News and politics live updates: Australia’s federal debt hits $1 trillion as Jim Chalmers defends Labor

Treasurer Jim Chalmers is insisting Labor is a responsible economic manager on a day when gross government debt is set to surpass $1 trillion for the first time ever.

The issuance of new Treasury bonds by the Australian Office of Financial Management on Thursday will see that milestone briefly reached on Thursday.

But Dr Chalmers has pointed to Australia maintaining its AAA credit rating, two days after Moody’s noted that “although government debt has risen to levels higher than peers, there is a credible path to consolidation”.

The Treasurer calculated that under the Coalition, gross debt today would be at $1.2t.

“No amount of hyperventilating from the Liberal Party today will change the fact that debt is $200 billion lower this year than what they left us,” Dr Chalmers said.

“Our responsible economic management has delivered one of the three strongest budgets in the G20 and much lower debt to GDP than any major advanced economy.”

Israel’s ambassador to Australia Hillel Newman has arrived at Parliament House for talks with Foreign Minister Penny Wong after the Government expressed outrage over Israel’s decision not to pursue criminal proceedings against soldiers involved in the strike that killed Australian aid worker Zomi Frankcom and six of her World Central Kitchen colleagues in Gaza in April 2024. The IDF acknowledged “serious failures” surrounding the strike but concluded there was no reasonable suspicion of criminal misconduct.

Senator Wong summoned Newman to Canberra demanding answers, saying the outcome fell “far short” of the accountability Australia expected and vowing the Government would continue pressing Israel for justice.

The meeting between Wong and the ambassador is now under way as the Albanese Government considers its “next steps”.

Shadow treasurer Tim Wilson says Australia’s government debt reaching $1 trillion for the first time ever is a “sad day for the country”.

The Australian Office of Financial Management, which borrows money on behalf of the Commonwealth Government by issuing bonds, is expected to see debt briefly surprass the $1t milestone on Thursday when it issues another $4 billion worth of syndicated 2038 Treasury bonds.

“Today is ultimately a sad day for the country. We have had our national debt pass the $1 trillion mark, and what we know is that more debt is being used to stoke inflation, increase interest rates, and increase the price at the supermarket,” Mr Wilson told reporters in Canberra on Thursday.

The Treasury Budget papers in May forecast gross Federal Government debt would reace $1.051b during this financial year and make up 34 per cent of gross domestic product.

With debt from state and territory thrown into the mix, the Parliamentary Budget Office late on Wednesday forecast national gross debt would soar from $1.7t in 2026-27, making up 55.4 per cent of GDP to $2t by 2029-30, making up 58 per cent of GDP.

National gross debt was expected to surpass the pandemic-era peak of 57.8 per cent of GDP by 2028-29.

Communications Minister Anika Wells has hit out at gaming giant Roblox, saying it’s “talked a big game” on complying with Australia’s under 16s ban but now “must deliver”.

Australia’s eSafety Commissioner confirmed on Thursday that the platform had signed a legally binding agreement to overhaul its safety measures designed to protect children from grooming, sexual exploitation and abuse.

It came after Julie Inman Grant had raised concerns that it was not meeting its obligations under the Online Safety Act’s codes and standards, including “allegedly failing to have sufficient measures in place to prevent contact between adults and children under 16”.

Ms Wells told a Canberra press conference on Thursday that the parents of the app’s 1.7 million Australian child users “need to know that their children will not be approached by adults while playing the game”.

“I welcome today’s action by the eSafety Commissioner,” Ms Wells said.

“It is not good enough that, despite promises made to me in person and to the eSafety Commissioner in February, Roblox has not yet managed to clean up its act.

“Roblox has talked a big game. It must now deliver on all of its promises that they have promised Australian parents.

“And the clock is ticking. If eSafety is not satisfied within three months, Roblox will find itself explaining why it cannot prevent potential grooming in the Federal Court of Australia.”

Read more.

Communications Minister Anika Wells has revealed more details about Labor’s gambling advertising crackdown, confirming Australians who opt out of betting ads will be protected across social media, news websites, podcasts and other online platforms.

Speaking in Canberra, Ms Wells rejected suggestions gambling companies would determine which customers were considered at risk, saying the threshold would instead be set by legislative instrument with advice from the Australian Communications and Media Authority.

Potential warning signs could include “continued deposits, overnight deposits, failed deposits”.

Ms Wells said she had met with Meta and Google on Wednesday ahead of the changes beginning on January 1, and put online platforms on notice that the easiest way to comply would be to stop running gambling advertising altogether.

“The number one way you can make sure you comply with the law as of last night, is not to show gambling ads. If you want to show gambling ads, you need to jump through these hoops.”

Asked whether the requirements could ultimately prove difficult enough that platforms such as Instagram stop showing gambling advertising entirely, Ms Wells replied, “What a great outcome that would be.”

