Independent MPs split as Labor’s first tax bill passes lower house vote
After numerous divisions on amendments from the opposition, Monique Ryan, Allegra Spender and Zali Steggall, the government has moved to vote on the substantive bill. There are two bills for these reforms to the CGT, negative gearing, tax offset and instant tax deduction.
Labor, as we know, has the votes in the lower house – the battle will be in the Senate.
The crossbench splits on the vote – Ryan, Helen Haines and Andrew Wilkie vote in support of the government’s bill unamended.
Others including Sophie Scamps, Kate Chaney and Spender vote against.
The first has now passed, and the house immediately moves on to the second. There’ll be more amendments from the opposition and crossbench on this bill as well.
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Updated at 22.55 EDT
Key events
‘More challenging environment for first home buyers,’ Wilson says
The shadow treasurer, Tim Wilson, is responding to Labor’s tax changes passing through the house, and he’s not happy about it.
He says Treasury modelling shows that under the changes there will be 35,000 fewer homes built over 10 years, which could make the market worse rather than better for first home buyers (the group that the legislation is supposed to most benefit).
Wilson tells journos in Parliament House:
double quotation markWe don’t have a pathway where incomes are going to rise, where people invest in growing the future of the Australian economy, or even to build more housing.
So, no matter which way it is, we’re going to see a more challenging environment for first home buyers.
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Updated at 23.51 EDT
Chalmers gives a thumbs up as Labor’s tax changes pass the house
The easy part is over for the government with its tax changes passing in the house, but now comes the hard bit.
In the meantime, Jim Chalmers gave the thumbs up as his legislation was voted through.
Jim Chalmers is no doubt happy after his tax changes passed the house, sitting next to assistant treasurer Daniel Mulino and Labor backbencher Libby Coker. Photograph: Lukas Coch/AAP
The opposition’s amendments failed – but in the Senate they might try to give the inquiry examining the legislation more time, arguing the bill needs to be given more scrutiny.
Shadow treasurer Tim Wilson speaks to Liberal frontbencher Julian Leeser. Photograph: Lukas Coch/AAPShare
Updated at 23.39 EDT
Ariel Bogle
Staff in Australia’s onshore detention network begin strikes
Staff in Australia’s onshore detention network will begin rolling strikes today over concerns about their pay, rostering and safety.
From Thursday evening, detention officers will take a one-hour work stoppage with more to follow on Friday in centres across the country.
The industrial action follows a Guardian investigation that revealed a series of catastrophic security failures involving MTC, the US private prison company running the network under a local subsidiary, Secure Journeys.
Incidents included the escape of high-risk detainees and injuries to staff, which have triggered multiple investigations – one of which warned the contractor’s “minimalist staffing model” was putting workers and detainees at risk.
United Workers Union delegates who work in the centres said they were paid less than workers in comparable security roles and current rosters were unworkable and leading to burnout, safety risks and understaffing.
Ellen Domanyi, who works at Villawood, and who was speaking as a delegate of the union, told Guardian Australia the centre is “critically short staffed”.
double quotation markI’ve been there 16 years and the morale with the staff … it’s really bad at the moment because of the concerns of short staffing and our wages.
In a statement the UWU allied industries director, Godfrey Moase, said:
double quotation markThese are facilities that are operating in communities across Australia, and the safety standards within them matter to all of us.
Secure Journeys is an American private prison company that is looking to maximise its profits from a contract with the Australian Government at the expense of the people doing this vital and difficult work. It should be operating at the highest standards of safety and care.
A Secure Journeys spokesperson said the company has made “a fair and balanced offer” to workers regarding wages, conditions and rostering, “while recognising the realities of operating in an immigration detention environment”.
The spokesperson said:
double quotation markSecure Journeys’ commitment to maintaining safe and secure operations and detainee welfare remains our top priority.
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Updated at 23.33 EDT
Labor’s tax reforms pass the house
The two bills that make up the first tranche of Labor’s tax reforms have now passed the House of Representatives unamended. It means the legislated changes to CGT, negative gearing, the tax offset and instant tax deduction will now go to the Senate.
