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Australia news: Liberals see off One Nation challenge; US fast-tracks arms deals for Middle East allies

Ben Cubby and Nicole Precel
Updated ,first published
Pinned post from 1.59pm on May 3, 2026
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Good afternoon

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Hello, I’m Nicole Precel. I’ll be bringing you rolling coverage of breaking news this afternoon from Australia and around the world.

Here’s what has happened so far:

  • A decision on whether to extend the three-month cut to the fuel excise tax will come after the federal budget. The cut was introduced at the start of April, with petrol and diesel costs slashed by 26.3 cents a litre in response to soaring prices caused by the US-led war on Iran.
  • The accused killer of Kumanjayi Little Baby, 47-year-old Jefferson Lewis, has been charged with murder. Lewis was flown to Darwin for his own protection following his arrest, and has since been released from hospital into police custody.
  • US President Donald Trump is reviewing a new Iranian proposal to end the war. According to Iranian semi-official outlets, Iran has sent a 14-point proposal via Pakistan in response to the US’s 9-point proposal. Trump already rejected a previous proposal this week. Conversations are continuing.
  • Israeli airstrikes on southern Lebanon killed at least seven people and wounded others on Saturday while the Israeli military demolished parts of a Catholic convent in a border village, officials said. Israel and Lebanon’s militant Hezbollah group have kept up their attacks despite a ceasefire in place since April 17.
  • The Liberal Party claimed victory in the Nepean byelection in Victoria on Saturday night, but the results suggest a complicated road ahead to November’s statewide poll.
  • Queensland Premier David Crisafulli announced a plan to open up six parcels of land at the state’s major ports for fuel storage facilities, with the potential for new refineries to be built by the companies that operate them.
  • And King Charles has visited the Caribbean nation of Bermuda, after concluding his four-day tour of the US.

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Today’s headlines

By Nicole Precel

We’re bringing our live blog to a close for the day, thank you for joining us.

Here’s a recap of the day’s headlines.

  • A decision on whether to extend the three-month cut to the fuel excise tax will come after the federal budget. The cut was introduced at the start of April, with petrol and diesel costs slashed by 26.3 cents a litre in response to soaring prices caused by the US-led war on Iran.
  • Prime Minister Anthony Albanese has flagged $1.8 billion for Medicare urgent care clinics in the upcoming federal budget.
  • The accused killer of Kumanjayi Little Baby, 47-year-old Jefferson Lewis, has been charged with murder. Lewis was flown to Darwin for his own protection following his arrest, and has since been released from hospital into police custody.
  • The Liberal Party claimed victory in the Nepean byelection in Victoria on Saturday night, but the results suggest a complicated road ahead to November’s statewide poll.
  • Former Nationals leader Barnaby Joyce has flagged he could run as a One Nation candidate in his current lower house seat of New England at the next election, rather than on the party’s Senate ticket as has been expected.
  • US President Donald Trump is reviewing a new Iranian proposal to end the war. According to Iranian semi-official outlets, Iran has sent a 14-point proposal via Pakistan in response to the US’s 9-point proposal. Trump already rejected a previous proposal this week.
  • Israeli airstrikes on southern Lebanon killed at least seven people and wounded others on Saturday while the Israeli military demolished parts of a Catholic convent in a border village, officials said. Israel and Lebanon’s militant Hezbollah group have kept up their attacks despite a ceasefire in place since April 17.
  • Queensland Premier David Crisafulli announced a plan to open up six parcels of land at the state’s major ports for fuel storage facilities, with the potential for new refineries to be built by the companies that operate them.
  • And King Charles has visited the Caribbean nation of Bermuda, after concluding his four-day tour of the US.

We will be back tomorrow morning to continue our rolling news coverage.

Close call tipped as Reserve Bank mulls third rate hike

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A repeat of the Reserve Bank’s split decision to raise interest rates in March could be on the cards as the board frets over the dual threats of high inflation and a stalling economy.

Financial markets and most economists are tipping a third straight rate hike on Tuesday.

