Australia news live: new inflation figures due as Chalmers warns of ‘sticky and stubborn’ price rises

Key events

Decision to stop capital city connecting flights permanent, Rex administrator says

Sam Freeman, one of the administrators brought in for Rex Airlines, spoke with ABC TV just a moment ago about the future of the airline.

Since being appointed yesterday, Freeman said the priority has been around keeping regional and remote routes connected:

We have had to make a tough decision in grounding the 737 capital city connecting flights. That is a permanent decision.

He said the federal government has been in open communication with administrators and expressed a “strong desire” to see regional and remote flights continue:

As to what that level of support looks like, it is simply too early to say…

There is a lot to be done in the coming weeks but we are confident with the support that has been shown and that we will be able to move forward with the restructure of Rex [and] come out with its legacy business, the core regional business, into the future.

Daily needs of regional families must be considered amid Rex Airlines discussions, Victorian premier says

Asked what sort of intervention she would like to see, Jacinta Allan said it was up to the federal government. She went on:

What the federal government decides to do, that is a matter for the federal government. But again, I would urge in their considerations, to think about the importance of good, strong transport connections for regional communities　…

Country people rely on strong transport links … and I hope that has been considered in terms of what the federal government may be considering in terms of the response to this real instability and disruption.

There’s been a lot of discussion in the last couple of days about what it means for people going on holidays and yes, it is really disruptive, and I know if you’ve packed your bags and you’re heading off with a family on a holiday, that is disruptive and disappointing. But what should also be front of mind is the daily need for these sorts of services for regional families and communities.

Victorian premier urges federal government to support Rex Airlines

The Victorian premier, Jacinta Allan, is urging the federal government to consider supporting Rex Airlines and ensure regional Victorians have access to transport options.

She was speaking to reporters at parliament earlier this morning and said:

I know just how important having that transport access is, particularly for people who don’t have the ability to own a car or drive a car – whether it’s train services, bus services, or in this instance, air services. These are absolutely vital connections for country people, for country families, being able to travel into the bigger cities for various hospital or education or other appointments.

So it’s absolutely important that the needs of country people are considered as Rex goes through this obviously very difficult period, and that is [why] I would urge the federal government to consider the impact on regional communities around Victoria and around the country because these sorts of services are, for some, a vital lifeline.

June quarter consumer price index numbers to be released at 11.30am Aest

Continuing from our last post: If the market consensus is right about the latter – a 4% reading or higher – the odds of an interest rate rise next week will almost certainly soar.

Ahead of today’s numbers, the chance of a cash rate rise of 25 basis points to 4.6% is only one in four, according to the ASX rates tracker.

For households and businesses on the financial edge, another hike - the 14th since May 2022 - would be a blow.

However, a moderate headline and core inflation result will go a long way to removing the risk of another rate rise and bring a rate cut this year into prospect. (Currently, the market is only fully pricing in a 25bp cut to 4.1% by next July - a year away.)

As we note in this piece today, the latter outcome might also bring forward a federal election to this year if the Albanese government thinks the cost of living squeeze will abate and the economy can start to pick up some growth pace without a recession:

In other words, a lot is riding on today’s figures. Stay tuned right here for the results.

Inflation figures to be focus for borrowers, the RBA and politicians

There’s a lot of hype around today’s inflation figures from the ABS – and most of it is warranted.

At 11.30am Aest, we’ll get the June quarter consumer price index numbers, and there’s a lot riding on them, as we noted earlier this week. Economists are expecting headline (i.e. raw) CPI to come in at 3.8%, higher than the March quarter of 3.6%. The quarter on quarter CPI should remain at 1%.

The RBA’s own model from May had CPI ticking up to 3.8%, so a number around that should encourage the board to leave its cash rate unchanged for a sixth consecutive meeting when it meets next Monday and Tuesday (with the verdict given at 2.30pm Aest on the Tuesday).

