Australia news as it happened: AI’s workforce impact under the microscope; YouTube included in social media ban; Chalmers celebrates falling inflation; Albanese discusses recognising Palestine

Thanks for joining us this afternoon, that’s a wrap for today. We’ll be back tomorrow with more live coverage. Here’s a quick recap.

• Treasurer Jim Chalmers is celebrating after the latest inflation figures showed it was 2.1 per cent in the three months to July – the lowest in almost four years.
• The co-founder of a highly successful Australian tech startup addressed the National Press Club about the benefits of AI, on the same day that same startup, Atlassian, fired 150 workers whose jobs were exposed to AI innovation. That didn’t win Atlassian any friends at the Australian Council of Trade Unions. AI’s impact on the workforce is shaping up to be a major point of discussion at the treasurer’s productivity roundtable in Canberra next month.
• The Middle East conflict continues to dominate the local political scene: At question time in parliament today a group of protesters chanted “Sanction Israel Now!” and unfurled a banner with the same words.
• It followed the UK announcing it will recognise Palestine in September unless Israel ends its war in Gaza. Australia issued a statement with 14 other countries on Wednesday saying it would consider Palestinian statehood as a step towards a two state-solution.
• YouTube has slammed the federal government over revelations it will now also be banned for Australians under 16 come December 10. The planned ban already applies to other major social media sites like Facebook and Instagram, but online gaming and some messaging apps are exempt.
• In NSW, convicted rapist and state MP Gareth Ward has been taken into custody after he was found guilty last week of sexually assaulting two young men.
• And we continue our dedicated coverage of the tsunami alerts across the Pacific following the massive Russian earthquake today. Follow our live blog here.

The benchmark S&P/ASX 200 index on Wednesday came within less than a point of eclipsing its July 18 record for its highest-ever close, rising 51.8 points, or 0.6 per cent, to finish at 8756.4. Three of the 11 sectors ended the session in the red.

In late afternoon trading, the index also moved less than four points away from breaking its intraday record of 8776.4, also set July 18. The broader All Ordinaries on Wednesday gained 48.7 points, or 0.5 per cent, to 9015.4.

The Australian dollar was buying US65.14¢, down from US65.25¢ at 5pm on Tuesday.

The secret blackmailing of premier-in-waiting Peter Malinauskas has been revealed in an Adelaide court.

But the perpetrator – herself a former MP – was never sentenced after the charges were dropped in a deal with prosecutors.

SA Premier Peter Malinauskas.Credit: AAPIMAGE

Annabel Digance is now suing Malinauskas and the state of South Australia for $2.3 million for allegedly instigating what she claims was a malicious prosecution mounted to damage her reputation.

In April 2023, prosecutors elected not to proceed with blackmail charges against Ms Digance and her husband Greg, after they agreed to a ban on contacting Malinauskas and his family.

That decision was made in a closed session of the District Court, and the details emerged for the first time during separate proceedings for Ms Digance’s lawsuit in the South Australian Supreme Court on Wednesday.

The blackmail charges stemmed from a meeting between Mr Digance and then-opposition leader Malinauskas in February 2020, which was recorded by Malinauskas and handed to police.

Defence documents filed by the state government say at that meeting, Mr Digance demanded Ms Digance “be secured an upper or lower house seat in the SA parliament, and that a failure to do so would result in Mr Malinauskas’ career being deliberately damaged”.

In her statement of claim, Ms Digance states Malinauskas reported the meeting to police in March 2020, “claiming he was a victim of blackmail”.

In her lawsuit, Mrs Digance also alleges trespass, wrongful arrest and false imprisonment by SA Police.

Annabel Digance.Credit: Fairfax Media

On Wednesday, Malinauskas’ counsel Michael Abbott, KC, asked the court to order that the government hand over files from SA Police and the office of the Director of Public Prosecutions that explain the agreement reached for the Digances to avoid sentencing.

Associate Justice Graham Dart said “much turns on” any agreement between the DPP and the Digances in the prior criminal proceedings.

Abbott and Todd Golding, for the state government and SA police, indicated they planned to lodge applications for the lawsuit to be dismissed.

The matter returns to court in September.
AAP

Returning to the debate around worker protections against artificial intelligence, the president of the Australian Council of Trade Unions just rebuked an Australian tech executive for apparently sacking his staff via video message.

Michele O’Neil was asked on ABC’s Afternoon Briefing about how realistic it was to try and limit AI replacing skilled workers when it was already happening, including at the Commonwealth Bank.

ACTU president Michele O’Neil.Credit: Ben Searcy

“It is unfolding as we speak, and a lot of industries and sectors and often workers don’t even know they’re being impacted until they’re told their job is gone. I understand a company sent out a video message to 150 workers today telling them their job was gone and that was partly related to AI,” she said.

