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Politics

Sussan Ley makes history, but faces unprecedented levels of difficulty

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As if by visual metaphor, Sussan Ley’s task seemed both obvious and impossible in her first press conference as the new Liberal leader.

Mark Kenny, Australian National University

Three years ago this month, Ley had done something uncannily similar to what Ted O’Brien was doing now. Then, it had been her standing next to Peter Dutton as his dutiful deputy. The freshly installed pair talked a big game about the contest ahead, assured of the urgency of their mission and the potency of their message.

Ley had enthusiastically supported Dutton’s leadership. But now in 2025, it was Ley fronting the press, this time as the new leader following the catastrophic rejection of that Dutton-Ley project, the Liberal Party’s worst ever defeat.

It was the inexperienced O’Brien at her side, newly elected as her bright-eyed second in command.

Policy rethink?

Sharpening the metaphor, it had been O’Brien who had acted as chief design architect and salesperson for one of the Coalition’s most expensive yet unloved policies in the May 2025 election – nuclear power stations, government built and operated.

Back in 2022, Dutton’s task had seemed difficult, but success was far from unimaginable as he faced a new Labor government elected with a record-low primary vote and a tiny two-seat majority.

Ley’s degree of difficulty three years hence is some orders of magnitude greater, not least because of O’Brien’s nuclear energy policy – which will be high on the list of policies to be reviewed, and presumably ditched, if a Liberal recovery is to occur.

Stripping away unhelpful policy that is nonetheless beloved in sections of the party’s conservative and right wing base, is a threshold challenge for Ley – one of a panoply of traps and trying circumstances she confronts.

Ley’s challenges

First, there’s the simple maths given the Coalition now trails the Labor Party by a staggering 50-plus seats.

Few observers think the Coalition can seriously compete for government at the 2028 election. Thus, Ley needs to keep hope alive among Liberal mps and senators, even when the prize of power seems two terms away.

Then there’s her task of leading the Liberal Party back to the political centre-ground or as she puts it, meeting Australian voters “where they are”. This seems like politics 101. Yet she faces many internal sceptics.

Leadership tightrope

At 29 votes to 25, Ley’s victory against a more right-wing candidate, Angus Taylor was narrow and reportedly relied on the votes of senators whose terms end on June 30.

In other words, even her current majority could evaporate.

It is worth remembering that by December 2009, just two years after the Howard government ended, the Liberal Party was already on to its third opposition leader.

Doing it her way

So what effect will she have on the Liberal Party? In her first press conference she gave several clues.

In contradistinction to Dutton, who avoided Parliament House press conferences and searching interviews, Ley gave a crisp three word answer when asked if she would front up to these rituals of public accountability – “yes, I will”.

She promised to make tax reform and economic policy the “core business” of the party she leads.

There was also a marked, if measured, departure from the bombastic declarative culture war politics of Dutton on matters like standing in front of the Aboriginal flag and welcome to country ceremonies at public events. On both, she expressed a more pragmatic acceptance:

If it’s meaningful, if it matters, if it resonates, then it’s in the right place and as environment minister and health minister I listened carefully and participated in Welcome to Country ceremonies. If it’s done in a way that is ticking a box on a Teams meeting then I don’t think it is relevant.

On other matters, she noted pointedly that RG Menzies had founded the party as the “Liberal” party not the conservative party, while acknowledging a breadth of alternative opinions among her parliamentary colleagues:

Our Liberal Party reflects a range of views from all walks of life that are welcome in our party room and that is one of our great strengths.

Ley the history-maker

That Ley is the first ever woman to lead the federal Liberal Party will pose potential challenges.

To pretend that gender stereotyping will play no role in any undermining by internal critics and media would be to ignore history.

Asked about the exodus of female voters from the Coalition at the election, Ley said, “We did let women down, there is no doubt about that,” as she expressed the need for “genuine, serious” engagement:

I want to say right here and now we need more women in our party. We need more women in the organisation, and we need more women in this party room.

However, she pointedly stopped short of backing affirmative action quotas in the Liberal Party even as she called for more women in the parliament.

Gaza about-face

Perhaps the most telling “real-time” demonstration of the uneasy balance she hopes to achieve as leader of a party that has shifted markedly to the right, was when she as was asked about the Israel-Gaza question.

As a former member of a cross party group called Parliamentary Friends of Palestine, Ley had implored parliament in 2008 to “think not of the Palestinian leadership, think of the people”.

