Australia always preferred used submarines, defence secretary claims
Dan Jervis-Bardy
Australia’s preference was always to receive second-hand nuclear powered submarines under the Aukus deal, defence officials have revealed, prompting the Coalition to question if the original arrangement was “imposed” on the Albanese government.
The defence secretary, Meghan Quinn, was grilled at Senate estimates on Tuesday night about the announcement that Australia would buy three used Virginia-class submarines from the US rather than a combination of new and old vessels.
Under questioning from the shadow defence minister, James Paterson, Quinn said it was a “joint idea” from Australia and the US to rework the deal.
Pressed on which country proposed the alternative plan first, Quinn said:
double quotation markAustralia’s position is that we would have always … had a preference for three in-service [submarines].
A surprised Paterson asked why the Albanese government accepted the original deal if that wasn’t its preference.
double quotation markThey imposed a new submarine on us and said you must take a new submarine even if you want three in-service?
Quinn replied:
double quotation markThis is a joint exercise over many decades, working collaboratively with an alliance partner to deliver a capability which is significant and is very important for Australia’s national defence. So there are many reasons why three in-service [submarines] would be simpler, lower-cost through the training of staff, the sustainment arrangements, the maintenance requirements, and all of those considerations.
Australian defence minister Richard Marles, centre, walks alongside US and UK counterparts Pete Hegseth (L) and John Healey (R) at the US embassy in Singapore. Photograph: Edgar Su/ReutersShare
Updated at 17.45 EDT
Key events
Labor a ‘reluctant partner’ to Aukus: Canavan
The Nationals leader, Matt Canavan says he has concerns over Australia ceding its sovereignty in the Aukus partnership, but that it’s still the best pathway for our national security.
Speaking to the ABC’s RN Breakfast a little earlier, Canavan said the Labor party hasn’t had its “heart” in Aukus, and needs to boost the defence force and our capability around the deal to help maintain our sovereignty.
He adds that the breakout from the Labor backbench (referring to Ed Husic’s criticism of the deal yesterday), is also concerning.
double quotation markThe Labor Party’s never really had its heart in this deal. It’s always been a reluctant participant here.
Obviously, America has its own priorities, it’s got its own volatility. But you can see with this breakout from the backbench of their caucus that there’s always been bubbling below the surface a degree of scepticism from the Labor Party about this. And I think that’s a little concerning because if they’re not being upfront with the Australian people about what they want to do for our defence needs, then they don’t really have a strategy for our defence needs at perhaps the most volatile geopolitical environment since World War II.
‘No evidence’ of sex selection in NSW: state health minister on abortion vote
The NSW health minister, Ryan Park, says there’s no evidence abortions related to sex selection are occurring in NSW, ahead of a vote on an anti-abortion bill in the state.
The bill, moved by Libertarian upper house member, John Ruddick, is a ban only on sex-selective abortion. It’s received support from One Nation, with federal MP Barnaby Joyce attending a rally last night, pushing attenders to campaign with One Nation to put pressure on the major parties.
This morning, Park told ABC radio Sydney that he doesn’t want to see “abortion back into the criminal code”. He said as it was a conscience vote, he was speaking for himself, not on behalf of the government.
double quotation markI won’t be supporting the bill, and there is no evidence that sex selection is occurring in New South Wales, and from my perspective, as I said, it’s a conscience bill, I don’t want to see abortion back into the criminal code.
It would make it the only part of healthcare that is done through that type of criminality and I don’t want to see that.
NSW only fully decriminalised abortion in 2019.
Updated at 18.28 EDT
‘I don’t think any Australian is now believing the crap that you are trying to spin them’: Cash
We’re almost always guaranteed a heated exchange between Labor minister Clare O’Neil and Liberal shadow minister Michaelia Cash, who front up with fists up on Sunrise every Wednesday – and this morning was no different.
Cash says Labor lied to the public 50 times before the election over promises not to touch CGT and negative gearing and they’re now facing the consequences.
She calls on the government to split the bill so the Coalition can vote for the tax cuts, and against the more contentious elements.
double quotation markClare, I don’t think any Australian is now believing the crap that you are trying to spin them. Now, this is what happens when you lie to the Australian people 50 times before an election.
