Albanese envisions high-speed rail one day making its way to Melbourne
Benita Kolovos
The prime minister later turned to high speed rail, following the announcement of $230m for planning work for the first phase from Newcastle to Sydney. He says he envisions the project continuing all the way down to Melbourne in the future:
double quotation markAs a former infrastructure minister I can tell you, the only thing that moves fast in this process is the train. But let me be clear: for high-speed rail to deliver its full economic and national benefits, it cannot terminate at Sydney. Australia is the only inhabited continent on Earth that doesn’t already have high-speed rail.
And Melbourne to Sydney is one of the busiest flight corridors in the world. I accept that I will not be the prime minister when high-speed rail is finished. But I am determined to be the prime minister who starts it.
This final line received a heap of applause from the crowd.
Albanese was asked why we need high-speed rail and how are we going to afford it. He responded:
double quotation markThe first thing to say is that Sydney-Newcastle, makes most sense in terms of density … but it’s also the hardest. A lot of Sydney to Melbourne is actually a lot easier by definition. Essentially, think about that getting through the Hawkesbury and across what is pretty, pretty hard terrain, and would have to largely be under the ground rather than over. The big thing that makes sense between Sydney and Melbourne and changes the economics of it is the uplift of regional economic development that you would have along the route.
An artist impression of business class in a high-speed rail service in Australia. Illustration: High Speed Rail Authority Australia/Australian government
He says the vision would be Sydney to Melbourne in “under three hours”:
double quotation markIt’s not just a transport policy, it’s an economic development policy, it’s a housing policy. It’s a growth strategy as well, with huge productivity benefits. If you think about the time that it takes people travelling to an airport, sitting waiting, boarding all of that. There’s a reason why, around the world, high-speed rail has taken off. No one now flies from London to Paris.
Updated at 21.46 EST
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Sarah Basford Canales
ACT Police will return art posters seized from Canberra music venue after assessment
No charges will be laid against the owner of a Canberra music venue who was shut down for a night last week by ACT police for potentially breaching hate symbol laws after displaying art posters depicting world leaders and others, including Donald Trump and Elon Musk, wearing Nazi uniforms.
In a statement on Wednesday afternoon, ACT police said it had now assessed the posters and no charges would be laid.
double quotation markFollowing assessment, it has been determined that while the posters satisfied certain aspects of the legislation, other aspects were not met. As such, criminal proceedings will not occur. The posters will be returned to the owner in due course and this matter finalised.
ACT Policing remains committed to ensuring that alleged antisemitic, racist and hate incidents are addressed promptly and thoroughly and when possible criminality is identified, ACT Policing will not hesitate to take appropriate action.
Police seized art posters depicting Trump, Putin and Netanyahu in Nazi uniforms from David Howe at Dissent cafe. Photograph: Sarah Basford Canales/The Guardian
David Howe, the owner of Dissent Cafe and Bar in Canberra’s CBD, told Guardian Australia his venue was shut down for about two hours last Wednesday night as police investigated a complaint about hate imagery relating to five posters in the window.
“I think it’s ludicrous to be perfectly honest,” he told Guardian Australia, describing the works as an “anti-fascist statement” and noting the shut down had caused the cancellation of an interstate band’s performance.
By Thursday afternoon, less than 24 hours later, the posters were placed back in the windows,with the contents covered with the word “CENSORED” in red and have remained there since.
Read more:
ShareBenita Kolovos
PM gets rapid-fire questions, calling former prince Andrew a ‘grub’
The prime minister was also asked a series of rapid-fire questions by the Herald Sun editor, Sam Weir, and was asked to give one-word answers. They were:
Sussan Ley: “Best wishes”
Angus Taylor: “Leader”
Andrew Mountbatten-Windsor: “Grub”
Craig Tiley: “Legend”
Oscar Piastri: “Winner”
One Nation voters: “Frustrated”
Pauline Hanson: “Divisive”
Australia Day: “Great”
Grace Tame: “Difficult”
Donald Trump: “President”
Barnaby Joyce: “I can’t do that in one word, I am just looking forward to Barnaby Joyce v Pauline Hanson – you know it’s coming”
Women with Islamic State links: “They made their bed, they’re lying in it”
AFL or NRL: “Unfair”
Rabbitohs or Hawks: “I was on the board of Rabbitohs … but I support both”
His response on Mountbatten-Windsor received applause from the crowd.
