The Sydney Morning Herald logo
The Sydney Morning Herald logo
Advertisement

Australia news as it happened: Chalmers to hand down federal budget tonight; Australians leave hantavirus ship; Soldier dies during army parachute training

Emily Kaine and Caroline Schelle
Updated ,first published
Pinned post from 5.30pm on May 12, 2026
Go to latest

That’s all for today

By Isabel McMillan

Thanks for reading our national news blog for today, May 12. This is where we’ll end the live coverage. Our 2026 federal budget blog is now live and you can follow along here.

Here’s some of what we covered today:

  • Treasurer Jim Chalmers will hand down the government’s federal budget tonight at 7.30. The government has flagged major changes to the tax system and property, as well as a focus on balancing intergenerational inequity.
  • Five Australian residents and a New Zealander will be held in a COVID-era quarantine facility outside of Perth for three weeks, after potentially coming into contact with a deadly hantavirus outbreak aboard a cruise ship in the Atlantic Ocean. None of the people returning to Australia has shown symptoms. Three people on board the cruise ship have died after contracting the disease.
  • An Australian special forces soldier has died during an army parachuting training course, the Department of Defence has said. A second soldier was injured but did not require hospitalisation in the incident at the Jervis Bay Airfield yesterday evening.

  • Jacinta Nampijinpa Price delivered a tearful speech to the Senate as parliament remembers the life of Kumanjayi Little Baby. The Liberal senator is the aunt of the five-year-old allegedly killed by Jefferson Lewis in Alice Springs last month. She called for the government to do more to protect Indigenous children living in town camps like the one from which Kumanjayi Little Baby was allegedly abducted.

We will also continue our rolling coverage tomorrow morning with the latest updates and discussions.

Latest Posts

Barnaby Joyce questioned about running for One Nation in lower house

By

One Nation’s Barnaby Joyce has been questioned about whether he would stand for a seat in the House of Representatives at the next election.

“Let’s get a bit closer to see,” the former Nationals leader and deputy prime minister told the ABC’s Afternoon Briefing.

One Nation MP Barnaby Joyce.Alex Ellinghausen

Joyce said the byelection result in Farrer, the first time One Nation has won a lower house seat, was “not an aberration”.

“One Nation’s numbers are not an aberration, they’re real and the politics in Australia has changed,” he said.

He didn’t rule out standing, but said it was something he would consider.

‘Making negative gearing less attractive’, finance minister says of budget plans

By

Finance Minister Katy Gallagher said at least 75,000 new people will be able to buy their first home after property tax changes which will be revealed this evening.

“We would see about 75,000 owner occupiers, additional owner occupiers be able to buy their own home,” she said of the changes.

Finance Minister Katy Gallagher.Alex Ellinghausen

That was revealed on the ABC’s Afternoon Briefing, with host Patricia Karvelas questioning the minister about that figure.

She said it would be “essentially making negative gearing less attractive”, along with other arrangements that would be announced this evening in the budget.

Australia imposes eleven new sanctions on Iranian officials, entities

By Emily Kaine

Australia will impose fresh sanctions on seven senior Iranian individuals and four entities, Foreign Minister Penny Wong confirmed this morning.

The financial sanctions and travel bans come in response to the Iranian regime’s ongoing oppression of its people and destabilisation of the region, the statement said.

Foreign Affairs Minister Penny Wong.Alex Ellinghausen

“The seven individuals and four entities sanctioned today include senior officials and entities involved in these horrific acts, including violence against women and children.

“One of these individuals is responsible for directing the oppression of women and girls in Iran by deploying 80,000 forces to conduct surveillance and enforce mandatory hijab wearing.”

Advertisement

PM says gambling advertising response to be tabled today

By

Anthony Albanese said the government will table its response to a gambling advertising inquiry today, nearly three years after it was released.

The report was handed down in June 2023 and had 31 recommendations including a total ban on online gambling advertising.