O’Neil says the tough choices in the budget, “pay for the tax cuts that we’re giving to every single Australian worker watching right now”.
Cash counters with, “so you rob Peter to pay Paul” – which O’Neil tries to ignore.
Host, Nat Barr then gets stuck in, trying to get O’Neil to say whether she wants house prices to go up or down.
O’Neil says the government wants “sustainable growth” and there’s a lot (and I mean a lot) of back and forth over whether that means up or down. O’Neil keeps saying sustainable growth but not “400% growth over 20 years”, and Barr eventually settles on that meaning that the government supports prices going up a little bit.
Liberal shadow minister Michaelia Cash. Photograph: Mick Tsikas/AAPShare
Updated at 18.30 EDT
Patrick Commins
National accounts to reveal state of pre-Iran war economy
National accounts later this morning will show the economy slowed in early 2026, experts say, ahead of the global oil shock that rocked the world and sent fuel costs soaring.
CBA analysts reckon the data, out at 11.30am, will reveal the economy may have even stalled in the three months to March.
But their counterparts at ANZ and UBS estimate growth of more like 0.5%, which speaks to the uncertainty.
If we split the difference, NAB economists predict the Australian Bureau of Statistics figures will show real GDP grew by a soft 0.3% in the March quarter.
That would bring the annual growth rate down to 2.4%, from 2.6% in the year to December.
Treasurer Jim Chalmers set a low bar yesterday, saying: “Any growth in the current circumstances would be welcome”.
double quotation markI think any through-the-year growth with a two in front of it would be a particularly welcome outcome, when you consider all of the global economic uncertainty and volatility that we are confronting.
Treasurer Jim Chalmers. Photograph: Lukas Coch/AAPShare
Updated at 18.15 EDT
Labor ‘deeply concerned’ by KPMG allegations, Gallagher says
Katy Gallagher says the government is deeply concerned by the allegations raised over KPMG, and tells RN Breakfast she’s held several meetings with her department over the issue.
Last week, KPMG’s Australian chief, Andrew Yates, stepped down, after taking responsibility for the consultancy firm’s failure to properly respond to whistleblower allegations around the misuse of client information.
Gallagher says:
double quotation markWe are deeply concerned by the allegations that have been made about KPMG … Some of the concerns that have been raised don’t relate to a contract with the government, but we do have arrangements with them. We’ve put in place a whole range of new [measures], like a supplier code of conduct, new arrangements post the PWC issue that was raised. And we are absolutely firm on making sure that suppliers with government have the highest ethical standards. If they don’t, we will respond to that.
KPMG office in Melbourne. Photograph: Diego Fedele/AAPShare
Updated at 18.04 EDT
Government distances falling house prices from tax changes
Katy Gallagher says that she knows tax reform is hard, and is trying to distance the proposed changes to capital gains tax and negative gearing from cooling and falling house prices around the country.
Facing public backlash over the reforms, the government has focused its messaging around doing the “right” thing rather than the “easy” thing – which is the line Gallagher is using too.
Gallagher says there’s a lot of support for maintaining and protecting the status quo, “but we don’t think that’s the right approach to take with all the information we have”.
double quotation markI’m not really a commentator on house prices … the tax reform that we have announced, the Treasury expects that it will have about 2% slower growth on house prices. But there are other factors that contribute to house prices and auction clearance rates. For example, some of the interest rate increases that we’ve seen in recent months.
For sale sign. Photograph: AAPShare
Updated at 17.56 EDT
Why are we now hearing that it was Australia’s preference to receive three second-hand subs?
The finance minister, Katy Gallagher, says Australia will be getting three nuclear submarines from the US as promised, but can’t say why we’re only now finding out that it was Australia’s intention in the first place to receive three used ones.
This all came out over the weekend, when the defence minister, Richard Marles, revealed that Australia won’t receive one new and two used submarines as previously stated, but three second-hand ships. Since then, the question has been “what changed?”, but it was then revealed at Senate estimates that it was the government’s preference in the first place for all to be second hand.