Anthony Albanese speaks during the Future Victoria Summit in Melbourne on Wednesday. Photograph: Michael Currie/AAPShare
Updated at 22.06 EST
Patrick Commins
High inflation the ‘political payback of a populist policy’, economist says
High inflation is “the political payback of a populist policy” by federal and state governments to subsidise energy prices from mid-2023, an economist says.
Stephen Smith, a partner at Deloitte Access Economics, said this morning’s evidence that inflation remains too high “means a pre-budget rate rise remains on the table”.
Smith made the same point as the Australian Bureau of Statistics that the 3.8% headline inflation figure “is heavily influenced by the end of energy bill relief, which has triggered an 18.5% increase in electricity prices in the month of January alone”.
double quotation markWhile the federal government deserves credit for not continuing the electricity subsidies beyond December, today’s spike in headline CPI [consumer price index] was always going to be the political payback of a populist policy.
Photograph: Jono Searle/AAP
For Smith, the combination of relatively soft growth and high inflation are a hallmark of an economy struggling with low productivity growth, and highlighted the urgency of the reform challenge.
double quotation markUnless the federal budget meets the moment and outlines significant economic and tax reform, growth will stagnate and inflation will persist for longer than necessary.
Cherelle Murphy, EY’s chief economist, said the latest inflation figures showed “persistent” price pressures, and reinforced the likelihood of further rate hikes.
“The Reserve Bank has its work cut out to get inflation back within the target band” of 2-3%, Murphy said.
Jim Chalmers in a statement said the latest inflation figures “are another important reminder that the coming budget will have the right focus on inflation and productivity against a backdrop of global uncertainty”.
Updated at 21.52 EST
Benita Kolovos
Albanese says government ‘always’ looking at economic reform
Asked about the prospect of changes to capital gains tax, Albanese said the government was “always” looking at economic reform. He went on:
double quotation markWhat we have been very keen to do, because in part, we know there is a lot of frustration of the way that the political system works, is to deliver on the commitments that we took to the election.
We’ve been ticking them off one by one, but we’ve also said that’s the floor, not the ceiling, that’s not the limit of our ambition, and you’ll see reform in the budget.
You’ll have to wait to see.
Anthony Albanese speaks during the Future Victoria Summit in Melbourne on Wednesday. Photograph: Michael Currie/AAPShare
Updated at 21.54 EST
Benita Kolovos
Albanese reminds everyone to ‘turn the heat down for goodness sake’ after bomb threat
We’ve now moved to a Q&A, facilitated by the Herald Sun editor, Sam Weir, and chief executive officer of the chamber of commerce, Sally Curtain.
Weir has begun by apologising about the protesters and thanking him for continuing on with his speech. Albanese responded:
double quotation markThe objective should always be to keep going.
The prime minister’s residence, The Lodge, in Canberra on Wednesday. Photograph: Mick Tsikas/AAP
Weir then asked him about the “scare” at The Lodge last night, which was evacuated due to a bomb threat. He joked the prime minister’s cavoodle, Toto, was a “fearsome guard” and asked whether Albanese could dispel the rumour Karl Stefanovic had been “lingering too long in The Lodge after his podcast”.
Albanese replied:
double quotation markI can do that.
The prime minister added “a reminder to take every opportunity to tell people to turn the heat down, for goodness sake”.
Updated at 21.35 EST
Albanese envisions high-speed rail one day making its way to MelbourneBenita Kolovos
The prime minister later turned to high speed rail, following the announcement of $230m for planning work for the first phase from Newcastle to Sydney. He says he envisions the project continuing all the way down to Melbourne in the future:
double quotation markAs a former infrastructure minister I can tell you, the only thing that moves fast in this process is the train. But let me be clear: for high-speed rail to deliver its full economic and national benefits, it cannot terminate at Sydney. Australia is the only inhabited continent on Earth that doesn’t already have high-speed rail.
And Melbourne to Sydney is one of the busiest flight corridors in the world. I accept that I will not be the prime minister when high-speed rail is finished. But I am determined to be the prime minister who starts it.
