ABS Data Confirms Labor’s Cost of Living Crisis is Worsening Putting Pressure on Interest Rates

The Consumer Price Index released by the Australian Bureau of Statistic today shows inflation surged over Christmas, confirming that under Labor the cost of living is getting worse, not better for Australian families.

The data shows inflation accelerated to 3.8 per cent in December, leaving Australian households paying more at exactly the wrong time of year.

After nearly four years of Labor, Australians are paying more for everything:

  • Insurance is up 39 per cent.
  • Energy up 38 per cent
  • Rents up 22 per cent
  • Health up 18 per cent
  • Education 17 per cent
  • Food is up 16 per cent

Housing and rents are now a key driver of inflation, and Labor’s housing and migration settings are worsening supply pressures and feeding the cost of living crisis.

For families facing back to school costs, this is a serious blow. 

Parents are paying more for uniforms, textbooks, lunches, transport, groceries and power, while mortgage repayments continue to bite.

Opposition Leader Sussan Ley said the figures confirmed what families are feeling every day.

“Families are doing everything they can, but under Labor the cost of living is getting worse, not better,” the Opposition Leader said.

“This is not abstract economics, it is the weekly shop, the power bill and the mortgage, and families are paying more because this government refuses to get its spending under control.

“Every extra dollar families are paying at the checkout or on their power bill is a reminder that Labor has lost control of the economy.

“Hardworking Australians expect their government to ease pressure, not add to it, but under Labor the cost of living crisis is deepening.”

Deputy Leader and Shadow Treasurer Ted O’Brien said the ABS data showed inflation was being driven by government policy.

“While the Treasurer is desperate to shift the blame, there is no doubt this Jimflation crisis is homegrown,  Mr O’Brien said.

“With inflation in services and non-tradables both accelerating, the blame lies squarely with the government.”

“Government spending is growing 13 times faster than the Coalition budgeted for and has reached its highest level outside recession in 40 years. 

“This government is competing with everyday Australians for goods and services, pushing up the price of everything.

“This renewed inflation will further erode real wages, increase income tax burdens and add pressure to interest rates.”

The December quarter trimmed mean inflation figure, the measure the Reserve Bank watches most closely, jumped to 3.4 per cent, well above the Reserve Bank’s most recent forecast.

The Reserve Bank has already made clear that rate cuts are off the table and today’s result raises the real risk of another interest rate increase when the Board meets on Tuesday.

The average mortgage holder is already paying around $21,000 a year more in interest than under the Coalition, and that burden could rise even further.

After nearly four years of Labor, Australians were promised relief but are being asked to brace for more pain.

When Labor spends, Australians pay.

City of Newcastle receives national recognition for leadership in equitable workplaces

City of Newcastle is one of only two councils in Australia to be recognised as an Inclusive Employer by the peak national body for diversity in the workplace.

It is the second time City of Newcastle has been included on Diversity Council Australia’s annual Inclusive Employer Index, joining more than 80 organisations nationwide that have been recognised for best-practice inclusion.

Chief Executive Officer Jeremy Bath said City of Newcastle is committed to embedding inclusion across its workforce and culture.

“This recognition is meaningful because it is based on feedback from our people,” Mr Bath said.

“Being one of only two local councils in Australia to receive Inclusive Employer status highlights the strength of our approach to building a workplace where everyone feels respected, supported and able to thrive.

“Achieving this for the second time reinforces our commitment to embedding inclusion in everyday practice.”

To be included on the list, organisations must exceed the National Index Benchmark in at least five out of the six following areas: awareness, engagement, inclusive organisational climate, inclusive leadership, inclusive team, and exclusion. The evidence-based assessment uses staff survey data and independent analysis.

Mr Bath said the recognition reflects City of Newcastle’s ongoing delivery of its Inclusion, Diversity and Equity (IDE) Strategy, which was launched in 2023 around the pillars of inclusive culture, inclusive leadership, and a diverse, representative workforce.

The strategy targets five priority areas: Aboriginal and Torres Strait Islander engagement, accessibility, culturally and linguistically diverse inclusion, gender equity, and LGBTIQ+ inclusion.

Key initiatives of the approach include inclusive leadership programs, tailored staff learning, diverse working groups, workplace adjustments, inclusive recruitment practices, accessibility support, and ongoing awareness campaigns.

Chair of the Access and Inclusion Advisory Committee, Cr Dr Elizabeth Adamczyk, said the recognition is testament to City of Newcastle’s leadership within the local government sector. 

“This acknowledgement recognises what can be achieved when inclusion, equity, and accessibility is embedded into both organisational strategy as well as everyday practice,” Cr Adamczyk said. 

