Albanese might get Trump on the phone, but voters can't get Palmer off theirs
Welcome back to your daily election wrap. Stephanie Dalzell will catch you up on news from the campaign trail.
Anthony Albanese today freely gave up the secrecy shrouding cabinet confidentiality he usually protects.
"Ask any of the cabinet colleagues," he warned a reporter at the National Press Club.
"They'll explain why it's a bad idea."
The "bad idea" in question was, as the prime minister dubbed it, the "verballing" of Foreign Minister Penny Wong.
Foreign Minister Penny Wong spoke about the Voice to parliament referendum on the Betoota Advocate podcast.
(
ABC News: Courtney Withers
)
Wong had appeared on the Betoota Advocate podcast, where she said the proposal of a Voice to Parliament may in future be viewed in a similar way to the long, but ultimately successful, campaign for same-sex marriage.
If the prime minister will forgive me for verballing, she basically said people would one day look back and wonder what the fuss was all about.
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"You said that an Indigenous Voice to Parliament is gone. Your minister, Penny Wong, seemed to suggest it may not be gone forever," the journalist said.
Albanese swiftly responded, arguing that was not what Wong had said at all.
But the mere suggestion that perhaps in a decade the Voice could be viewed differently to how it is now, presented itself as an opportunity for the opposition.
The Coalition has been desperate to talk about the Voice, and it's little wonder why — the referendum not only marked a devastating result for many First Nations people but also a turning point in the government's fortunes.
The Coalition's numbers started to surge in the polls, and now that those numbers have fallen behind Labor, it's been searching for the way back.
Opposition Leader Peter Dutton took large liberties with what Wong had said, declaring Labor had a "secret plan" to bring back the Voice to Parliament as a "first order of business".
He also declared a Voice was "inevitable" under Labor.
Later, Wong was forced to clarify, telling SBS: "The Voice is gone."
The Voice to Parliament has bookended this term of government, being the first promise of the prime minister the night he was elected, and now again a feature — this time in the final week of this campaign.
But this is 2025, not 2023. And the matter on the ballot on Saturday is about the parliament, not a voice to it.
Call me maybe,Trump
Few teenage girls have waited by the phone for a boy to call more than Anthony Albanese has waited for the US President.
And just like many teenage boys, Donald Trump is now suggesting he might in fact call — right when Albanese needs it least.
For weeks, Albanese has been plagued with questions about why he has been unable to get Trump on the phone to try to secure a carve-out on tariffs.
Stay updated:
Catch the latest interviews and in-depth coverage on
Recently, he went so far as to
But now, right when the campaign is coming to an end, Trump has declared "they are calling and I will be talking to him, yes".
It's very unclear who exactly Trump is referring to, or what the nature of the call will be. Does he mean the prime minister? The ambassador? Is it a trade chat, or is he talking about whoever emerges victorious on Saturday?
But regardless, rather than a long distance call, Albanese is trying to create a long bit of distance from Trump this close to the election.
Gone are the days of politicians being rewarded for being close to Trump, just ask Canadian Opposition Leader Pierre Poilievre, who not only lost the election but also his seat in the parliament.
The pollster John Black, who is also a former Labor senator, has dubbed this moment a "Trump bump", where leaders are rewarded for creating space, rather than closeness, with the global disrupter.
When asked about US-style politics Albanese told News Corp voters "don't want that here", and has instead sought to push Dutton in to a Trump-shaped trap, trying to outline similarities between the leader of the free world and the leader of the opposition.
When Dutton was asked to respond about whether voters saw him aligned with Trump, he gave a long-winded answer that encompassed the fuel excise cut, the ute tax, and home ownership — anything other than directly answering the question.
Unsolicited text messages spamming unsuspecting voters
While Albanese has struggled to get Trump on the phone, many frustrated voters are now struggling to get Clive Palmer off theirs.
A slew of unsolicited text messages from the Palmer-backed Trumpet of Patriots are spamming millions of unsuspecting voters who are deeply frustrated they're unable to unsubscribe.
Even the prime minister's fiancee Jodie Haydon hasn't been spared, in what Albanese has labelled an "extraordinary vanity exercise".
Photo shows
Palmer poses in front of his new logo, a lion with a trumpet with flags on a yellow background
Political texts from parties are frustrating voters on social media in the week leading up to the election, but they are completely legal.
It has sparked questions about electoral reform, with Albanese declaring he'd be "happy" to ban texts from political parties but wasn't sure if it would fit in with "other legal requirements".
Independent Senator Jacqui Lambie declared the major parties also use mass text campaigns — which are legal — but said there's one key difference.
"It's just that Clive Palmer's got more money than what they have and he's spamming a lot more," Lambie said.
"The only time you'll see the major parties come together, is when they're doing things like electoral reform, when it suits themselves and they want to try and get the independents out… It's absolute filth."
