Interest rates blame game continues – as it happened

Dutton calls on government to do more to help struggling families

Khaled Al Khawaldeh

Opposition leader Peter Dutton has downplayed the revelations made by the Australian National Audit Office (ANAO) report which found that at least 11 projects approved by the former government as part of their $2bn community health and hospital program had no lawful authority for the expenditure.

He told reporters in Townsville:

I understand the same program is operated by the current government.

We put more money into health every year, more money into worthy projects. When I was health minister, we created the $20bn medical research future fund, which is plowing literally billions of dollars into medical research projects across the country, and will go into perpetuity for as long as Labor doesn’t attack that fund.

Dutton also used the press conference – which was held outside the RFS base in Townsville, for “Thank a First Responder Day” – to call on the government to do more to help struggling Australian families amid another rate hike by the RBA.

“The treasurer promised that there wouldn’t be any more interest rate rises before his budget, and he thought it was all done and dusted. But of course now we know because of the decisions, the government’s interest rates have gone up again,” he said.

Updated at 02.04 EDT

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What we learned today, Wednesday 7 June

That’s where we’ll leave the blog for today – thanks so much for joining us. Here is a wrap of the day’s biggest stories:

• Philip Lowe has said struggling Australians can cut back spending or pick up more work to reduce financial stress after the Reserve Bank of Australia raised interest rates for the 12th time in just over a year.

• The ACT veterans minister, Emma Davidson, has called for the commonwealth to intervene and end the prosecution of defence whistleblower David McBride, saying his looming trial is “not in the public interest”.

• Aged care minister Anika Wells says the federal government needs to work with the states to deal with issues around dementia, in light of the death of aged care resident Clare Nowland.

• Opposition leader Peter Dutton has downplayed the revelations made by the Australian National Audit Office (ANAO) report which found that at least 11 projects approved by the former government as part of their $2bn community health and hospital program had no lawful authority for the expenditure.

• The Queensland government has reinstated the name of the iconic island to K’gari (pronounced gurri), which translates to “paradise” in the local Butchulla language.

• in a Senate inquiry into consultants that continued today, Greens Senator Barbara Pocock said all 72 names of PwC employees involved in the tax avoidance scandal should be made public after the list was provided to the Aenate.

• A firearms licence was reinstated to a man just months before he shot dead his teenage son and himself, in another horrific domestic violence incident that has left a small community in New South Wales reeling.

• NSW had a record demand for emergency health services during, according to the Bureau of Health Information’s latest quarterly report.

Updated at 05.14 EDT

Severe weather warning for north-east Victoria

SEVERE WEATHER WARNING for HEAVY RAINFALL and DAMAGING WINDS for people in North East and parts of East Gippsland, North Central, Northern Country and West and South Gippsland Forecast Districts.

Issued at 5:00 pm Wednesday, 7 June 2023.

Stay informed: https://t.co/JAJ6XztdQ1 pic.twitter.com/NCjGSgfyCB

— VicEmergency (@vicemergency) June 7, 2023

Josh Butler

Coalition critical of minister’s refusal to rule out aged care tax

The Coalition opposition has leapt on Anika Wells’ National Press Club speech about better funding options for aged care, critical that the minister didn’t rule out raising new taxes to pay for care.

Shadow health minister, Anne Ruston, called Wells’ comments “deeply concerning”:

The minister’s refusal to rule out a new aged care tax today, despite being given two opportunities to do so, is particularly disappointing.

The Coalition stands ready to work constructively with the government for the future sustainability of our critical aged care sector, but that doesn’t mean a new tax is the answer.

Wells announced a new taskforce to examine aged care funding, flagging an interim report in October and final report in December. Asked several times what the possibilities could include, and whether it would include tax changes, Wells said she wouldn’t pre-empt the taskforce.

She went on to say that suggestions from the aged care royal commission to consider tax increases was “something for the taskforce to consider. I think we should keep as many options open and the taskforce should work through them”.

Ruston also again called on the government to provide more exemptions to the 24/7 nursing rules for regional and rural aged care homes, some of which are struggling for staff and may not meet the guidelines.

Aged care minister, Anika Wells, addresses the National Press Club on Wednesday. Photograph: Lukas Coch/AAP

Updated at 03.41 EDT

Climate change risk added to banking watchdog’s beat

Australia’s banking regulator will push banks, insurers and superannuation funds to properly account for climate risks under an updated charter.

