Australia politics live: Labor and opposition establish secretive defence committee to scrutinise war policy; Chalmers accuses Wilson of fuel excise ‘clanger’

Labor and opposition vote to establish ‘secret’ defence committeeA bill to establish a new ‘secret’ defence committee, with only Labor and Coalition members, has passed the Senate.The new committee will consider the Aukus agreement and Australia’s involvement in military conflicts.The Greens, who will not be allowed to join the committee, say it will be made up of “pro-Trump, pro-Aukus and pro-war” members, who won’t challenge government policy.The Greens senator, David Shoebridge, said: double quotation markIf you want a better example of why Australia’s defence and foreign policy should not be made behind closed doors between the war parties, look at Albanese backing in the US and Israeli illegal war on Iran. The decision to follow Donald Trump into the next US forever war will be decided in this committee full of only the war parties. ShareUpdated at 01.53 CETKey eventsShow key events onlyPlease turn on JavaScript to use this featureJordyn BeazleyMinns government introduced ‘new injustice’ instead of fixing ‘systemic failure’ in prisons, says NSW ombudsmanThe Minns government has taken insufficient steps to address a systemic failure in its prisons, the ombudsman has found, in a scathing critique which accused the government of instead introducing a “new injustice” that the watchdog “explicitly” recommended against.The New South Wales ombudsman found in a 2024 investigation that there had been a “systemic failure” by correctional facilities across the state to adhere to legislation and policies when disciplining inmates.NSW ombudsman Paul Miller said in an update released on Monday that up until July last year the watchdog had received regular updates from the corrections department about how it was working towards the reports recommendations to address the failures, and that the watchdog was “satisfied” with the progress.But Miller said that changed soon after, coinciding with the government introducing legislation that was “something we had explicitly recommended should not be done”. The legislation lowered the standard of proof for all correctional centre offences.“We have not received any further official updates since that time,” Miller said.The legislation lowered the burden of proof for inmate misconduct from beyond reasonable doubt to on the balance of probabilities, leading to the state’s prisoners now facing among the harshest penalties in the country for trivial infractions such as “looking untidy” or “eating food in a cell”.View image in fullscreenThe Macquarie Correctional Centre in Wellington, NSW. Photograph: Murray Mccloskey/AAPThe government introduced the legislation after pressure from the union representing prison officers, the Public Services Union. Miller said of the change: double quotation markIn our view, lowering that standard for serious correctional offences introduces a new injustice. Findings of guilt for serious offences with serious punishments on anything other than the standard of ‘beyond reasonable doubt’ is, in our view, unjust and unreasonable, and inconsistent with the principles of a fair trial and the presumption of innocence. The ombudsman pointed out that courts in both Canada and Europe had held that attempts there to make similar changes were “contrary to human rights”.ShareUpdated at 02.45 CETPetrol retailers can’t take consumers for ‘mugs’: ChalmersChalmers has written to the ACCC – the consumer watchdog – to ensure petrol retailers don’t blow out their prices as the war in the Middle East impacts fuel supplies.But on the question of whether the government should consider decreasing the fuel excise – a tax which gives the government 52.6 cents per litre of fuel – Chalmers says it’s not being considered, and then takes aim at the opposition.He says that Tim Wilson – who said the excise will grow as prices rise – was wrong. double quotation markWe don’t want service stations to take advantage of people. We understand that there will be movements in the market, but retailers cannot be taking people for mugs. The excise is levied on volume, not on price and [Wilson] should know that. He’s either deliberately lying about that or he has absolutely no idea what he’s talking about. View image in fullscreenPetrol prices at a service station in Sydney. Photograph: Sarah Wilson/AAPShareUpdated at 02.31 CETImpacts from Middle East war expected to be ‘substantial’, says ChalmersChalmers says the government is closely monitoring the economic impacts of the escalating war in the Middle East, and expects them to be “substantial”. double quotation markThe situation is changing rapidly, the impacts are essentially uncertain, but we expect them to be substantial. And a big part of our work at the moment, a big part of my participation in daily meetings of the national security committee, is to monitor developments in oil markets, gas markets, also travel costs, fertiliser markets. The treasurer repeats that the economy is in a good position to withstand some of the economic