Voters have been spammed by a slew of unsolicited text messages from the Clive Palmer-backed Trumpet of Patriots party.
(
ABC News: Ian Cutmore
)
These messages are expensive and, largely, inefficient — as they are not targeted.
In the 2022 campaign the same method proved to be largely unsuccessful, but there is something to be said for name recognition when people go to cast their votes — and that's what Palmer's paying for.
Inflation drops without recession or jump in unemployment
Timing counts for a lot in the fortunes of governments, and the release of inflation figures all but guaranteeing a future rate cut — three days out from polling day — has provided Labor with additional momentum as it heads in to the home stretch.
Headline inflation has remained steady at 2.4 per cent, but the Reserve Bank's preferred measure of consumer prices — trimmed mean inflation — has now also fallen within the RBA's target band for the first time in more than three years.
That is significant — and notably, unusual — because trimmed mean inflation has now fallen from a peak to 6.8 per cent to 2.9 per cent, and it has occurred without a recession, or any material increase in unemployment.
Read more about the federal election:
Want even more? Here's where you can find all our 2025
The consequences of sustained hip pocket pressures don't often favour incumbent governments, but these figures have provided Labor with a clear line to spruik the economic credentials so often attacked by the Coalition.
Treasurer Jim Chalmers declared it was a "powerful demonstration of the progress" made in the economy, and proof of "responsible economic management".
Markets are now broadly expecting the Reserve Bank will cut interest rates at its next meeting just after the election.
The inflation figures were there for both sides to spin, with the Coalition arguing people were still doing it tough.
But with underlying inflation now also sitting in the target band, another line of attack for the Coalition has been eliminated.
Photo shows
Monique Ryan Amelia Hamer pre-poll signs
Liberals say the Boroondara City Council threatened Amelia Hamer's implied constitutional freedom of political communication when it took down her signs.
Good day for...
Households, with lower inflation and a likely interest rate cut on the way.
Bad day for...
Liberal candidate for Kooyong Amelia Hamer, whose signs were once again confiscated, this time by the local council who said they presented a risk to pedestrians.
What to watch out for
The Coalition's costings will be released tomorrow, but given a sizeable percentage of the electorate have voted, it means many people have cast their votes without broadly knowing the total cost of Coalition policies.
Where pollies have been
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The Advertiser
36 minutes ago
- The Advertiser
Hearing voices: why the Nats should be watching their backs
The community independent movement did not begin in Sydney or Melbourne, but in the bush. It was in the rural Victorian seat of Indi, encompassing Wodonga and Wangaratta, that independent Cathy McGowan was drafted by community group Voices of Indi. In 2013, McGowan delivered the Liberal Party its only loss when she won the formerly safe seat from Sophie Mirabella. The subsequent success of inner city "teals" - community independents like Zali Steggall, Monique Ryan and Kate Chaney - is evidence that Liberal neglect of classical-liberal and metropolitan voters has come back to haunt them. But soul searching is due in the bush as well, particularly among Nationals. So far, they have been criticised for unforced errors (like quitting the Liberal-National Coalition only to rejoin it days later) rather than structural weaknesses, like their preference of mining interests over agricultural ones and their inability to win back seats lost since the 1990s. Conditions are ripe for the Nationals to face challenges from independents on the same scale as those already faced by the Liberals. And while Indi's "Voices of" model of community organising and drafting candidates was an innovation, the country has long been friendly to independents. Father of the House of Representatives Bob Katter is a rural independent, as were Tony Windsor and Rob Oakeshott, who negotiated minority government with Julia Gillard in 2010. Windsor and Oakeshott sat in the NSW Parliament before the jump to Commonwealth politics, and today the NSW crossbench boasts 10 independent MPs, mostly from regional and rural parts of the state. Many independent-held NSW seats overlap with federal seats held by Nationals (like Riverina and Parkes) or regional Liberals (like Farrer and Hume). And at the last two federal elections, independent candidates have turned National and Liberal-National seats like Cowper and Groom marginal. There is a perception that the junior National Party has been the tail wagging the dog, with the Liberals taking up the obsessions of National MPs - in particular nuclear energy. And while Coalition Governments dutifully "pork-barrelled" public money for safe regional seats, they neglected apparently safe urban seats held by Liberals. This helps explain why Liberals now hold mostly regional and rural seats, and barely exists in the inner-city. But big spending programs disguise how country interests have become diluted. Being in Coalition with the Liberal Party has weakened the ability of the National Party to advocate forcefully for the interests of those in regional and rural Australia. Famously, former National leader Michael McCormack could not name one time the Nationals had taken the side of farmers over that of miners. Similarly, in the last Coalition government, Nationals spruiked and voted for Scott Morrison's original stage three tax cuts - even though Nationals electorates had the least to gain. When the Albanese Labor government reformed stage three, the biggest winners were Australians living in Nationals seats. Regional and rural areas would benefit from increased public spending on