The Albanese government has released an updated Statement of Expectations for the Australian Prudential Regulation Authority (Apra).

For the first time, the regulator is explicitly required to consider risks related to climate change as part of its work,

Here’s the treasurer, Jim Chalmers:

Our priority is to ensure Australia’s financial system remains stable and robust and that the regulator is responsive to changing economic conditions.

Updated at 03.24 EDT

Josh Butler

States need to be involved in dementia care, minister says

Aged care minister Anika Wells says the federal government needs to work with the states to deal with issues around dementia, in light of the death of aged care resident Clare Nowland.

Speaking at the National Press Club, Wells said the investigation into Nowland’s death – following her Tasering by police after she was found armed with a steak knife at a facility in Cooma last month – was still “on foot”.

The minister said she was receiving regular updates about the aged care regulator’s investigation, and noted police investigations into the incident, but said she couldn’t speak before those were finalised.

The age discrimination commissioner last month raised concerns about police being called in to respond to dementia patients, suggesting a different sort of response.

Asked by Guardian Australia about that idea, Wells said the government wanted all aged care workers trained in “the core business of aged care” – which included working with people with dementia.

We’ve got the opportunity for the national dementia action strategy, or action plan, that we are developing this year to fold in whatever learnings and agreements can be done out of an awful, an awful thing that happened.

She earlier spoke about “the need to greater understand and support people with dementia”. Wells went on to say that she and health minister Mark Butler were working together with state counterparts on such issues.

This is something that we need to be a lot more proactive about and I think that training all workers who interact with people with dementia … is a good place to start.

Updated at 03.18 EDT

Coalition lays blame for interest rate rises at government’s feet

The Coalition has criticised the Albanese government for not “doing enough” on productivity growth to balance wage increases and to stave off interest rate rises.

Speaking on ABC, Liberal MP Zoe McKenzie said:

The problem we have is no plan for productivity as well. It is wage increases with no productivity. What does that equal? More inflation. What is more inflation equal? Higher mortgage rates.

It is a perfect storm and I don’t see the government are doing anywhere near enough to address it.

Labor MP Sally Sitou said the government is working on critical reforms to boost productivity after the previous government “failed to invest in those key areas”.

It is us giving our workers the training they need to be able to become more productive workers as well as getting more women in the workforce through making childcare more affordable. These are some of the critical reforms that need to happen this year, which is what we are doing.

Updated at 03.03 EDT

Jenny Craig to cease trading, employees made redundant

Weight loss company Jenny Craig will immediately cease trading from stores across Australia with employees to be made redundant after the company failed to sell its Australian and New Zealand operations of the brand, AAP reports.

FTI Consulting took the reins of the weight management service’s Australian and New Zealand operations last month after they slipped into voluntary administration.

Days before, the Melbourne-founded business filed for bankruptcy in the US.

Administrators Vaughan Strawbridge, Kate Warwick and Joseph Hansell sought to sell the operations “with the intent of preserving as many jobs as possible” and limiting losses for creditors by seeking offers from interested bidders.

In a statement issued by FTI Consulting on Wednesday, they said:

Despite best efforts, the administrators were unable to find a buyer for the physical stores and employees of the Australian and New Zealand business.

This has resulted in a decision to immediately cease trading from stores and employees being made redundant.

FTI Consulting took the reins of the weight management service’s ANZ operations after they slipped into voluntary administration. Photograph: Diego Fedele/AAP

Updated at 02.30 EDT

Mortgage interest doubles and savings down, according to latest ABS figures

Total household interest paid on mortgages in Australia doubled in the last year from $10.7bn to $22.2bn, according to the Australia Bureau of Statistics.

The ABS today released its wrap of what happened in the Australian economy during the March quarter. Here are some notable points:

• Fewer new houses were built, with construction of new dwellings falling by 1.3%.

• Taxes rose. Income taxes paid by individuals rose 3.3% due to the strong labour market, while company tax rose 4.6%.

• Australians saved less. Even though consumers held back on discretionary spending, households only saved 3.7% of their income during the March quarter 2023, the lowest proportion since 2008.

• Inflation curbed our enthusiasm for shopping. Spending on discretionary items fell by 1%.