“The work delivered under the City of Newcastle’s IDE Strategy takes an intersectional approach in recognising and supporting the diverse lived experiences and perspectives of each person in the workforce. 

“This recognition is a demonstration of City of Newcastle’s dedication to fostering a strong culture of inclusion and wellbeing for its employees, and in the community more broadly.” 

New strategy boosts NSW’s cyber readiness

Cyber security experts from across NSW Government have collaborated to deliver a new Cyber Security Strategy to better protect essential services and ensure NSW stays ahead of increasingly sophisticated cyber threats.

With more people relying on digital government systems, stronger cyber security is essential to protect people and the services they rely on every day.

The 2026–2028 NSW Government Cyber Security Strategy will reinforce all-of-government coordination to protect against key risks, with a strengthened focus on securing critical infrastructure and third-party supply chains.

The strategy is designed to be responsive, with a two-year planning cycle that allows agencies to focus on today’s risks while adapting quickly as technology evolves, including through AI-enabled attacks and rapidly sophisticated global tactics.

The strategy will lift the public sector’s capacity to identity threats sooner and better coordinate response efforts through Cyber Security NSW, incorporating ID Support, ensuring NSW Government systems are better protected.

It reshapes how government protects and oversees its systems by establishing clearer roles and tighter coordination between government agencies and stronger central supports to deliver faster, more consistent and more resilient cyber defences across NSW.

The strategy also outlines a new assurance framework, strengthened audit responsibilities and faster, standardised reporting of cyber incidents, building on mandatory 24-hour reporting that commenced in August 2025.

With the ever-changing nature of the cyber security landscape, the NSW Government is committed to continuous progress to underpin trust and the digital services used by the community.

For more information, please visit: 2026–2028 NSW Government Cyber Security Strategy | Digital NSW

Minister for Customer Service and Digital Government, Jihad Dib:

“Cyber threats are evolving faster and becoming more sophisticated, that’s why multiple government agencies have collaborated on this strategy, so NSW is more resilient and better placed to stay ahead.

“With more people relying on digital government services than ever before, protecting data and maintaining trust is essential.

“As cyber threats become more complex, ‘set and forget’ is not an option. This strategy allows us to adapt and respond to the ever-changing cyber risk landscape.”

Cyber Security NSW Executive Director, Marie Patane:

“This strategy is based on strengthening our approach to cyber resilience and draws on deep interagency collaboration to ensure we work together across government to protect systems and citizens’ information.

“In the past 12 months we have focused on collaborating closely with Chief Information Security Officers, which has made this strategy possible.

“With the strategy now in place, we have strengthened our foundations to meet the current risk environment and support ongoing security measures to meet whatever the future may hold.”

Details of State Funeral for Professor the Honourable Dame Marie Bashir AD CVO

A State Funeral for Professor the Honourable Dame Marie Bashir AD CVO will take place on Wednesday, 4 February 2026 at St James’ Church, King Street, Sydney at 10:30am.

Dame Marie Bashir served our state with distinction as the 37th Governor of New South Wales from March 2001 to October 2014 and was the first woman to be appointed to the role.

She bought immense dignity and compassion to the role.

She passed away in Sydney on 20 January 2026, aged 95, surrounded by family.

She was a distinguished psychiatrist and a long-standing advocate for mental health, education and social inclusion.

The people of New South Wales held Dame Marie in great respect and affection, reflecting the trust and goodwill she earned over a lifetime of service.

A large screen will be available in Martin Place for members of the public wishing to pay their respects and watch the State Funeral.

The service will also be available to watch online on the NSW Government website.

All details of the State Funeral can be found at: https://www.nsw.gov.au/mariebashir

$38.3 million investment to future-proof TAFE NSW skills training on the Central Coast

The Minns Labor Government is investing $38.3 million over four years to overhaul skills training on the Central Coast, delivering modern, industry-aligned facilities across TAFE NSW Gosford, Ourimbah and Wyong.

The investment will deliver industry standard training spaces that mirror real workplaces and prepare students for real jobs in the region’s fastest-growing industries.

TAFE NSW Gosford will receive a major upgrade with a new state-of-the-art simulated health hub for ageing, disability and nursing training, a dedicated Aboriginal Yarning Circle, and relocated student support services to improve access and engagement.

The Ourimbah campus will be transformed with new simulated hair and beauty salons, fitness and remedial massage facilities, upgraded horticulture training spaces, a refreshed library, enhanced student support services, and modern general-purpose learning spaces.

TAFE NSW Wyong will become a stronger trades powerhouse with new engineering, machining and fabrication facilities, building on existing electrotechnology, plumbing and automotive training, alongside new learning spaces and staff work areas.