The government has said the next tranche of bills – which have yet come to parliament – will have more of the details on the reforms.
On the second bill there was just one amendment from the shadow treasurer, Tim Wilson, for the opposition and one from Allegra Spender. The independent MP was pushing for income tax brackets to be lowered – which the government and the Coalition voted against.
Once again, independents including Andrew Wilkie, Helen Haines and Monique Ryan voted with the government, and independents including Sophie Scamps and Spender voted against.
Jim Chalmers during debate on the tax reforms. Photograph: Lukas Coch/AAPShare
Updated at 23.35 EDT
Nauru issues rare statement defending against allegations of threats of violence against NZYQ cohort
Sarah Basford Canales
The Nauruan government has put out a rare statement about its deal with Australia to take on NZYQ members removed to the tiny Pacific nation, insisting it is a safe country with “friendly, welcoming people”.
Shortly after midday, a government media release said the 12 men currently residing in a regional processing centre had “the same rights as any other resident”.
double quotation markHowever unlike Nauruans, they are provided with accommodation, a fortnightly allowance, and free transport for shopping and other travel around the island. Many have purchased their own motorcycles so they don’t need to rely on the transport provided. They have access to all government facilities in Nauru including free health and medical services.
The statement continued that the island nation’s medical centre was now a “leading facility in the Pacific, offering high-quality, specialist medical services”.
It continued:
double quotation markAll of these services are available at no cost to those settled on Nauru as part of the Third Country Reception Arrangement, and they also have access to newly developed, modern sports facilities, employment opportunities and a relaxed, Pacific way of life.
Nauru is one of the safest countries in the Pacific, if not the world. We are a friendly, welcoming people and this welcome extends to those who arrive as part of our arrangement with Australia.
The statement comes after the independent MP Andrew Wilkie shared an anonymous whistleblower’s statement, which claimed the cohort faced “serious threats of physical violence” and those overseeing the regime had “a fundamental lack of respect for the humanity and rights of the cohort”.
Read more here:
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Updated at 23.15 EDT
Tom McIlroy
‘We’re not happy about any of this’: Wong angry over flotilla protesters’ treatment
The foreign affairs minister, Penny Wong, says Australia is pushing for an independent investigation into the mistreatment of activists detained by Israel as part of the Global Sumud Flotilla.
Speaking in Senate estimates, Wong says Australia has pressed Israel for an urgent and thorough investigation into allegations protesters were subjected to mistreatment, including sexual assault.
A group of 11 Australians were detained by Israeli forces while attempting to deliver aid to Gaza last month. They have alleged abuse, torture and other violations while in detention.
Australia called in Israel’s ambassador after Israel’s national security minister, Itamar Ben-Gvir, taunted activists in detention, including posting a video showing detainees kneeling on the ground while restrained.
“We are pressing for a swift and transparent investigation,” Wong said. “I would like to see that, and so would other countries, of course.”
double quotation markYou would prefer, in these circumstances, to have an independent one, but I would rather have an investigation that is transparent than no investigation, and so we need to keep pressing for that.
Penny Wong at Senate estimates. Photograph: Lukas Coch/AAPShare
Updated at 22.54 EDT
Independent MPs split as Labor’s first tax bill passes lower house vote
After numerous divisions on amendments from the opposition, Monique Ryan, Allegra Spender and Zali Steggall, the government has moved to vote on the substantive bill. There are two bills for these reforms to the CGT, negative gearing, tax offset and instant tax deduction.
Labor, as we know, has the votes in the lower house – the battle will be in the Senate.
The crossbench splits on the vote – Ryan, Helen Haines and Andrew Wilkie vote in support of the government’s bill unamended.
Others including Sophie Scamps, Kate Chaney and Spender vote against.
The first has now passed, and the house immediately moves on to the second. There’ll be more amendments from the opposition and crossbench on this bill as well.
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Updated at 22.55 EDT
Budget boosts funding to target parents not paying child support
On the nearly $2bn in outstanding child support we brought you earlier, Senate estimates has just heard there was more funding in the budget to stop parents who are not paying off their debts from flying overseas, and to chase people to do tax returns.
The average debt is about $8,700.