On the ABC’s RN Breakfast, Gallagher is asked why the public wasn’t told that in the first place. She doesn’t really say.
double quotation markThese estimates are obviously going through the budget, but this is something that we’ve been talking about for a long time. This is a capability that Australia needs. We’re going through discussions with the US and the UK as we progress Aukus, but this is a capability that we are needing and we’re needing it through the Aukus partnership. So we’ll continue to talk through Aukus. Estimates will continue.
The finance minister, Katy Gallagher. Photograph: Mick Tsikas/AAP
Asked about Ed Husic’s call for a rethink of Aukus, Gallagher echoes her colleague, Penny Wong, and says “he’s entitled to his view”, but adds that the public remarks are not a surprise:
double quotation markI don’t think it’s particularly surprising that Ed’s talking publicly. He does on a number of matters. He’s entitled to his view. He’s made that clear. But the government remains committed to the agreement that we signed up to in opposition and that we are implementing in government.
Updated at 17.54 EDT
Cait Kelly
Fair Work Commission sees surge in claims
At the end of April, the Fair Work Commission had 44,039 application claims for this year, just 36 claims under the total amount received in the 2024-25 financial year.
This is a 70% surge in workload over the past three years, with unfair and unlawful dismissal both seeing a sharp increase.
The Department of Employment and Workplace Relations said the increase may be the result of claimants using AI, with workers able to quickly fill out claims online.
Asked why the Dept thought the claims had exploded, the DEWR deputy secretary, Greg Manning, said:
double quotation markI don’t think we have a view separate from the commission. Other than to say I think there’s a range of factors.
We’ve discussed the ability for unrepresented litigants to use AI to write claims that, clearly, the commission says that’s an issue for it. We have no reason to doubt it.
There are issues that go to greater awareness; there have been discussions around paid agents. There’s a business model of certain people who can assist applicants to make certain claims. Again, that’s something which the commission has taken some action to.
I think generally, there’s some demography [aspects]. There are more people in work than ever before. There’s a range of factors.
Man using AI assistant while working on laptop. Photograph: Nico De Pasquale Photography/Getty ImagesShare
Updated at 18.03 EDT
Josh Taylor
Chaney said:
double quotation markAI companies should be able to unlock the majority of global content with a handful of individual deals – in the same way that every other industry licenses copyrighted content.
Government could further work to facilitate this process for the remainder of the copyrighted content, either directly or through a centralised mechanism.
AI companies are reluctant to enter into licensing agreements, claiming they will have to sign many agreements to cover all bases, while the creator sector is arguing against any weakening of copyright law to allow AI to train in Australia.
ShareChaney calls for AI regulation, circuit-breaker in copyright fightJosh Taylor
Independent MP Kate Chaney has released a discussion paper calling for stronger regulation of artificial intelligence, and a circuit-breaker in the standoff between AI companies and creators over training AI data on copyrighted material.
Chaney surveyed her constituents in the electorate of Curtin, and it is understood she has met with a number of stakeholders in the development of the proposals.
The paper says the federal government has implemented “very little actual policy” on AI, and the growing community backlash against AI is due to worry “that this new industry will steal jobs, supercharge online deepfakes and scams, breach their privacy, and use up energy, land and resources – all for the profit margins of international AI companies.”
Among her proposals, Chaney suggests including AI in new digital duty of care legislation that is planned for social media platforms, extending the under-16s social media ban to AI chatbots, beefing up privacy law, and more resources for AI institutes, and taxing international tech and AI companies.
Chaney also says the current stalemate on copyright is a “lose-lose” situation, with creators not being rewarded, and AI companies reluctant to train AI locally and risk breaching the law.
Chaney’s paper suggests the government could progress the issue by “facilitating and accelerating the negotiation of licensing agreements between AI companies and rights holders.”
Independent MP Kate Chaney. Photograph: Mick Tsikas/AAPShare
Updated at 17.48 EDT
Government open to ‘elevation of relationship’ with Solomon Islands
Penny Wong has moved to the other side of the ABC offices, to the ABC AM studio, where she’s trying to be very diplomatic over the push for a new treaty with Solomon Islands.
The new prime minister, Matthew Wale replaced former PM, Jeremiah Manele, who was ousted from power in a no-confidence vote earlier this month. The contest was widely seen as a choice between Solomon Islands continuing close ties with China, or a rebalancing of relations toward Australia and western allies.
