That’s a wrap – thank you for reading the Need to Know blog today. We will be back soon with more live coverage of news, so please join us then. These were some of the main stories:

• Chalmers ‘relaxed’ about leaked Treasury advice to increase tax: Jim Chalmers says the government is “relaxed” about a leak of Treasury advice, obtained by the ABC, in which the department told the government that a tax increase was necessary if the federal budget was to remain sustainable, and warned the government would miss its housing targets.
• Chalmers says 1.2m houses target can be met: He says there is still time to make policy changes to enable the federal and state governments to reach their target of building 1.2 million new homes by 2029, after the Treasury cast grave doubt on the ambition.

• Trump says he plans to send Patriot missiles to Ukraine: President Donald Trump said the US would send more Patriot air-defence batteries to Ukraine, which Kyiv has said it needs to protect itself from Russian airstrikes.

• EU ‘ready to hit US goods with $37b in tariffs’: The European Union has already prepared a list of tariffs worth €21 billion ($37.34 billion) on US goods if the two countries fail to reach a trade deal, Italy’s Foreign Minister Antonio Tajani said in a newspaper interview on Monday.
• PM says business relationship critical to securing regional peace with China: Prime Minister Anthony Albanese has emphasised the importance of a strong economic relationship between China and Australia for regional peace and stability, ahead of his meeting with President Xi Jinping tomorrow.