In the Senate Community Affairs Legislation Committee, the Department of Social Services’ child support manager, Lauren Power, said:
double quotation markThe measure that was announced in the budget is an $18.4m investment over four years from 2026-27 to increase the use of departure prohibition orders [DPO] to recover child support debts from payers with a large outstanding debt.
So DPOs will be automatically applied to parents who have at least $10,000 in debt or overpayments, and who have travelled overseas more than once in the last two years.
She said Services Australia makes about 150,000 referrals a year to the Australian Taxation Office for child support parents for non-lodgement of tax returns.
double quotation markSo $6.1m has been provided to the ATO to undertake the prosecution of people who are repeated non-lodgers of their tax returns.
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Updated at 22.42 EDT
What’s going on in the house?
Earlier we had amendments coming out of our ears over the government’s second reading of its contentious tax bill.
What that means is opposition and crossbench members were trying to make more of a rhetorical point about the bill and the passage of it, but they weren’t actual amendments to the bill itself.
That’s what’s going on now.
So each member who moves an amendment gets to speak on it, the government responds (so far saying no to all of them) and then they go to a vote.
Angus Taylor moved an amendment to remove the capital gains tax and negative gearing changes from the bill, which would allow the opposition to vote in support of the promised tax cuts (the working Australian tax offset).
He told the house:
double quotation markAustralians need cost-of-living relief after four years of Labor’s raging homegrown inflation … we support Labor’s $250 annual income tax cut, we support Labor’s $1,000 deduction for work-related expenses, these cost-of-living measures could have passed this parliament easily with bipartisan support, but tricky Labor, [and] its tricky treasurer have deliberately tied these measures to its toxic taxes.
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Updated at 22.30 EDT
Sarah Basford Canales
Whistleblower warns of violent threats against people Australia removed to Nauru
A whistleblower has warned of the “serious threats of physical violence” non-citizens from the NZYQ cohort removed from Australia to Nauru face.
This morning in the federation chamber, the independent MP Andrew Wilkie read out a statement from an anonymous whistleblower who was fearful of being named for their own personal safety and employment security.
Using parliamentary privilege, Wilkie said the person’s statement claimed:
double quotation markThrough my employment, I am involved in the process which sees individuals removed from Australia and taken to the Republic of Nauru. I have come to hold grave concerns about the physical safety of individuals removed to Nauru …
In numerous conversations, serious threats of physical violence were made in relation to those removed to Nauru. These were not idly made threats. They were said with a tone and gravity that indicated, at best, an indifference to the dignity and wellbeing of the removed cohort, and at worst, an active desire to cause them serious harm. I came to understand that those responsible for overseeing the removed cohort had a fundamental lack of respect for the humanity and rights of the cohort. The threats included comments that those removed were quote absolute blank pieces of blank, who in Nauru would be mistreated in such a way to make quote very clear how they are going to be managed for the rest of their lives.
I was absolutely shocked by such unashamed and gratuitous threats of violence … I have repeatedly tried to raise concerns about these matters through appropriate channels. To date, I have seen no evidence that my concerns have been addressed.
Andrew Wilkie. Photograph: Mick Tsikas/AAPShare
Updated at 22.30 EDT
Tom McIlroy
Wong pushes back on Trump’s latest tariffs
The federal government is racing to understand the latest tariff plan by the US president, Donald Trump.
In Senate estimates on Thursday, the foreign affairs minister, Penny Wong, criticised the proposed 12.5% tariff on Australia, justified on the grounds that Australia could do more to stop slavery.
double quotation markAustralia continues to assert our view that we are not supportive of tariffs, and we continue to value open trade that has benefited both Australia and the United States.
It is the government’s position that we do not believe there is a basis for these additional trade measures, and that is what we will continue to robustly put.
Australia already faces a 10% tariff on goods exported to the US.
The trade minister, Don Farrell, has objected to the new tariff in Paris overnight, during talks with Trump’s trade representative at an OECD conference.
Australian foreign affairs minister, Penny Wong. Photograph: Lukas Coch/AAPShare
Updated at 22.10 EDT
Cait Kelly
$1.99 billion in outstanding child support payments or debts
The Department of Social Services is up in Senate estimates today and it’s just been revealed there is $1.99 billion in outstanding child support.
