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Australia news LIVE: Strait of Hormuz to open; Australia hit by post-budget economic pessimism; Expanded shark drones after attack

Angus Dalton and Annika Smethurst
Updated ,first published
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RBA keeps rates on hold

By Millie Muroi

The Reserve Bank has kept interest rates on hold for the first time this year after three consecutive rate rises as it aims to curb inflation.

On Tuesday, the RBA left the country’s official interest rate unchanged at 4.35 per cent in a decision that was widely expected.

Reserve Bank governor Michele BullockDominic Lorrimer

Since February, the Reserve Bank’s three interest rate hikes have added nearly $300 in total to monthly repayments on an average mortgage of $600,000.

The bank’s latest decision, aimed at continuing to tackle inflation while ensuring unemployment does not rise too sharply, comes after the latest inflation data showed trimmed mean inflation – the Reserve Bank’s preferred gauge of price pressures – rose 3.4 per cent in April, continuing to climb faster than the bank’s target of 2 to 3 per cent.

The latest labour market figures, meanwhile, showed that unemployment jumped from 4.3 per cent in March to 4.5 per cent in April, hitting the highest rate since November 2021.

The decision means mortgage holders will see no immediate change to their monthly repayments.

Treasurer Jim Chalmers will address the media at 3pm.

The next RBA rates decision is scheduled for August.

More to come

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Liberal MP blasts One Nation over staffer’s Hitler Youth comments

By Brittany Busch

Liberal MP Garth Hamilton has attacked One Nation for internal “people issues” after revelations one of the party’s staff defended the Hitler Youth organisation and used racist slurs online.

The Guardian revealed today that a policy development officer, John Drew, was working for One Nation in Queensland after previously claiming to have been kicked out for being too radical. The publication reported Drew has lauded the White Australia policy and used racist slurs, which we won't repeat here.

Liberal MP Garth Hamilton has attacked One Nation after one of its staff defended the Hitler Youth.Alex Ellinghausen

One Nation declined to respond to The Guardian article, but told Sky News that Drew did not hold an official party position.

Hamilton said the posts were “quite confronting”.

FIFA clears Australian referee of ‘white power’ gesture

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In case you missed it, Australian referee Shaun Evans has been cleared by FIFA after he was accused of making a “white power” gesture during the World Cup broadcast yesterday, according to The Athletic.

The broadcast cut to Evans alongside two colleagues in a video assistant referees’ booth, where he could be seen making an upside-down “OK” sign against his thigh.

The gesture has traditionally been used to signify approval, but has been adopted by sections of the far right in recent years.

However, as reported by The Athletic, Evans has been cleared of any wrongdoing after it was determined that the gesture did not breach FIFA’s disciplinary code.

Evans said he did not intentionally make a discriminatory gesture, and said it was an involuntary twitch.

Read our latest coverage of the World Cup, where New Zealand and Iran have just played to a 2-2 draw.

Gavin Newsom claims Trump ‘coming after’ him in DoJ investigation

By Michael Koziol

California Governor Gavin Newsom, a presumed Democratic candidate for the US presidency in 2028, says he and his wife are the victims of a politically motivated investigation by US President Donald Trump’s Department of Justice.

Newsom said in a video statement that federal agents had knocked on the doors of his family members, friends and former employees in recent days. He did not provide details about these encounters, but said that agents were “demanding records” and “trying to find” a crime.

California Governor Gavin Newsom (right) says he was the victim of a politically motivated investigation by US President Donald Trump’s Department of Justice.AP, Getty Images

“Donald Trump isn’t just coming after me because of my mean tweets, he’s coming after me because I am considering running for president,” Newsom said, calling Trump “the most corrupt president in American history”.

Newsom, whose term as governor ends early next year, has long been considered a leading contender for the Democratic presidential nomination and has relentlessly targeted Trump online using rhetoric and invective similar to that deployed by the president and White House social media accounts.

Read the full story.

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PM pours cold water on expedited CGT carve-outs

By Brittany Busch

The prime minister says he won’t fast track carve-outs for businesses from his budget tax changes and he would stick with the planned timeline.

Asked at a press conference in Victoria whether he was considering detailing exemptions to the capital gains tax changes this week, Anthony Albanese said: “No, there’s two periods of legislation.”

