The Bottom Line
Updated Monday 2 November 2026
Finance Minister Katy Gallagher told ABC Insiders the government cannot promise its December mid-year economic and fiscal outlook will contain more savings than new spending, citing growing pressures in health, aged care and defence. Senator Gallagher said the government's record across each of its previous budgets and mid-year updates had been to deliver overall improvements to the budget position.
The ABC reports that headline inflation came in higher over the year to September, lifting market expectations of a rate rise when the Reserve Bank meets on Tuesday. RBA chief economist Sarah Hunter said, as reported by the ABC, that state and federal government spending was 'definitely' contributing to demand pressures in the economy. The RBA cash rate stands at 4.60 per cent, following four rises this year from 3.60 per cent at the start of 2026, a full percentage point of tightening.
The Guardian reports the centre of the downturn has shifted toward Brisbane and Perth, while rents nationally remain elevated despite vacancy rates beginning to rise.
Liberal MP Garth Hamilton told ABC Insiders he believes he has majority support in the Liberal Party room to rule out any early superannuation access for first home buyers, drawing a parallel with John Howard's 1995 acceptance of Medicare. ABS figures show the unemployment rate was 4.7 per cent in September, its highest reading this year and up from 4.1 per cent in January, as four rate rises weigh on demand.
Every figure is checked against official data or attributed to the body that announced it. Past editions