uncertainty.Asked whether the government will perform some “invasive surgery” to get the budget in better shape in May, Chalmers says: double quotation markThese things are obviously weighing very heavily on our considerations for the budget. ShareUpdated at 02.22 CET‘We are really well placed, to deal with what’s coming at us’, says ChalmersTreasurer Jim Chalmers says the latest national accounts figures for the December quarter show growth has been stronger than any in major advanced economy.Speaking to reporters at Parliament House, Chalmers says the economy is well placed as the war in the Middle East escalates. double quotation markThese are really encouraging numbers because they provide a robust foundation to confront the intense global volatility, which has been dialled up in recent days by the dramatic escalation of hostilities in Iran and the Middle East more broadly. We have very substantial challenges in our economy, but these numbers show that we’ve got very substantial advantages as well. We are really well placed, to deal with what’s coming at us from around the world. Chalmers says private demand is growing faster while a key driver of public demand in the December quarter was defence spending.View image in fullscreenTreasurer Jim Chalmers has said the Australian economy is ‘really well placed’ as he speaks to media at Parliament House. Photograph: Lukas Coch/AAPShareUpdated at 02.14 CETLabor and opposition vote to establish ‘secret’ defence committeeA bill to establish a new ‘secret’ defence committee, with only Labor and Coalition members, has passed the Senate.The new committee will consider the Aukus agreement and Australia’s involvement in military conflicts.The Greens, who will not be allowed to join the committee, say it will be made up of “pro-Trump, pro-Aukus and pro-war” members, who won’t challenge government policy.The Greens senator, David Shoebridge, said: double quotation markIf you want a better example of why Australia’s defence and foreign policy should not be made behind closed doors between the war parties, look at Albanese backing in the US and Israeli illegal war on Iran. The decision to follow Donald Trump into the next US forever war will be decided in this committee full of only the war parties. ShareUpdated at 01.53 CETAustralia’s economic growth surges in late 2025Patrick ComminsEconomic growth accelerated at the end of 2025, as GDP in the December quarter rose by 0.8% and lifted the annual pace to 2.6%, from 2.1% in the year to September.The Australian Bureau of Statistics said “there was broad-based economic growth in the quarter, with rises observed in a large majority of industries”.Amid a churning public debate about whether the government is spending too much, the ABS reported that public and private demand each added 0.3 percentage points to growth over the quarter.View image in fullscreenAustralia’s economic growth has lifted to 2.6% in the 12 months to December 2025. Photograph: George Chan/EPAThe good news in this morning’s national accounts will be tempered by fears the economy is operating beyond its capacity to meet all the extra demand without adding to inflationary pressures.The Reserve Bank judges the economy’s speed limit in this regard is only about 2% a year, and Michele Bullock, the RBA’s governor, on Tuesday warned that there was a “live” chance of an interest rate hike at the meeting later this month.Jim Chalmers said in a statement that “these really encouraging numbers are a very robust foundation from which we confront intense global economic volatility, made worse by the dramatic escalation of hostilities in Iran and across the Middle East”.ShareUpdated at 01.49 CETLabor and Liberal parties accused of creating new ‘secret defence committee’The Greens have accused the Labor and Liberal parties of teaming up to create a new “secret defence committee” which will hold closed-door hearings on Aukus to the exclusion of the Greens and cross-benchers.The Defence Amendment Bill establishes a new committee that gives the prime minister an effective veto over who sits on it, and will only allocate spots for the Liberal and Labor parties, the Greens have said.Greens spokesperson for foreign affairs and defence, senator David Shoebridge, said “now more than ever we need to have critical voices in the room when looking at Australia’s defence policy”. double quotation markCommittees should reflect the makeup of parliament and the community. The Liberal and Labor unity ticket is not reflective of the community, which is increasingly moving away from these two parties. Over the next decade, three-quarters of a trillion dollars in public funds will be poured into Defence. The major parties want that to be a black box, so you cannot see where that money is going, that’s what this secret committee is all about. View image in fullscreenSenator David Shoebridge has called for the Greens to have spots alongside the Labor and Liberal parties in a new ‘secret defence committee’. Photograph: Mick Tsikas/AAPShareUpdated at 01.54 CETAustralian people ‘don’t like any of us’, says LittleproudThe Nationals leader, David