News and politics live updates: Albanese rejects apology call over comments about Japanese PM’s melon gift

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Despite trying to stay out of politics, the Reserve Bank has blamed Labor’s Budget taxes on investors for the housing market slump.

The observation was made hours after ANZ predicted the worst housing market plunge in more than four decades.

This year’s three rate hikes and Labor’s contentious Budget taxes on property investors are already denting property values in Sydney, Melbourne, Brisbane, Perth and Adelaide.

The already unpopular central bank says Treasurer Jim Chalmers must share the blame, with Labor maintaining its policies are designed to slow home price growth rather than spark a downturn.

“This follows a long period of very strong growth in housing prices and reflects the combined effect of cash rate increases, tax changes announced in the Federal Budget, and weaker sentiment,” the RBA’s latest statement on monetary policy released on Tuesday said.

Reserve Bank governor Michele Bullock noted elevated construction costs could diminish demand for both established and brand new homes, with Labor scrapping negative gearing from July next year for those who bought an existing property after the May 12 Budget.

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A deal on gambling reforms is inching closer as Anthony Albanese and Angus Taylor continue face-to-face discussions on Tuesday evening to iron out amendments to Labor’s package.

The leaders were locked in talks from 5pm with further discussions expected on Wednesday, as betting inducements remaining the primary sticking point in proposed changes to reduce online gambling harm.

Labor hopes to pass the reforms during this sitting fortnight, with a deal looking increasingly likely with the Coalition in coming days rather than the Greens, who had pushed for a broader ban in line with the Murphy report.

The Prime Minister outlined the gambling reforms during a National Press Club address in April, however, they were watered down from recommendations in the landmark 2023 “You Win Some, You Lose More” Murphy Report.

Rather than a total, comprehensive ban across media, Mr Albanese’s approach was more of a partial ban with strict limits and timeframes.

After a damning inquiry both the Greens and Coalition want a crackdown on predatory inducements, such as bonus bets, targeted promotions, and sign-up offers to encourage or keep people betting.

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Reserve Bank Governor Michele Bullock says other rate hike is still possible after her monetary policy board left the cash rate on hold at 4.35 per cent.

“The board will raise interest rates further if that is what’s required to bring inflation down in a timely way,” Ms Bullock told reporters in Sydney.

“In waiting, the board isn’t ruling out there might be a need for further interest rate rises if we look like we’re off a path which takes us with inflation remaining above the target for much longer than in the forecasts.

“We’re not ruling that out but we’re saying we want to get a bit more information to confirm whether or not we still seem to be on that path.”

The RBA cash rate was also left on hold in June, following 75 basis points of increases in February, March and May.

“Before anyone asks, no the board did not discuss an interest rate cut at this meeting - it only discussed a raise and a stay.”

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Agriculture Minister Julie Collins on Tuesday confirmed there had been 236 suspected or confirmed detections of H5 bird flu in Australia.

Although the risk to human health remains low and Australia’s livestock and poultry remain unaffected, migratory birds have caused mass deaths and detections across several states.

South Australia had recorded the most with 163 cases, followed by 58 in Victoria, 10 in Western Australia, four in New South Wales, and one in Queensland.

“Australians should expect to see sadly more spread and larger numbers of wildlife being infected,” she warned in Parliament.

“We have been really upfront that there will be more large mass mortalities of native birds in Australia.”

Shadow agriculture minister Darren Chester vowed the Opposition would continue to show bipartisan support in Australia’s fight against H5 bird flu and thanked the minister for her continued updates.

The Reserve Bank has left interest rates on hold for the second straight meeting but hinted it could still hike rates with inflation expected to remain high until the middle of next year.

In a unanimous vote of all nine monetary policy board members, the cash rate was left unchanged at 4.35 per cent on Tuesday afternoon despite headline and underlying inflation both being above the RBA’s 2-3 per cent target for almost a year.

Interest rates were also left on hold at the June meeting, following three increases in February, March and May.

“The board will continue to do what it considers necessary to bring inflation sustainably back to target, including increasing the cash rate target further if upside risks materialise,” it said.

