Australia news live: Labor caucus votes unanimously to endorse stage-three tax cuts changes

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What we learned today, Wednesday 24 January

And with that, we are going to put the blog to bed. Before we go, let’s recap the big headlines:

Thank you for spending part of your day with us. We will be back tomorrow to do it all again.

Updated at 03.07 EST

Auditor general criticises budget blowout in parliamentary IT system

The auditor general has criticised a “significant increase to costs and multiple delays” in the federal government’s build of an expenses management system for parliamentary expenses, where the original budget blew out by nearly double.

The Australian National Audit Office (ANAO) today released its performance audit of the Parliamentary Expenses Management System (PEMS), a much-maligned online system where politicians and staff lodge their travel and office bills.

The special minister of state, Don Farrell, said in a statement the system had “never functioned as intended”.

‘This is one of the most embarrassing IT bungles in history,’ says special minister of state Don Farrell. Photograph: Mick Tsikas/AAP

“Mismanaged since the former Government introduced it in 2018, this is one of the most embarrassing IT bungles in history,” he said.

The ANAO report found the budget to build the system had blown out to $74.3m as of June 2023, compared to the original budget of $38.1m. It said the Department of Finance was only “partly effective in implementing the PEMS project”, noting that progress reports from the department did not “support sufficient actions or decisions to keep the project on track”.

Many MPs and staff hugely dislike the system, which has been described by some as clunky and frustrating to use. The ANAO report says the system’s current capability “does not meet all deliverables as agreed in the business case”.

“There is a reliance on manual workarounds particularly for payroll services. Reporting functionality to meet legislative requirements was delayed. Parliamentarians and their staff were not sufficiently consulted throughout the project implementation to ensure the system was simple and easy to use,” the report said.

Farrell said he expected the finance department would address the recommendations of the ANAO report, which included calls for future projects to have better defined scope, deliverables and approaches.

Updated at 02.49 EST

Three dead after being pulled from water off Phillip Island

Three people have died and one woman is in a critical condition after being pulled from the water on Phillip Island in Victoria.

Police said emergency services responded to reports of the four people struggling in the water at Newhaven at about 3.30pm and found the four people unresponsive.

First responders administered CPR to the four people, but a man in his 40s and two women in their 20s were pronounced dead at the scene. The woman who is in a critical condition, and is believed to be in her 20s, was airlifted to the Alfred hospital.

Police are not treating the incident as suspicious and will prepare a report for the coroner.

Updated at 02.39 EST

Tropical Cyclone Kirrily expected to hit Queensland coast this evening: BoM

Tropical Cyclone Kirrily is expected to impact the Queensland coast between Cardwell and Bowen from this evening, the Bureau of Meteorology have announced. Here’s the details:

Tropical Cyclone Kirrily has developed in the Coral Sea and is expected to continue strengthening as it tracks west south-west towards the Queensland coast.

A coastal crossing is likely on Thursday evening between Cardwell and Bowen.

After Kirrily crosses the coast, it is expected to quickly weaken to a tropical low, moving further inland and then west south-west across central Queensland. This will bring heavy to intense rainfall to areas across northern interior and western Queensland during Friday and into the weekend.

Queensland communities are advised to stay up to date with forecasts and warnings.

There is up-to-date information on the BoM’s site.

Updated at 02.09 EST

One believed dead after light plane crash in Sydney’s south-west

A person is believed dead after a light plane crash near Brownlow Hill Loop Rd in Brownlow Hill, in Sydney’s south-west.

Emergency services were called to Brownlow Hill near Camden about 3pm on Wednesday following reports a plane from a nearby flying school had crashed. NSW police said they believe a person had been killed in the crash.

Updated at 02.04 EST

Reports three dead after incident on Phillip Island beach

There are reports that three people have died after getting into difficulty in the water at a beach on Phillip Island this afternoon.

Three women and a man were pulled from the water unresponsive.

More to come.

Updated at 02.32 EST

Government should mandate definition of added sugars, researchers say

Australia’s food regulators need to develop a definition of added sugars in processed foods to stop Australians being deceived by misleading advertising, according to new research from UNSW’s George Institute for Global Health.

The research, published today in Current Developments in Nutrition, says that tighter restrictions on the voluntary “no added sugar” claim which Food Standards Australia New Zealand (FSANZ) introduced in December is a good step, but still allows the food industry to exploit loopholes.

The authors give the example of processed fruit and vegetable sugars in the form of pastes, powders, pulps and purees, which undergo intensive heating and compression which removes the nutritional value in the original fruits or vegetables – such as fibre and water – and leave only concentrated sugars.

Under the new rule, a rolled fruit strap can no longer claim to have “no added sugar” – but can still claim to be “100% fruit’ or ‘made from real fruit”, suggesting it is as healthy as the whole fruit.

The research found around 60% of the Australian food supply contained added sugars of some kind. The paper calls on the government to do more to mandate Australia’s food regulators develop a comprehensive definition.

