Australia politics live: Labor optimistic of nature laws deal with Greens; harsher fines and jail time for NDIS breaches under new bill

8.50pm GMT Continuing his media rounds, and joining ABC RN Breakfast, Jim Chalmers rips into the Coalition with modelling released by the government that if Australia kept all coal-fired plants open for 10 years from 2028, it would cost the budget more than $17bn. Pressure on energy prices comes from ageing coal-fired power, not renewables says the treasurer. Chalmers says the modelling shows the Coalition’s energy plan is “harebrained”. What the Coalition is proposing with this harebrained approach to net zero would push up power prices and swing a wrecking ball through the budget and the economy. The older, traditional sources of energy are becoming less reliable as they get closer and closer to closure. I think, from memory, yesterday we had parts of six major power plants out of operation, and that puts upward pressure on prices. The treasurer adds the Coalition’s energy policy is driven “100% by the internal party politics of the coalition party room”. Updated at 8.52pm GMT 8.42pm GMT Ley says government has ‘lied’ or ‘mismanaged’ their budget The opposition leader, Sussan Ley, says the government has either “lied” or “mismanaged” their budget, in response to Labor directing departments to find savings. Jim Chalmers defended the move a moment ago, saying it’s about “reprioritisation” of lower priority spending to high priority projects. On ABC News Breakfast, Ley says Labor promised no cuts of public service jobs during the last election. Labor promised this city that there wouldn’t be any cuts … So, are they backing away from the promise? Or have things got so bad since the election that they actually have to address savings as a matter of urgency? … Either they lied to you at the election or they really, really have mismanaged the budget. Ley, who says she previously worked in the public service before entering politics, accuses the government of “letting Canberrans down” and questions how these savings will “solve the over $1tn debt that this country is facing”. Updated at 8.46pm GMT 8.35pm GMT What’s going to happen to interest rates? Jim Chalmers won’t speculate on whether – if inflation continues to stay out of the Reserve Bank’s target band – the interest rate could go up or down. The treasurer says the central bank has already cut rates three times this year, but admits it doesn’t go far enough for families still under pressure. It’s why we’re cutting taxes two more times to provide that relief that people need and deserve. At a time where this inflation is a little bit higher than we’d like and expect to see later today, the headline inflation tick up a little bit. Over on Sky News, Chalmers is asked whether he will concede government spending has led to inflation remaining sticky. He says “there’s no evidence of that” and that it hasn’t been brought up by the Reserve Bank either. Pete Stefanovic also tries to push him on whether the government will extend the electricity bill rebates, but Chalmers won’t give anything away, and says decisions will be taken on that in “coming weeks”. Updated at 8.39pm GMT 8.23pm GMT Chalmers defends department ‘savings’ The treasurer Jim Chalmers, who’s doing the media rounds this morning, is next to defend the “savings” the departments have to come up with. He’s on the Today show, who ask – is the government being hypocritical here, considering the criticism they through at the Coalition for their proposed public servant cuts during the election? It’s different, Chalmers says: What the Coalition was proposing was to cut tens of thousands of jobs. What we are proposing or what we’re asking departments to suggest is ways to reprioritise their lower priority spending so that we can invest it in higher priority areas. He argues it’s consistent with previous budgets, and “all about reprioritising”. Updated at 8.29pm GMT 8.18pm GMT Clare O’Neil defends Labor’s move to make cuts in government departments Cabinet minister Clare O’Neil has defended the government’s move to find savings in departments, following reporting yesterday that the minister for the public service, Katy Gallagher, has instructed all departments to find savings of 5%. In the Senate, Gallagher said yesterday the reporting was “incorrect” but suggested Labor’s attempts to rein in spending was an example of “fiscal discipline” and that there would be no reductions to the average headcount in the next budget. On Sunrise this morning, O’Neil said taxpayer dollars “are really precious”. When pushed on that (rather large) $100m spend for the BoM website, O’Neil said it was an “historic spend” and that the minister is “unhappy” with it. There’s absolutely areas in the public service where we do need to think about making sure that we’re spending taxpayers money wisely. On the panel with her, Bridget McKenzie accused the government of putting “Christmas job cuts” on the table. [There’s a] trillion dollars worth of debt, $50,000 in interest repayments every single minute of every single day because they refuse to make the tough decisions and now you’ve got Christmas job cuts on the table that they’re saying won’t be cuts. O’Neil hit back, saying the trillion dollars of debt was “racked up” by the previous Coalition government. Updated at 8.26pm GMT 8.03pm GMT Good morning, Krishani Dhanji here with you, thanks to Martin Farrer for getting us started. As we brought to you a moment ago, time is ticking for the government to get a deal on its environmental reforms, but it seems pretty confident it can get there within the next two days – tomorrow is the final parliamentary sitting day for the year. This morning, the treasurer, Jim Chalmers, is doing the media rounds, ahead of the latest monthly inflation data coming out later this morning. Stay with us, it’s going to be another big day! 8.02pm GMT NSW doctors union case begins in Industrial Relations Commission The NSW industrial relations commission will this morning begin hearing the doctors’ union case for a new award. You’ll remember the state’s public system doctors took strike action in April, claiming they have the worst wages and working conditions of their profession anywhere in the country. Without a resolution reached in arbitration with the government, the commission will now be judging their case. The union, the Australian Salaried Medical Officers Federation, says it will be the first full review of doctors’ work value, responsibilities and conditions in more than two decades and will feature testimony from approximately 100 witnesses, including 54 representing ASMOF. ASMOF NSW’s president, Dr Nicholas Spooner, said “their evidence will show the depth of the crisis facing the NSW health system, including unsafe hours, chronic fatigue and burnout, worsening understaffing and a widening pay and conditions gap between NSW and other states.” ASMOF will argue that the current award is outdated and no longer reflects the reality or value of modern medical work. Our goal is straightforward. Safe and enforceable working hours. Fair and competitive pay that allows NSW to attract and retain the doctors it needs. Proper staffing levels. This is the case that will decide the future of the NSW health system. 