The response will “empower all Australians to opt out of gambling advertising”, Albanese said during question time today.

“Gambling ads in sports venues and on players’ jumpers and uniforms will be banned, and we’re cracking down on online lotteries products and banning online keno pocket pokies,” he said.

Kumanjayi Little Baby a ‘bright, young soul’: PM

By

Returning to the House of Representatives, Prime Minister Anthony Albanese spoke about the tragic death of Kumanjayi Little Baby, who was allegedly abducted from her home and killed in April.

“I extend my deepest condolences to the family of Kumanjayi Little Baby, they are trying to bear what must be unbearable. Amid their devastation they have asked for the space to allow sorry business to occur, so their beautiful child can be cherished and honoured,” he said during Question Time this afternoon.

The five-year-old was “a bright, young soul”, he said.

“[She] loved the world in the joyful, curious, uncomplicated way that five-year-olds do. She loved puppies, Bluey and the colour pink.”

The prime minister said she loved going to kindy, and loved her family, who deeply loved her.

This tragedy shattered a family, and has shaken a community. We know amidst the pain, there is also anger and that is understandable. The simple truth is that all governments, of all persuasions over generations, have not done enough to deal with what are generational challenges.”

Rubio discusses Iran, Indo-Pacific with Wong

By

Leaving Canberra for the moment, US Secretary of State Marco Rubio held a call with Foreign Minister Penny Wong to discuss Iran and efforts to restore freedom of navigation in the Strait of Hormuz, the State Department said.

Rubio and Wong also reaffirmed their commitment to promoting a free and open Indo-Pacific, and Rubio underscored the strength of the US-Australia alliance and its importance to the security and stability of the region, State Department spokesperson Tommy Pigott said.

Penny Wong spoke with Marco Rubio, the US Secretary of State. Alex Ellinghausen


Rubio also separately called British Foreign Secretary Yvette Cooper.

The war on Iran has effectively closed the strait, causing the biggest disruption to the energy market in history.

Before the war, about 20 per cent of global oil and liquefied natural gas shipments passed through the waterway.

Iran has blocked nearly all ships passing through, while the US has imposed ​a separate blockade of Iranian ports.

US President Donald Trump has repeatedly said Washington’s Western allies have not been doing enough to back the US in the war, which began when the US and Israel attacked Iran on February 28.

The US, Australia and Britain have imposed sanctions on Iranian networks and individuals both during and before the war.

Reuters and staff reporter

Advertisement

Australia has more petrol now than it did in February: Bowen

By

Climate Change and Energy Minister Chris Bowen has spoken about the fuel crisis and the nation’s energy supply.

The situation in the Middle East has caused major issues internationally, but Australia has more fuel now than it had back in February, Bowen said.

“That is the result of government and industry working together.”

Australia has 42 days’ worth of petrol, 35 days of diesel and 29 days of jet fuel, the minister said.

Budget will ‘shield’ Australia from worst of global fuel crisis

By Caroline Schelle

Anthony Albanese was also questioned about plans to slash the capital gains tax discount, and whether the Australian public could trust the government given his previous promises.

This was the prime minister’s response:

Our budget tonight will build on everything that Australia is doing to shield Australia from the worst of the global fuel crisis, but also to ensure that we come out the other side a stronger, fairer, more resilient economy.

Our budget will be true to Labor values and Australian values – fairness and aspiration – as we go forward.

The prime minister referred to a committee that had examined the capital gains tax discount and found the benefit skewed home ownership towards investors.

‘Joke was on you on Saturday’: PM hits out over One Nation win

By

Prime Minister Anthony Albanese was interrupted in his response to the opposition leader’s question about rising taxes.

But Albanese hit out at the shouting

“I think the joke was on you on Saturday,” he told the opposition benches about One Nation’s victory in Farrer.

As the Speaker tried to quell the heckling, Albanese said the “worse they’re going, the louder they get”.

The prime minister said the budget would deliver reform and resilience.

Advertisement