Australia news live: ‘full steam ahead’ for Aukus deal as Wong and Marles meet Rubio and Hegseth in Washington

Australia finds itself navigating a complex tapestry of political shifts, economic pressures, and evolving social policies, all while maintaining crucial international alliances. From a high-profile political defection to a landmark social media ban and significant economic updates, the nation is abuzz with developments that promise to shape its future landscape.

Political Landscape Shifts: Barnaby Joyce's One Nation Move

The Australian political scene was recently stirred by the announcement that former Deputy Prime Minister and Nationals leader, Barnaby Joyce, has officially joined Pauline Hanson's One Nation party. This high-profile defection has sent ripples through Canberra, drawing comparisons to past political shifts and sparking debate about the evolving nature of Australian conservatism.

Kevin Hogan, the Nationals' deputy leader, expressed a sense of disappointment, yet conceded that the move didn't come as a complete shock. "No one is, you know, gobsmacked that he’s made the decision," Hogan stated, drawing a parallel to Mark Latham, another former major party leader who later joined One Nation. Hogan noted that Joyce had openly voiced his dissatisfaction with his backbench position, a sentiment echoed by Joyce himself, who declared, "I don’t want to be on the backbench." He further elaborated on his motivation, stating he's "58 years old, not 85 years old, and I’m looking forward to giving greater service to our nation. And if I can get myself into a place that’s more efficacious, I’ll do precisely that."

Nationals leader David Littleproud had reportedly kept the door open for Joyce's return, underscoring the party's regret over his departure. However, Joyce's decision appears to be rooted in a broader ideological conviction. He articulated his belief that One Nation's growing appeal is part of a global right-wing surge, drawing parallels to movements like MAGA in the United States, Nigel Farage's Reform Party in the UK, Marine Le Pen in France, and Giorgia Meloni in Italy. "Australia’s late to the party," Joyce quipped, suggesting that compulsory voting here might have made such shifts "stickier," but the tide is now turning.

When pressed on Pauline Hanson's controversial history, particularly her "long-running vilification of ethnic groups" and comments about Australia being "swamped by Muslims," Joyce initially disagreed with the characterisation. He then attempted to pivot the conversation towards the "extremities" of Sharia law, sidestepping direct engagement with Hanson's specific remarks. Despite joining, Joyce confirmed that he would not hold a portfolio within One Nation, nor had any agreement been reached regarding a future leadership handover, reinforcing his stated aim to simply be more effective outside the Coalition's backbenches.

Safeguarding Young Minds: Australia's Social Media Ban

In a significant move aimed at protecting the mental health and well-being of its youth, Australia is implementing a ban on social media for individuals under 16 years of age, effective tomorrow, December 10. This landmark legislation requires major platforms such as TikTok, Snapchat, Instagram, and Facebook to remove underage users from their services, marking a profound shift in the digital landscape for Australian children.

Prime Minister Anthony Albanese acknowledged that this "profound change will require some adjustment in the short term," but firmly believes it is "the cultural change Australia needs to deliver greater peace of mind for parents and ensure Australian children have a childhood." The Prime Minister has garnered support from state and territory leaders, to whom he penned letters of gratitude for their backing of the initiative.

In a video address to young people, set to be played in schools nationwide, Albanese empathised with the challenges of growing up in the digital age. "You’ll know better than anyone what it’s like growing up with algorithms, endless feeds and the pressure that can come with that," he stated, explaining the government's motivation. He urged under-16s to embrace alternative activities during the upcoming school holidays, suggesting they "start a new sport, learn a new instrument, or read that book that has been sitting there on your shelf for some time. And importantly, spend quality time with your friends and your family. Face to face." For those struggling with the transition, he recommended reaching out to parents, teachers, friends, or support services like Headspace and Kids Helpline.

Reddit's Concerns and Potential Legal Challenge

While the government champions the ban, it has not been met without resistance. Social media platform Reddit has voiced "deep concerns" about the new legislation, though it has committed to complying with the law. However, media reports, notably from the Australian Financial Review, suggest Reddit is actively considering a legal challenge, potentially arguing against the law's constitutionality based on implied rights of freedom of political communication.

In a public statement, Reddit described Australia’s law as "legally erroneous" and claimed it "goes far beyond the original intent of the Australian Parliament." The platform announced it would begin suspending accounts of users confirmed to be under 16 and require new users to be at least 16. It clarified that, similar to YouTube, Reddit would remain accessible for browsing without an account. To verify ages, Reddit plans to use a "privacy-preserving age prediction model," which may involve third-party identity verification requiring a photo of a government ID or a selfie, assuring users that Reddit itself would not access this photographic information.

Reddit expressed apprehension about the broader implications of minimum age laws, stating, "We believe strongly in the open internet and the continued accessibility of quality knowledge, information, resources, and community building for everyone, including young people." The platform argued that "By limiting account eligibility and putting identity tests on internet usage, this law undermines everyone’s right to both free expression and privacy, as well as account-specific protections." Furthermore, Reddit contended that the law's application to its platform – described as a "pseudonymous, text-based forum overwhelmingly used by adults" – is "arbitrary, legally erroneous, and goes far beyond the original intent... especially when other obvious platforms are exempt." Despite these strong reservations, a Reddit spokesperson confirmed their immediate decision remains "to comply with the law."