“While the impact of the Middle East conflict on inflation has so far been less than expected, headline inflation is still too high.”

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Anthony Albanese has brushed off a second question from Liberal MP Mary Aldred in Question Time over whether he should apologise to Japanese leader Sanae Takaichi over his comments about her gifted royal melons on the Bush Deep podcast.

The Prime Minister started to respond by stating that he had a close friendship with the female foreign leader.

“I have a very good relationship with the Prime Minister of Japan,” he said.

“We have met on the sidelines at various forums.

“As well as, I welcomed the Prime Minister of Japan here.

“During that visit, it was a very successful visit, and the relationship has meant that with purchases such as the army crickets in defense, for example, that is…”

His answer was cut off by Liberal Dan Tehan who had called a point of relevance before the PM used the opportunity to conclude his remarks.

Liberal MP Mary Aldred has asked the Prime Minister if he will apologise to Japanese leader Sanae Takaichi over his comments about her gifted royal melons on the podcast Bush Deep.

Ms Aldred asked in parliamentary question time if she would “personally, apologise” to the Japanese PM for what she labelled as “disrespectful behavior”.

It relates to his comments and actions on the podcast last month, which included performing a cupping gesture with both hands in front of his chest after talking about the melons.

“I reject the assertion in the question,” Anthony Albanese said in response.

Mr Albanese added that he and Ms Takaichi were “friends” which had been displayed in her recent visit to Canberra, which is when she had gifted him the melons.

“Australia and Japan have never been closer or more strategic, and my government has taken our special strategic partnership to new heights,” he said.

“And during the recent visit by Prime Minister Takaichi, we announced substantial outcomes, including a joint declaration on economic security cooperation, signaling our resolve to support each other in the face of economic coercion, including to console each other on economic security.

“Prime Minister Takaichi is a friend of Australia and a friend of mine. Together, we’re focused on working together after three bilateral meetings to shape a free and open Indo-Pacific that is peaceful, stable, and prosperous, as demonstrated by the outcomes in the visit.”

Mr Taylor cited today’s ANZ forecast that Sydney house prices could fall by almost 15 per cent, describing the predicted decline as “the worst crash in more than four decades”.

He questioned Prime Minister Anthony Albanese over Labor’s changes to negative gearing and capital gains tax, asking whether the government would admit the changes had left households worse off.

Mr Albanese hit back by pointing to comments from Barefoot Investor Scott Pape, saying even the prominent financial commentator had acknowledged Australia’s housing market had become increasingly unaffordable.

“The barefoot investor, someone who’s well known, not always part of a cheer squad for the government, wrote in the Herald Sun: Average house prices have increased by more than 400 per cent since 2000, partly on the back of taxpayer-funded landlord welfare,” Mr Albanese said.

Mr Albanese argued the long-term rise in property prices had made the traditional Australian dream of home ownership increasingly difficult to achieve.

“I don’t want to be a prime minister who leads a country that sees growing inequality, that sees the opportunity for people to get into their first home as being defined on whether mum or dad can help them.”

Japanese officials have expressed surprise after correspondence between their Prime Minister’s office and Anthony Albanese about his controversial podcast comments was leaked in Australia.

Mr Albanese is facing growing calls to apologise to his Japanese counterpart Sanae Takaichi following jokes he made about the female leader’s melons, a reference to an official gift she brought to Australia earlier this year.

During his now infamous appearance on the Deep Bush podcast, the Prime Minister said he would “shag” popstar Kylie Minogue and joined in on jokes about Ms Takaichi “smuggling” two prized Crown melons into the country.

On Monday evening reports emerged of a diplomatic cable dated July 13, sent by the Japanese government, which “noted” the “sensationalised reporting in the Australian media” about Mr Albanese’s comments in an interview with podcaster Nikki Osborne.

The diplomatic note, reportedly sent to the Department of Prime Minister and Cabinet in Canberra, stated that Tokyo’s belief was that there was no “ill intention” in Mr Albanese’s appearance on the podcast.

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