“That’s not a good way to talk to people or deal with the impact on their job. It’s actually quite shocking.”

The company in question was Atlassian, an Australian company that makes software for team collaboration.

Coincidentally, their co-founder Scott Farquhar addressed the National Press Club earlier today calling for Australia to more enthusiastically embrace AI.

“What we know is that if you involve workers, there’s different ways that you can introduce change and we want a human-centred approach to AI,” said O’Neil.

“I don’t know how Commonwealth Bank customers are going to feel when they’ve got complex questions and advice needed, whether they’re going to be happy that that’s not being given by someone that can have that personal touch that people bring to it ... it might be cheaper, [but it] doesn’t mean it’s better. And it doesn’t mean it’s going to deliver for the customers.”

A prominent regional Australian MP says net zero has become a “proxy war”, with people not in favour being automatically dismissed as climate change sceptics.

Darren Chester was just on ABC’s Afternoon Briefing, where he was asked about what message his colleague Barnaby Joyce was sending to young voters in introducing a bill this week to repeal the government’s net zero target.

Nationals MP Darren Chester, the member for Gippsland in Victoria’s south-east.Credit: Simon Schluter

“Unfortunately, the question around net zero and climate change has become a proxy war,” Chester said.

“If you don’t believe in net zero, you don’t believe in climate change. That’s a false parallel. We’re talking about a target 25 years from now being used to say you don’t believe in climate change at all which I don’t think is where most of my colleagues sit.

“I think my colleagues, by and large, agree we need to do more to reduce emissions. The questions they’re asking is at what cost to the economy can you achieve it and will the world move in unison with you? Keep in mind that Australia’s contribution to greenhouse gas emissions is less than 1.5 per cent. We have to be part of a world effort if it’s going to have any impact at all.”

Staying with Treasurer Jim Chalmers on ABC’s Afternoon Briefing, he was also asked about artificial intelligence (AI), and unions calling for a rule that employers guarantee workers’ job security before introducing AI.

“I think we need to recognise that when a change is as consequential as artificial intelligence is,” he said, “it will be contentious and contested and that’s what we’re seeing right now. I welcome the fact that so many people have so many perspectives on artificial intelligence.

Jim Chalmers.Credit: Alex Ellinghausen

“I saw part of Scott Farquhar’s contribution at the National Press Club today which made a heap of unsurprisingly important points. This will be a game-changer for our economy and it’s for us to decide whether Australians are ultimately beneficiaries or victims of this game-changing influence on our economy.”

“Isn’t the truth that they will be both and you need to say that?” interrupted host Patricia Karvelas.

“I’m an optimist about artificial intelligence,” replied Chalmers. “I believe we can maximise the opportunity and manage the risks.

“I’m certainly alive to the risks in the labour market but historically, we’ve seen big changes in technology and this will be transformational, a game-changer in the economy, I believe it shouldn’t be beyond us to work out the best version of this for Australia.”

Chalmers was also asked about ppposition foreign affairs spokeswoman Michaelia Cash, who said earlier today that recognition of a Palestinian state should only come once peace has been reached in Gaza.

“I don’t pay a lot of attention to what Michaelia Cash says about this,” he said. “I think she’s always looking for the most divisive sound-bite.”

Treasurer Jim Chalmers is continuing to spruik today’s inflation figures, just appearing on ABC’s Afternoon Briefing.

He wouldn’t be drawn when asked by host Patricia Karvelas if he was worried the Reserve Bank of Australia wasn’t cutting rates.

Jim ChalmersCredit: Alex Ellinghausen

Karvelas: The Australian Council of Trade Unions secretary Sally McManus has said every day the RBA waits before it cuts rates makes it more likely that unemployment will go up. Do you agree with that, broadly? That unemployment, you know, has had a spike and there is more risk if we wait any longer?

Chalmers: Look, I respect Sally and I work closely with her, but I choose my own words when I describe the situation.

Karvelas: Reflecting on unemployment then and the impact it’s having on unemployment?

Chalmers: There are good reasons, whether on this or other occasions, I don’t say anything that could be misconstrued as second-guessing the decisions taken independently by the Reserve Bank. My job is to focus on the fight against inflation.

Karvelas: But you must be concerned about the broad health of the economy and on growth and, you know, the heartbeat of the economy, given the kind of delicate balancing act we’re in at the moment.

Chalmers: I mean it’s certainly the case that growth in our economy is softer than we would like. It’s certainly the case that even though we’ve averaged the lowest unemployment rate of any government in the last half century, that there is softness around the edges of the labour market. That is true. It is the case that people are under pressure despite this quite remarkable progress that we’ve made on inflation. We’re upfront about that. There’s no shortage of economic challenges.