The foreign minister says the government will be “led by the priorities that [Wale] articulates as prime minister”, but plugs the deals Australia has made with other neighbours in the region.
double quotation markYou’ve seen us through this term and the last term engage in building trust with Pacific nations and developing transformative relationships and agreements with him, such as the Papua New Guinea alliance … So, yes, of course, we are open to the elevation of the relationship and will be led by his priorities.
It’s in our interest to have secure arrangements throughout our region that contributes to Australian security.
Asked if the government would be disappointed if there’s no agreement on forming a new treaty, Wong says “I don’t like hypotheticals”.
double quotation markWe welcome him. We want to work with him. It’s a new government, it has a very clear agenda, and we want to work with that government to deliver that agenda.
Solomon Islands prime minister Matthew Wale. Photograph: Lukas Coch/EPAShare
Updated at 18.24 EDT
Trump’s call opposing planned Israeli attack on Beirut ‘significant’: Wong
Penny Wong says she won’t comment on President Donald Trump’s reportedly colourful call with Israeli prime minister Benjamin Netanyahu, but says that his expression of opposition over plans to bombard or attack Beirut was “significant and important”.
Wong says the government has made clear its opposition to attacks on Lebanon and has voiced those concerns with Israel.
She adds that the ceasefire should have included Lebanon from the beginning.
double quotation markI’m not going to comment on what President Trump said, other than to say it was significant and important that the US made clear its opposition to Mr Netanyahu’s plans to bombard or to attack Beirut. We oppose Israel’s escalation in Lebanon. We’ve made our views about prime minister Netanyahu, Netanyahu’s agenda quite clear. You saw that prior to the last election, and he had some things to say about us. We have a clear view about, in this circumstance, about the escalation, which we do not support.
Asked about the new sanctions on Israeli entities and individuals over settlements in the West Bank announced yesterday, Wong says the Israeli settlements are “an obstacle to peace and inconsistent with progress towards a two-state solution.”
Updated at 18.22 EDT
‘Individuals will have their views’, Wong brushes off Husic’s Aukus call
The foreign affairs minister, Penny Wong, has brushed off concerns from Labor MP Ed Husic, who has called for a rethink of the Aukus pact, and says the government still believes the deal with the US and the UK is the best course.
Wong is in the hot seat this morning doing the media rounds, and she starts at the ABC’s News Breakfast.
She says the former Coalition governments kept “changing course on submarines” and left a capability gap in Australia’s defence force.
double quotation markI understand individuals will have their views, but obviously I speak as a member of the cabinet and the government, and we believe it is in the best interests of our country for this project to continue to proceed … We believe chopping and changing will only set the country back.
Asked about the growing criticism within Labor’s inner and outer ranks – including former Labor MP Peter Garrett, Wong says that Labor is the “only political party that has an open debate in front of the media.”
The foreign affairs minister, Penny Wong. Photograph: Mick Tsikas/AAPShare
Updated at 18.20 EDT
Good morning
Krishani Dhanji
Good morning, Krishani Dhanji here with you for another busy sitting day – thanks to Martin Farrer for getting us started.
Debate on the government’s bill to change capital gains tax and the tax offset will continue today, with the opposition calling for the bill to be split. We’ll also be keeping a close eye on estimates – with defence and the submarine agency set to front senators this morning.
The Solomon Islands prime minister, Matthew Wale, will attend parliament today for talks with Anthony Albanese. There are reports this morning from Nine newspapers that Albanese will use the time with the new prime minister to begin discussions on a treaty agreement and revive a policing deal.
There’s plenty happening so let’s get stuck in!
Updated at 18.10 EDT
University changed wifi terms to monitor for ‘breaches of policies’, report finds
Caitlin Cassidy
The University of Melbourne (UoM) changed its wifi terms of use allowing the network to be monitored by the university to help detect “suspected unlawful behaviour” or “breaches of university policies”, a new report into campus free speech has found.
The final report, released on Wednesday, was the result of a people’s inquiry into campus free speech on Palestine, initiated in 2025 by students and academics with support of the Greens. It had 150 written submissions and three public hearings.