This final line received a heap of applause from the crowd.
Albanese was asked why we need high-speed rail and how are we going to afford it. He responded:
double quotation markThe first thing to say is that Sydney-Newcastle, makes most sense in terms of density … but it’s also the hardest. A lot of Sydney to Melbourne is actually a lot easier by definition. Essentially, think about that getting through the Hawkesbury and across what is pretty, pretty hard terrain, and would have to largely be under the ground rather than over. The big thing that makes sense between Sydney and Melbourne and changes the economics of it is the uplift of regional economic development that you would have along the route.
An artist impression of business class in a high-speed rail service in Australia. Illustration: High Speed Rail Authority Australia/Australian government
He says the vision would be Sydney to Melbourne in “under three hours”:
double quotation markIt’s not just a transport policy, it’s an economic development policy, it’s a housing policy. It’s a growth strategy as well, with huge productivity benefits. If you think about the time that it takes people travelling to an airport, sitting waiting, boarding all of that. There’s a reason why, around the world, high-speed rail has taken off. No one now flies from London to Paris.
Updated at 21.46 EST
Benita Kolovos
Albanese talking about efforts to help first home buyers and other infrastructure efforts
Albanese’s speech in Melbourne has largely covered his usual ground – covering off the commitments his government took to the last election. This includes the federal government’s new 5% deposit scheme, which he says has helped 71,000 Victorians buy their first home.
He says in the last year, one in every three Australians who bought their first home was a Victorian:
double quotation markWhat’s happening in Victoria underlines an important fact. When it comes to housing affordability, the most important thing is supply. More Victorians have been able to buy a home, because Victoria is building more homes.
Albanese says the federal government confirmed earlier this month that it would sell empty or underused defence land – eight sites in Melbourne and eight in regional Victoria.
He says the state and federal governments were also working to build roads and public transport to service the new homes. He says the federal government has backed the North East Link, Suburban Rail Loop, the redevelopment of Sunshine Station and Melbourne Airport rail. On the latter, he says:
double quotation markThis is a project that has been debated and announced and re-announced for decades. Now it is under way. Plans approved, shovels in the ground. No turning back.
Anthony Albanese. Photograph: Mick Tsikas/AAPShare
Updated at 21.12 EST
American political wonks: Donald Trump’s State of the Union is set to begin
You can follow along with Guardian US’s liveblog here:
ShareBenita Kolovos
Protesters ejected from prime minister’s speech in Melbourne
Two protesters were ejected during prime minister Anthony Albanese’s speech at the Victorian Chamber of Commerce and Industry and Herald Sun’s Future Victoria Summit in Melbourne.
The protesters chanted “no more coal and gas” as a heavy security presence escorted them from the event, held at Crown. Albanese continued his speech throughout, with the crowd applauding as the protesters were ejected.
It comes after Albanese was evacuated from his official Canberra residence on Tuesday night as police responded to a bomb threat.
Updated at 20.57 EST
Josh Butler
More than half of Australians open to voting for One Nation despite Hanson’s Muslim comments
Nearly 60% of Australians would be open to voting for One Nation at the next federal election, including nearly half of those currently backing Labor, according to the latest Guardian Essential poll.
The results will ring alarm bells for both the government and Coalition about the march of the rightwing populist party and its leader, Pauline Hanson.
One Nation leader Pauline Hanson. Photograph: Darren England/EPA
Meanwhile, Angus Taylor’s appointment as Liberal leader has done little to boost the opposition’s electoral fortunes so far, with its primary vote virtually unchanged and voters split about whether his spill of Sussan Ley would make them more or less likely to vote for the Coalition.
The poll of 1,002 Australians last week found a largely unchanged primary vote federally. Labor recorded a 30% primary, one point down from January, while the Coalition ticked up one point to 26%.
Read more here:
Updated at 20.58 EST
Melissa Davey
Independent oversight team appointed at Cumberland hospital
The NSW government has ordered an independent team of experts to oversee the management of Cumberland hospital in Sydney effective immediately following separate escapes of two mental health patients.