Australia’s gross federal debt is set to cross the $1 trillion mark for the first time as the government grapples with ongoing pressure from the May Budget.

The Australian Office of Financial Management, which manages the Commonwealth’s borrowing, recorded $983.7 billion of debt as of August 14.

Further borrowing of $13bn through a syndication and another $4bn on Thursday will push the total figure to about $1,000,800,000,000.

That number is expected to dip below $1 trillion briefly on Friday when about $6b of notes mature. But the milestone is unlikely to be temporary, with government debt expected to stay above the threshold more consistently from September.

Treasurer Jim Chalmers’ May Budget forecast gross debt would reach $1.051 trillion this financial years, which is equivalent to about 34 per cent of GDP. Debt is projected to climb to 35.8 per cent of GDP by 2028-29.

Dr Chalmers defended the government’s record, pointing to Australia’s AAA credit rating and arguing Labor has improved the financial position it inherited.

“Moody’s, the second global ratings agency in the course of the last couple of weeks, reaffirmed Australia’s AAA credit rating and they did that because of the responsible way we have gone about managing a Budget, getting gross debt down $200bn lower than we inherited and the trajectory that those opposite left us when we came to office,” Dr Chalmers said.

The Coalition instead blamed Labor’s spending.

“A trillion dollars of Labor debt is a grim milestone for Australia,” Leader of the Opposition Angus Taylor said.

“It is what happens when you have a Labor government that cannot control its spending or the Budget.

“Labor is spending at levels we have not seen outside a recession in around 40 years, yet Australians are being told to pay more tax and accept higher prices.”

Read more.

Australia’s eSafety Commissioner has warned Roblox could face penalties of up to $100 million if it fails to strengthen protections for children using the hugely popular gaming platform.

About 1.7 million Australian children play Roblox, which has agreed to undergo an independent audit after the regulator identified “gaps” in its safety systems.

The company has three months to comply with the enforceable undertaking or could face court action.

“When we import a car into Australia, we expect them to comply with our safety standards and be built to our safety standards and to be tested and to be verified.

We need to do the same thing with this broad array of technology services,” eSafety Commissioner Julie Inman Grant told ABC Radio National Breakfast.

Roblox said it would continue working with eSafety towards keeping Australian children safe online.

Gaming giant Roblox has agreed to an independent audit of its child safety standards after Australia’s eSafety regulator identified “gaps” that could leave young users exposed to grooming, sexual exploitation and abuse.

The court-enforceable undertaking gives Roblox three months to introduce stronger protections, with legal action possible if it fails to comply.

eSafety Commissioner Julie Inman Grant said about 1.7 million Australian children use the platform.

“We want to ensure that any platform with a high preponderance of kids (is) a safe place where they can enjoy the benefits of online gaming, creativity and connection, including building their own worlds and experiences online,” she says.

“But those benefits can only be realised when effective safeguards are in place to protect children from serious harms such as grooming, child sexual exploitation, sextortion or recruitment into violent extremism.”

Inman Grant said parents should have “peace of mind” that they will be notified when strangers contact their children online.

“We have been engaging with Roblox for some time at senior levels about our concerns and the company has responded, making a number of improvements to its service,” she says.

“Their executives clearly understand that verifiable safety measures are critical to their long-term viability and success.” Roblox said it had delivered on commitments made to eSafety over the past 12 months and “will continue to work towards our shared goal of keeping Australian children safe online”.

Firebrand Senator Jacqui Lambie has broken down in parliament, passionately demanding more support for women with reproductive issues.

Revealing her own painful battle, she accused Veterans Affairs of failing women who’ve served their country in a deeply personal and emotional revelation.

“About six months ago, my vagina started to prolapse. This is an injury that is directly connected to my back injuries from my time in the Army,” Lambie told parliament.

Unable to access a specialist in Tasmania and still waiting on her Department of Veterans Affairs claim, Lambie travelled to Canberra, paying $7000 for emergency surgery.

“They want us to fight for this country. You want us to have babies for the country. But you’re not interested in supporting our reproductive system,” she said.

Read more.

Greens leader Larissa Waters has blasted the decision by Israeli authorities to clear soldiers involved in the strike that killed Australian humanitarian worker Zomi Frankcom, describing the outcome as “outrageous”.

The Israel Defence Forces said its investigation found serious failures led soldiers to mistakenly believe a Hamas fighter was travelling in the World Central Kitchen convoy. Foreign Minister Penny Wong has also said Australia is “outraged” and will summon Israel’s ambassador to Canberra, while Ms Waters said sending the ambassador home should be considered.

“I think it’s just very clear that strong words are not enough to deter this sort of conduct. This means precisely that the Australian government needs to do more than just issue some strongly worded statements,” Ms Waters told ABC Radio National Breakfast.

“They need to sanction the state of Israel and they need to make sure that we are not involved in a two-way arms trade, which we are at the moment.”