personally tomorrow with [the] premier, Dominic Perrottet ...
I conclude with this: just a shoutout to all those volunteers, as well as our ADF personnel, as well as people from state authorities [who] have also been working so hard again and again and again through these crisis to provide assistance to people. They deserve our thanks and our grace, they continue to do that work and I join with others in thanking them.
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Albanese defends overseas travel
In responding to questions from journalists about whether he should be travelling overseas so much, Albanese says the Quad meeting timing wasn’t his decision, and it was important to travel this time:
I have attended the Quad leaders meeting the day after the election. It was not a decision of mine to hold the election on 21 [May], that was a decision of the former prime minister.
I attended that and I attended the Nato summit, which was important. It was important that Australia be represented there. It was important that we deal with the relationship with France and Europe, and I believe that my visit to Ukraine was important to show solidarity with the people of Ukraine.
We cannot separate international events from the impact on Australia and Australians. And for those people who might like to say which of the events I have attended on behalf of Australia, that I should not have attended ... I have not had a day off a very long period of time.
Question: Nonetheless, you are [seeing] some criticism ... Scott Morrison, supposedly going missing was [a criticism you levelled] when he had Covid, not being at the floods. Have you made it [an] expectation on a prime minister [during] a national crisis?
Albanese:
If people want to argue that I’m not working hard, they can argue their case.
Updated
The prime minister notes the flooding in NSW is the fourth in 18 months in some areas.
And my heart goes out to people who have suffered again and again and again and again, and the many [people] of those communities that are also impacted by the bushfires. I say to people, stay safe, keep vigilant, keep following the advice which is being given by emergency personnel.
There are 23 councils that are receiving federal [and] state support as a result of the decision of the state government. I spoke to Dominic Perrottet from Poland some time ago now, and offered whatever support was required from the federal government.
He told me that he was very pleased with the urgent action that had been taken by the federal government, and we continue to make that support available. The support is in the form of hardship grants, money for structural repairs, as well as low-interest loans.
Albanese says he will be on the ground with the NSW premier on Wednesday morning.
Updated
Albanese says he has been briefed by the emergency management minister, Murray Watt, and Emergency Management Australia’s director general, Joe Buffone, about the flood situation in NSW.
He says people on the east coast are “doing it really tough at the moment”:
And it is clear that the crisis is not [over]. We see, I’m advised that the rains are heading towards the Hunter [region] and Mid North Coast today. They are hoped to be easing in coming days, but there will continue to be flash flooding and the advice remains, if it is flooding, forget it. Do not take risks.
The PM says that there are nine evacuation centres open, with 242 people registered at those centred. Of the 250 ADF personnel available, 100 are on the ground now, 100 are on standby, and 50 are there to support cleanup once that commences.
We have two helicopters that are available for night work, and they were established and did some work last night. The catchments are full. That means that even when the rain starts to ease, the danger will not [pass] for some period of days as flood waters continue to rise.
Planning is underway for the early cleanup, once that is available to commence. There are some 20,000 homes without power and 1,000 homes without communications at this point in time.
Updated
PM Albanese returns to Australia
The prime minister, Anthony Albanese, is speaking in Perth on his return from Europe.
He says of his visit to Ukraine:
It is good to be back in Australia after a very successful visit to the Nato summit to repair our relations with France, and also a critical visit to Ukraine on the invitation of the president to recommit Australian support to the people of Ukraine and the struggle they are having against a brutal Russian invasion, that has implications for the rules based international order, and also of course having an impact on Australians, with rising energy prices, rising inflation, impact on supply chains, including on food.
The struggle of the Ukrainian people against this brutal invasion is inspirational. And president Zelenskiy, I believe, has the support of Australians in leading his people against Russian atrocities that we saw first-hand being committed against the civilian population of Ukraine.
Updated
With major flooding expected tomorrow in Warren (over 6 hours west of Sydney), the extreme weather has extended inland, beyond the coast.
⚠️ #Flood Warning issued for #Macquarie River. Major flooding is possible at #Warren from Wednesday. At #Narromine river levels have peaked and are falling, with minor flooding current. See https://t.co/Ss766eSCrL for details and updates; follow advice from @NSWSES. #NSWFloods pic.twitter.com/aXcVf5IwCy
— Bureau of Meteorology, New South Wales (@BOM_NSW) July 5, 2022
Victoria's pandemic declaration extended until October
The Victorian premier, Daniel Andrews, has extended the state’s pandemic declaration for a further three months from 12 July.
In making the declaration, Andrews says there remains a “serious risk to public health” throughout the state from Covid-19, which requires continued public health and other protective measures to reduce the risk of transmission and hospitalisation.
The extension will expire at 11.59pm 12 October, though the premier has requested the health minister, Mary-Anne Thomas, and chief health officer, Brett Sutton, provide further advice by the end of winter on the situation.
He says the declaration was made after consultation with and consideration of advice from Thomas and the acting chief health officer.
Reasons for the extension and the advice will be tabled in parliament.
The state’s pandemic laws, which passed parliament in November last year, allows the premier to declare a pandemic and the health minister to enforce public health orders.
The laws were required as the state of emergency could no longer be extended.
Updated
Prostate cancer now Australia’s most diagnosed cancer
Prostate cancer is now the most common cancer diagnosed in Australia, overtaking breast cancer as the country’s number one cancer, AAP reports, with medical professionals raising concerns about the nation’s capacity to care for the growing number of patients diagnosed.