That involves 221,145 cases, with the average debt being $8,675.
The department’s child support manager, Lauren Power, said:
double quotation mark41.8% of the value of the debt is under arrangement at the moment. That figure has increased over the last four years.
The $1.99 billion figure refers to all child support debt accumulated since the scheme commenced in 1988. So some of it would be quite longstanding… and some of it accrued more recently.
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World Cup players scared to speak out: Craig Foster
Former Socceroos captain Craig Foster says there has been a “chilling” effect on the voice of footballers concerned that speaking up about human rights abuses could cost them their World Cup dream, AAP reports.
Human rights and geopolitical tensions are in the spotlight as the games approach.
But there has been little commentary from other players across the 48 teams as the tournament nears, in stark comparison to when the Socceroos were involved in a video campaign criticising 2022 host Qatar’s human rights record.
“It’s extraordinary that we’ve seen very few, if any, statements from any of the athletes participating in this tournament – no doubt because they realise the risks that that brings,” Foster said.
Ex-Socceroo Craig Foster says players are reluctant to speak out about human rights abuses. Photograph: Mick Tsikas/AAP
The prominent human rights advocate was speaking on a media briefing held by the Sports & Rights Alliance and Human Rights Watch. Foster said players faced censorship and would be concerned about the safety of their family, friends and colleagues, along with fans potentially being racially profiled by ICE, and couldn’t fully focus on performance. He said:
double quotation markWe’ve seen a very significant chilling effect on the voice of players, and on their right to speak out on various violations, many of which, of course, the US are participating in right now …
And undoubtedly because players will know that that would have almost certainly prejudiced their opportunity to actually travel to the US, be granted a visa and participate in their own World Cup.
Germany football director Rudi Völler this week urged members of the squad to avoid making political statements while at the World Cup. Foster said:
double quotation markPlayers would have, and teams would have, been advised long before now about the very severe risks.
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Updated at 22.08 EDT
Federal Liberals want to cut tobacco excise, says Tim Wilson
Luca Ittimani
Tim Wilson, the Liberal shadow treasurer, says cutting tobacco excise should be “part of the solution” to eliminating the black market for cigarettes.
New data yesterday revealed 80% of cigarettes smoked by the nation last year were sourced illegally, meaning they did not attract the excise. Legal cigarettes are typically far more expensive, mostly due to the heavy tax.
Speaking on ABC Radio Melbourne this morning, Wilson said:
double quotation markNo one can tell me how much we need to cut excise to get the illegal tobacco out. About 12 months ago, there was talk of it being somewhere around 30% [cut] would get the illegal gangs out. Now it seems like it’s closer to 60%. And so it’s clearly got to be part of the solution …
We haven’t reached a formal position, but there’s absolutely an appetite from a lot of my colleagues that something needs to be done.
Illicit cigarette consumption doubled from 2016 to 2019 then doubled again by the end of 2022. Both Coalition and Labor governments have hiked the excise. Wilson denied the former Coalition government’s excise increases were responsible for the growth.
Shadow treasurer Tim Wilson. Photograph: Mick Tsikas/AAP
double quotation markIt’s been a trajectory consistently over multiple governments to do this. And it’s quite clear that it isn’t working and is now fuelling behaviour.
An excise cut would mean legal cigarettes face less tax, potentially boosting big tobacco companies’ sales and profits. Wilson said:
double quotation markWell, presently, the people who are profiteering most are legal gangs and organised crime. They then go to do things like fund terrorism and antisemitism and social disruption. And so, in a choice between the two very bad options, ones who actively subvert the law and harm other Australians are absolutely worse.
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Updated at 22.05 EDT
Benita Kolovos
Victorian opposition leader joins calls to cut tobacco excise
The Victorian opposition leader, Jess Wilson, has backed calls to reduce the federal tobacco excise, saying the price of legal cigarettes drives people to buy illegal ones. It follows data released by the Australian Bureau of Statistics, which found that 80% of the cigarettes smoked last year were cheaper illegal products.