education, health, public transport and infrastructure; all of which are harder to fund after the tax cuts eagerly pursued by Liberal-National governments. They are most at risk from climate change, and bear the brunt of disasters amplified by a warming earth. Independents like Cathy McGowan, Rob Oakeshott and Tony Windsor have recognised this, as have those running in more recent elections like Helen Haines. It is true that the Nationals still hold about as many lower house seats today as they did at the height of the Howard Coalition Government, and many are still nominally safe seats. But in recent elections, both Liberal and Labor Party MPs have learned the hard way that there is no such thing as a safe seat against the right challenger. Australia Institute research shows Australians are unique among Western democracies in their willingness to elect independents. Regional challengers to the major parties will not be cut from the same cloth as community independents in the cities, the so-called "teals". Regional and rural Australians have responded to somewhat different arguments, from somewhat different candidates. We could call these candidates "tans" - from the colour of their pants, and because it is "Nat" in reverse. Of course, none of this is predestined - nor was the Liberal Party doomed to veer to the right and leave behind moderate and classically liberal voters. These are the result of choices made by voters, by party rank-and-file and by elected representatives. A couple of weeks ago, the Nationals made a choice - to quit the Coalition - which suggested a willingness to rethink the old saws. Unfortunately, the reason was not to give the Nationals freedom to consider new ways of representing the country, but to allow them to hold onto failed policies like nuclear power. These policies failed to resonate with voters. And the united front of Liberals and Nationals held back rural candidates. Mia Davies, former leader of the WA Nationals (a more independently minded branch than those in NSW or Victoria) and a candidate in the federal election, thought her job was made harder by the opposition of Liberal shadow ministers to Labor's resources production tax credit scheme. READ MORE: What Angus Taylor called "billions for billionaires", Davies called "good policy". But Davies was a rare Coalition candidate who went against the party line. The effect is a decimated Liberal-National Coalition. And while it is mostly the Liberals who have lost seats, the Nationals have re-attached to the Coalition, which means their future relevance depends on the Liberals recovering 30-odd seats, and the Nationals winning a couple themselves off Labor - something the Nationals haven't managed to do since 2013. Once, National candidates could promise their electorate a voice in the government. With that looking a long way away, it is now independent and minor party candidates who can promise relevance: starting national debates, probing the government in question time and perhaps being at the heart of negotiations in the event of a future power-sharing Parliament. If the Nats are not interested in serving the interests of those in rural and regional Australia, they will find no shortage of "tans" willing to throw their Akubras in the ring. The community independent movement did not begin in Sydney or Melbourne, but in the bush. It was in the rural Victorian seat of Indi, encompassing Wodonga and Wangaratta, that independent Cathy McGowan was drafted by community group Voices of Indi. In 2013, McGowan delivered the Liberal Party its only loss when she won the formerly safe seat from Sophie Mirabella. The subsequent success of inner city "teals" - community independents like Zali Steggall, Monique Ryan and Kate Chaney - is evidence that Liberal neglect of classical-liberal and metropolitan voters has come back to haunt them. But soul searching is due in the bush as well, particularly among Nationals. So far, they have been criticised for unforced errors (like quitting the Liberal-National Coalition only to rejoin it days later) rather than structural weaknesses, like their preference of mining interests over agricultural ones and their inability to win back seats lost since the 1990s. Conditions are ripe for the Nationals to face challenges from independents on the same scale as those already faced by the Liberals. And while Indi's "Voices of" model of community organising and drafting candidates was an innovation, the country has long been friendly to independents. Father of the House of Representatives Bob Katter is a rural independent, as were Tony Windsor and Rob Oakeshott, who negotiated minority government with Julia Gillard in 2010. Windsor and Oakeshott sat in the NSW Parliament before the jump to Commonwealth politics, and today the NSW crossbench boasts 10 independent MPs, mostly from regional and rural parts of the state. Many independent-held NSW seats overlap with federal seats held by Nationals (like Riverina and Parkes) or regional Liberals (like Farrer and Hume). And at the last two federal elections, independent candidates have turned National and Liberal-National seats like Cowper and Groom marginal. There is a perception that the junior National Party has been the tail wagging the dog, with the Liberals taking up the obsessions of National MPs - in particular nuclear energy. And while Coalition Governments dutifully "pork-barrelled" public money for safe regional seats, they neglected apparently safe urban seats held by Liberals. This helps explain why Liberals now hold mostly regional and rural seats, and barely exists in the inner-city. But big spending programs disguise how country interests have become diluted. Being in Coalition with the Liberal Party has weakened the ability of the National Party to advocate forcefully for the interests of those in regional and rural Australia. Famously, former National leader Michael McCormack could not name one time the Nationals had taken the side of farmers over that of miners. Similarly, in the