The prime minister said he won’t fast-track carve-outs for CGT changes.Ruby Alexander

“We’ll await and treat the Senate committee with the respect that it deserves. They had hearings yesterday, they’ll have hearings again today, but then there’ll be further legislation,” he said.

“We foreshadowed ... that for issues such as start-ups, what we will do is deal with a discussion paper from Treasury. What we’ve had is consultation up to this point. That discussion paper will go out, which will enable for further input, which will be fed into the legislation later this year.”

NDIS inquiry findings delayed

By Brittany Busch

The release of findings from a parliamentary inquiry into the government’s overhaul of the National Disability Insurance Scheme has been delayed to the end of the week.

A Senate committee was scheduled to hand down its report today after a truncated three-day inquiry into the reforms, which aim to remove 350,000 people from the scheme and cut spending by $38 billion over four years.

“The committee has requested an extension of time to report to further consider evidence received. The committee will now deliver its final report on Friday, 19 June 2026,” it said in a statement today.

‘Win-win’: JD Vance claims end of Iran nuclear program

By Angus Dalton

US Vice President JD Vance has claimed Iran’s nuclear capacity has been decimated in a short social media video he released to “explain” the peace deal.

“Number one, what this deal means is that the Straits of Hormuz [sic] are open immediately, you’re already seeing oil and gas prices come down just over the past 24 hours,” Vance said.

“Number two, it ensures that Iran will never have a nuclear weapon. And we have to back up for a second and appreciate that what the president has done is completely decimated Iran’s nuclear program.”

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Vance claimed Iran would either agree to never rebuild nuclear capacity, or would attempt to rebuild its nuclear program without the resources required to do so.

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Sport and politics clash as protesters gather outside Iran v NZ game

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Demonstrators have massed outside Iran’s first World Cup match, waving the pre-revolutionary lion-and-sun flags banned inside the stadium and calling for change in Tehran. Protesters snatched an official flag from one fan, video shows, ripping and stomping on it.

Iran’s participation in the World Cup, beset by challenges since the war’s outbreak, has divided the US diaspora, as the scene near Los Angeles showed. The national squad has become a Rorschach test of sorts, with rallygoers contending the team was synonymous with Iran’s government, while the fans who filed past said they were separating soccer from politics.

People protest outside Los Angeles Stadium before the World Cup match between Iran and New Zealand.AP
A man shouts before the World Cup Group G soccer match between Iran and New Zealand.AP Photo/MARK J. TERRILL

Southern California is home to the largest Iranian community outside Iran, many of whom arrived after the 1979 Islamic Revolution. Just hours before kickoff against New Zealand, a Los Angeles judge upheld FIFA’s ban on the pre-revolutionary flag at matches.

Sharemarket falls ahead of rates decision

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The Australian sharemarket has fallen at the open while Wall Street rallied in its first session since Donald Trump announced a peace deal had been agreed to with Iran.

The S&P/ASX 200 was down 74.5 points, or 0.8 per cent, in early trade.

The Reserve Bank announces its interest rate decision this afternoon, with the central bank widely tipped to stay on hold.

The ASX jumped 1.3 per cent on Monday after the US-Iran agreement was announced.

Details on page-long US-Iran peace agreement

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Iranian President Masoud Pezeshkian wrote on social media that the US-Iran memorandum of understanding was an “important step” towards stopping the fighting but noted a final agreement for a lasting truce “has yet to take shape”.

US Vice President JD Vance told CNN that the signed memorandum was only about a page to a page and a half long, and is “a very general document”. Details will be released over the next two days, US officials said. Vance said it included “a very significant sanctions relief package” for Iran.

JD Vance described the memorandum of understanding as a “very general document”.AP Photo/Jacquelyn Martin

US and Iranian officials say it could eventually deliver substantial economic benefits to Iran by lifting sanctions, unfreezing foreign assets and setting a $300 billion reconstruction fund, paid for by neighbouring Gulf states, which host US military bases.

US officials, speaking on the condition of anonymity, said Iran would have to satisfy US demands never to build a nuclear weapon and cut off support for militias such as Hezbollah in Lebanon to get those benefits.

Reuters

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