A man charged with murder after a stabbing attack in Merrylands had allegedly absconded from Cumberland hospital. In an unrelated matter, it has been alleged that another of the hospital’s patients caused a car crash that killed two people earlier in February.
The direction from the minister for mental health, Rose Jackson, “is aimed at improving safety, strengthening governance, and rebuilding public confidence, alongside a formal security review into recent incidents”, a statement from the minister’s office said.
The team of experts will ensure clear monitoring, accountability and escalation frameworks are implemented at the hospital, the statement said.
It follows a recently announced review to examine patient care and treatment, security protocols, and the management of abscondments at the hospital.
Cumberland hospital will be closing permanently at the end of 2027, when the Westmead Integrated Mental Health Complex opens.
“A formal review into these recent incidents is underway, but because we want it to be a thorough process it will not be completed overnight,” Jackson said, continuing:
double quotation markWe don’t want people experiencing mental distress shunted away in small, isolated facilities. The new Westmead Integrated Mental Health Complex will allow us to relocate patients into a modern, integrated network of health facilities.
Updated at 20.59 EST
Power bills up by nearly a third in the year to JanuaryPatrick Commins
Climbing rents, electricity bills and building costs contributed the most to inflation in the year to January, according to figures released by the Australian Bureau of Statistics this morning.
As mentioned, inflation in the year to January did not ease as expected, but instead held at 3.8%.
The measure the Reserve Bank pays attention to, which tracks underlying price pressures, actually rose from 3.3% to 3.4%.
Why is the “headline” figure so high?
A big part of the story is that power bills are a huge 32% higher than they were in early 2025, which the ABS said is “mostly related to households using up” federal and state electricity rebates.
In other words: electricity costs were artificially lowered by subsidies, and are now snapping back to “normal”.
Rents climbed at a brisk 3.9%, unchanged from the month before.
Bad news for households: the climbing cost of living is concentrated in essentials.
Non-discretionary goods and services are 4.1% higher through the year, the ABS data showed, while discretionary prices were up 3.5%.
We’ll soon hear what the economists reckon this all means for the chance of further interest rate hikes.
Updated at 20.55 EST
Software firm WiseTech to cut 2,000 jobs as AI takes over
Jonathan Barrett
WiseTech Global is planning to cut 2,000 jobs over two years as the Sydney-headquartered firm bets big on the ability of artificial intelligence to replace humans.
The planned reduction, representing about 30% of its workforce, marks a radical change for a logistics software company that has itself come under heavy pressure from investors over fears its products could be replicated by AI.
This morning, WiseTech’s chief executive, Zubin Appoo, said:
double quotation markSoftware development has experienced its most significant shift in decades. I am prepared to say this clearly: the era of manually writing code as the core act of engineering is over.
AI amplifies the productivity of our expertise in logistics and trade, the rich datasets that WiseTech holds, and the network advantage that we have built over 30 years.
Shares in WiseTech have been heavily sold down in recent months as part of the “SaaS-pocalypse”, a term to describe the idea that AI becomes so advanced that bespoke software becomes redundant.
Many software companies, however, have described the sector rout as overdone and believe their businesses will benefit from AI advancements.
Updated at 20.10 EST
Woolworths reports 16% jump in profit
Catie McLeod
Woolworths has reported a significant 16.4% rise in profit, helped by expanding its margins in its key supermarket business.
In its half-year earnings report released today, Woolworths recorded an increase in underlying net profit to $859m over the six months to 4 January, up from $739m in the prior corresponding period.
Australia’s largest supermarket chain significantly expanded its profit margins during a period of reigniting inflation, with groceries and other household costs rising strongly again in the second half of last year.
The company’s results come ahead of a planned legal case brought by the consumer regulator against Woolworths.
Read more:
Updated at 20.15 EST
Rate hike fears as underlying inflation pressures growPatrick Commins
Inflation remained at 3.8% in the year to January, but a lift in underlying price pressures will add to fears of another interest rate hike.
The Reserve Bank’s preferred measure of “core” inflation, which removes large temporary price swings, lifted from 3.3% to 3.4% in January.
The consensus forecast among economists had been for headline inflation to tick lower to 3.7%, and for the trimmed mean measure to be steady.