Dr Alexandra Jones, the senior author of the paper, said :

“Without a comprehensive definition of added sugars in Australia, we are paving the way for highly processed, concentrated fruit and vegetable sugars to remain ‘hidden’ in foods that can still be presented by the food industry as ‘healthy’.”

Updated at 01.49 EST

Labor caucus unanimously endorses stage-three tax cut changes

The Labor caucus meeting has concluded in a bit over an hour and a quarter, with Labor MPs voting unanimously to endorse the changes to the stage-three tax cuts. A short meeting is a good meeting – and we’ve heard from three MPs who have described the tone variously as “positive” and one who went as far as “euphoric”.

The meeting confirmed the parameters of the changes:

Decreasing the lowest rate of tax from 19% to 16%, which will now be paid by those earning above $19,000; and;

Retaining the 37% tax rate for those earning $135,000 to $190,000.

There were many contributions from the floor and a few members who queried how Labor should sell the changes and deal with accusations of a broken promise. We’re told this included some Western Australian MPs.

But there was no major dissent or rejection of the plan – which one Labor MP attributed to the plan being presented as a fait accompli.

There were no big new measures announced that hadn’t been reported in some form before the meeting, which makes sense – the extra cuts for 80% of low and middle income earners is reasonably expensive, and the changes to stage three were designed to be budget-neutral. However, other cost of living measures are in the works.

On the way out, Graham Perrett, the member for Moreton, said Labor would let Peter Dutton defend tax cuts to the rich, which is the attack line Julian Hill gave on the way in.

One MP told Guardian Australia the stage three revamp is the “moral” choice but “maybe not the correct political one”, although it’s not clear yet how the electorate will respond to breach of “repeated promises”.

Updated at 01.43 EST

ABS estimates Australian population at over 27 million

Australia’s population is now over 27 million!

The Australian Bureau of Statistics population clock was slowly ticking towards the milestone, which was reached this afternoon.

The number is based on the estimated population as of June 30, 2023, and the assumed births, deaths, arrivals and departures since then. You can see it here:

Updated at 01.36 EST

Workers’ union welcome stage three tax cut changes

The United Workers Union has welcomed the proposed Labor changes to Scott Morrison’s stage-three tax cuts, saying the flagged changes go some way to address massive inequalities in the original proposal. UWU’s national secretary, Tim Kennedy, said:

It was always offensive telling cleaners on $24.07 an hour – or $47,000 for a full-time job – that workers paid above $120,000 deserve $189bn in tax cuts. The Morrison tax cuts are an unwanted legacy of the Coalition’s appalling ‘lifters and leaners’ era that did not live up to the Australian ideal of giving people a fair go and did not pass any sort of pub test.

In a cost-of-living crisis, it’s not the high-income earners on their European holidays who are suffering. The fact the business community is out in force today vocally defending the rights of Australia’s top 14% income earners to billions of dollars in tax cuts tells you a lot about their priorities – and those priorities are certainly not their workers.

Updated at 01.22 EST

Measles exposure sites listed in Melbourne

A new case of measles has also been identified in a returned overseas traveller who attended a number of exposure sites in Melbourne from 17 January 2024 while infectious.

Victoria Health is asking people who have attended the listed exposure sites during the specified dates and times should monitor for symptoms of measles.

There are four sites listed around Frankston and Box Hill – you can find them here.

Updated at 01.02 EST

NSW Health issues measles alert for Sydney airport and Canberra coach

NSW Health is advising people to be alert for signs and symptoms of measles after being notified one case in the ACT was infectious while transiting through Sydney.

The case is an adult who recently returned from Asia where there have been ongoing outbreaks of measles in several countries including Pakistan and India.

People who may have been exposed to the virus in the following locations should monitor for symptoms:

Air India flight AI 302 from Delhi to Sydney, arriving in Sydney on Saturday 20 January at 8.10am.

Sydney airport – Terminal 1 international arrivals (including baggage claim and customs) and Bay 9, bus and coach bays, on the morning of Saturday 20 January

Murrays Sydney to Canberra express bus, departing Sydney international airport around 10.30am on Saturday 20 January. ACT Health is contacting individuals who travelled on this bus service.

The director of the communicable diseases branch of NSW Health, Dr Christine Selvey, said while these locations pose no ongoing risk, if you, or someone you know, were on this flight or visited the above locations at those times it is important to be on the lookout for symptoms:

Symptoms of measles include fever, runny nose, sore eyes and a cough, usually followed three or four days later by a red, blotchy rash that spreads from the head to the rest of the body.

Updated at 24.46 EST

Earlier, Mike Bowers snapped some of the Labor MPs as they arrived for the caucus meeting:

Graham Perrett, the MP for Moreton, arrives at Parliament House. Photograph: Mike Bowers/The GuardianJustine Elliot, the MP for Richmond, arrives. Photograph: Mike Bowers/The GuardianBlair MP Shayne Neumann arrives. Photograph: Mike Bowers/The Guardian

Updated at 24.32 EST

Labor caucus meets after stage-three tax cuts reworked

The Labor caucus is meeting now to discuss the Albanese government’s economic plan including changes to the stage-three income tax cuts which halve the benefit to high-income earners in favour of bigger cuts for those on low and middle incomes.