7.55pm GMT New bill means fines and jail time for NDIS breaches NDIS providers who repeatedly breach a code of conduct designed to keep participants safe could face major fines of up to $16.5m in the latest federal government attempt to tighten up the scheme’s rules. The Albanese government will today introduce a new bill to introduce tougher penalties, and even jail time, for NDIS providers who engage in misconduct and unsafe practices. The NDIS provider’s code of conduct requires companies to take reasonable steps to prevent and respond to violence, abuse and neglect; provide services with competence and skill; and to act with integrity and honesty among other things. The changes would increase the fine for serious breaches of the code from $400,000 to $16.5m for a company. Additionally, if passed, NDIS providers required to be registered – such as specialist disability accommodation – could face two years jail and fines up to around $16.5m if they operate unregistered. The NDIS minister, Jenny McAllister, said the scheme must be “sustainable, effective and must operate with integrity”. Where we see fraud, too often we see violence, abuse and neglect. This isn’t just about cracking down on the bad actors in the system, it’s also about keeping NDIS participants safe. These are common sense measures that are ready to go. We also know there’s more work to do. 7.51pm GMT Ted O’Brien to outline Coalition’s economic strategy at National Press Club Ted O’Brien, the shadow treasurer and deputy opposition leader, is speaking to the National Press Club today, and will argue that a future Coalition government will offer a disciplined, growth-focused economic strategy to build prosperity in Australia. O’Brien will frame his speech around Jess, a 38-year-old with two children, who he says is doing it tough under the Albanese government’s policies. In the speech, O’Brien will say Jess and her husband, Matt, live in a townhouse in the outer suburbs but can’t afford a home of their own. According to an advance copy of the speech, O’Brien will say voters such as Jess need to be kept front of mind by politicians in Canberra. A strong economy is not an end in itself – but a means to an end. It is the means by which Jess, Matt and their kids can aspire to a better life. But the sad truth is that, today, our intergenerational compact is disintegrating – and all signs point to it only disintegrating further. As Liberals in 2025, our mission must be to assure Jess and the millions of Millennials just like her, the younger Gen Zs and the younger-still Gen Alphas that we see them and we are here to serve them. He will use the speech to highlight growing government debt, and growing government spending. 7.47pm GMT Catastrophic fire warning in NSW A catastrophic fire warning has been issued in NSW, the first in two years, as a total fire ban is placed across Sydney and large swaths of the state. In a statement, the NSW rural fire service said the catastrophic fire danger is forecast for the lower central west plains district on Wednesday, due to forecast high temperatures, low humidity and strong winds, making conditions dangerous: Catastrophic is the highest level of bush fire danger and the most dangerous conditions for a fire. Your life may depend on the decisions you make, even before there is a fire. The fire service said the safest course of action was to leave the fire risk area. Stay out of paddocks and bushland areas during the hottest parts of the day. Homes cannot withstand fires in these conditions. You may not be able to leave and help may not be available. Extreme fire warnings are also in place for Greater Hunter, Greater Sydney, Illawarra/Shoalhaven, Central Ranges, North Western, Upper Central West Plains, Southern Slopes, Eastern Riverina, Southern Riverina, Northern Riverina. Updated at 8.41pm GMT 7.41pm GMT Labor closer to striking deal with Greens on nature laws than Coalition Guardian Australia understands that as of Tuesday night, the government was closer to striking an agreement with the Greens than it was with the Coalition after the opposition leader, Sussan Ley, described Labor’s offer as “totally insufficient”. The Greens were not satisfied with their offer either, which included changes to prevent the fast-tracking of coal and gas projects, but remain in active negotiations with Labor. Watt has signalled he is prepared to shorten the proposed three-year timeframe to subject native forest logging to national environment standards, giving further ground on one of its initial concessions to the Greens. If Labor does land a deal with the Greens, it would mark a dramatic turnaround from 12 months ago when Anthony Albanese intervened to spike an EPBC deal with the minor party amid pressure from miners and the Western Australian premier, Roger Cook. Updated at 8.31pm GMT 7.41pm GMT Labor optimistic of nature laws deal with Greens as summer break nears Labor is growing optimistic it can land a deal with the Greens to rush through its signature environment protection laws before parliament suspends for the summer break. The government is desperate to pass legislation to overhaul the Environment Protection and Biodiversity Conservation (EPBC) Act in the final two sitting days of the year, finally delivering on Graeme Samuel’s blueprint to fix the nation’s broken nature laws. The bill was not listed on the draft program for Wednesday but Guardian Australia understands it will be quickly added to the run-sheet as soon as Labor is confident it has the numbers to ram the 1,500-page bill through the upper house. The environment minister, Murray Watt, is genuinely open to a deal with either the Coalition or the Greens and has offered a raft of concessions to both in the hope of winning the support of either side. As we reported yesterday, those concessions failed to woo either side. 7.35pm GMT Welcome Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories and then it’ll be Krishani Dhanji with the main action. Stand by for a frenetic last two days of parliament, with Labor believing it will be able to make a deal with the Greens to rush through its signature environment protection laws before the summer break. Details coming up. And outside of politics this morning, New South Wales has woken to its first catastrophic fire warning for two years with high temperatures, low humidity and strong winds putting the lower central west plains district – covering eight local governments areas across the state’s central western river area – on alert. A total fire ban has also been placed across Sydney and large swathes of the state. More coming up.