The RBA in February delivered its first rate hike since late 2023, after a surprisingly strong economic rebound through the second half of last year pushed inflation back above the bank’s 2-3% target range.
Financial markets and economists are betting on another hike, potentially at the May RBA board meeting.
The Reserve Bank’s deputy governor, Andrew Hauser, recently told Guardian Australia that it appeared that unanticipated pickup in activity had extended into the new year.
Notably, the unemployment rate remained at a low 4.1% in January.
RBA deputy governor Andrew Hauser. Photograph: Lukas Coch/AAPShare
Updated at 20.17 EST
Patrick Commins
Capital gains tax discount not to blame for high house prices, former PC boss says
Michael Brennan, the CEO of the e61 Institute, says it would be “brave” to say that the introduction of the 50% capital gains tax discount in 1999 played a major role in the massive boom in house prices since the turn of the century.
Instead, the “locking in of expectations that interest rates would be permanently lower” meant buyers were prepared to pay more for a range of assets, including property. That had a “significant effect” on the housing market, Brennan told a parliamentary committee looking at the CGT.
There was also a big rise in incomes from 2003 as China’s rapid industrialisation sparked a boom in the demand for iron ore. “We had significant population growth at the time; that’s also something that contributed to the run-up in housing prices a bit in that period,” he said.
Brennan doesn’t believe that reforms to the CGT should be viewed through the lenses of housing affordability or intergenerational fairness, despite the fact that much of the talk through the three days of hearings has been on this topic. Instead, it should be about the “twin principles of horizontal and vertical equity”.
double quotation markHorizontal equity argument is the idea you want to have people with similar incomes taxed similarly. And vertical equity in the sense we have a belief in progressivity: that those on higher incomes make a higher proportionate contribution to revenue than those on lower incomes.
His previous evidence was that the CGT discount in its current form fails on both these counts.
Updated at 19.29 EST
Albanese’s dog Toto ‘on alert’ but ‘all good’ after bomb threat at Canberra home
Toto, Anthony Albanese’s blond cavoodle, is standing guard at the prime minister’s residence in Canberra after the Lodge was evacuated for a few hours on Tuesday night over a bomb threat.
Albanese took to social media to share a photo of his pup, who also served as a ring-bearer during his wedding last year:
“Toto on alert but all good,” the prime minister wrote on Instagram. “Thanks to AFP for your ongoing work and professionalism and to people who sent kind messages of care and support.”
Toto at the prime minister’s residence in Canberra. Photograph: albomp/Instagram
You can read more about yesterday’s events here:
Updated at 20.19 EST
Capital gains tax discount too generous to the rich, committee hearsPatrick Commins
The flat 50% capital gains discount on the sale of assets held for more than a year “undermines progressivity” in the tax system as it favours the very top income earners, the head of the independent e61 Institute says.
Michael Brennan, a former chair of the Productivity Commission, said returning to a pre-1999 approach that adjusted gains for inflation and allowed the profits to be averaged over a number of years (rather than taxed as if the profits all happened in a single year) was a more efficient and equitable approach.
Speaking at a parliamentary committee hearing into the operation of the CGT, Brennan said it wasn’t clear that we should tax wage income less favourably to capital income.
“There are circumstances under which you can effectively substitute what would otherwise be wage income for something that looks like capital income,” he said.
double quotation markAnd you’re making a reasonably significant real return out of that because the discount will be pretty kind to you, because you don’t get a discount on your wage income.
He said it was not clear that we should be “artificially encouraging” capital income or business formation through tax breaks.
double quotation markThe broader point is it’s not obvious from an economic point of view that we get more dynamism, innovation, entrepreneurship, etc, by having people buying and selling businesses or going into business.
A lot of that will happen through an employer and employee relationship; there’s a lot of innovation and dynamism to be unlocked within an employment structure as well.
Updated at 19.10 EST
Chris Baghsarian’s family welcomes recent arrests and asks for privacy
The family of Chris Baghsarian released a statement this morning. They said:
double quotation markWe welcome the news of the recent arrests in relation to the kidnapping of our father and grandfather.
As we continue attempting to come to terms with this incident, we ask that media respect our privacy.
We will not be conducting any interviews and we kindly ask media refrain from filming outside our homes.
Updated at 18.45 EST