Good morning. Here's what happened overnight and what you need to know today.
1.
Cash splash: Treasurer Jim Chalmers is expected to unveil a loosening of fiscal policy in next week's federal budget amid an anticipated $25 billion increase in tax revenue over the next four years. While this extra revenue will largely be banked, spending increases and cost blowouts are projected to more than offset it, leading to a worsening budget position from 2024-25 onwards compared to December's mid-year forecasts, with more substantial deficits. Chalmers flagged a smaller than expected revenue upgrade, citing a fall in commodity prices and a softer labour market. “We are realistic about the challenges facing our economy and our budget,” Chalmers said. The treasurer aims to strike a balance between supporting economic growth, easing cost-of-living pressures, building fiscal buffers and getting inflation under control. However, some economists urge spending restraint to avoid adding to inflationary forces, advising savings measures to offset any new spending initiatives. The government yesterday announced a change to HECS-HELP indexing, wiping $3 billion in student debt. (Australian Financial Review)(The Australian)
2.
Shut down: Israeli officials raided and seized equipment from Al Jazeera's Jerusalem offices on Sunday, hours after the government ruled that the Qatar-based network could not operate in Israel. Communications ministry inspectors, accompanied by police, confiscated equipment and cut off Al Jazeera's broadcasts and website access throughout Israel. Communications Minister Shlomo Karhi, a key advocate for terminating Al Jazeera's activity in Israel, posted a video of inspectors confiscating equipment during the raid. Al Jazeera denounced the "criminal act" as a violation of human rights, while the Association for Civil Rights in Israel petitioned the Supreme Court against the move, which the Foreign Press Association condemned as aligning Israel with "authoritarian governments" targeting media. The shutdown stems from a new law allowing Israel to act against foreign outlets deemed harmful based on consultations with security officials. (Reuters)(Financial Times)