last Coalition government, Nationals spruiked and voted for Scott Morrison's original stage three tax cuts - even though Nationals electorates had the least to gain. When the Albanese Labor government reformed stage three, the biggest winners were Australians living in Nationals seats. Regional and rural areas would benefit from increased public spending on education, health, public transport and infrastructure; all of which are harder to fund after the tax cuts eagerly pursued by Liberal-National governments. They are most at risk from climate change, and bear the brunt of disasters amplified by a warming earth. Independents like Cathy McGowan, Rob Oakeshott and Tony Windsor have recognised this, as have those running in more recent elections like Helen Haines. It is true that the Nationals still hold about as many lower house seats today as they did at the height of the Howard Coalition Government, and many are still nominally safe seats. But in recent elections, both Liberal and Labor Party MPs have learned the hard way that there is no such thing as a safe seat against the right challenger. Australia Institute research shows Australians are unique among Western democracies in their willingness to elect independents. Regional challengers to the major parties will not be cut from the same cloth as community independents in the cities, the so-called "teals". Regional and rural Australians have responded to somewhat different arguments, from somewhat different candidates. We could call these candidates "tans" - from the colour of their pants, and because it is "Nat" in reverse. Of course, none of this is predestined - nor was the Liberal Party doomed to veer to the right and leave behind moderate and classically liberal voters. These are the result of choices made by voters, by party rank-and-file and by elected representatives. A couple of weeks ago, the Nationals made a choice - to quit the Coalition - which suggested a willingness to rethink the old saws. Unfortunately, the reason was not to give the Nationals freedom to consider new ways of representing the country, but to allow them to hold onto failed policies like nuclear power. These policies failed to resonate with voters. And the united front of Liberals and Nationals held back rural candidates. Mia Davies, former leader of the WA Nationals (a more independently minded branch than those in NSW or Victoria) and a candidate in the federal election, thought her job was made harder by the opposition of Liberal shadow ministers to Labor's resources production tax credit scheme. READ MORE: What Angus Taylor called "billions for billionaires", Davies called "good policy". But Davies was a rare Coalition candidate who went against the party line. The effect is a decimated Liberal-National Coalition. And while it is mostly the Liberals who have lost seats, the Nationals have re-attached to the Coalition, which means their future relevance depends on the Liberals recovering 30-odd seats, and the Nationals winning a couple themselves off Labor - something the Nationals haven't managed to do since 2013. Once, National candidates could promise their electorate a voice in the government. With that looking a long way away, it is now independent and minor party candidates who can promise relevance: starting national debates, probing the government in question time and perhaps being at the heart of negotiations in the event of a future power-sharing Parliament. If the Nats are not interested in serving the interests of those in rural and regional Australia, they will find no shortage of "tans" willing to throw their Akubras in the ring. The community independent movement did not begin in Sydney or Melbourne, but in the bush. It was in the rural Victorian seat of Indi, encompassing Wodonga and Wangaratta, that independent Cathy McGowan was drafted by community group Voices of Indi. In 2013, McGowan delivered the Liberal Party its only loss when she won the formerly safe seat from Sophie Mirabella. The subsequent success of inner city "teals" - community independents like Zali Steggall, Monique Ryan and Kate Chaney - is evidence that Liberal neglect of classical-liberal and metropolitan voters has come back to haunt them. But soul searching is due in the bush as well, particularly among Nationals. So far, they have been criticised for unforced errors (like quitting the Liberal-National Coalition only to rejoin it days later) rather than structural weaknesses, like their preference of mining interests over agricultural ones and their inability to win back seats lost since the 1990s. Conditions are ripe for the Nationals to face challenges from independents on the same scale as those already faced by the Liberals. And while Indi's "Voices of" model of community organising and drafting candidates was an innovation, the country has long been friendly to independents. Father of the House of Representatives Bob Katter is a rural independent, as were Tony Windsor and Rob Oakeshott, who negotiated minority government with Julia Gillard in 2010. Windsor and Oakeshott sat in the NSW Parliament before the jump to Commonwealth politics, and today the NSW crossbench boasts 10 independent MPs, mostly from regional and rural parts of the state. Many independent-held NSW seats overlap with federal seats held by Nationals (like Riverina and Parkes) or regional Liberals (like Farrer and Hume). And at the last two federal elections, independent candidates have turned National and Liberal-National seats like Cowper and Groom marginal. There is a perception that the junior National Party has been the tail wagging the dog, with the Liberals taking up the obsessions of National MPs - in particular nuclear energy. And while Coalition Governments dutifully "pork-barrelled" public money for safe regional seats, they neglected apparently safe urban seats held by Liberals. This helps explain why Liberals now hold mostly regional and rural seats, and barely exists in the inner-city. But big spending programs disguise how country