Australia news live: Hegseth asks Marles to lift defence spending to 3.5% of GDP; house prices jump after rate cuts
Update:
Date: 2025-06-01T21:22:17.000Z
Title: Good morning
Content: Happy Monday, Nick Visser here to take you through this morning's breaking news. First up today:
The US defence secretary, Pete Hegseth, has asked Australia to increase its defense spending to 3.5% of its gross domestic product during a meeting with his Australian counterpart, Richard Marles. Anthony Albanese pushed back against those calls at the Shangri-La Dialogue this weekend, but we didn't know just how much Hegseth was asking for until this morning.
House prices have surged after the RBA's rate cut in May, with the median price across Australia sitting at $831,288 last month, AAP reports. Every capital city saw growth of 0.4% or more, largely due to buyers feeling better about their purchasing capacity.
Stick with us throughout the morning for more on these stories and whatever else the day brings.
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