Australia news live: PM dubbed ‘WA’s daddy’ over Blue Poles and GST promises; home ownership for young people back to 1940s levels | Australia news

Explainer: why is Albanese ‘WA’s daddy’ this week?

Josh Butler

With all the federal focus on Western Australia in recent days, humble readers not living on the west coast may be thinking: “… why?”

Over the last week we’ve had Anthony Albanese inventing ever-more elaborate ways to promise that the federal government won’t be changing WA’s generous GST payments, bringing a full federal ministry meeting to the west again, a clutch of new agreements and funding, federal ministers tripping over themselves to lavish praise on the mining-rich state, and now even the famous Blue Poles painting being sent to Perth for a visit.

Even the always parochial West Australian newspaper was pleased with the largesse from Canberra, branding the prime minister “WA’S DADDY” in a satisfied front page today.

Albanese poses for a selfie with Western Australian premier Roger Cook
Albanese poses for a selfie with Western Australian premier Roger Cook. Photograph: Matt Jelonek/Getty Images

Of course, there are five other states and two other territories in Australia besides WA. So why the focus on Perth?

First and most obviously, West Australians are pretty proud of their state and economy. The mining state is, as Albanese and his team regularly boast, “the engine room of the Australian economy”, and they like being reminded of that fact.

But Albanese, of course, has history with WA. Students of recent political history may remember that it was an unexpectedly strong showing in WA’s seats which got Albanese’s Labor over the line in the 2022 election, flipping a few more seats than they planned and essentially winning power for the ALP. That included launching the national campaign in Perth (a decision repeated in 2025) and a special ad campaign just for the west coast.

Some Labor people believe WA remains a key to their grip on power, and that heaping lavish praise on the west can help keeps the Liberals out of power; Albanese famously begins most of his media appearances in the west by keeping a tally of how many times he’s visited (this is his 45th visit as PM, he said on Monday)

WA also still remains a Labor fortress at the state level, with former premier Mark McGowan (referred to for a time as “state daddy” in the west) winning a landslide victory in 2021 then handing over to current leader Roger Cook. It doesn’t hurt for federal Labor to cosy up to an already-popular state government.

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Patrick Commins

Patrick Commins

RBA has its finger on the rates trigger, board minutes show

The Reserve Bank’s monetary policy board remains unconvinced that inflation will return to target by the end of next year, and is ready to hike rates again if it sees any evidence that price pressures are coming in hotter than expected.

The RBA held its cash rate at 4.35% at its most recent meeting, even as Michele Bullock, the governor, warned after the decision that it was “quite possible” that there would be another hike.

Minutes from that meeting released this morning revealed board members believe that inflation, while still too high at 3.8%, is tracking as predicted and should return to the 2.5% target by late 2027.

But the board is aware they have little wriggle room to achieve their mandate in a “timely” fashion, the minutes show, and are ready to act if needed. The minutes read:

double quotation markSeveral members judged that it was quite possible that the upside risks to the inflation forecast would crystallise, requiring some further tightening. Other members noted the potential for downside risks to offset them.

All members agreed that, given prevailing uncertainties, upcoming decisions would benefit from additional information that could strengthen their conviction about the outlook for inflation.

So it’s watch and wait, the minutes show, and the board “will continue to do what it considers necessary to achieve that outcome, including increasing the cash rate target if upside risks materialise”.

Most economists don’t expect another rate hike this year, but financial markets early this morning were pricing in a 64% chance of an increase by December.

The ABS will release its latest monthly inflation figures at 11:30am tomorrow.

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