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The Reserve Bank of Australia has ended a two-year hiatus by raising interest rates to 15 per cent, sparking a fierce political debate over whether government spending or private demand is fuelling persistent inflation. While the Treasurer defends the budget and points to external pressures, the Opposition and the Greens argue that current policy settings are punishing everyday Australians and ignoring alternative economic levers.

The Coalition’s unity has reached a new low following what's being described as a 'terminal' breakdown between key frontbenchers, marking their third significant split since the 2025 election. While leadership maintains that the door remains open for future cooperation, analysts suggest the in-fighting is further alienating a public that is increasingly turning toward minor parties and independent alternatives.

The Coalition has reached a breaking point as the National Party officially splits from the Liberals, following a mass frontbench walkout over controversial hate speech legislation. While Opposition Leader Sussan Ley attempted to block some of the resignations to maintain unity, former colleagues and political rivals alike are labeling the fallout a "smoking ruin" that threatens the future of the alternative government.

New gun control and anti-hate laws have passed the lower house of parliament in response to the Bondi terror attack at a Jewish festival, which killed 15 people last month. They are expected to pass into law, but the process has been far from harmonious.

The Albanese government has amended its proposed response to the Bondi Beach shootings, splitting its wide-ranging hate speech and gun reform package in two in a bid to secure passage through Parliament. Facing resistance from both the Coalition and the Greens over the breadth and rushed nature of the laws, Prime Minister Anthony Albanese has made changes in hopes of receiving support from both political groups to pass each set of reforms.

People who join or support government-designated hate groups will face 15 years jail, under new legislation in response to the Bondi terror attack. Some Coalition MPs have already voiced concern about the laws' impact on freedom of speech - while one prominent extremist group has announced it will disband.

For Australian politics in 2025, it was a year of predictable policies - and shock results. That included the May election that saw Labor win back government in a landslide, and two separate party leaders - Peter Dutton and Adam Bandt - lose their seats. We back at the year in Canberra.

Treasurer Jim Chalmers has unveiled a mid-year budget update marked by fiscal restraint, highlighting a $5.4 billion improvement to the deficit alongside critical new funding for the CSIRO and community security. However, the outlook remains fraught as rising inflation threatens real wage growth and persistent spending pressures in childcare and the NDIS continue to squeeze the bottom line.

Top security officials from the United States and Australia have met in Washington, confirming that the AUKUS security pact is moving "full steam ahead," despite the Pentagon's five-month review of the deal remaining secret. Both nations emphasised increased defence spending, critical minerals cooperation, and greater burden-sharing from allies to confront growing Indo-Pacific tensions.

After five years of review, the government has struck a deal with the Greens to pass the largest reforms to Australia’s environmental laws in 26 years, which includes new environmental standards, protections for native forests, and the effective end of fast-tracked approvals for coal and gas projects. Despite these wins, the deal faces criticism from environmental experts.

The Australian Senate descended into chaos as One Nation leader Pauline Hanson wore a black burqa into the chamber, prompting immediate condemnation from Muslim Senators and a forceful intervention by Foreign Minister Penny Wong. Following the rejection of her motion to ban the burqa, Ms. Hanson's stunt, which she claimed was about "protecting national security," was decried as racist and disrespectful to people of faith, ultimately leading to her suspension from the Senate.

In a landmark agreement hailed as world-leading, the Transport Workers Union, Uber, and DoorDash have put forward a minimum standards deal for Australian gig workers to the Fair Work Commission today. This major reform guarantees food delivery riders a 25% wage increase, injury insurance, and protection from unfair algorithmic dismissal, fundamentally changing a commission-based system that workers say left them making virtually no money.

The Bureau of Meteorology's controversial website redesign carries a staggering 96 million dollar price tag. The cost blowout has drawn sharp criticism from both government ministers and the opposition. Federal Environment Minister Murray Watt has expressed deep concern over the massive expenditure, while Nationals Leader David Littleproud warns the public that the exorbitant cost will further erode trust in the agency.

With the abandonment of its net-zero policies, and leadership spills in two of Australia's largest states, the Coalition is undergoing a period of major upheaval. So what does that mean for a Westminster democracy which analysts say depends on two different political positions to succeed.

Just days after her party ditched its support of net zero emissions targets, federal Opposition Leader Sussan Ley talks to SBS Chief Political Correspondent Anna Henderson about that policy, immigration, and more in a lengthy one on one interview.