Data from the Australian Institute of Health and Welfare estimates 24,217 Australian men will be diagnosed with prostate cancer this year, compared with 20,640 women diagnosed with breast cancer.
The Prostate Cancer Foundation of Australia’s chairman, Steve Callister, says the figures show the nation’s clinical guidelines need to be reviewed urgently because they are based on outdated data.
“We hold grave fears that [the guidelines] are putting men’s lives at risk, with 66 men now being diagnosed every day,” he said.
“The latest estimates also suggest more than 3,500 men will die from prostate cancer this year, which is a toll we can avoid if the disease is diagnosed early.”
The foundation is also calling for urgent action to reduce waiting times and increase Australia’s health workforce.
The Foundation’s chief executive, Anne Savage, said the number of men being diagnosed was expected to increase by as much as 43% by 2040.
“We cannot afford to underestimate the impact this will have on our health services, knowing that prostate cancer accounts for more hospitalisations than any other type of cancer in the country,” she said.
“Over 3,500 Australian men will die of prostate cancer this year. With concerted action, many of these deaths can be avoided.”
Updated
South Australia reports one Covid-19 death, with 234 in hospital
South Australia has reported one additional Covid-19 death today, with 3,141 new cases, 234 in hospital, 10 in ICU and one ventilated.
The death is a woman in her 70s.
South Australian COVID-19 update 05/07/22.
— SA Health (@SAHealth) July 5, 2022
For more information, go to https://t.co/XkVcAmerhn. pic.twitter.com/JEBh1QFnlI
Supply issues responsible for 10% fall in Australian vehicle sales in June
Australia’s vehicle industry faces supply issues into the future, with constraints on global manufacturing to blame for a near 10% fall in sales last month.
The Federal Chamber of Automotive Industries says 99,974 cars and trucks were sold in June, down 9.7% compared to the same month in 2021. That left demand for the first half of 2022 at 537,858, a fall of 5.2%.
FCAI’s chief executive, Tony Weber, said the fallout from the Covid-19 pandemic continued to hamper automotive manufacturing. Combined with the war in Ukraine and shipping issues, the supply of new vehicles hitting Australia’s shores could not keep up with local demand.
Globally, car makers are continuing to suffer from plant shutdowns. In Europe, we have component supply heavily impacted by the conflict in Ukraine.
Microprocessors continue to be in short supply and global shipping remains unpredictable.
While demand for new cars remains strong in Australia, it is unlikely we will see supply chain issues resolved in the near future.
Toyota led the market last month selling 22,561 vehicles ahead of Kia on 8,480, Hyundai on 8,259, Mazda with 6,245 and Mitsubishi at 5,846.
The Toyota Hi-Lux was the most popular model with 7,582 units sold, ahead of Hyundai’s Tucson on 2,840 and Ford’s Ranger with 2,802.
With escalating petrol prices, sales of electric cars continued to rise. The FCAI said 1,137 were sold last month, compared to 526 in the same month last year. Year-to-date, sales were up by more than 300% to 9,680.
Tesla remained the dominant player in the electric car market, with its Model 3 accounting for almost half of the vehicles sold so far this year.
Updated
⚠️ #Flood Warning issued for #WollombiBrook and #LowerHunter. #Major flooding occurring at #Wollombi and #Bulga, #Moderate flooding possible at #Singleton. See https://t.co/AdztI2rqg1 for details and updates; follow advice from @NSWSES #NSWFloods pic.twitter.com/aLuhnNXD6A
— Bureau of Meteorology, New South Wales (@BOM_NSW) July 5, 2022
⚠️ #Flood Watch issued for #MidNorthCoast and parts of #Hunter and #Sydney. #Minor to #Moderate flooding possible. See https://t.co/AdztI2rqg1 for details and updates; follow advice from @NSWSES #NSWFloods pic.twitter.com/gPh1cG8Yse
— Bureau of Meteorology, New South Wales (@BOM_NSW) July 5, 2022
NSW SES Flood Evacuation ORDER - Low Lying areas #Tuggerah and #Budgewoi Lakes EVACUATE BY: 2.00pm
— NSW SES (@NSWSES) July 5, 2022
Once floodwater passes 1.50 metres on the Long Jetty (The Entrance) gauge at Tuggerah and Budgewoi Lakes, roads will begin to close.
More info: https://t.co/NyAmYZJOrn pic.twitter.com/NERegoFJsU
Foot and mouth disease outbreak in Bali to result in stricter border controls for Australian travellers
Dr Mark Schipp, the country’s chief veterinary officer, has told the ABC that travellers can expect stricter border measures amid the outbreak of foot and mouth disease in Bali.
At least 60 cows in Bali tested positive to the disease over the weekend which is highly contagious for cattle, sheep, goats and pigs.
Schipp said authorities anticipated that the opening of Bali to tourists would increase the risk of the disease entering Australia.
When we saw foot-and-mouth disease had entered Indonesia we expected it to spread to Bali and the ongoing tourism trade to that end.
We have had measures at the border, increased intervention and awareness and provided materials to people travelling from Australia and returning from Indonesia.
Passengers can expect to see more use of detector dogs at airports and further questioning from staff at the border as to where they have been, that they have had exposure to farm animals, whether they have animal products.
Schipp explained the disease causes blisters in animals but the bigger impact is that on trade.
If a country has foot-and-mouth disease, they are not able to export animals, animal products and for Australia that is a significant part of agricultural production.