• Our pay packets continued to grow in response to tight labour market conditions, though real wages continued to fall due to cost of living pressures.

Updated at 02.21 EDT

‘We can and we must do better:’ government funds justice reinvestment programs

The federal government has committed more than $80m to fund community-led initiatives in the hope of stopping people from entering the criminal justice system.

The communities that will be supported by the initiatives include Darwin, North Stradbroke Island near Brisbane and Circular Head in Tasmania.

Here’s minister for Indigenous Australians, Linda Burney, on the announcement:

More than 30 years after the royal commission into Aboriginal deaths in custody, rates of incarceration of Aboriginal and Torres Strait Islander people … are a national shame. We can and we must do better.

Justice reinvestment is a very large step in doing better. We can’t stand by and see our young people robbed of their futures by a justice system that too often lets them down.

Updated at 01.55 EDT

Daniel Hurst

Defence department mismanaging inventory of items worth $2.6b

The Department of Defence has faced criticism for the way it manages its storage of items such as ration packs, clothing, screws, washers, light globes, toiletries and replacement parts for military equipment.

In a report tabled in parliament today, the Australian National Audit Office said Defence was managing general stores inventories (GSI) of more than 70 million items across 547 geographically dispersed locations as of June last year.

But the report said Defence “cannot demonstrate that it is achieving efficiency and economy in its management” of those inventories. The report said the framework in place was “not operating as intended to achieve the proper use and management of public resources”.

The ANAO found that of the $2.6bn in value of general stores inventories as at June last year, $1.7bn “could not be identified against a need or activity”.

The ANAO report said:

Defence is not able to demonstrate that it has fully implemented its framework requirements regarding cost-effective and efficient inventory management, and a ‘balanced inventory’ that avoids both understocking and overstocking.

Defence was also unable to demonstrate, until late in this audit, an active focus or response by Defence senior leaders on known issues contributing to inefficiency and overstocking in the management of general stores inventory.

Defence agreed to the four recommendations made by the ANAO.

Updated at 01.54 EDT

Dutton calls on government to do more to help struggling families

Khaled Al Khawaldeh

Opposition leader Peter Dutton has downplayed the revelations made by the Australian National Audit Office (ANAO) report which found that at least 11 projects approved by the former government as part of their $2bn community health and hospital program had no lawful authority for the expenditure.

He told reporters in Townsville:

I understand the same program is operated by the current government.

We put more money into health every year, more money into worthy projects. When I was health minister, we created the $20bn medical research future fund, which is plowing literally billions of dollars into medical research projects across the country, and will go into perpetuity for as long as Labor doesn’t attack that fund.

Dutton also used the press conference – which was held outside the RFS base in Townsville, for “Thank a First Responder Day” – to call on the government to do more to help struggling Australian families amid another rate hike by the RBA.

“The treasurer promised that there wouldn’t be any more interest rate rises before his budget, and he thought it was all done and dusted. But of course now we know because of the decisions, the government’s interest rates have gone up again,” he said.

Updated at 02.04 EDT

Jordyn Beazley

Thanks Natasha for leading us through today’s news. I’ll be with you for the rest of the day.

Natasha May

Thanks for your attention today, that’s it from me – you’re in the excellent hands of Jordyn Beazley.

New minister to oversee troubled youth detention centre

The troubled Banksia Hill detention centre will be overseen by a new minister as incoming West Australian premier Roger Cook pledges renewed focus from the Labor government, AAP reports.

Police minister, Paul Papalia, will add the corrective services portfolio to his responsibilities, replacing Bill Johnston after a tumultuous period of riots and claims of human rights violations in youth detention.

Papalia spent eight years as opposition spokesman for corrective services before Labor came to power in 2017 and is set to be tasked with balancing community safety with a renewed focus on rehabilitation for youths in detention.

Johnston is to remain minister for energy, adding the hydrogen industry portfolio.

In an otherwise minor reshuffle, Cook confirmed his deputy Rita Saffioti will become treasurer in addition to retaining the high-spending transport portfolio.

She will shed planning and ports, the latter to be overseen by sole newcomer David Michael who also takes on local government and road safety.

The new-look cabinet will be sworn in tomorrow, following Mark McGowan’s shock retirement, with the next election in 2025.

Updated at 01.09 EDT

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