Government spinners have rejected labels of this meeting as an “emergency” meeting to deal with the “cost-of-living crisis”. While it’s true that it might be normal to schedule an extra caucus meeting to start a new year or to deal with a major issue, it is not every day the otherwise cautious Albanese government so dramatically changes course and sets out a new agenda for the remainder of this term in parliament, likely to define the contest until election day.

Labor MPs have read about the changes, agreed by cabinet on Tuesday, in the media – although some have noted that being consulted at all is an improvement on the workings of some previous governments.

Low-income earners can expect about an extra $800 on top of stage-three tax cuts; while high-income earners earning $200,000 or more could see their tax cuts halved from $9,000 under the stage-three plan.

Prime minister Anthony Albanese speaks at a press conference at Parliament House. Photograph: Mick Tsikas/AAP

As far as the changes themselves, Labor MPs mostly like them. It’s hard to disagree with giving more to low- and middle-income earners. Making a difference to people’s lives when they’re struggling is why these MPs got into politics.

But assessments of how badly the broken promise will play in the electorate vary, so they are apprehensive. Most have said it’s a fight worth having, but they’re under no illusions it will give Peter Dutton a potent issue to campaign on.

One MP told Guardian Australia:

I think in all honesty for my area people are not going to be overly unhappy. There’s more people at the bottom end than there are at the top end. People are really busting their chops to pay bills. I think it will be a bit of relief that people doing tough are going to get some support. How we deal with the broken promise – that’s the political bit, that’s the difficult bit.

In a doorstop at the airport, the Labor MP and left faction convener Julian Hill goaded Dutton to come out and say if he doesn’t support tax cuts for low- and middle-income earners. It’s the reverse wedge that Labor has set up, to use its more generous package to create difficulties for the Coalition.

In caucus I expect a robust discussion about how Labor will sell the changes, without too much criticism of the leadership on the substance because they know the government has finally crossed the Rubicon.

Updated at 24.33 EST

Scorching temperatures to strain power grid in NSW and Queensland

Much of inland Australia has been roasting in recent days, and Wednesday’s been no different.

Oodnadatta in South Australia has reached 47.5C and may warm up a bit more yet. (It’s the home of Australia’s equal hottest temp at 50.7C, recorded in January 1960.)

Queensland’s Birdsville is often that state’s oven, and so it was again today with 47.6C. New South Wales wasn’t far behind with Smithville clocking up 46.4C.

The heatwave is easing a bit for the coming days (with soon-to-be Tropical Cyclone Kirrily helping to cool things in its path), the Bureau of Meteorology predicts.

Queensland recorded its highest electricity use earlier this week, smashing the previous record by almost 10%. The grid there will continue to be strained in coming days, by the looks.

NSW often imports power to meet its needs, and with its northern neighbour still hot, it might also face some supply strains on Thursday and even Friday, the Australian Energy Market Operator says. There are a couple of “lack of reserve” alerts out there, which are signals for suppliers to prepare more electricity if needed, rather than certain shortages.

Still, it’s worth keeping an eye out for calls to reduce power demand in the next day or so if you reside in either state.

Updated at 24.14 EST

Rio Tinto workers die in plane crash in Canada’s remote north

A plane carrying Rio Tinto workers has crashed in northern Canada during a flight to its Diavik diamond mine, killing a number of people on board, the Anglo-Australian resources giant said today.

Rio said in a statement it was working closely with authorities to help determine what went wrong.

No details were released concerning the precise number of deaths, other than there had been multiple casualties.

Rio’s chief executive, Jakob Stausholm, said:

As a company we are absolutely devastated by this news and offering our full support to our people and the community who are grieving today.

The crash occurred near Fort Smith in Canada’s remote Northwest Territories. The diamond mine is located about 200km south of the Arctic Circle.

File photo of Rio Tinto’s Diavik diamond mine in northern Canada. Photograph: Newscast/PA

Updated at 24.00 EST

Greens want stage-three tax changes to go further to fund public services

The Greens have responded to Labor’s plan to change the stage-three tax cuts, saying the cost-of-living crisis would be better addressed through funding public services.

The acting leader of the Greens, Senator Mehreen Faruqi, says:

Rich people don’t need a tax cut. There’s better ways to deal with the cost of living crisis than giving politicians and billionaires $9000 every year and hoping it’ll trickle down.

We’ve waited years for Labor to find some courage to stop these tax cuts for the rich, and now we’re still waiting to see whether their Stage 3.1 will still turbocharge inequality. Politicians and billionaires simply don’t need any more money.

If Labor stopped trying to dress up a stinker of a policy, and actually scrapped tax cuts for the rich entirely, they could invest that money in putting dental and mental health into Medicare, making childcare and education free, and freezing rent for two years until wages catch up.

Updated at 23.51 EST