‘Full steam ahead’ for Aukus deal as Wong and Marles meet Rubio and Hegseth in Washington
The Aukus submarine deal is going “full steam ahead”, Australia and the US have confirmed after a high-level meeting in Washington.
Associated Press reports US secretary of state, Marco Rubio, and defense secretary, Pete Hegseth, met their Australian counterparts on Monday local time for annual talks expected to focus on Indo-Pacific security and countering China’s increasing assertiveness in the region, including in the South China Sea and directed at Taiwan.
Rubio, Hegseth, Australian foreign affairs minister, Penny Wong, and defence minister Richard Marles gathered at the State Department but in remarks before the meeting none mentioned China by name.
“This is a very strong partnership, it’s a strong alliance, and what we want to do is continue to build on it. We think we have a lot of momentum behind this alliance,” Rubio said, hailing cooperation between Washington and Canberra on critical minerals, defence production and troop deployments.
The US president, Donald Trump, and Australian PM, Anthony Albanese, signed a critical minerals deal at the White House in October after China imposed tougher rules on exporting its own critical minerals.
“We have to have critical mineral supplies and supply chains that are reliable, and that are diverse, and not overly invested in one place where they can be used as leverage against us or our partners of the world,” Rubio said on Monday.
Wong said the alliance “has always been to ensure it delivers concrete benefits for our security and prosperity and for that of the United States. And Aukus is central to that: a win for Australia, a win for the US and a win for the United Kingdom,” Wong said. “We are full steam ahead.”
Hegseth echoed her comments, saying that “as we move full steam ahead on Aukus, we applaud Australia’s upcoming delivery of an additional $1bn to help expand US submarine production capacity. We’re strengthening Aukus so that it works for America, for Australia and for the UK.”
Marles said they were “living in a much more contested world, where it really matters to be doubling down with friends and allies and, obviously, America is front and centre and foremost for Australia in that respect”.
Key events
Domestic airfares surge amid Qantas, Virgin dominance
Luca Ittimani
Domestic air fares rose faster than inflation in October as Qantas and Virgin reaped the rewards of a busy sport finals season, the consumer watchdog has found.
School holidays around the country coincided with crowds of fans flying interstate for Brisbane’s AFL and NRL grand finals triumphs over Victorian teams in Melbourne and Sydney.
Late September and October saw 5.5 million domestic passengers as a result, according to the Australian Competition and Consumer Commission’s latest airline report.
Qantas and Virgin added 45 extra flights to meet the demand but services were more full than normal, with 84.4% of seats taken compared with an average of 81.6% over the last year.
That saw air fares hit the highest level in three years, accounting for inflation, the ACCC said. Prices and revenues have risen since 2022 despite jet fuel prices, a major component of airline costs, falling.
If another airline could match the two majors, prices might fall, but there is little competition and therefore less incentive for Qantas or Virgin to reduce ticket prices, the report read.
Virgin accounted for one-third of all domestic flights in October and Qantas, including Jetstar, accounted for nearly two-thirds, with other companies battling for the remaining 2% of passengers.
Patrick Commins
RBA to announce final cash rate decision of the year today
The Reserve Bank is expected to keep the cash rate at 3.6% today, and the focus will be on any clues on whether the monetary policy board thinks it might have to hike in 2026.
Data over recent weeks has shown an unexpectedly sharp rebound in inflation, while national accounts and household spending figures have pointed to an accelerating economy.
Financial markets are now putting a roughly 50% chance of a hike by May, and have fully priced in a move higher by August, according to ANZ.
Economists have also largely abandoned forecasts for rate cuts in 2026, with a handful also predicting a hike next year.
The decision is at 2:30pm, and the RBA governor, Michele Bullock, will give her final press conference of the year an hour later.
Good morning everyone, Nick Visser here to take the reins. Let’s get to it.
Barnaby Joyce says One Nation’s growing popularity part of global rightwing swing
Nino Bucci
Nationals defector Barnaby Joyce says he believes One Nation’s increasing popularity is part of the global movement that explains the rise of Maga in the US and the recent success of other far-right figures, but joked he is much better looking than Nigel Farage.
But Joyce did not answer questions on the ABC’s 7.30 program on Monday night about whether he supported Pauline Hanson’s “long-running vilification of ethnic groups”.
Joyce first said he disagreed that Hanson did vilify ethnic groups, and then when asked about her comment that “we are in danger of being swamped by Muslims, who bear a culture and ideology that is incompatible with our own”, tried to divert the answer to one about the “extremities” of sharia law.
Asked “do you see any comparison with the rise in popularity of One Nation and the rise with the Reform Party in the UK under Nigel Farage?”, Joyce responded:
Yes, I do. And not only that, I think Australia’s late to the party, whether it’s Farage in the UK, whether it’s Le Pen in France, whether it’s Merlino in Italy, whether it’s within the Maga movement within the Republican Party of the United States, it’s a phenomen[on] across the world. Because Australia has compulsory voting, it’s stickier here, but now it’s happening.
Joyce also agreed with statements Hanson made earlier on Monday, that he would have no portfolio within the party, nor had they reached any agreement about a possible future handover in leadership.
He also largely backed what Kevin Hogan, the deputy Nationals leader, said about his reasons for leaving the party: that he did not want to sit on the backbench. Joyce said:
Well, Kevin is right to a degree. I believe that you’ve got to be as effective as you can possibly be, and I don’t believe …sitting in the corner of the Coalition for one and a half years, not getting a question … I’m 58 years old, not 85 years old, and I’m looking forward to giving greater service to our nation. And if I can get myself into a place that’s more efficacious, I’ll do precisely that.