Australia currently exports 70% of animal products and if we are not able to export those it will have a significant impact.
Updated
Authorities hopeful of eradicating varroa mite in NSW
Authorities remain hopeful of eradicating the varroa mite in NSW as almond producers raise fears that restrictions on bee movements will endanger millions of dollars in produce, AAP reports.
Some 19 infested properties have been located since the mite was first detected at the Port of Newcastle on 22 June.
Biosecurity zones set up to contain the mite’s spread stretch from Sydney to Buladelah on the Mid North Coast, with a separate zone established inland at Narrabri. Additional cases were found at Lambton and Ferodale in the existing Newcastle and Port Stephens biosecurity zone.
Chris Anderson, from the NSW Department of Primary Industries (DPI), said close epidemiological links in all the detected cases meant there was a good chance of eradicating the mite.
In the case at Narrabri, hives from the property had been stored for months near an infected location in the Newcastle area before being relocated.
“Further reporting by beekeepers and investigations by NSW DPI officers identified the infestation at the property and established a new emergency zone around the property,” Anderson said.
The department is asking anyone who acquired honeybees from within the 50km emergency notification zone surrounding the Port of Newcastle in the last 12 months to report them.
Almond Board Australia’s chief executive, Tim Jackson, said the almond industry’s billion-dollar crop was dependent on bee movement by the end of July.
He said 300,000 hives of bees needed to be moved into orchards along the southern Murray-Darling basin before trees started to blossom in August in one of the country’s biggest horticultural operations.
If bees weren’t able to be moved in time for pollination, the almond industry could suffer production losses of half a billion dollars, Jackson said.
A ban on beekeepers moving or tending to their hives remains in place in NSW.
Flood-affected honeybees and hives can be moved to higher locations on the same property or within the same emergency zones under an exception introduced on the weekend.
Updated
If traveling through or to central parts of the #NSW coast, check the forecasts and warnings as there continues to be the chance of heavy rainfall in the #Hunter and #MidNorthCoast which could lead to #FlashFlooding. #FloodWarnings and #FloodWatch current: https://t.co/Ss766eSCrL pic.twitter.com/iSB95OcCpC
— Bureau of Meteorology, New South Wales (@BOM_NSW) July 5, 2022
New Zealand’s prime minister, Jacinda Ardern, is speaking to reporters following a meeting with the Victorian premier, Daniel Andrews.
Ardern says it was fantastic to catch up with Andrews after communicating throughout the pandemic.
He’s become a friend so it was fantastic to catch up in person.
She says the duo discussed the new phase of the pandemic, infrastructure projects underway in both Victoria and New Zealand, aged care, the pressures on the health system and early childhood education.
We’re ultimately politicians, interested in ideas so we shared a number between us.
Ardern is in Australia with a trade mission and will attend events in Sydney before formal meetings with the prime minister, Anthony Albanese, at the Australia-New Zealand Leadership Forum on Friday.
This is this trip is part of our reconnecting work, its singular focus is on making sure that we’re driving trade, investment opportunities and tourism opportunities for New Zealanders, and I feel very keenly an obligation to make sure that every hour that I’m not in New Zealand, I’m making the most of my time away to promote New Zealand’s interests.
Despite a jump in infections on Tuesday, with New Zealand recording 9,629 infections, Ardern said there was “no expectation” of moving to red at this stage.
Updated
Antiviral Covid treatments should be more accessible, Hazzard says
Just circling back on the NSW press conference for a minute. The health minister, Brad Hazzard, says antiviral treatments are a “big plus” we didn’t have last year in combating Covid-19, but criticises the federal restrictions on accessing them.
Hazzard:
Antivirals at the moment are limited in their usage. For a number of reasons which I don’t necessarily agree with. And Dr Chant will have some more to say on this.
But this obviously comes down to federal advisory bodies giving advice. I’m hopeful the federal body that gives the advice will do what is necessary to make sure that antivirals are more accessible to a broader age group than is the situation.
I understand there may be some challenges in the formalities and I’m hopeful that may be curtailed or at least circumvented. We’re having discussions with the federal government about those issues at the present time.
So hopefully we’ll see some announcements on that in the near course. But if you do actually get the virus, then certainly inquire positively about whether or not you’re able to access an antiviral. They do make a difference. They definitely make a difference for the majority of people who actually get the Covid virus.
Updated
That’s where I’ll leave you this afternoon – you’ll have my esteemed colleague Josh Taylor taking you through to the evening. Stay safe and dry!
Updated
‘Australia is woefully unprepared for this climate reality of consecutive disasters’
Almost unbelievably, communities in New South Wales are once again having to flee the fourth major flooding event in the state in just 18 months.
It’s a bitter pill to swallow, but there’s no avoiding it: this is our new climate reality of consecutive, compounding disasters.
And as anyone in Lismore who faced a cold and terrifying wait for a neighbour in a tinny to pluck them from their rooftop will tell you: Australia, we are woefully unprepared.
Read more:
Updated
Brad Hazzard says he told the health ministers meeting on Friday he believed eligibility for fourth vaccine doses should be broadened, if there are no supply challenges
— Tom McIlroy (@TomMcIlroy) July 5, 2022
Low rates of triple-vaccination a concern, Hazzard says
The primary concern is the relatively low rates of triple-vaccination, and what Hazzard suggests is a sense of complacency within the community about the virus now.
