Luca Ittimani

Flood warnings were issued across northern Victoria, with further heavy rain expected to affect parts of South Australia, New South Wales and northern Tasmania. In federal politics, Labor and the Coalition reached agreements on gambling reforms and NDIS legislation, although David Pocock and advocacy groups said the gambling measures remain inadequate. Parliament passed a symbolic Greens motion condemning Labor’s aged-care assessment tool, while the government remained confident its NDIS bill would pass. Other developments included police reviewing a leaked diplomatic memo, criticism of proposed media bargaining rules, David Warner’s $1,500 drink-driving fine, and murder charges against two people after alleged human remains were found near Brisbane.

Parliamentary hearings into KPMG’s handling of leaked client documents heard that partners Kim Lawry and Eileen Hoggett could not recall key events, despite evidence suggesting confidential Lendlease papers were shared or stored. KPMG’s deputy counsel said colleagues gave misleading or deceptive answers during an initial investigation. Westpac, Optus and Dexus executives said the firm disclosed information slowly and incompletely, complicating decisions about their audit contracts, while Macquarie may need to reconsider KPMG as its auditor. Additional whistleblowers are coming forward, and the inquiry is intensifying calls for stronger regulation of Australia’s audit and consulting sector, including mandatory audit tendering and auditor rotation.

The Reserve Bank of Australia unanimously kept the cash rate at 4.35%, as expected after three increases earlier in the year, but governor Michele Bullock warned that another hike remains possible if inflation does not ease sufficiently. The RBA expects inflation to return toward its 2.5% target only by early 2028, while forecasting stronger employment growth alongside unemployment reaching 4.7% by the end of 2027. Falling house prices and slower housing credit were acknowledged, but Bullock said the housing downturn was not central to the decision. The bank is also monitoring tight economic capacity, strong data-centre investment, potential pressure on construction labour, and geopolitical risks. Treasurer Jim Chalmers welcomed the pause as relief for mortgage holders, while economists said the guidance leaves open the possibility of another rate rise in 2026.

Former Qantas chief executive Alan Joyce says the airline’s invitation-only Chairman’s Lounge was primarily reserved for politicians, judges, newspaper editors, celebrities and major corporate customers, with memberships approved by senior executives rather than Joyce or the chair personally. He denies that the lounge was used to influence politicians, describing it as a relationship-building tool, while acknowledging that memberships were once rescinded after numbers grew too large and that conduct standards were enforced. Joyce also denies personally authorizing free upgrades for Prime Minister Anthony Albanese, despite broader claims that Albanese sought them.

Qantas has completed a nearly 17,000km, 19-hour test flight of its first Airbus A350-1000ULR from Toulouse to Melbourne. The aircraft, designed for flights of up to 22 hours, is intended for Project Sunrise routes including Sydney–London, although the service has been delayed after Airbus pushed delivery of the first fully configured aircraft to April 2027. Qantas plans to operate 12 aircraft with 238 seats, while further testing will examine systems, fuel management and crew-rest procedures.

Lime’s stock market listing revealed heavy capital costs, continued net losses and substantial debt that was largely cleared through the debut, despite improving free cash flow. The company expanded its fleet to 325,000 vehicles in 2025, generating growing revenue but requiring significant spending on new vehicles, backend operations and reserves for injury claims. Uber increased its stake, contributing meaningful revenue through app integration, while Lime benefited from market dominance in key cities. Analysts noted that Lime’s advantages rely on regulatory support and Uber’s continued alignment. The firm plans to grow by increasing fleet density, experimenting with new services and expanding within existing cities.

ICE detained Phu Nguyen in Los Angeles after a failed attempt to arrest him in a Las Vegas airport, where bystanders intervened as plainclothes agents partially handcuffed him. The agency stated he had overstayed his visa, while eyewitness footage raised concerns about the conduct of the arrest. Australian officials are seeking information about his status, and Democratic lawmakers condemned ICE’s actions amid broader scrutiny of the agency following multiple recent deaths in custody and calls for greater accountability.

Pauline Hanson rejected claims of a rift with Barnaby Joyce following her appearance on a podcast with far-right activist Tommy Robinson and controversy surrounding her Italy trip with Gina Rinehart. Both Hanson and Joyce publicly denied tensions, though Joyce distanced himself from Hanson’s comments on Islam. Hanson’s UK visit included speeches at CPAC alongside prominent right-wing figures and attendance at a Dolce & Gabbana event that raised questions about who paid for the travel. Critics questioned her comments on immigration and her absence from domestic political issues, while Hanson dismissed the scrutiny as jealousy and political attacks.

Australia will establish a national AI office and introduce strict rules for datacentres as Anthony Albanese pledges strong copyright protections for Australian creators. The government rejects allowing tech companies to freely use Australian content for training AI models, signalling future reforms to modernise copyright law. Creative industry groups welcome the commitment, while business groups caution against overregulation. New datacentre standards will set rules on location, energy use, and sustainability, requiring facilities to underwrite new power supply and avoid competing with housing. The government aims to balance economic opportunities from AI investment with rising public concern over datacentre expansion and trust in emerging technologies.