ANZ Bank head of Australian economics Adam Boyton predicts the Reserve Bank will lift the official cash rate to 4.35 per cent - the same level as its post COVID-19 pandemic peak, but believes several members are likely to vote in favour of keeping rates on hold.

The combination of a tight labour market, above-target underlying inflation and concerns inflation expectations could become unanchored all point in favour of a hike.

At the same time, the US-Israeli war with Iran’s effects on the economy could convince some board members more time is needed to weigh the impact on economic growth.

Kayakers take to water in solidarity with Gaza flotilla

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More than 40 kayakers paddled across Sydney and Newcastle harbours on Sunday in solidarity with the Australians aboard the Global Sumud Flotilla.

Six Australians were among more than 700 people on flotilla vessels attempting to deliver aid to Gaza, who were detained by the Israeli military. They have since been released but allege mistreatment.

Israel’s foreign affairs minister Gideon Sa’ar insisted participants were not harmed after the vessels were intercepted.

Rising Tide’s Emily Mitchell, who helped organise the protest on Sunday, called on the Australian government to cut ties with Israel and said the flotilla’s mission was legal and outside Israel’s jurisdiction.

Joanne Jaworowski, whose son Zack Schofield was one of the six Australians detained, said her son called her on a borrowed phone to say he was in hospital for medical review.

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Evacuation as Mayon Volcano in the Philippines erupts

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Thousands of people have evacuated an area south of Manila after Mayon Volcano erupted, and authorities advised the public to stay out of the six-kilometre radius danger zone.

The volcanology institute issued Alert Level 3 in its five-step scale as it reported “strombolian activity and short-lived lava fountaining” from one of the South-East Asian nation’s most active volcanoes. It warned of landslides and lava flows.

Mayon volcano as seen from Malilipot, Albay province, northeastern Philippines in 2023.AP/ Aaron Favila

Nearly 1,500 families are now staying in evacuation centres, according to the Department of Social Welfare and Development. Heavy ashfall blanketed several towns in Albay province on Saturday, disrupting traffic, the Philippine Daily Inquirer reported.

Mayon Volcano is a famous tourist spot because of its near-perfect conical shape.

Somali pirates hijack oil tanker near Yemen

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Somali pirates hijacked an oil tanker off the coast of Yemen on Saturday, diverting it towards Somalia’s waters, according to officials.

The New York Times is reporting it is the latest in a spate of ship abductions around the Horn of Africa in recent weeks, with the UK Maritime Trade Operations centre increasing threat level around Somalia’s coast as “substantial”.

The effective closure of global oil traffic in the Strait of Hormuz, where a fifth of the world’s oil passed through before the war, has increased fuel prices and forced countries to find workarounds.

An official in Somalia’s semiautonomous Puntland region – who spoke on the condition of anonymity – said some Yeminis were also suspected in the attack and that the government was investigating whether they had ties to armed groups, including the Houthi militia.

At least three vessels have been hijacked by Somali pirates off the country’s coast since April. Yemen’s coast guard said the tanker, the Togo-flagged Eureka, experienced an armed robbery, with the ship being directed through Yemen’s Gulf of Aden.

Data from VesselFinder, a maritime tracking database, shows that the Eureka last docked in the United Arab Emirates, but its latest location and condition of the crew were unclear.

Albanese: $1.8 billion for urgent care clinics in federal budget

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Australian Prime Minister Anthony Albanese said the federal budget would boost spending for Medicare urgent care clinics in a bid to address cost-of-living concerns while dealing with a worsening fiscal outlook.

The government will spend an extra $1.8 billion in the next five years on the clinics, Albanese said Sunday in an emailed statement.

Prime Minister Anthony Albanese.Alex Ellinghausen

The first facilities opened in 2023 in an effort to relieve strain on emergency rooms and the outlays will make them a permanent part of the health system.

Albanese’s Labor government has previously flagged plans to rein in ballooning costs for its signature disability welfare program as it struggles to contain deficits.