interests have become diluted. Being in Coalition with the Liberal Party has weakened the ability of the National Party to advocate forcefully for the interests of those in regional and rural Australia. Famously, former National leader Michael McCormack could not name one time the Nationals had taken the side of farmers over that of miners. Similarly, in the last Coalition government, Nationals spruiked and voted for Scott Morrison's original stage three tax cuts - even though Nationals electorates had the least to gain. When the Albanese Labor government reformed stage three, the biggest winners were Australians living in Nationals seats. Regional and rural areas would benefit from increased public spending on education, health, public transport and infrastructure; all of which are harder to fund after the tax cuts eagerly pursued by Liberal-National governments. They are most at risk from climate change, and bear the brunt of disasters amplified by a warming earth. Independents like Cathy McGowan, Rob Oakeshott and Tony Windsor have recognised this, as have those running in more recent elections like Helen Haines. It is true that the Nationals still hold about as many lower house seats today as they did at the height of the Howard Coalition Government, and many are still nominally safe seats. But in recent elections, both Liberal and Labor Party MPs have learned the hard way that there is no such thing as a safe seat against the right challenger. Australia Institute research shows Australians are unique among Western democracies in their willingness to elect independents. Regional challengers to the major parties will not be cut from the same cloth as community independents in the cities, the so-called "teals". Regional and rural Australians have responded to somewhat different arguments, from somewhat different candidates. We could call these candidates "tans" - from the colour of their pants, and because it is "Nat" in reverse. Of course, none of this is predestined - nor was the Liberal Party doomed to veer to the right and leave behind moderate and classically liberal voters. These are the result of choices made by voters, by party rank-and-file and by elected representatives. A couple of weeks ago, the Nationals made a choice - to quit the Coalition - which suggested a willingness to rethink the old saws. Unfortunately, the reason was not to give the Nationals freedom to consider new ways of representing the country, but to allow them to hold onto failed policies like nuclear power. These policies failed to resonate with voters. And the united front of Liberals and Nationals held back rural candidates. Mia Davies, former leader of the WA Nationals (a more independently minded branch than those in NSW or Victoria) and a candidate in the federal election, thought her job was made harder by the opposition of Liberal shadow ministers to Labor's resources production tax credit scheme. READ MORE: What Angus Taylor called "billions for billionaires", Davies called "good policy". But Davies was a rare Coalition candidate who went against the party line. The effect is a decimated Liberal-National Coalition. And while it is mostly the Liberals who have lost seats, the Nationals have re-attached to the Coalition, which means their future relevance depends on the Liberals recovering 30-odd seats, and the Nationals winning a couple themselves off Labor - something the Nationals haven't managed to do since 2013. Once, National candidates could promise their electorate a voice in the government. With that looking a long way away, it is now independent and minor party candidates who can promise relevance: starting national debates, probing the government in question time and perhaps being at the heart of negotiations in the event of a future power-sharing Parliament. If the Nats are not interested in serving the interests of those in rural and regional Australia, they will find no shortage of "tans" willing to throw their Akubras in the ring. The community independent movement did not begin in Sydney or Melbourne, but in the bush. It was in the rural Victorian seat of Indi, encompassing Wodonga and Wangaratta, that independent Cathy McGowan was drafted by community group Voices of Indi. In 2013, McGowan delivered the Liberal Party its only loss when she won the formerly safe seat from Sophie Mirabella. The subsequent success of inner city "teals" - community independents like Zali Steggall, Monique Ryan and Kate Chaney - is evidence that Liberal neglect of classical-liberal and metropolitan voters has come back to haunt them. But soul searching is due in the bush as well, particularly among Nationals. So far, they have been criticised for unforced errors (like quitting the Liberal-National Coalition only to rejoin it days later) rather than structural weaknesses, like their preference of mining interests over agricultural ones and their inability to win back seats lost since the 1990s. Conditions are ripe for the Nationals to face challenges from independents on the same scale as those already faced by the Liberals. And while Indi's "Voices of" model of community organising and drafting candidates was an innovation, the country has long been friendly to independents. Father of the House of Representatives Bob Katter is a rural independent, as were Tony Windsor and Rob Oakeshott, who negotiated minority government with Julia Gillard in 2010. Windsor and Oakeshott sat in the NSW Parliament before the jump to Commonwealth politics, and today the NSW crossbench boasts 10 independent MPs, mostly from regional and rural parts of the state. Many independent-held NSW seats overlap with federal seats held by Nationals (like Riverina and Parkes) or regional Liberals (like Farrer and Hume). And at the last two federal elections, independent candidates have turned National and Liberal-National seats like Cowper and Groom marginal. There is a perception that the junior National Party has been the tail wagging the dog, with the Liberals taking up the obsessions of