If you haven’t your full three, put it bluntly, you’re crazy. You should go and get them. That’s what is going to make a difference to stopping or at least reducing the chances of you ending up in hospital or ending up possibly dying. I can’t stress this enough. I think there are some in the community who are just very busy, there’s others in the community who think the pandemic is over. On both of those counts they’re wrong.
I think that perhaps to some degree, because people have become a little – I don’t know – is it apathetic? It’s an overconfidence the pandemic has come and gone. It hasn’t, it’s well and truly here. Go back to the basic messages. Wear a mask if you can’t socially distance, definitely wash your hands, wash your hands as much as you possibly can, and stay home if you’re sick.
Updated
NSW health minister urges people to get their full Covid vaccinations
More from the NSW health minister Brad Hazzard’s Covid-19 update. It comes as some states and territories are reconsidering mask mandates, and Atagi is considering advising a fourth vaccine dose for the general population.
The year we’ve had 1,232 people who have died of Covid related illnesses, who had less than the full vaccinations available to them. That’s a critical issue. Having your full dose of vaccinations available to you does make a difference. What we’re seeing at the moment is BA.4 and BA.5 are increasing in the proportion of people who are getting Covid. And they’re having an effect which is concerning maybe similar to what we saw in January this year, when we had more than 6,000 staff furloughed out of our hospital system and who could forget we also had many, many staff off from the major distribution centres, for major retailers, particularly around food, et cetera.
We had many staff off in our hospitals, more than 6,000 staff were off in our hospitals, furloughed, on 14 January. We don’t want to get back into that position. We also of course had substantially increased numbers in our hospitals. And we saw substantial increased deaths in January.
Updated
NSW Health Minister Brad Hazzard says those who haven't had third dose of COVID vaccine are 'crazy'. He is ramping up messaging on third dose to prevent hospitalisation in potential next wave. No new rules announced yet, just reinforcement of current measures. #nswcovid
— Isobel Roe (@isobelroe) July 5, 2022
Clarification on the below: all the outbound lanes of the West Gate bridge in Melbourne are closed.
🚦 From VicTraffic: All outbound lanes of the West Gate Freeway are now closed at Montague Street, due to a serious collision on the bridge.
— ABC Melbourne (@abcmelbourne) July 5, 2022
Updated
Updated
Serious crash on Melbourne’s West Gate bridge
There’s been a serious crash on Melbourne’s West Gate bridge, with a truck colliding with a car.
Victoria police have released a statement about the incident, saying they understand a car was travelling outbound along the West Gate Freeway near Williamstown Road when it collided with a truck around 10.35am.
The male driver and male passenger of the car were taken to hospital with critical injuries.
Three other males who were in the car are being assessed by paramedics.
The two male occupants of the truck were not injured and were assessed by paramedics at the scene.
“The exact circumstances surrounding the collision are yet to be determined and investigations are ongoing,” the statement says.
Long delays are expected for westbound traffic on the freeway in the area.
Updated
Jacinda Ardern meets Daniel Andrews
An early picture of NZ prime minister Jacinda Ardern and Victorian premier Daniel Andrews. We’ll have more updates on their meeting today very soon.
Updated
Cairns and Brisbane had their coldest July day in more than 20 years yesterday.
🥶 Eastern #QLD maximum temperatures were 8 to 13C below average yesterday with many July records broken. Cairns and Brisbane had their coldest July day in more than twenty years. We also saw record daily July rainfall in the east and northeast. https://t.co/ZhiAztv3kh pic.twitter.com/pYgFS8hEnL
— Bureau of Meteorology, Queensland (@BOM_Qld) July 5, 2022
Updated
Queensland records 11 Covid deaths with 710 people in hospital
There were 5,698 new cases in the last reporting period, and 14 people in intensive care.
Today we have recorded 5,698 new COVID-19 cases.
— Queensland Health (@qldhealth) July 5, 2022
Sadly, we have reported 11 deaths in the past 24 hours.
Full details➡️ https://t.co/rKHIwrGADi pic.twitter.com/AbE4MIXQnU
Updated
Jacinda Ardern in Melbourne to meet with Daniel Andrews today
New Zealand prime minister, Jacinda Ardern, is in Melbourne as part of a trade mission and is set to meet with Victorian premier, Daniel Andrews, soon.
She spent the morning at an ANZ breakfast.
NZ PM @jacindaardern graciously thanks Aunty Di Kerr after receiving a traditional Welcome to Country at ANZ’s business delegation breakfast in Melbourne/Narrm. Fitting start to #NAIDOCWeek pic.twitter.com/fD7StYmn1L
— Mibenge Nsenduluka (@MibengeNsendul1) July 4, 2022
Updated
Just a little correction note: earlier today we had incorrectly labelled the location shown in the satellite photograph being used as the main image on this blog as Sydney. It was pointed out to us by you, our readers, that this looked more like Nowra – you were correct, and we have amended the caption accordingly.
Updated
Victoria records 16 Covid deaths with 543 people in hospital
There were 8,740 new cases recorded in the state over the past 24 hours, and 28 people are in intensive care.
We thank everyone who got vaccinated and tested yesterday.
— VicGovDH (@VicGovDH) July 5, 2022
Our thoughts are with those in hospital, and the families of people who have lost their lives.
More data soon: https://t.co/OCCFTAchah#COVID19Vic #COVID19VicData pic.twitter.com/unp6kegASM
Updated
Handing you back over to the very excellent hands of Stephanie Convery!