Escalating US–Iran hostilities under Donald Trump have pushed oil prices sharply higher, prompting economists to warn of an increased likelihood that the Reserve Bank of Australia will implement a fourth interest rate rise this year. Rising crude prices are feeding through to fuel costs, with analysts predicting Brent could reach US$100 a barrel within days if conflict continues. Higher fuel prices, expiring excise relief and persistent inflation concerns have strengthened market expectations of an August rate hike. Consumer confidence, which had been improving, has weakened again as the conflict intensifies and economic pressures grow.

A Perth man, Lachie Perrem, remains in critical condition after a robotic vacuum cleaner malfunction caused a fire that destroyed his home. Investigators determined the blaze originated from a fault in the device, though the specific cause is still under review. Perrem suffered severe burns and is undergoing extensive treatment, while his fiancée and housemates have been displaced. His mother has launched a fundraiser to support medical and living expenses, which has surpassed $26,000.

Richard White resigned as executive chair of WiseTech amid a police investigation into allegations he coerced a worker, though he denies the claims. The announcement boosted WiseTech’s share price by more than 8%, partly reversing significant losses over the past year. White remains on the board as chief innovation officer, with Raelene Murphy appointed chair. The company has been under pressure from AI-driven market shifts and prior scrutiny of White’s conduct. Analysts described the leadership change as a positive step but said investors need to see improved governance before confidence returns.

The removal of income caps from Australia’s 5% deposit first home guarantee scheme has led to a surge of higher‑earning participants, with more than a third earning above previous eligibility thresholds. Economists warn the expanded access has pushed up property prices by boosting purchasing power for buyers who likely would have entered the market anyway. Despite nearly 40,000 government‑backed loans issued between October and April, overall first home buyer activity rose only marginally, suggesting limited impact on home ownership. Price caps were raised substantially across major cities, and eligible properties have since experienced accelerated price growth. Experts argue the policy has channelled support toward better‑off buyers while inflating housing demand and debt levels.

Australia’s housing market is cooling as first home buyers and investors retreat following consecutive interest rate rises and new tax reforms. Loan applications from first-time buyers have dropped sharply, while expensive property values in major cities are falling fastest. Investor demand has declined significantly, especially for existing homes, though tax advantages continue to draw some investors to new builds. Auction clearance rates have fallen below half, withdrawals have risen and total home sales in capital cities are down more than 16% year on year. Increased supply and reduced urgency are giving buyers more choice as the market slows.

KPMG appointed Michael Ebeid as its new chair amid ongoing scrutiny over whistleblower allegations and ethical failings. Released emails showed Ebeid had previously dismissed claims of leaks and criticised Senator Deborah O’Neill’s handling of the matter, comments for which he later apologised. Greens senator Barbara Pocock argued the appointment signalled entrenched cultural issues within the firm. The parliamentary committee published the emails due to Ebeid’s new leadership role, while the federal government said it may consider major reforms to the consulting and audit sector in response to the scandal.

Rapid growth in AI datacentres is driving strong business investment in Australia but raising concerns that the sector is crowding out land needed for housing and logistics, adding pressure to inflation and interest rates. The Reserve Bank and Transport for NSW warn that competition for scarce industrial land could worsen construction costs, disrupt freight operations and push companies out of Sydney. Economists caution that the boom may force further rate hikes, while federal and state politicians call for prioritizing housing. Industry groups argue that coordinated planning and new land releases, not a moratorium, are needed. Community groups seek a halt to approvals until stronger protections for environment, heritage and local infrastructure are implemented.

Median house prices fell across Sydney, Melbourne, Adelaide and Canberra in June, with Sydney values dropping by $48,000 since January. Cotality data showed the sharpest monthly declines in Sydney and Melbourne since 2022 as rising interest rates and reduced investor borrowing capacity weakened demand. Auction clearance rates remained below 50% and overall home sales fell 16.2% year-on-year. Market activity slowed across other major cities, with Perth and Brisbane also losing momentum. Despite the downturn, Cotality forecast a gradual easing in prices rather than a major national correction.

The New South Wales government will fund marked parking bays for shared ebikes across 16 Sydney councils to reduce footpath obstruction as the city’s fleet rapidly expands. A levy on shared ebike trips will help provide up to $200,000 per council to implement the new zones, supported by expanded regulatory powers allowing no-go areas, speed restrictions and penalties for non‑compliance. Transport for NSW trials indicate the bays halve incidents of tipped‑over bikes and blocked footpaths, and more than 250 bays are expected by late 2026. The measures accompany broader safety efforts amid rising injuries and debates over fleet caps and age limits for riders.

KPMG partners leaked confidential client information and mishandled a whistleblower whose warnings were initially treated as an HR matter and not investigated rigorously. Internal inquiries by major law firms failed to interview the whistleblower or substantiate claims, while KPMG International offered limited intervention. Regulatory oversight gaps meant Australia’s corporate watchdog began investigating only after allegations became public. Government reforms recommended years earlier had not been adopted. Leadership resignations followed as KPMG delayed providing full investigative documents to the parliamentary inquiry and regulators, prompting calls for stronger partnership regulation and better whistleblower protections.

Apple increased prices for MacBooks and iPads in Australia by at least 20% due to rising component costs driven by global demand for computing power and AI. Other tech companies, including Microsoft, also raised prices amid a shortage of memory chips that analysts say is reshaping consumer device economics. Retailers in Australia have not yet passed on the full increases, while analysts warn further price rises may affect iPhones later in the year.