National MPs - in particular nuclear energy. And while Coalition Governments dutifully "pork-barrelled" public money for safe regional seats, they neglected apparently safe urban seats held by Liberals. This helps explain why Liberals now hold mostly regional and rural seats, and barely exists in the inner-city. But big spending programs disguise how country interests have become diluted. Being in Coalition with the Liberal Party has weakened the ability of the National Party to advocate forcefully for the interests of those in regional and rural Australia. Famously, former National leader Michael McCormack could not name one time the Nationals had taken the side of farmers over that of miners. Similarly, in the last Coalition government, Nationals spruiked and voted for Scott Morrison's original stage three tax cuts - even though Nationals electorates had the least to gain. When the Albanese Labor government reformed stage three, the biggest winners were Australians living in Nationals seats. Regional and rural areas would benefit from increased public spending on education, health, public transport and infrastructure; all of which are harder to fund after the tax cuts eagerly pursued by Liberal-National governments. They are most at risk from climate change, and bear the brunt of disasters amplified by a warming earth. Independents like Cathy McGowan, Rob Oakeshott and Tony Windsor have recognised this, as have those running in more recent elections like Helen Haines. It is true that the Nationals still hold about as many lower house seats today as they did at the height of the Howard Coalition Government, and many are still nominally safe seats. But in recent elections, both Liberal and Labor Party MPs have learned the hard way that there is no such thing as a safe seat against the right challenger. Australia Institute research shows Australians are unique among Western democracies in their willingness to elect independents. Regional challengers to the major parties will not be cut from the same cloth as community independents in the cities, the so-called "teals". Regional and rural Australians have responded to somewhat different arguments, from somewhat different candidates. We could call these candidates "tans" - from the colour of their pants, and because it is "Nat" in reverse. Of course, none of this is predestined - nor was the Liberal Party doomed to veer to the right and leave behind moderate and classically liberal voters. These are the result of choices made by voters, by party rank-and-file and by elected representatives. A couple of weeks ago, the Nationals made a choice - to quit the Coalition - which suggested a willingness to rethink the old saws. Unfortunately, the reason was not to give the Nationals freedom to consider new ways of representing the country, but to allow them to hold onto failed policies like nuclear power. These policies failed to resonate with voters. And the united front of Liberals and Nationals held back rural candidates. Mia Davies, former leader of the WA Nationals (a more independently minded branch than those in NSW or Victoria) and a candidate in the federal election, thought her job was made harder by the opposition of Liberal shadow ministers to Labor's resources production tax credit scheme. READ MORE: What Angus Taylor called "billions for billionaires", Davies called "good policy". But Davies was a rare Coalition candidate who went against the party line. The effect is a decimated Liberal-National Coalition. And while it is mostly the Liberals who have lost seats, the Nationals have re-attached to the Coalition, which means their future relevance depends on the Liberals recovering 30-odd seats, and the Nationals winning a couple themselves off Labor - something the Nationals haven't managed to do since 2013. Once, National candidates could promise their electorate a voice in the government. With that looking a long way away, it is now independent and minor party candidates who can promise relevance: starting national debates, probing the government in question time and perhaps being at the heart of negotiations in the event of a future power-sharing Parliament. If the Nats are not interested in serving the interests of those in rural and regional Australia, they will find no shortage of "tans" willing to throw their Akubras in the ring.
News.com.au
an hour ago
- News.com.au
‘Like winning lotto': $300,000-a-year public servant pensions under fire in super tax battle
Would a 90-year-old need a half-a-million-dollar per year pension to live on? As debate swirls around Labor's controversial superannuation tax changes, critics have set their sights on lucrative taxpayer-funded lifetime pensions paid to former high-ranking public servants and politicians which can stretch into hundreds of thousands of dollars per year. Politicians who entered parliament before the October 2004 election, including Prime Minister Anthony Albanese and opposition leader Sussan Ley, are still accruing benefits under the Public Sector Superannuation Scheme (PSS), a defined benefit scheme which pays out an annual pension — indexed to inflation and calculated by a formula including the member's average salary and years of service — when the member leaves office or retires at 55. 'It's like winning lotto,' said veteran fund manager John Abernethy, founder and chairman of Clime Investment Management. 'These guys are giving themselves lotto wins and then complain about paying tax on the income.' Treasurer Jim Chalmers' proposed tax changes, known as Division 296, would double the rate from 15 per cent to 30 per cent for superannuation balances over $3 million and, most controversially, include unrealised gains on earnings on assets held by funds such as shares, farms and property. Labor first announced the crackdown on tax concessions for very large super balances in 2023, but the legislation was blocked by the previous Senate. The changes look likely to become law as a deal with the Greens looms. Only around 80,000 Australians, or 0.5 per cent of the population, currently have super balances above $3 million, but industry groups have warned that if the threshold is not indexed to inflation it could eventually capture the majority of Gen Zs entering the workforce today. The measure is expected to initially claw back $2.7 billion a year and nearly $40 billion over a decade. 