She had described Gaza as “besieged, contained, and on the brink of starvation” while warning that a “crushing economic embargo feeds fury and resentment” both in Gaza and the West Bank:

Israel has many friends in this country and in this parliament. The Palestinians, by comparison, have few. Theirs is not a popular cause […] but it is one I support.

Asked about her view now, Ley felt the need to circle back to stress her principle concern over the rising tide of antisemitism in Australia. She now says the “hideous events” of October 7 has changed her thinking on the matter.

Gaza has given Sussan Ley an early lesson on the difficulties leaders face when it comes to straddling highly contentious issues.

Mark Kenny, Professor, Australian Studies Institute, Australian National University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Politics

Musk calls for Americans to oppose Trump’s tax bill

Elon Musk urges Americans to oppose Trump’s tax bill, calling it a “disgusting abomination” amid rising criticism.

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Elon Musk urges Americans to oppose Trump’s tax bill, calling it a “disgusting abomination” amid rising criticism.

In Short:
Elon Musk has strongly opposed Donald Trump’s tax bill, labelling it a “disgusting abomination” and urging Americans to contact their lawmakers. His criticism comes amid Republican scrutiny of the legislation, which could lead to significant increases in US budget deficits.

Elon Musk has intensified his opposition to Donald Trump’s tax bill, urging Americans to take action.

Musk posted on social media, calling for individuals to contact their lawmakers. He expressed strong disapproval of the legislation, labelling it a “disgusting abomination” that threatens to bankrupt the nation.

This criticism follows increased scrutiny from Republican fiscal conservatives regarding the extensive fiscal package.

While Trump has not publicly reacted to Musk’s comments, the White House defended the bill, stating it would lead to substantial economic growth. House Speaker Mike Johnson also countered Musk’s statements, asserting that the tax cuts would be self-financing through economic expansion.

Musk’s strong stance on the tax legislation aligns him against the president during a pivotal moment, as Trump seeks to persuade hesitant lawmakers. Musk’s campaign against the bill could complicate and delay its implementation, along with the associated debt ceiling increase.

This opposition occurred shortly after Musk completed a brief role aimed at reducing federal spending. The effect of his involvement in the Trump administration has reportedly diminished Tesla’s brand reputation, contributing to a decline in electric vehicle sales.

According to estimates from the Congressional Budget Office, the tax and spending plan passed by the House could increase US budget deficits by $2.4 trillion over the next decade.

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Australia’s lowest paid workers receive a 3.5% wage increase

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Australia’s lowest paid workers just got a 3.5% wage increase. Their next boost could be even better

Carlos Castilla/Shutterstock

John Buchanan, University of Sydney

A week ago, the Australian Financial Review released this year’s “Rich List”. It reported the number of billionaires in Australia increased from 150 to 166 between 2024 and 2025.

A very different story is happening at the other end of the market. On Tuesday the Fair Work Commission awarded the lowest paid 20% of wage earners a 3.5% increase as a result of its annual review.

The commission acknowledged even with this increase, our lowest paid employees will not be earning as much in real terms as they did before the post-COVID inflationary surge of 2021-2022.

Why such a meagre increase?

In Australia it has long been accepted that – all things being equal – wages should move with both prices and productivity.

Adjusting them for inflation ensures their real value is maintained. Adjusting them for productivity means employees share in rising prosperity associated with society becoming more productive over time.

This “prices plus productivity” model of wage rises is, however, subject to economic circumstances. In recent times the key circumstance of concern has been inflation.

Depending how it is measured it peaked at between 6.5% and 9.6% in 2022-2023.

Since 2022, economic agencies such as the Reserve Bank and state treasuries, along with finance sector economists, have been preaching about the threat of inflation persisting.

Cutting real wages to control inflation

Interest rates were increased to tame the inflation dragon. And these
agencies all issued dire warnings about the threat of long-term inflationary pressure if wages were adjusted to maintain lower and middle income earners living standards.

In its last three decisions the Fair Work Commission accommodated this narrative. Since July 2021 it ensured wages for the lowest paid 20% of employees did not keep up with inflation.

Unsurprisingly, real wages for award-dependent employees fell.

The commission has done its best to look after those on the absolute lowest rates: that is the 1% or so on the national minimum wage.

Their wages have fallen by 0.8% over the period since July 2021. For those in the middle of the bottom 20% of employees dependent on awards the fall has been in the order of 4.5%.