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Israeli military urges evacuation of multiple towns in southern Lebanon

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The Israeli military issued an urgent warning on Sunday to people in 11 towns and villages in southern Lebanon, urging them to evacuate their homes and move at least 1,000 metres away to open areas.

The military said it was conducting operations against Hezbollah following what it described as a violation of their ceasefire agreement, warning that anyone near Hezbollah fighters or facilities could be at risk.

Israel has continued to carry out strikes across southern Lebanon, and its troops ​are occupying a strip of the country’s south, destroying homes they describe as infrastructure being used by ⁠Hezbollah.

The Iran-backed militant group has kept up its drone and rocket attacks against Israeli troops in Lebanon and on northern​ Israel.

Reuters

Allan says Nepean byelection shows Liberal needs One Nation

By Nicole Precel

When Victorian Premier Jacinta Allan was asked this morning about the Nepean byelection, in which One Nation received almost 25 per cent of first preference votes, she said she wasn’t concerned.

Allan congratulated Anthony Marsh for retaining the safe Liberal seat, which takes in beachside Melbourne suburbs including Flinders, Portsea and Sorrento, but said while the Liberals were focused on One Nation, she was focused on providing cost-of-living support.

Liberal MP Anthony Marsh in Rye on Saturday.Luis Enrique Ascui

One Nation’s candidate, Darren Hercus, sat in second place on 24.69 per cent of the primary vote, in the first test of One Nation’s rising popularity in Victoria. Election analysts called the election for Marsh by 8pm on Saturday night.

“The Liberal leader and the Liberal party, all they’ve been focused on is One Nation, and what the results of Nepean tell Victorians very clearly is that the Liberal Party can’t govern without One Nation,” Allan said.

“They’re going to rely on preference deals to have the support of One Nation. Victorians can’t afford that.”

China brands Taiwan’s president a ‘skulking rat’

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Taiwan has a right to engage with the world and no country can stop that, President Lai Ching-te told Eswatini’s king after he arrived for a surprise trip that Taipei says Beijing tried to stop, as China condemned him as a “rat”.

China views democratically governed Taiwan as part of its territory with no right to state-to-state ties, a position Taiwan’s government strongly disputes. Beijing has demanded countries stop any engagements with the island.

Last month, Taiwan said China had forced three Indian Ocean countries to retract permission for Lai’s aircraft to overfly to the small, landlocked southern African kingdom of Eswatini (previously Swaziland) for the 40th anniversary of King Mswati III’s accession. It is one of only 12 countries with formal ties with Taipei.

Late Saturday, China’s Taiwan Affairs Office said Lai had “skulked” his way to Eswatini.

“Lai Ching-te’s despicable conduct — like a rat scurrying across the street — will inevitably be met with ridicule by the international community,” a spokesperson said in a statement.

Taiwan’s China-policy making Mainland Affairs Council dismissed the comments as “boring in the extreme.”

Reuters

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Victoria’s budget to include millions for children’s surgeries and specialist appointments

By Nicole Precel

The Victorian Premier, Jacinta Allan, announced this morning about $130 million from Tuesday’s state budget will be allocated to fund fast-tracked treatment for children.

At a press conference at The Royal Children’s Hospital, Allan said they would invest $50.1 million to deliver 4000 extra planned surgeries for kids over the next four years, including general and specialist surgeries like orthopaedics, to counter surging demand.

Victorian Premier Jacinta Allan chats with 10-year-old Lachlan Gutwirth at The Royal Children’s Hospital in Melbourne this morning.Luis Enrique Ascui

The budget would include $16 million for 45,000 extra specialist appointments for kids and young people to help address long wait times for appointments, and will help fund medical, allied health, nurse-led and multidisciplinary clinics.

A Victorian-first pilot program – Specialist Advice Now – will receive $8 million to reduce wait times, so GPs and patients can get specialist advice without the need for a referral, and $33.3 million for a digital patient data platform. Allan also promised $27 million for more endoscopy equipment and an endoscopy access team at 26 health services.

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