Australia has a big opportunity to develop artificial intelligence, but the technology could have major economic ramifications if firms and governments don’t adapt, a billionaire entrepreneur has warned.

Scott Farquhar, the co-founder of tech giant Atlassian, said Australia was on the edge of a “great industrial revolution” with AI in a speech to the National Press Club on Wednesday.

Scott Farquhar, co-founder of Atlassian and chair of the Tech Council of Australia, at the National Press Club in Canberra.Credit: Dominic Lorrimer

He said taking advantage of existing AI infrastructure could contribute up to $115 billion per year to Australia’s economy by 2030.

It comes as the government prepares to host an economic roundtable in August, where development of AI to enhance productivity is on the agenda.

“The scoreboard of the AI era is blank,” Farquhar said. “The race is still on, and Australia has everything to play for.”

Farquhar said the place to kickstart Australia’s productivity with AI was in data centres: massive facilities that process data from cloud servers, with complex operations serving millions of customers.

Farquhar said Australia’s strategic location close to Southeast Asia, as well as having a lot of land, could lead the country to become a world leader in AI storage.

He called for the government to change copyright laws to give exceptions for text and data-mining to boost AI’s capacity, for which the US and Europe already have exceptions.

“There’s huge opportunities for people that are great at what they do, at creating content to sell in a totally new way,” Farquhar said.

Atlassian cut 150 jobs on Wednesday, to be replaced by AI, and Commonwealth Bank this week confirmed it is doing the same in its customer call centres.

When asked about the impact of AI taking away jobs, Farquhar said it was inevitable.

He compared the arrival of AI to the introduction of electric trains following the era of steam locomotives, noting while people at the time were concerned they would lose jobs, it advanced the country in the long run.

“The amount we spend is an early canary into how productive and innovative we are going to be in the next decade or two,” Farquhar said.

AAP

It’s not easy putting on live music in 2025.

Rising rents, taxes, insurance, gentrification and post-COVID setbacks have made it difficult to keep venues financially viable. These pressures have seen some places close for good.

Shane Hilton (left) and co-owner Leanne Chance at The Tote in Collingwood.Credit: Justin McManus

The Tote, in Melbourne’s inner north, was saved by a crowdfunding campaign in 2023, but now its owner Shane Hilton has been taking to YouTube, calling for people to attend shows and bring their friends.

“I’d like to issue a challenge to Tony Burke, the federal Minster for the Arts, and Colin Brooks, the Minister for Arts in Victoria, to come work one shift with me, so I can show them why our industry is really important, why these bands and our community is important,” he told ABC Radio Melbourne this week.

“It’s time for them to actually do something, and the benefits of having a strong local music scene outstrips anything else.”

Arts Minister Tony BurkeCredit: Alex Ellinghausen

While Brooks has since accepted Hilton’s offer, federal minister Burke told The Age that the government was already doing its bit.

“The Tote is a really important venue. That’s why we gave it $60,000 of taxpayers’ money,” he said in a statement.

“I’m really pleased we’ve announced an extra $25 million for Revive Live across the live music sector.”

The Tote has always been something of a canary in the coalmine for Melbourne’s music scene.

In 2010, when new state laws mandating security guards left the venue at risk of closing, 20,000 Melburnians famously marched down in the CBD demanding the measures be repealed, which they ultimately were.

Stagnating literacy and numeracy levels have fuelled calls for an urgent increase in funding as test results reveal about one-tenth of students need help to meet basic standards.

While two-thirds of Australian primary and high school students performed well in latest NAPLAN testing, children in remote areas and from disadvantaged families continue to lag behind their peers.

All Australian students in years 3, 5, 7 and 9 are assessed annually for their reading and writing skills.Credit: Dion Georgopoulos

Girls again outperformed boys in literacy, but boys did better in numeracy, with the gaps emerging in early secondary and late primary school, according to results released on Wednesday.

Grattan Institute’s Amy Haywood said teachers and schools needed greater investment to provide practical support to students.

“The results can be sobering … we should be asking governments what they are doing to support teachers,” she said.

“A teacher working on their own can’t do the impossible. They need support from government.”

Ms Haywood, who previously worked as a secondary teacher, said it would be incredibly difficult to provide ongoing support to the growing number of students who are falling behind.

“If you keep falling behind, it’s harder to catch up as you go through school. That has a flow-on impact.”

Minister for Education Jason Clare during question time at Parliament House in Canberra on Wednesday.Credit: Alex Ellinghausen

Education Minister Jason Clare acknowledged there was more work to do to improve results.

He said the federal government had committed to the biggest investment in public schools in Australian history, worth $16 billion over the next 10 years.

The Australian Curriculum Assessment and Reporting Authority, which runs the annual tests, said results in all subjects were relatively stable.

But Indigenous students, as well as children in remote and rural areas, remained well behind.

AAP