Main events
Cait Kelly
The number of Australians in prison fell to an eight-year high, while the number of prisoners who died from unnatural causes jumped to 26, with almost half being Aboriginal and Torres Strait Islander people, new data from the Productivity Commission has revealed.
The national average daily prison population increased by 5.9% in 2024-25 to reach an eight-year high of 45,526, with real net operating expenditure hitting $5.43 billion in 2024-25, an increase of 4.3% since 2023-24 and 49.3% over the previous 10 years.
Nationwide, 22 people died in police custody, six of them Aboriginal and Torres Strait Islander. This is lower than 2022-23, when the total number of deaths in police custody was at an 18-year high of 41.
However, 26 people died from ‘unnatural causes’, including suicide, drug overdose, accidental injury or murder, in prisons in 2024-25, the highest number in five years, 10 of which were Aboriginal and Torres Strait Islander people.
Government spending is too high says independent MP
Independent MP Zali Steggall also put pressure on the government to reduce its spending, and called for the government to be responsible for its increase in inflation.
Speaking on the Today Show earlier this morning, Steggall said the government needs to think about where it needs to “re-read spending priorities”. He said:
We need to look at the factors that drive inflation. Of course, the RBA recognizes private sector spending as extremely high, but we have to be clear, government spending has now risen to 28% of GDP… What are we spending, what is helping and supporting the people of Australia? And I think that’s where we have to ask questions of the government.
Steggall was joined by the Nationals senator Matt Canavanwho said, “bad day for Australian home owners who are facing a big, big increase in their mortgage payments because of this mismanagement of our economy.”
The coalition does not support capital gains tax reforms
the Financial Review This morning reported that the government may consider bringing back the generous 50% reduction in capital gains tax for property investors.
The Greens are currently holding a federal inquiry into the tax cuts, with calls from the NSW government that the policy should be reconsidered.
Staying with O’Brien on Sky, he was asked if the opposition would support any changes to the CGT. No, is the short answer:
This is what happens when you have a Labor government that has run out of money and they just want to follow suit. What did they do? They tax people … We don’t participate Jim Chalmers to try to ping Australians for more money, because he can’t control his spending.
Ted O’Brien is trying to make ‘Jimflation’ happen
Since the term was created late last year, shadow treasurer and shadow assistant treasurer, Ted O’Brien still trying to make “Jimflation” happen.
The government felt the heat for yesterday’s rate hike, which the Coalition said was a result of high government spending.
So what will the Coalition cut and where will they find the savings? O’Brien, speaking to Sky News, has yet to list anything:
Cutting is not the priority here. Offsets are, and they are very different things, and therefore the government has every right to determine what the spending priorities are, but with those rights come corresponding responsibilities, and that means finding room in the budget to pay for them.
Again, host Peter Stefanovic tried to push O’Brien to list where those savings came from, but the shadow treasurer expanded on them.
Basic principles. it [tax] should be lower, it should be fairer.
The coalition may change this week, under conditions: Ley
Ley faces two challenges, the other of course being the Coalition split. Yesterday we reported that the Liberal leader had offered the Nats a deal that would see three former frontbenchers cross the floor, staying on the frontbench for six months.
He said he expected to see David Littleproud again today.
The Coalition can change this week but under certain conditions, and those conditions are largely supported by the majority in my party room. And they that the shadow cabinet solidarity is mandatory. The shadow cabinet and the party room have more than any individual party room, and the three senators must face ongoing suspensions.
Leadership rumors are ‘ridiculous suggestions’ says Ley
Susan Ley eliminated the questions of his leadership, as the hope of a spill of Angus Taylor hiding behind him.
Speaking on ABC News Breakfast this morning, Ley was asked if he had spoken to Taylor about the not-so-secret meeting from key senior members of the right-wing faction on Thursday in front of the former Liberal MP Katie Allenit’s a funeral.
He said Taylor was in his leadership team, “we had discussions about interest [rates]about the conditions facing Australians.”
Is he worried that Taylor plans to replace him next week? Ley says:
These are ridiculous suggestions and they are made by people in the media, not the conversations I have with colleagues, and they are not the focus of my team.
He tried to pivot the conversation back to focus on interest rates and inflation.
The Liberal party can stand alone, said the deputy leader
Daisy Dumas
The shadow treasurer, Ted O’Brien, says that, if the conflict between Liberal and National is not resolved, the Liberal party has its own talent to take over the Albanese government.
Speaking on ABC’s 7.30 program last night, the deputy opposition leader said “there’s no doubt voters want to make sure we have a strong opposition, an effective opposition.
Whether that opposition ultimately comes from the Liberal party holding the government to account or a united Liberal-National party, well, let’s wait and see.
Australia I think is best served by a Coalition but, if at the end of the day that is not possible, then I have great confidence in the depth of talent within the Liberal party and, yes, I believe we can absolutely hold a very poor government accountable.
Battery installation has quadrupled on the back of federal subsidies, the report said
Donna Lu
Solar battery installations in Australia will increase fourfold in the second half of 2025, compared to the same period in 2024.
The Clean Energy Council’s rooftop solar and storage report, released today, found that more than 450,000 home batteries had been installed across Australia, by the end of last year.
Australians continue to embrace solar, with more than 139,000 systems installed in the latter half of 2025. That brings the number of households with solar to 4.3 million.
As a result, Australia’s share of rooftop solar continues to increase, accounting for 14.2% of energy supplied to the grid in 2025, almost doubling since 2020, when it was 7.2%.
CEO of CEC, Jackie Trad, says the numbers are a testament to incentives such as the federal government’s Cheaper Home Batteries program, which launched in July, alongside other state-based programs in New South Wales and Western Australia, expanding Australia’s long-standing love of rooftop solar.
Our largest power station now resides on the roofs of more than 4.3 million homes, helping to lower pressure on electricity bills for consumers and businesses, with less reliance on expensive gas or unreliable coal to power our grid.
On Tuesday, the climate and energy minister, Chris Bowen, told parliament that more than 218,000 home batteries have been installed under the federal government’s subsidy scheme. That number is expected to rise to 2m by 2030, under the expansion of the program announced in December.
Good morning
Krishani Dhanji
Krishani Dhanji here with you for another busy day in parliament.
The government was on the defense of the Reserve Bank’s decision to increase interest rates yesterday, having previously told the public that the economy had “turned a corner” on inflation. There is a lot of reaction to that decision today.
There is some new data on the record number of solar batteries installed in Australian homes – more on that in a moment.
And the Liberals and Nationals are still on the outside (Beckham family style, says Labor), but “constructive” talks are ongoing – we’ll be keeping a close eye on any moves there.
I have coffee, I hope you have – let’s get cracking!