Speaking outside parliament, Wilson told reporters:
double quotation markWe should consider reducing the federal exercise on tobacco, given what we’re seeing play out on the ground when it comes to the illegal tobacco wars, particularly here in Victoria.
We’re seeing an underground operation here when it comes to illegal tobacco, and in part over time that has been driven by the rise in the excise, seeing people go to the underworld market.
She said the state Labor government had failed to “lobby their federal counterparts in Canberra – the federal Labor government – to actually do something about the excise”.
The NSW premier, Chris Minns, has previously called for overhaul of the tobacco excise, saying it was no longer working “as a matter of tax or health policy”.
Victorian opposition leader Jess Wilson. Photograph: Joel Carrett/AAPShare
Updated at 21.49 EDT
Luca Ittimani
Most homes listed for auction last week did not sell
Most homes listed for auction in the last week of May did not sell, as interest rates and budget changes for investors reduce buyer demand.
Data from Cotality showed just 49% of the 2,659 homes listed for auctions across Australia last week sold. This was the lowest level since May 2020, when much of the country faced Covid lockdowns.
Of the other 51%, 13.6% were withdrawn (most of them in Sydney) and 37.3% homes went to auction but were passed in.
Annabelle Mezieres, a Cotality economist, said the drop was due to buyers stepping back, not sellers. The same week last year had similar auction volumes but a clearance rate of 66.2%.
Melbourne’s clearance rate was 51.9%, its lowest since April 2023. Sydney’s was 46.5%, lower than the 49.3% recorded the week before. Most homes listed for auction in Brisbane and Canberra did not sell.
Part of the decline in buyer interest has likely been because the federal government scrapped negative gearing for new investors in established homes. Banks have already changed their lending rules accordingly.
The treasurer, Jim Chalmers, this week said of the falling clearance rates:
double quotation markIf we are making it easier for first home buyers to get a fair crack at auctions, then that’s a good thing.
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Updated at 21.38 EDT
Matt Canavan says US tariffs have ‘fig leaf of a justification’
Josh Butler
The Nationals leader, Matt Canavan, says “Labor must push back on Trump’s new tariffs”, arguing they’re unfair and a breach of the free trade agreement.
Canavan has given the most muscular opposition to America’s proposed tariffs, announced yesterday by the US trade representative. In a statement he claimed the trade barriers were “unjustified and a clear breach of the Free Trade Agreement Australia has with the US”.
“We are great friends with Americans but these latest tariffs are based on a fig leaf of a justification,” Canavan said.
double quotation markJust weeks after the US supreme court struck out the Trump administration’s first tariffs, the US launched an investigation of whether Australia fails to impose and effectively enforce a prohibition on the importation of goods produced with forced labour.
Canavan noted that Australia has strict laws against the use of forced labour and modern slavery, and that the US investigation “has not provided detailed evidence that Australia fails to stop products made with forced labour”.
double quotation markIts report is a smokescreen to justify tariffs it clearly intended to put on in any case.
Leader of the Nationals, Matt Canavan. Photograph: Lukas Coch/AAPShare
Updated at 21.35 EDT
Andrew Messenger
Queensland government commits to reforming Adoption Act
The Queensland child safety minister, Amanda Camm, says the government will reform the Adoption Act, after tabling a months-long commission of inquiry into the state’s child safety system yesterday.
This morning, she was asked about one of the commission’s most controversial recommendations: an end to the legislated principle setting adoption as a last resort for Indigenous children. The rule does not apply to non-Indigenous children.
Commissioner Paul Anastassiou said government should “entrench adoption as the third permanency option for all children regardless of cultural background”. He acknowledged it came over the “strong submissions from First Nations stakeholders against adoption”.
Camm said she would “always put the interests of children first, no matter their cultural background, no matter where they live in this state”.
double quotation markIf they are a child known or in the child safety system, our government will prioritise their safety and wellbeing first, and that’s our commitment.
We’ll consider that recommendation, and we will bring forward reforms that are in the interests of children.
Amanda Camm in Queensland parliament in Brisbane on Wednesday. Photograph: Darren England/AAPShare
Updated at 21.20 EDT