Economic Currents: RBA Decision and Airfare Inflation

Australia's economic landscape continues to present a mixed bag of challenges and resilience. The Reserve Bank of Australia (RBA) is poised to make its final cash rate decision of the year, with widespread expectations that the rate will remain steady at 3.6%. However, the focus will keenly shift to any forward guidance from the monetary policy board regarding potential rate hikes in 2026.

Recent economic data has painted a picture of an economy that is perhaps more robust than previously anticipated. An unexpectedly sharp rebound in inflation, coupled with national accounts and household spending figures pointing to an accelerating economy, has complicated the RBA's task. Financial markets are now pricing in a roughly 50% chance of a rate hike by May next year, with a move higher fully factored in by August, according to ANZ. Economists, who had largely anticipated rate cuts in 2026, have largely abandoned those forecasts, with a handful now predicting further hikes instead. The RBA Governor, Michele Bullock, is scheduled to deliver the decision at 2:30 pm, followed by her final press conference of the year an hour later, where her remarks will be scrutinised for clues on future monetary policy direction.

Domestic Airfares Surge Amid Dominance

Adding to the cost-of-living pressures, domestic airfares in Australia surged faster than inflation in October, a finding highlighted by the Australian Competition and Consumer Commission (ACCC). This increase was largely attributed to a confluence of factors: the busy sport finals season, including Brisbane’s AFL and NRL grand final triumphs which saw fans flying interstate, coinciding with school holidays across the country. This period saw a significant uptick in travel, with 5.5 million domestic passengers recorded in late September and October.

Despite Qantas and Virgin adding 45 extra flights to meet the heightened demand, services were notably fuller than usual, with 84.4% of seats taken compared to an annual average of 81.6%. This increased demand, coupled with limited competition, pushed airfares to their highest level in three years, even when adjusted for inflation, the ACCC reported. The consumer watchdog noted that prices and revenues have been on an upward trajectory since 2022, remarkably, even as jet fuel prices – a major component of airline operating costs – have fallen. The ACCC's report underscored that with Qantas (including Jetstar) commanding nearly two-thirds of the domestic market and Virgin accounting for one-third, leaving only a mere 2% for other carriers, there is little competitive pressure to incentivise the major airlines to reduce ticket prices. The report suggests that the entry of another airline capable of matching the two majors would be crucial for fostering a more competitive market and potentially lowering fares for consumers.

Geopolitical Alliances: Aukus Deal Progress

The strategic alliance between Australia and the United States continues to strengthen, with high-level talks in Washington confirming that the Aukus submarine deal is proceeding "full steam ahead." Australian Foreign Affairs Minister Penny Wong and Defence Minister Richard Marles met with their US counterparts, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, for annual discussions focused on Indo-Pacific security and strategies to counter China’s increasing assertiveness in the region, particularly in the South China Sea and towards Taiwan.

While China was not explicitly named in their public remarks, the underlying strategic imperative was clear. Rubio lauded the "very strong partnership" and "strong alliance," highlighting momentum in cooperation across critical minerals, defence production, and troop deployments. This builds on earlier cooperation, including a critical minerals deal reportedly signed by US President Donald Trump and Australian PM Anthony Albanese at the White House in October. Rubio emphasised the necessity of "reliable, diverse" critical mineral supply chains, to avoid over-reliance on any single source that could be used as leverage.

Minister Wong echoed these sentiments, affirming that the alliance aims to deliver "concrete benefits for our security and prosperity and for that of the United States." She declared Aukus "central to that: a win for Australia, a win for the US and a win for the United Kingdom," before emphatically stating, "We are full steam ahead." Hegseth reinforced this commitment, commending Australia's forthcoming $1 billion contribution to expand US submarine production capacity, a crucial step in bolstering the trilateral security pact. Marles articulated the rationale, noting that "we’re living in a much more contested world, where it really matters to be doubling down with friends and allies and, obviously, America is front and centre and foremost for Australia in that respect." The Aukus agreement, which involves Australia acquiring nuclear-powered submarines, represents a significant long-term investment in regional stability and deterrence, solidifying the strategic partnership between the three nations.

Natural Disasters Update: Japan Earthquake

In a separate development, a powerful 7.6 magnitude earthquake struck off the coast of Japan overnight, prompting immediate evacuation orders and tsunami warnings across parts of the country. Japan, situated on the Pacific Ring of Fire, is highly susceptible to seismic activity and has robust infrastructure and warning systems in place to mitigate the impact of such events.

The Bureau of Meteorology (BoM) in Australia swiftly assessed the situation and confirmed that there was no tsunami threat to the Australian mainland, islands, or territories. The warnings in Japan were later downgraded to advisories, indicating a reduction in the immediate danger. The BoM's prompt communication, including a public tweet, reassured Australians that despite the severity of the temblor in Japan, their shores remained unaffected, highlighting the effectiveness of international seismic monitoring and warning systems.