For example, this is the fall experienced by an entry level tradesperson in manufacturing dependent on an award.

Because inflation is currently running at about 2.4%, the 3.5% increase marks a modest 1% real wage gain for a worker on or close to the entry level manufacturing tradesperson rates.

In making this increase, the commission argued if real wage cuts continued, the entrenchment of lower minimum award rates was likely. It noted the economy is in pretty good shape – not just in terms of inflation and employment – but also many firms are turning a profit.

What about productivity?

The other striking feature of the post-COVID economic recovery has been poor productivity performance. It initially went backwards and more recently has flatlined.

The commission rejected arguments recent poor performance in national productivity numbers should prevent raising the minimum award higher than inflation.

It did this because it distinguished between productivity in the market and non-market sectors. In the former, productivity growth has been modest, but positive.

Poor numbers in the non-market sector like health and social services were an artefact of both measurement problems and the need for more workers per unit output to boost the quality of these services.

Silver linings?

It is always a judgement call as to what is the appropriate scale of any wage increase. Given low paid workers were not the source of recent inflationary pressure, it is reasonable to claim now is the time to reverse the recent trends of cutting their real wages.

Whether the increase had to be so modest is something the commission has
indicated it is open to considering in future hearings. It has sent this signal by floating two novel arguments.

The first argument concerns how cuts in real pay are calculated. In its decision it makes the very important point that conventional measures of real wage movements use monthly measures of inflation but wages only increase annually.

It’s on this basis the 4.5% cut for the benchmark entry level trade worker in manufacturing was calculated.

The commission notes, however, that if you take into account wages only rise once a year and inflation rises continuously, the overall loss of earnings power for such workers has been 14.4% since July 2021.

This is a much higher account of real wage cuts than has previously informed debates on wages policy.


FairWork Commission Annual Wage Review 2025, CC BY-NC-ND

Secondly, the commission has noted consideration should be given to phasing out some of the lowest classifications in the award system. This is something it has done in the past.

In this way it does not have to “increase rates” for low paid
classifications as such. Rather, it just eliminates the possibility of having rates for exceptionally low paid jobs – and so raises the base rates dramatically for the lowest paid workers.

Next year, things could be better. Australia has a long history of having a wages system that takes seriously the needs of all workers, and especially the low paid. This decision marks a break with the recent habit of using the lowest paid workers as a shock absorber for macroeconomic policy.

The 3.5% rise is a modest increase but an important one. More important is the framework the commission has set up for decisions in future years. Devising a more accurate measure of real wage cuts and noting the importance of abolishing whole classifications of low paid work lays the foundations for potentially very exciting developments in Australian wages policy in coming years.

John Buchanan, Professor, Discipline of Business Information Systems, University of Sydney Business School, University of Sydney

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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Politics

Coalition backs remote work for increased productivity

Coalition shifts stance, supports working from home to boost productivity and embrace AI, prioritising flexibility and deregulation.

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Coalition shifts stance, supports working from home to boost productivity and embrace AI, prioritising flexibility and deregulation.

In Short:
The Coalition now supports remote work to boost productivity, a change from Peter Dutton’s earlier position. Opposition spokesman Andrew Bragg aims to address barriers to working from home, acknowledging its benefits for the economy and job satisfaction.

The Coalition will support removing barriers to working from home to enhance productivity, a significant shift from Peter Dutton’s previous stance during the election.

Opposition spokesman Andrew Bragg stated that the Coalition aims to promote working-from-home arrangements to create a more dynamic economy. His comments follow a trend among senior MPs who have acknowledged the mistake of advocating a ban on remote work for federal public servants.

Bragg’s commitment to championing working from home coincides with considerations by the Fair Work Commission and increased pressure from some employers for staff to spend more time in the office. He endorsed a recent Productivity Commission report highlighting the benefits of working from home for productivity and job satisfaction.

Promote flexibility

Bragg emphasised the importance of identifying and addressing barriers to effective remote work. He expressed a desire to promote flexibility in the workforce, noting that working from home often supports productivity.

Meanwhile, Dutton abandoned his previous policy requiring public servants to work onsite, attributing the shift to voter misunderstandings regarding its applicability to the private sector.

Bragg will collaborate with Tim Wilson, the new industrial relations and small business spokesman, on a workplace strategy embracing the benefits of artificial intelligence. Bragg advocated for a balanced regulatory approach, viewing AI as a potential driver of productivity rather than a risk.

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