A lot of attention, though, will be on the core inflation, known as trimmed mean, which knocks off the top 15% and bottom 15% of volatile price movers. This is really more of the Reserve Bank‘s focus. They also expected this to come in at 3.8% for the June quarter but economists reckon this will land at 4.0% (or unchanged from the March quarter level).

More to come in a moment.

Shorten: government has no ‘final view’ on group homes

Asked about group homes, Bill Shorten said the government doesn’t “have a final view”.

Without being definitive about the future of group homes, what we’re doing is we want to make sure the money that is given to people in supported, independent living focuses on quality outcomes for them …

But we are moving towards where people live … fulfilling lives of meaning and if that sometimes means they live with two other people, fine. If it means – dependant on their needs – that that is not the best arrangement for them, then we’ll be looking at that as well.

He noted that the issue of group homes was one of three areas where the royal commission was divided.

Q: What impact will this have on the plan to halve the growth rate of the NDIS?

Bill Shorten said this would “not have a negative impact at all on our reform plans.”

Our reform plans – with the legislation currently held up by the Liberals and the Greens in the Senate – will help the very people who the disability royal commission says should be helped.

The problem at the moment is that the NDIS legislation is loose, it has some loopholes, which is seeing some service providers – the majority are excellent – but some are having a lend of the system, exploiting people with disability, getting people to spend up their valuable packages in inappropriate ways, or too quickly.

So, I just say to the Liberals and the Greens – we need to get on with it. People with disability, the very people who this disability royal commission is aimed at, it’s in their best interests that we make sure the NDIS is a consistent, fair, transparent and equitable experiences, that’s what this legislation is aimed at doing.

Rishworth asked about human rights act v disability rights act

Taking questions, Amanda Rishworth was asked about a recommendation for a disability rights act.

She said that at the same time, there has been work ongoing towards a potential human rights act:

There is mixed views in the disability community about whether they would prefer a disability rights act, or for disability to be embedded in a human rights act …

One of the things that we want to get on with, though, as government works through those issues, is to modernise the disability discrimination act … It’s been 15 years since any substantive work has been done on modernising that act, so that’s work that we’ll undertake immediately, while we do the sequencing work on a human rights act versus a disability rights act.

Health minister speaks on royal disabillity commission report

The health minister, Mark Butler, is next to address the media.

He said he cannot recall a royal commission report to government that has “been this complex and has covered as many portfolio areas as this one has.”

We don’t begin this response to the royal commission with a blank sheet of paper. We have in our two years of government been [working] very steadfastly across different portfolio areas to improve conditions for Australians living with disability.

NDIS minister thanks all who worked on royal disability commission

The NDIS minister, Bill Shorten, is also speaking to the media as the government responds to the disability royal commission. He said:

We are making clear we agree with many of the recommendations, and we’ve got to think about a few more of the issues that are raised there …

I thank again all the people who worked on the Disability royal commission. This is another watershed moment to stop the abuse of our fellow Australians, but there’s a lot of work to go on from here, but I believe this will signpost the directions we seek to take as a nation and the better treatment and true equality of people with disability in Australia.

Six-monthly progress reporting, and annual update, on implementation of recommendations

Amanda Rishworth said all governments would remain accountable through a six-monthly public reporting on the implementation of recommendations and any progress made.

There will also be an annual update provided to national cabinet, she said.

Four key pillars to governments response to disability royal commission

Amanda Rishworth said that four key pillars that will be central to the government’s response have emerged:

better safeguarding;

promoting inclusion and accessibility;

upholding human rights; and

recognising the unique perspectives and experiences of First Nations people with disability.

She said:

These are all areas that people with disability have continuously highlighted as important, and will drive the focus of our government as we progress reform towards a more inclusive Australia …

We will progress in implementation [of the recommendations] and it will be continue to be open and transparent, in partnership with people with disability.

Rishworth says commonwealth and states are ‘absolutely committed’ to sustain ‘long-term meaningful change’

Amanda Rishworth said the commonwealth and state and territory governments had “worked together, in most cases, to form a common position on recommendations where there’s joint responsibility.”