'What we need to do is make sure that our superannuation system is fair,' Prime Minister Anthony Albanese said this week. 'That is what we are setting out to do.' Division 296 will also be applied to defined benefit pensions to ensure 'commensurate treatment' as high-balance super funds — although unlike super account holders, those eligible will be able to defer the payments until they retire. Interest will be charged annually on the deferred tax liability at the 10-year bond rate, currently at around 4.5 per cent. Treasury estimates that 10,000 members with defined benefit interests will be impacted by the new tax in 2025-26, 'representing approximately 1 per cent of the total population with DB interests'. The Australian Council for Public Sector Retiree Organisations (ACPSRO), which represents more than 700,000 retired public servants, has flagged a possible challenge to the new law, arguing it's unfair. ASCPRO notes that unfunded pensions, which do not receive the 'generous and open-ended taxation concessions' available under regular superannuation, are already subject to normal income tax. Recipients who will be captured by the $3 million threshold are already paying a marginal tax rate of 45 per cent on that income, and Division 296 will likely take their marginal tax rate to 60 per cent, according to ASCPRO. 'I'm not stepping away from the fact that these are very wealthy people at the top of the public service — either retired High Court judges, Commonwealth department secretaries, deputy secretaries — it's a very small percentage but it's the principle of the thing,' said ASCPRO president John Pauley. 'Nowhere has the government explained to defined benefit pensioners how they're benefiting from tax concessions at present and therefore why it's fair, just and equitable for this additional tax impost to be paid on top of the tax they're already paying.' A person in an accumulation scheme who would be affected by the tax has the option of moving their assets out of super into another tax-effective vehicle such as a family trust, Mr Pauley argues, whereas those receiving defined benefit pensions have no such option. 'You're at the mercy of the government of the day,' he said. ASCPRO also takes issue with deferred interest being slugged on future pension payments. 'There is zero asset sitting behind these schemes — if you're unfortunate enough to get run over by a car two years into your pension there is nothing there [to leave to beneficiaries],' Mr Pauley said. 'This is the ultimate self-licking ice cream for the government. They are wanting to make people pay tax, not on unrealised capital gains, they're wanting people to pay tax on a hypothetical gain on an asset which doesn't exist, either during the accumulation phase or during the pension.' Mr Pauley estimated that for the roughly one million households receiving defined benefit pensions, the average was only in the range of $50,000. 'Teachers, nurses, police officers, members of the Defence Force, the bureaucrats who do the day-to-day work of government,' he said. 'Yes there's a few who are on very high incomes who have access to a defined benefit pension, [but] this wasn't something that is optional for them. When you signed up to work with the public sector it was a part of your workplace contract.' Mr Abernethy, however, argues any overhaul of super concessions should also include going back to the drawing board on the $166 billion unfunded liability 'black hole', which has continued to blow out beyond forecasts as existing members continue to accrue benefits prior to retirement. 'Just pay out the bloody benefits today and cap it at $3 million, if the government is saying $3 million is more than you should have in super,' he said. 'How about we have a come-to-God moment and say, 'If your net present value of your future pension is $10 million, I'm sorry, $3 million is more than enough. It's a windfall, guys, now you've got to look after yourself.' It would save the taxpayer a fortune.' He added that '[if someone says] that requires a complete renegotiation of what people thought they were entitled to — yes it does, come in spinner!' 'That's exactly what you're doing in super,' he said. 'Current taxpayers weren't even alive when these pensions were set. We've got $240 billion in the Future Fund, if that's not enough to clean out this liability and get rid of it then we better know now.' He suggested complaints about paying additional tax on defined benefit pensions were an apples-to-oranges comparison. 'Imagine I come up to you on the street, I don't know who you are, and promise to pay you $100 a year indexed for the rest of your life,' he said. 'Then in five years I say, 'Look, mate, I'm only going to give you $90.' Am I going to get angry? I didn't contribute to it, you're just taking $10 off my cashflow.' Mr Abernethy, in an op-ed last month, outlined what he saw as the 'diabolical issues' with defined benefits. He cited the example of a high-profile former politician, senior ADF officer or High Court judge in their early 70s who receives a $300,000 defined benefit pension this year. Assuming 3 per cent indexation, Mr Abernethy pointed out that at 75 years old the pension rises to $327,000, at 80 it rises to $380,000, at 85 it rises to $440,000, at 90 it rises to $510,000 and at 95 it reaches $590,000. 'Think about the numbers and you see that over the 10 years to 85, the pension receipts aggregate to about $4 million, and over the 10 years to 95 it aggregates to over $5 million,' he wrote. 