Littleproud, says voters “don’t like any of us” after facing questioning over shrinking support for his party.Appearing on Sky News earlier, Littleproud was asked about a leaked New South Wales Nationals review which found once safe seats were becoming more vulnerable, with support shrinking to male voters over 55.He replied, “every seat’s becoming vulnerable”. double quotation markWe’ve seen the conservative centre-right of politics split three or four ways, and we’re now seeing some of the left side of politics split with the Teals and the Greens and the Labor party. The reality is we have a different society than what we did 10, 20 years ago. So they pose different challenges that we have to be alive to … I think the polls demonstrate that the Australian people don’t like any of us. There’s no one sitting there with a vast majority. So what we’ve got to do is see the opportunity and articulate our message better and sell our message better. View image in fullscreenNationals leader David Littleproud has said voters ‘don’t like any of us’ as a NSW review found once safe seats were becoming more vulnerable. Photograph: Mick Tsikas/AAPShareUpdated at 01.24 CETCigarettes get more expensive as tobacco excise increasesPatrick ComminsThe world’s most expensive (legal) cigarettes just got a bit pricier, after Australia’s tobacco excise lifted by another 2% as part of regular six-monthly increases that track wages growth.The excise has climbed by 60% since 2020 and now accounts for three-quarters of the roughly $40 or more legal cost of a 20-pack of smokes.Higher prices have been an effective strategy to reduce smoking over the years, particularly among younger people.But now there are concerns high taxes may be having a perverse effect, as more Australians are getting their hands on black market cigarettes that reportedly cost only about $10 to $15 a packet.View image in fullscreenE-cigarette products for sale in a Melbourne shop. Photograph: Joel Carrett/AAPFrom a standing start five years ago, illegal ciggies now account for about half of all tobacco consumed in Australia, according to estimates by the illicit tobacco and e-cigarette commissioner (Itec).The flight to illegal smokes has also blown a mult-billion dollar hole in the budget, as the more the government lifts the excise, the less they collect in revenue.Economists and health experts have argued the case for at least a freeze on the tobacco excise, but the government has so far refused to countenance any change, even as they commit hundreds of millions of dollars to fight the illegal trade.There are signs policymakers may be considering their options, however, after Treasury officials recently said they were re-examining how the demand for cigarettes changes with the movement in prices.ShareUpdated at 01.18 CET‘What’s next’ for Iran conflict, asks CanavanSpeaking to Sunrise earlier this morning, Nationals senator Matt Canavan said he was concerned the US administration’s reasoning for the war in Iran is “shifting by the day”.He adds that wars to change regimes through his lifetime haven’t worked as intended, and have significant consequences.Unlike the rest of the Coalition, and the government, who have supported the strikes on Iran (though left questions about the legality of them to the US and Israel), Canavan says he’s against them. double quotation markI’m concerned that the Trump administration’s reasons for this conflict seem to be shifting by the day. Yesterday, the secretary of state suggested they went in because Israel was going to go first. Look, I’ve been against these attacks. I don’t see these regime change wars that we’ve gone through in my lifetime ever working out well … All we can do is hope and pray this turns out better than Iraq, than Libya, than Syria, than Afghanistan. All these conflicts have ended up making the world worse. And it’s great to see the Ayatollah no more, but I’m still asking, what’s next? View image in fullscreenNationals senator Matt Canavan has said he is against the US-Israel strikes on Iran and what he calls ‘regime change wars’. Photograph: Mick Tsikas/AAPShareUpdated at 01.06 CETChalmers fact checks Wilson’s ‘clanger’ over fuel excise claimJim Chalmers’ office is sending a fact check around on shadow treasurer Tim Wilson’s earlier comments to Sky News, that as petrol prices increase, the government will claim more money through the fuel excise.Chalmers calls Wilson’s comments a “clanger”.The fuel excise isn’t a percentage tied to price, but a set amount per litre sold, and currently sits at 52.6 cents per litre. The excise is increased every six months for inflation.This means the government would get more money through the excise if more petrol is sold, but the excise does not increase just because the price goes up.Wilson wouldn’t say whether the excise should be cut as fuel prices go up, but that it’s something that Chalmers could consider.View image in fullscreenThe shadow treasurer, Tim Wilson, has called for a cut to fuel excise as prices rise at the bowser. Photograph: Lukas Coch/AAPShareUpdated at 01.28 CET
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