An investigation found the UoM breached Victoria’s Privacy and Data Protection Act when it used its wifi network to surveil students and staff holding a pro-Palestine protest. It quietly introduced new terms of use in January, despite the state’s deputy information commissioner describing the surveillance as a “breach of trust”.
A spokesperson for the UoM said it was the university’s “responsibility to foster a secure and respectful environment, while upholding compliance with our policies”.
double quotation markThe wireless terms of use were revised after community feedback and reissued in January 2026 and now include more information on how wireless network data may be used.
University of Melbourne. Photograph: EQRoy/Alamy
The report found there had been widespread restrictions on free speech and academic freedom since pro-Palestine encampments were established in 2024, including disciplinary action, protest crackdowns and surveillance.
The Greens deputy leader and patron of the inquiry, senator Mehreen Faruqi, said the findings were “chilling”.
double quotation markThe harsh measures to silence dissent are quite reprehensible when universities should be upholding academic freedom and free speech.
Bart Shteinman, executive officer of the Jewish Council of Australia, which participated in the inquiry, said universities were facing a “rightwing culture war”.
Updated at 18.07 EDT
Australian troops will be sent to Poland to train with UkrainiansDan Jervis-Bardy
Australian troops will be sent to Poland in coming weeks to train Ukrainian soldiers in the latest effort to support its fight against Russia’s illegal invasion.
Australian Defence Force personnel have since January 2023 been based in the UK helping to train Ukrainian soldiers in basic infantry tactics, leadership and military skills.
But in coming weeks, the ADF personnel will be shifted to Poland as part of a Norwegian-led operation, bringing Australian troops closer to the conflict zone.
Making the announcement last night, the defence minister, Richard Marles, said:
double quotation markAustralia is continuing to adapt our contributions to Ukraine to ensure our support remains practical, relevant, and aligned with their most urgent needs.
ADF personnel trained more than 3,650 Ukrainians in the UK under Operation Kudu.
Since the start of Russia’s full-scale invasion in February 2022, the Australian government has provided more than $1.7bn in support for Ukraine, including $1.5bn in military assistance.
Australian Defence Force personnel trained Ukrainian troops in the UK. Photograph: Justin Tallis/AFP/Getty ImagesShare
Updated at 18.12 EDT
Australia always preferred used submarines, defence secretary claimsDan Jervis-Bardy
Australia’s preference was always to receive second-hand nuclear powered submarines under the Aukus deal, defence officials have revealed, prompting the Coalition to question if the original arrangement was “imposed” on the Albanese government.
The defence secretary, Meghan Quinn, was grilled at Senate estimates on Tuesday night about the announcement that Australia would buy three used Virginia-class submarines from the US rather than a combination of new and old vessels.
Under questioning from the shadow defence minister, James Paterson, Quinn said it was a “joint idea” from Australia and the US to rework the deal.
Pressed on which country proposed the alternative plan first, Quinn said:
double quotation markAustralia’s position is that we would have always … had a preference for three in-service [submarines].
A surprised Paterson asked why the Albanese government accepted the original deal if that wasn’t its preference.
double quotation markThey imposed a new submarine on us and said you must take a new submarine even if you want three in-service?
Quinn replied:
double quotation markThis is a joint exercise over many decades, working collaboratively with an alliance partner to deliver a capability which is significant and is very important for Australia’s national defence. So there are many reasons why three in-service [submarines] would be simpler, lower-cost through the training of staff, the sustainment arrangements, the maintenance requirements, and all of those considerations.
Australian defence minister Richard Marles, centre, walks alongside US and UK counterparts Pete Hegseth (L) and John Healey (R) at the US embassy in Singapore. Photograph: Edgar Su/ReutersShare
Updated at 17.45 EDT
Welcome
Martin Farrer
Good morning and welcome to our live politics blog. I’m Martin Farrer with the top overnight stories and then Krishani Dhanji will be your guide.
Australia’s preference was always to receive second-hand nuclear powered submarines under the Aukus deal, the defence secretary told Senate estimates last night. More coming up.
And Australia is going to send ADF troops to Poland to help train Ukrainian fighters. More on that, too, soon.
Updated at 17.45 EDT