Anthony Albanese rules out more taxes before next election
It follows a similar rejection over last year's stage three tax cuts, in which Labor changed its stance despite earlier promises.
Ahead of the economic roundtable, Treasury has admitted Australia's company tax policy is contributing to lacklustre productivity.
This has resulted in poor wage growth and the burdening of young Australians with propping up the nation's budget.
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Sky News AU
38 minutes ago
- Sky News AU
Trump administration pressures Albanese government over defence budget, warning AUKUS goals at risk without 3.5 per cent of GDP
The United States has issued its most forceful warning yet to Prime Minister Anthony Albanese, with the Pentagon urging Canberra to significantly increase defence expenditure or risk undermining its AUKUS commitments and overall military readiness. In what shapes as a critical test for the Labor government, senior US defence officials are now calling for Australia to adopt a spending benchmark of 3.5 per cent of GDP, labelled by Washington as the new international norm in the era of strategic competition and rising global instability. 'For Australia in particular, it is vitally important that they are able to raise defence spending to 3.5 per cent of GDP,' a US Defence official told The Australian. 'That will allow them to generate and field the kind of forces required not just to defend themselves but work together closely with us to maintain deterrence in the region.' The comments come ahead of a demanding period of international diplomacy for Mr Albanese, who is set to attend the United Nations General Assembly in New York next month and is working towards an in-person meeting with US President Donald Trump. There's growing speculation that the planned Quad leaders' summit may be shifted from India to the US to align with the UN gathering. While the AUKUS pact promises to deliver at least three Virginia-class nuclear-powered submarines to Australia in the 2030s, that arrangement is contingent on US national security assessments and whether the transfer would erode America's own naval capabilities. Washington now signalling frustration at what it sees as underwhelming fiscal commitment from Canberra. 'It is not an abstraction. This is a concrete objective. AUKUS is an expensive thing. Increasing defence spending is going to be vitally important for Australia to achieve its stated objectives under AUKUS while also modernising the rest of the ADF,' the US official continued. 'At a certain point, it's just maths. They need to spend more on defence.' Australian Treasurer Jim Chalmers' most recent budget forecasts military spending reaching nearly $59 billion this financial year, equivalent to just over 2 per cent of GDP. However, only about a third of that funding is allocated to acquiring new weaponry and systems. The government's long-term plan includes an increase of $50.3 billion in defence spending over the next 10 years, but the bulk of that funding is deferred until 2028–29 and beyond. 'I think we can say with confidence that if Australia does not raise defence spending it is going to struggle to field the forces required to defend Australia but also to make good on its commitments to others,' the Pentagon official warned. 'But we are hopeful that Australia will be able to lean in and make these decisions - 3.5 per cent of GDP on defence spending; that is the new global standard.' The US call echoes recent developments in NATO, where member states agreed in June to boost collective defence outlays to 5 per cent of GDP. Mr Albanese has expressed reluctance to pad out Australia's defence numbers by including civilian infrastructure, despite some of those investments directly supporting military capability. He has instead highlighted Australia's direct contribution of over $US1 billion to the US submarine industrial base as a clear signal of commitment to the AUKUS framework. The pressure from Washington arrives just as Pentagon policy chief Elbridge Colby leads a review of the trilateral security pact, with concerns mounting that Australia's budget settings may fall short of what's needed to deliver on the ambitious goals of AUKUS and meet the demands of a changing Indo-Pacific region.
Sky News AU
an hour ago
- Sky News AU
Albanese arrives in New Zealand ahead of talks with Luxon
Prime Minister Anthony Albanese has arrived in New Zealand ahead of official annual talks with his counterpart Christopher Luxon. He will be greeted with a traditional Maori welcome during his visit to the local Maori tribe. Mr Albanese and Mr Luxon will also attend a business roundtable in the afternoon.
AU Financial Review
3 hours ago
- AU Financial Review
Trump drops IRS commissioner after less than two months in role
Washington | President Donald Trump has removed former US representative Billy Long as IRS commissioner less than two months after his confirmation, a White House official said on Friday (Saturday AEST). The official, who was not authorised to speak publicly, spoke on condition of anonymity. Treasury Secretary Scott Bessent will serve as acting commissioner, the official said. Long will instead serve as ambassador to Iceland, Long said in a statement on the social media site X. AP
