Australian politics live: RBA tipped to lift rates to seven-year high, Senate to debate climate trigger

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Key events

Solomon Islands election funding offer

Penny Wong is speaking about Australia’s offer to Solomon Islands to help fund its coming election. Wong says it is not in response to Solomon Islands’ opposition’s concern the election will be delayed and is part of a historic partnership Australia has with the islands to support it.

Does the government’s offer to help fund the Solomon Islands election reflect concerns that PM Sogavare is planning to delay the poll?

“It reflects a long standing and historical commitment to supporting democracy and democratic processes in the Solomon Islands”

@SenatorWong

— RN Breakfast (@RNBreakfast) September 5, 2022

Penny Wong: “calm down” about diplomatic appointments

Penny Wong is speaking to ABC radio RN where she has congratulated Liz Truss for her elevation to the UK prime minister.

But pressed on when the government will make an announcement on the new high commissioner to the UK, Wong says her focus has been on the Pacific and people should “calm down” about appointments.

I know there has been a lot of speculation and people … should just calm down. We’re obviously working through quite a lot of appointments … over the coming year. There’s a few appointments coming up, but to be honest with you, my focus has been more on what I said I will do before the election, which is to prioritise engagement with the Pacific and south-east Asia, so appointments have not been the top of my list.

Good morning

It’s day two of this two-week sitting and it already feels like a month, so we are absolutely back in the swing of things.

Tuesday means party room meetings, so everyone will retreat back to their corners for a little bit before parliament resumes. The sitting always starts a little later on Tuesdays for that reason.

Shortly after it does sit though – smack bang in the middle of question time in fact – the RBA will hand down its latest interest rates decision. Most pundits are expecting a .5 % increase to the cash rate –which would take it 2.35%. Interest rates began rising in May from historic lows, but with inflation continuing to rise, so too will interest rates. September will be a tough month – the cut to the fuel excise will also expire at the end of this month meaning petrol will also become more expensive. Don’t expect that to be extended either – Jim Chalmers has been very clear that is not something the government is entertaining.

In the parliament, senators are hoping to amend the government’s climate bill to give it a bit more oomph, which means it won’t have a quick passage.

Last night, as Sarah Martin and Paul Karp reported, Anthony Albanese promised the resources sector an ‘orderly transition’ from fossil fuels:

Anthony Albanese has promised to work with the resources sector to “reduce emissions in a predictable and orderly way” as Labor comes under increased pressure from the Greens to ban emissions intensive projects.

Albanese made the comment to the minerals industry parliamentary dinner on Monday, suggesting the “cooperation and dialogue” Labor achieved at the two-day jobs and skills summit“should be the rule” not a “48-hour exception”.

The Greens want a climate trigger – which would mean any new fossil fuels project would have to prove it won’t increase emissions before being approved. Leader Adam Bandt promised that his party would keep pushing the government to do more on climate and this is just one of the first steps.

Sarah Martin, Josh Butler and Paul Karp will be all across it as usual (Murph and Dan Hurst are still on leave for those asking) and Mike Bowers will also be all over all the things, as this day unfolds. You have me, Amy Remeikis with you for most of the day. It’s going to be a four-coffee day at least – so I hope you’re ready.

Let’s get into it.

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