Portland Bay cargo ship is stable with more support on the way
Perrottet also provided an update on the Portland Bay bulk carrier, saying the situation is stable:
That carrier is anchored 1.2 nautical miles off Port Botany.
I thank very much the crews of those tugs for the heroic work they did overnight. There were 11-metre swells. They worked through the night to ensure that bulk carrier was in a stable position.
It’s far from over, their challenge. In this torrential weather and the environment we’re in, the situation can change quickly.
Perrottet said more support would be on the way.
Updated
Anthony Albanese to meet with NZ PM Jacinda Ardern tomorrow
Albanese says it’ll be a “family” affair as he prepares to welcome New Zealand’s prime minister, Jacinda Ardern, tomorrow.
Ardern will be in Sydney from Wednesday to Friday to attend the first Australia-New Zealand leaders’ meeting since before the pandemic.
The meeting is expected to cover topics including economic links, regional security, Indigenous cooperation, migration settings, economic recovery and climate change.
Albanese said “this will be our second bilateral meeting in the past month, which is a reflection of the closeness of our trans-Tasman relationship. It truly is one of family.”
The visit is also an opportunity to set the agenda for trans-Tasman cooperation into 2023, ahead of the 40 year anniversary of the Closer Economic Relations trade agreement.
Updated
Major flood warnings likely to continue for next couple of days
Jane Golding, from the Bureau of Meteorology provided a summary weather update:
That persistent rain is hanging around the Hunter today, likely to move to the mid-north coast tomorrow.
The floods, even if the rain has eased, will wet those areas where the rain has eased and we’re seeing showers at the moment, it will take a bit of time for the water to make its way out to sea.
So, major flood warnings likely to continue for the next couple of days.
Updated
SES received hoax call last night
The SES had to attend to a hoax call last night, commissioner Carlene York has revealed:
Very disappointingly, we had a hoax last night of a person on a roof who was in need of a flood rescue. It turned out to be a hoax.
What happens is because it’s to save a life, we target our resources and try to get there to save the person. It means we take them away from other areas.
We had a lot of calls for assistance last night that were really important.
I call for the community – it was one matter – most of the community has been really good but it puts our emergency services at risk of not being able to save those who really need it. So, it’s important to follow the orders.
Updated
Heavy rain forecast for mid-north coast tomorrow
Jane Golding, from the Bureau of Meteorology, said that in a “bit of a change to the forecast policy” there are signs that a low will develop off the coast.
Which means we’re forecasting for heavy rain to occur in the mid-north coast tomorrow, probably up to about Coffs Harbour is the area of risk. Our flood team at the moment are looking at what that might mean to the rivers. There will be a flood watch issued over the next few hours. We can expect to see some of the rivers in the mid-north coast respond to rain that falls there tonight and tomorrow.
Updated
Natural disaster declarations ‘first stage’ of further support
A bit more from Cooke about the natural disaster declarations:
This is obviously the first stage, a very important first stage to opening up further support for individuals, families and communities.
As we move from the emergency response phase, which we are still very much in, but into the early stages of recovery, and then into the medium and longer term recovery processes which will be required as a result so if people want to understand what that means for them, reach out to Service NSW on 137 788. We will be there to provide some assistance.
Updated
More heavy rain expected this week
Perrottet said more heavy rain is expected in the course of the week and that “this event is far from over.”
More rain in the Hunter and that will move to the mid-north coast tonight.
Don’t be complacent. Be careful when you’re driving on our roads. There are still substantial risks for flash flooding across our state and once again, as we always say, please don’t drive through floodwaters.
Updated
Dominic Perrottet gives update on NSW floods
NSW premier Dominic Perrottet, is encouraging people to follow evacuation orders as out of the 22 flood rescues that happened overnight, two occurred in areas where evacuation orders were in place.
There were 22 evacuation orders overnight. That’s in the Sydney metropolitan region, the Hawkesbury-Nepean, and around the Georges river. Fifty-five evacuation warnings in place, four evacuation warnings overnight. Now, in terms of those orders and those warnings, that is affecting around 50,000 people. That’s across the state of NSW at the moment. There were 22 flood rescues overnight as well. Once again, I thank the SES and the RFS for the work they’ve done in relation to those rescues. We also had the ADF on call who are not required but were there ready to go, should the need have arisen.
I want to make this point and I made it yesterday and make it again – of the 22 flood rescues that occurred overnight, two of those flood rescues occurred in areas where evacuation orders were in place. Please follow the instructions. Where there is an evacuation order in place, get ready to evacuate. Where we have evacuation warnings to begin with, so people can be prepared and following that, the orders are there for you to leave immediately. If they are in place, please leave. The SES rescues, when they’re carried out, they’re putting our volunteers at risk and ultimately if you stay you’re putting your life at risk.
Updated
A press conference is under way at the moment on the NSW flood and we’ll bring you the latest on the situation.
Updated
Homeowners warned to expect further rate hikes
Homeowners are being warned today’s expected interest rate hike won’t be the last.
When the Reserve Bank announces its decision at 2.30pm today economists expect the official cash rate will rise from 0.85% to 1.35%, and further rises are expected throughout 2022.
The rise today and again in August is expected drive total monthly repayments at least $333 higher on the latest predictions.
My colleagues Paul Karp and Rafqa Touma have the full story for you here:
Updated
I’m going to hand you over for a little while to my colleague Natasha May – she’ll be helming this blog for the next hour or so!