'Would a 90-year-old need $510,000 a year to live on? Therefore, is it likely that these funds would flow from the beneficiary to others in a type of living estate? Is that what defined benefit pensions designed to do and are they consistent with Australia's superannuation policy?' Defined benefit schemes were phased out after former Treasurer Peter Costello realised the payments would explode the budget bottom line in future years if not closed off. The PSS has been closed to new members since 2005, while the earlier Commonwealth Superannuation Scheme (CSS) was closed in 1990. The CSS is a hybrid accumulation-defined benefit scheme, with some benefits linked to final salary and others based on an accumulation of contributions with investment earnings. For military personnel, the defined benefit schemes are the Defence Force Retirement and Death Benefits Scheme, the Defence Forces Retirement Benefits Scheme and the Military Superannuation and Benefits Scheme (MSBS). Following the closure of the MSBS in 2016, all defined benefit military schemes are now closed to new members. The schemes are unfunded or partially funded, meaning the payments come directly from tax revenue, to the tune of about $20 billion a year. In 2006, the government established the Future Fund with an initial contribution of $60.5 billion that included the proceeds from the sale of Telstra. The Future Fund was originally supposed to start paying out pensions in 2020 to take the burden off the taxpayer, but successive governments have delayed drawing from the fund. In November, Labor ruled out taking a dividend from the fund until at least 2032-33, when the savings pool is expected to have reached $380 billion. The announcement came as the Treasurer directed the Future Fund to prioritise investments in renewable energy, housing and infrastructure, sparking warnings that he was politicising the independently managed sovereign wealth fund. Former Labor Climate Change Minister Greg Combet, who was appointed chair of Future Fund by Dr Chalmers in January 2024, said the decision to defer withdrawals 'provides the Future Fund with the confidence to provide more focus and resources to the areas of national priority identified in the new investment mandate that align with our risk and return hurdle'. In an op-ed for The Australian Financial Review, Mr Combet said 'as of today, the value of the Future Fund covers about 79 per cent of the estimated APS superannuation liabilities' — suggesting the liability had grown to about $290 billion. The Future Fund was valued at $237.9 billion as at December 31. The most recent federal budget estimates liabilities for civilian superannuation schemes, including the CSS and PSS as well as pensions for judges, at $166 billion in 2024-25, rising to $179 billion by 2028-29. Including military superannuation schemes, the total figure was $303 billion in 2024-25 and $341 billion by 2028-29. Treasury's PSS and CSS Long Term Cost Report, published last year, forecast that the unfunded liability for the schemes would peak at $190.5 billion in 2033-34 before declining to $62.4 billion by 2060. As of June 30, 2023, there were a total of 100,574 CSS members, including 1333 still currently employed, and 214,793 PSS members, 54,870 still employed. 'People who are in public service are entitled to a payout, but that payout should have been calculated and created with a logical and fair mechanism,' Mr Abernethy said. 'Saying to someone you get paid your pension based on your average wage when you leave, you tell us when you want to get it … that's not fair. You create these different tiers of benefits. Society's got to sit back and say, what's fair and what's affordable? Everyone's trying to get at fairness in the super system, but there's only so much money in the pot.'
Sydney Morning Herald
2 hours ago
- Sydney Morning Herald
Time to pay the Deeming debt and focus on the job of opposition
If we accept that the fundamental aim of political parties is to win elections and then govern on behalf of their constituents, then there is a strong case that the Victorian branch of the Liberal Party no longer meets the definition. Having steadily improved in the polls under John Pesutto as the problems of the state's Labor government mounted, some predicted that Victoria's Liberals would turn the tide at federal level, winning a raft of seats and delivering Peter Dutton the prime ministership. Those lost in this pipe dream did not worry that the state branch was already reverting to the form of a circular firing squad, in which an ousted Pesutto and his nemesis, Moira Deeming, were expected to work together even as she pressed him for personally ruinous millions in court costs. Another member of the humiliated Team Pesutto, shadow health spokeswoman Georgie Crozier, then decided to angrily call out party colleague Sam Groth over alleged misuse of a taxpayer-funded car (which he insists was within the rules). The Victorian Liberal Party has lost six of the past seven state elections, stretching back to the defeat of Jeff Kennett in 1999. That first reversal came out of the blue, but ever since the state party has stumbled in the dark over its identity and leadership. For years, it seemed religious conservatives were determined to turn the party of the social establishment and capital into a Trojan horse for their agendas on abortion and homosexuality. At times – think Bernie Finn or Geoff Shaw – this looked like a simple case of the tail trying to wag the dog. Loading Deeming – who inherited Finn's Western Metropolitan seat – is the latest manifestation of this trend, with her eyes set firmly on an ideological destination to which her fellow MPs can either accede or be swept aside, and if that means remaining in opposition, so be it. At the height of his confidence, Dutton suggested intervention by the federal party in this mess. Such an undertaking seems laughable now, given that Sussan Ley is already up to her eyeballs in the battle to steer the Coalition's shrinking ship in Canberra and leading lights of the Victorian federal landscape, Josh Frydenberg and Michael Sukkar, have been discarded by voters.