Josh Butler
Albanese tells school students social media ban will ‘ensure Australian children have a childhood’
Anthony Albanese admits the under-16s ban on social media – coming into effect tomorrow – “will require some adjustment”, but told school students in a video address he believes it’s the right thing to do.
The restrictions – which will require TikTok, Snapchat, Instagram, Facebook and others to remove children from their services – begin on 10 December. Albanese has written to all state and territory premiers and chief ministers today, thanking them for their support for the change.
“While this profound change will require some adjustment in the short term, this is the cultural change Australia needs to deliver greater peace of mind for parents and ensure Australian children have a childhood,” the PM wrote in his letters to those leaders.
The PM’s office has also shared a video which Albanese made for young people, and which will be played to students in schools nationwide this week. In the clip, Albanese again concedes the impact the change might have on some children, saying: “If you have questions, by all means, reach out. Talk to your parents, your teachers, and your friends. And if you feel like you need more support, Headspace and Kids Helpline is there to assist.”
Explaining why the government is making the change, Albanese said: “You’ll know better than anyone what it’s like growing up with algorithms, endless feeds and the pressure that can come with that. That’s why we’ve taken this step to support you.”
He recommended under-16s “make the most of the school holidays coming up rather than spending it scrolling on your phone”, urging them to “start a new sport, learn a new instrument, or read that book that has been sitting there on your shelf for some time. And importantly, spend quality time with your friends and your family. Face to face.”
Josh Butler
Reddit reportedly considering legal challenge to social media ban
Reddit says it has “deep concerns” about the under-16s social media ban coming into effect tomorrow, but has agreed to comply with the legislation.
However media reports suggest the platform is considering a legal challenge.
In a statement this morning, Reddit claimed Australia’s law was “legally erroneous”, and went past its original intent.
Reddit said it would begin suspending accounts of users confirmed to be under 16, and require new users to be at least 16 to create accounts. Its statement notes, like YouTube, “Reddit will continue to be accessible to browse without an account”. The platform said it would use an “age prediction model” to estimate users’ ages, which it described as “privacy-preserving”, which includes verifying birthdates through a third-party identity verification provider.
“This is often achieved by sending a photo of a government ID or taking a selfie. Reddit will not have access to this photographic information,” the platform said.
Reddit’s statement said it was “concerned about the potential implications” of minimum age laws.
“We believe strongly in the open internet and the continued accessibility of quality knowledge, information, resources, and community building for everyone, including young people …. By limiting account eligibility and putting identity tests on internet usage, this law undermines everyone’s right to both free expression and privacy, as well as account-specific protections,” the statement said.
“We also believe the law’s application to Reddit (a pseudonymous, text-based forum overwhelmingly used by adults) is arbitrary, legally erroneous, and goes far beyond the original intent of the Australian Parliament, especially when other obvious platforms are exempt.”
The Australian Financial Review reports that Reddit has enlisted top legal representation and is considering a court challenge which may go to the constitution’s implied right of freedom of political communication. A Reddit spokesperson would not comment on the reporting or confirm whether a challenge was in the works, saying only: “The only decision we’ve made is to comply with the law”.
‘Full steam ahead’ for Aukus deal as Wong and Marles meet Rubio and Hegseth in Washington
The Aukus submarine deal is going “full steam ahead”, Australia and the US have confirmed after a high-level meeting in Washington.
Associated Press reports US secretary of state, Marco Rubio, and defense secretary, Pete Hegseth, met their Australian counterparts on Monday local time for annual talks expected to focus on Indo-Pacific security and countering China’s increasing assertiveness in the region, including in the South China Sea and directed at Taiwan.
Rubio, Hegseth, Australian foreign affairs minister, Penny Wong, and defence minister Richard Marles gathered at the State Department but in remarks before the meeting none mentioned China by name.
“This is a very strong partnership, it’s a strong alliance, and what we want to do is continue to build on it. We think we have a lot of momentum behind this alliance,” Rubio said, hailing cooperation between Washington and Canberra on critical minerals, defence production and troop deployments.
The US president, Donald Trump, and Australian PM, Anthony Albanese, signed a critical minerals deal at the White House in October after China imposed tougher rules on exporting its own critical minerals.
“We have to have critical mineral supplies and supply chains that are reliable, and that are diverse, and not overly invested in one place where they can be used as leverage against us or our partners of the world,” Rubio said on Monday.
Wong said the alliance “has always been to ensure it delivers concrete benefits for our security and prosperity and for that of the United States. And Aukus is central to that: a win for Australia, a win for the US and a win for the United Kingdom,” Wong said. “We are full steam ahead.”
Hegseth echoed her comments, saying that “as we move full steam ahead on Aukus, we applaud Australia’s upcoming delivery of an additional $1bn to help expand US submarine production capacity. We’re strengthening Aukus so that it works for America, for Australia and for the UK.”
Marles said they were “living in a much more contested world, where it really matters to be doubling down with friends and allies and, obviously, America is front and centre and foremost for Australia in that respect”.
Welcome
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories and then it’ll be Nick Visser to pick up the slack.
There’s been a high-powered meeting in Washington overnight, as the US secretary of state, Marco Rubio, and defense secretary, Pete Hegseth, met Australia’s Penny Wong and Richard Marles. As you’d expect they had warm words for the alliance between the two countries. They also confirmed it was “full steam ahead” on the Aukus deal to build nuclear-powered submarines for Australia, with Australia due to give the US $1bn to kickstart production. More from the meeting in a minute.
Domestic air fares rose faster than inflation in October as Qantas and Virgin reaped the rewards of a busy sport finals season, the consumer watchdog has found. More in a moment.
A leading economist has warned interest rates are unlikely to be cut for much of 2026 as the Reserve Bank meets for its final monthly meeting of the year. More details soon.