Covid subvariants BA.4 and BA.5 are the most contagious yet
Australia is heading for its third Omicron wave in the coming weeks, as BA.4 and BA.5 become the dominant Covid strains.
BA.4 and BA.5 are more infectious than previous Covid variants and subvariants, and are better able to evade immunity from vaccines and previous infections. So we’re likely to see a rise in case numbers.
So what are BA.4 and BA.5? And what can we expect in this next phase of the pandemic?
Here’s Adrian Esterman, professor of biostatistics and epidemiology at the University of South Australia, to explain the situation.
Updated
SES is directing people in parts of Windsor to evacuate by 11.30am today.
‼️Evacuation Order - Parts of Windsor
— NSW SES (@NSWSES) July 4, 2022
SES is directing residents and businesses within Parts of #Windsor to evacuate the following area by 11.30am
Mileham Street between Hawkesbury Valley Way and Day St - Stay with family, friends outside of flood areas.https://t.co/BCnxAdPqqR pic.twitter.com/ZNHlDYFk96
Man dies after being pulled from factory fire at Ballarat
Police are investigating a factory fire at Ballarat, Victoria, after a man who was pulled from the blaze died, AAP reports.
Emergency services were called to the fire on Villiers Drive at Wendouree about 6.30am on Tuesday, after reports of flames coming from the factory.
A man who was pulled from the burning factory died at the scene.
Two other men were safely evacuated. They were assessed by paramedics, but were uninjured.
Police have set up a crime scene and detectives from the arson squad will be examining the scene on Tuesday, along with fire investigators.
Police officers urged anyone with information to contact Crime Stoppers on 1800 333 000, or via their website.
Updated
NSW records 14 Covid deaths with 1,782 people in hospital
There were 10,504 new cases in the last reporting period, and 58 people are in intensive care.
COVID-19 update – Tuesday 5 July 2022
— NSW Health (@NSWHealth) July 4, 2022
In the 24-hour reporting period to 4pm yesterday:
- 96.6% of people aged 16+ have had one dose of a COVID-19 vaccine
- 95.1% of people aged 16+ have had two doses of a COVID-19 vaccine pic.twitter.com/cy1kFdVBs8
Updated
Liberal party has lost the votes of women, Linda Reynolds says
Asked on ABC Radio this morning why any woman would want to be in the Liberal party right now, WA Liberal senator and former defence minister, Linda Reynolds, said:
Well, that’s a very good question.
The interview came after Reynolds yesterday called for a short-term gender quota for the Liberal party.
Reynolds said she is more open to the option of quotas because “inaction is clearly not working”.
We just simply do not look like the community we’re seeking to represent.
Somewhere along the line over the last 30 years, we’ve lost the votes of women, and that was very clear at the last election.
Reynolds said there were two issues at play. Firstly, the majority of women no longer voting for the party and secondly, the party not preselecting enough women.
Reynolds said she still believes in the idea the Liberal party is the party of merit but says quotas should be considered because the preselection process “is not yet truly meritorious”.
The process itself has to be meritorious, and continually having no more than two out of 10 of our candidates and our elected MPs as men does not reflect the number of meritorious women in our party or who should be in our party. So that indicates that the process itself is not yet truly meritorious.
Asked about the opposition to quotas from the Liberal leader, Peter Dutton, Reynolds said a discussion was needed about all options:
I’m not actually pushing for permanent quotas. What I have said is that we clearly have a problem that time itself is not addressing, and we should be talking about all options. If we come up with a better solution than quotas, for example, targets with teeth with a plan that we actually implement, then I would be the happiest happiest person not to have to implement quotas. But we need to have the discussion.
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PM to visit flood-affected areas later this week
Some more information on the expected visit from prime minister Anthony Albanese to the flood-affected areas of NSW, per AAP.
Albanese is due to arrive in Canberra late on Tuesday after attending a Nato leaders summit in Spain and making side trips to France and Ukraine.
The prime minister was briefed by phone about the floods situation soon after clearing war-torn Ukraine on Monday AEST.
Albanese also spoke to NSW premier Dominic Perrottet, who has declared a natural disaster triggering the release of a range of payments and loans for individuals and businesses.
Acting prime minister Richard Marles, who was speaking from flood-affected Richmond in north-west Sydney, told Nine Network on Tuesday:
He will be on the ground here later in the week.
He could tour the region with Perrottet as soon as Thursday.
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Some footage of what that looks like here.
Hawkesbury River peaking now at 14 metres at Windsor. The bridge is completely underwater. It reached 13.8 in March this year. pic.twitter.com/YDFMApI2WD
— Annalise Bolt (@AnnaliseBolt) July 4, 2022
The Hawkesbury River has peaked at Windsor at its highest level since 1978.
BREAKING: The Hawkesbury River at Windsor is now up to 13.9 metres, which is the site's highest flood level since 1978 (14.46 metres).
— Ben Domensino (@Ben_Domensino) July 4, 2022
More details here: https://t.co/sPNsBOFxPx
📷: @BOM_au pic.twitter.com/7UTK8WQycC
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Warning of rising rivers in Central Coast, Tuggerah Lakes and Hunter Valley
Sullivan continues with some more information about the areas they’re most concerned about at the moment:
Today, the risk remains around Sydney with that severe weather impacting Sydney, the Central Coast, and our focus is shifting up into the Hunter Valley. At the moment, we’re seeing rivers rise particularly around the Central Coast, the Tuggerah Lakes, and that Hunter Valley river system. So the risk remains particularly from the severe weather, but these floodwaters will remain high right into the weekend.