And we are absolutely committed to continuing this work in order to sustain long-term meaningful change for people with disability.

She said the government is “absolutely committed to the vision set out in the disability royal commission” and committed to “enabling policy and delivering services that realises the vision of an Australian community where people with disability are free from violence, abuse, neglect and exploitation.”

As Sarah Basford Canales reported just a moment ago, the federal government agreed to 13 recommendations in full, while 117 have been accepted in principle. It is considering another 36 and has noted six recommendations.

Amanda Rishworth says disability commission ‘momentous piece of work’

The social services minister, Amanda Rishworth, is speaking to the media after the government handed down its response to the disability royal commission.

She described the royal commission as a “a key moment in our nation’s history”, with evidence received from 10,000 people over four and a half years.

It was a momentous piece of work. What was uncovered was confronting, shocking, and often incredibly disturbing. Circumstances of appalling abuse were revealed, that have absolutely no place in our country, and quite frankly, anywhere …

Funding set aside for response to Disability Royal Commission

Following on from the previous post, here’s a list of the funding set aside as part of the Albanese government’s initial response to last year’s royal commission into violence, abuse, neglect and exploitation of people with disability.

Rights and Anti-Discrimination

$6.9m to review and modernise the Disability Discrimination Act;

$39.7m to establish a new disability advocacy program;

$12.1m to amend the Migration Health Requirement to be fairer and more inclusive for children with disability;

Safety

$15.6m to unify national disability quality and safeguarding arrangements;

$4.4m for consistent approaches to community visitor schemes as a safeguarding mechanism;

$2.6m for the continued delivery of the Disability Abuse and Neglect Hotline and the Complaints Resolution and Referral Service;

$2m towards improving the safety of women and girls with disability;

$1.2m to develop targets to reduce and eliminate restrictive practices;

Inclusion and Access

$12.3m to improve national approaches to accessible information and communications, including Auslan;

$3.7m to continue the Primary Care Enhancement Program for People with Intellectual Disability;

$19.6m to support grassroots efforts to improve community attitudes around disability

Employment

$23.3m to establish a Disability Employment Centre of Excellence;

$227.6m to implement a new specialist disability employment program;

Government responds to the disability royal commission

The Albanese government will focus on improving job pathways for Australians with disabilities as part of a broad $371m package committed to improving lives following years of harrowing stories emerging from a royal commission.

The final report of the royal commission into violence, abuse, neglect and exploitation of people with disability was released last year, shedding light on the harm, exclusion and discrimination many experience.

Of the report’s 222 recommendations, which spanned 12 volumes and had more than 5,000 pages, the federal government agreed to 13 recommendations in full, while 117 have been accepted in principle. It is considering another 36 and has noted six recommendations.

The lion’s share of the initial funding – $227.6m – will go toward designing a specialist disability program announced in the May budget. It will help those with disabilities to prepare for, find, and maintain suitable jobs. Another $23.3m is earmarked to create a disability employment centre of excellence to help providers deliver effective employment services.

Almost $7m will be set aside to review the Disability Discrimination Act with the aim of modernising rules that have not been substantially changed since 2009. Another $39.7m will go toward redesigning and streamlining the national disability advocacy program to offer information and support to those in the community.

The social services minister, Amanda Rishworth, said:

We are committed to continued and sustained effort across all jurisdictions, and all levels of government, to ensure the implementation of agreed recommendations leads to real and lasting change for people with disability.

Transport union says 610 Rex jobs at risk

Workers at Rex have been briefed by administrators determining the airline’s future that 610 jobs at the airline could be axed, according to the Transport Workers Union (TWU).

Rex’s 737 services between capital cities have been grounded, with the flights ceasing to operate and resulting in 360 redundancies, according to the TWU.

A further 250 job losses have also been indicated elsewhere in the business that employed about 2,000 people before entering administration.

TWU’s national secretary, Michael Kaine, said:

This is another dark day for aviation, with over 600 families faced with sudden joblessness in an industry that has taken hit after hit.