So we really need our community to remain vigilant, pay attention to the warnings by the Bureau and the SES, keep up to date with the latest information, always contact 132-500 if you need assistance, and 000 in emergencies.
There are a number of evacuation centres set up in support of those that do need to evacuation. Those are under evacuation warning – we do request that you pay particular attention and prepare yourself, your friends and your family, and your belongings, if you do need to evacuate, hopefully to friends and family but, if not, to those evacuation centres that we’ve set up.
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NSW SES received 500 requests for help last night
Ashley Sullivan, the deputy state commander for the NSW SES is giving an update on the on-the-ground flood situation to ABC News Breakfast:
Certainly a busy night for the New South Wales SES and our communities. We’re now up to 99 evacuation orders and 59 evacuation warnings, covering about 45,000 people – most of them in the Hawkesbury-Nepean, the Georges, and the Woronora river systems.
Overnight, we did see a significant increase in our workload, particularly late last night, as that persistent rain throughout the day saw a return to flooding on the Georges and Woronora systems, along with the Hawkesbury-Nepean. 500 requests for assistance in a short period last night, and under 100 flood evacuations and rescues that were responded to by New South Wales SES and our partners at Emergency Services.
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Some rainfall data from the Bureau for those of you who like your numbers.
Further heavy #rain totals overnight to 235mm (Darkes Forest) and another 71mm to 8am for #Sydney 🌧️
— Bureau of Meteorology, Australia (@BOM_au) July 4, 2022
⚠️#Flood Warnings as at 8am AEST Tue show Major Flooding continuing, particularly for the #Hawkesbury and #Nepean Rivers.
Latest warnings: https://t.co/AdTxjTcSCk pic.twitter.com/0zJSTPeEDS
Federal disaster payments available to 23 flood-affected areas in NSW
The federal government is making disaster relief payments available to 23 flood-affected areas in NSW, with emergency management minister Murray Watt saying the assistance would be “uncapped”.
Watt announced early on Tuesday that the federal and NSW governments were making assistance available through the commonwealth-state disaster recovery funding arrangements.
The help includes money for people whose homes or belongings have been damaged, support for local councils in cleaning up and restoring access to public services, concessional interest rate loans for small business and non-profits, and loans and freight subsidies for primary producers.
Overnight the Albanese Govt, along with the NSW Govt, activated disaster funding to provide quick financial support to those impacted by #NSWFloods. More proactive cooperation on disasters between Fed-State Govts means we’re better prepared & respond faster. pic.twitter.com/bsX7uyEgyW
— Senator Murray Watt (@MurrayWatt) July 4, 2022
Watt later told ABC News Breakfast that the assistance was “the beginning of the process in terms of disaster payments”:
These are uncapped payments, they are demand-driven and they will be available for anyone who qualifies.
Eligible areas include Blacktown, Blue Mountains, Camden, Canterbury Bankstown, Campbelltown, Central Coast, Cessnock, Fairfield, Georges River, Hawkesbury, Hornsby, Kiama, Lithgow, Liverpool, Northern Beaches, Penrith, Shellharbour, Shoalhaven, Sutherland, The Hills, Wingecaribee, Wollondilly and Wollongong.
People can contact Service NSW on 13 77 88, the NSW Rural Assistance Authority on 1800 678 593 or raa.nsw.gov.ay, or the National Recovery and Resilience Agency on recovery.gov.au.
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Sydney residents urged to stay at home where possible
Steph Cooke is doing the rounds this morning – she’s now on ABC News Breakfast. She reiterates the call for people in the Sydney area to stay at home where possible:
So we’re asking people across Sydney today to please stay at home unless you really need to leave the house. Our road system has come under significant damage in the last few days because of this rain event that we’re experiencing. There’s a lot of potholes. We’ve got strong and damaging winds expected right across Sydney today. There’s the possibility that will bring down trees. So, quite dangerous situation we’re still facing today. And we are expecting that weather system to move up into the Lower Hunter, with falls of between 40mm and 65mm over three-hour periods. We’re not out of the woods yet.
Today’s key talking points include the need to “work very hard to switch our investment to mitigation” rather than recovery.
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Residents in parts of Sydney suburb of Shanes Park told to evacuate
The NSW SES is directing people to evacuate parts of Shanes Park now.
‼️Evacuation Order- Shanes Park
— NSW SES (@NSWSES) July 4, 2022
SES is directing pple within parts of Shanes Park to evacuate now. Properties along Shanes Park Rd frm Whites Rd to the causeway just nrth along Shanes Park Rd. Shanes Park along Whites Rd & along Sth Creek Rd near Whites Rd https://t.co/BCnxAdPqqR pic.twitter.com/ohwfIkdjoB
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Here’s today’s weather forecast for NSW.
Today's rain forecast for #NSW. A number of minor to major flood warnings remain, please stay vigilant and don't enter flood waters. Rain expected to ease tomorrow for central parts of the coast. #SevereWeatherWarning still current.
— Bureau of Meteorology, New South Wales (@BOM_NSW) July 4, 2022
Warnings & Forecasts: https://t.co/SPHgGeisGZ pic.twitter.com/1Ixk4SMSLR
Portland Bay bulk carrier may be stranded offshore until Wednesday
Efforts to tow the stricken cargo ship MV Portland Bay to deeper waters were suspended overnight after tow lines broke in extreme weather conditions.
As wild winds and torrential rains continue to lash Sydney’s coast, it could be Wednesday before it is safe to tow the 170m ship into port.
The Portland Bay, carrying nearly 1,000 tonnes of fuel oil, is currently at anchor about 1.2 nautical miles off Cronulla, attended by the tugboat, the SL Martinique. The Port Authority of NSW says the ship is in a sheltered, safe position, both anchors are deployed and secured.
The 21 crew on board are safe.
In a statement, the Port Authority said:
[W]ith 11 metre swells experienced last night, an operational decision was made to suspend further attempts to tow the ship out to sea.
The crew of the MV Portland Bay has been unable to make the repairs required on board and the incident team’s preference at this time is to bring the ship into Port Botany when the weather abates so repairs can be undertaken in the safety of a berth and port environment.
Based on current weather forecasts, it is expected that the ship will remain offshore until at least Wednesday.
On Monday night it was hoped the vessel might be able to moved to about 12 nautical miles off the coast by midnight, but dangerous weather snapped tow ropes and made moving the ship dangerous for rescue crews.
The ongoing severe weather conditions makes moving the MV Portland Bay extremely hazardous so the vessel is being supported in position until the weather eases.
The Portland Bay had unloaded a cargo of cement at Port Kembla, when it returned to sea early Monday morning. But the turbo fan in the ship’s main engine blew up shortly after 7am, leaving it stricken in seas of up to eight metres and 42 knot winds. The ship’s engineers have spare parts on board and were initially planning to attempt repairs at sea when conditions allowed. Those repairs are now likely to be done in port.
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Portland Bay bulk carrier in ‘serious situation’ but ‘stable at present’
Briefly at the end of that ABC RN interview, Steph Cooke gives an update on the Portland Bay bulk carrier that is currently stranded off the coast of Royal national park:
It’s a very serious situation, there’s no doubt about that. I mean, it is stable at present. And we look forward to that situation being resolved today.
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By way of discussing the suitability of current infrastructure, Macdonald mentions the Windsor Bridge, which is supposed to be flood resistant but has been flooded multiple times now.
Cooke:
I think it’s sort of well understood that you know, we need to continue to build these [flood resistant] elements into everything that we do. And certainly in relation to the northern rivers region where I’m spending a considerable amount of time in the flood recovery space. Having discussions around how we do that ... how do we rebuild infrastructure in a way that will be adaptable to the future and what we might experience in the space going forward? So I think discussions are ongoing and always interview to taking people safe and protecting their lives and livelihoods.
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In response to a question about how communities are expected to adapt to repeated flood events such as they have experienced recently, Cooke acknowledged that they are “very weary”:
We’ve got you know, nearly 400 people presently in the ACE evacuation centres that are operating across the Sydney area. We’ve got about 150 people in emergency accommodation presently. I know you know those people are doing it really, really tough and I can understand them, you know, really questioning where they live and what future might hold if they continue to be faced with these types of circumstances on a regular basis.
Interviewer Hamish MacDonald: “Can you see why for people that are going through their fourth flood in about a year, why hearing that it’s a ‘one-in-100-year-flood’ is completely ridiculous?”
Cooke:
Yes, yes I can.
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97 flood evacuation orders in place for NSW, affecting 50,000 people
The NSW minister for flood recovery, Steph Cooke, is on ABC radio this morning. She’s warning that while we’ll see some rainfall easing across Sydney today, there are still strong winds and there will be pockets of heavy rainfall:
We are encouraging people not to become complacent throughout today. We saw yesterday afternoon the situation changed very quickly ... So, what we’re really saying is that if we do see a sudden downpour in a particular location people could find themselves in a bit of strife with flash flooding. And when of course we’re still working our way through those, those major flood levels out in the Hawkesbury-Nepean area, that will be a continued focus for us today.
And we are now starting to see that weather system move up into the lower parts of the Hunter district and we’re expecting isolated rainfalls between 40 and 65mm in that area, and on an already heavily saturated landscape, could have ramifications for people in that area.
Cooke says there are 97 evacuation orders in place affecting 50,000 people.
Updated
Good morning.
The flood disaster in New South Wales continues, with thousands of people evacuated from parts of greater Sydney and the surrounding areas as water levels rise and rain continues this morning. Disaster funding has been announced for 23 local government areas in Sydney and parts of NSW. The Bureau of Meteorology estimates 100mm of rain could fall in the next 24 hours across the Sydney/Newcastle region.
The prime minister, Anthony Albanese, who returns from Europe late this afternoon where he attended the Nato summit and made diplomatic trips to Ukraine and France, is expected to visit flood-affected communities in and around Sydney later this week.
We’ll bring you all the news on the floods as it develops throughout the day.
Elsewhere, the cargo ship the Portland Bay, stranded off Royal national park south of Sydney yesterday after suffering a power failure and being cast adrift, is still stuck, with rescue efforts yesterday hampered by further bad weather. We’ll continue to bring you the latest on that.
And the Reserve Bank is meeting today, with markets and economists tipping it to raise interest rates again by 50 basis points, lifting the official cash rate from 0.85% to 1.35%.
There’ll be heaps more throughout the day so stay tuned. I’m Stephanie Convery and I’ll be your intrepid blogger this morning. As always, if you see something newsworthy that you reckon I should make note of, you can reach me by email at stephanie.convery@theguardian.com or on Twitter: @gingerandhoney.
Let’s get stuck in.
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