These works will be delivered in consultation with TAFE NSW teaching delivery teams to ensure facilities are practical, fit for purpose and support high-quality, industry-aligned training.

Staged works will commence in early 2026, with benefits for local students and community to be delivered progressively.

Minister for Skills, TAFE and Tertiary Education, Steve Whan said:

“This is a big investment in skills that lead directly to jobs on the Central Coast.

“We’re bringing training together in modern hubs and making sure students are learning in facilities that reflect real workplaces and real employer needs.

“It means better training, stronger outcomes and more opportunities for people to build careers close to home.”

Minister for the Central Coast and Member for Wyong, David Harris said:

“This investment is about backing local workers and local industry with the skills they need to grow.

“The new engineering, machining and fabrication facilities at TAFE NSW Wyong will strengthen our growing region’s trades pipeline and give people the chance to train for secure, well-paid jobs right here on the Central Coast.”

Member for Gosford, Liesl Tesch said:

“This is a significant boost for health training in Gosford.

“A dedicated simulated health hub means students training in ageing, disability and nursing can develop hands-on, job-ready skills locally, supporting both our workforce and our community.

This is about transforming TAFE NSW to deliver the best vocational outcomes for our Coasties.”

Member for The Entrance David Mehan said:

“Ourimbah is a key training campus for the Central Coast, and this investment takes it to the next level.

“Upgraded hair and beauty, fitness and remedial massage facilities, improved horticulture spaces and better student services will make a real difference to students and their learning experience.”

New Northern Beaches Hospital High Volume Surgery Hub to power through waitlist

The Minns Labor Government will establish the State’s first High Volume Planned Surgery Centre at Northern Beaches Hospital, expanding the hospital’s role and helping reduce surgery wait times across NSW.

From 1 July 2026, up to an extra 5,000 surgeries will be performed at the hospital each year through the newly established Planned Surgery Centre.

It will focus on high-demand specialties such as ophthalmology, orthopaedics, ear, nose and throat (ENT), general surgery and gynaecology, to help reduce surgical wait lists while easing demand on hospitals across the state and giving patients more choices in their care.

Patients will be referred to the Planned Surgery Hub from some of the busiest areas across NSW, including Western Sydney, the Central Coast and the Illawarra.

Patients can be directly referred to the Centre by their treating specialist if they are accredited to work at Northern Beaches Hospital or can choose to be transferred from a waitlist at their ‘home’ facility.

Information on how to be referred to the NBH will be released ahead of the Centre’s opening.

The new Planned Surgery Centre builds on the Minns Labor Government’s decision to return Northern Beaches Hospital to public ownership later this year, reversing one of the state’s most damaging privatisation experiments.

The hospital will come under the management of Northern Sydney Local Health District and part of NSW Health by mid-2026.

Under the agreement for transition of the hospital:

  • The entire 494-bed hospital will return to public ownership
  • All clinical and support staff currently working at Northern Beaches Hospital have been offered jobs by NSW Health at the facility, and
  • Staff entitlements to annual, long service and sick leave will transfer across from Healthscope to NSW Health.

NSW Health appointed health sector leader David Swan to provide independent expert advice on future private health opportunities at Northern Beaches Hospital.

More than 1,800 existing Northern Beaches Hospital staff – including nurses, midwives, allied health professionals and support staff – have been offered roles with NSW Health at Northern Beaches, with offers to medical staff commencing in February 2026.

The Minns Labor Government continues to repair the damage caused by the former Coalition Government’s failed privatisation agenda, which also included the attempted privatisation of hospitals at Maitland, Wyong, Goulburn, Shellharbour and Bowral.

The passage of Joe’s Law now protects NSW communities from future privatisation of public hospitals.

Premier Chris Minns:

“This will improve access to healthcare by speeding up planned surgeries across the state.

“By adding a high-volume planned surgery centre, we’re increasing capacity across the whole system, reducing wait times and easing pressure on busy public hospitals.”

“We’ve brought Northern Beaches Hospital back into public hands, and now we’re expanding the services it can deliver for patients right across NSW.”

Treasurer Daniel Mookhey:

“This is the next step in reversing the Liberals’ epic privatisation failure at the Northern Beaches Hospital.

“This critical health service is being returned to what it should have been from the start – a publicly run facility that puts people before profit.

“This failed experiment cost $190 million to fix. It stands as a stark warning of the risks that come when the Liberals privatise essential services.”

Minister for Health Ryan Park:

“The aftermath of the Liberals’ legacy of privatisation has been seismic, and if they had it their way, five other hospitals around the state would have been subject to PPPs.

“It hasn’t been easy, but we have acquired this hospital in record time.

“Overdue surgeries peaked under the Liberals, and the health system has been working to reduce these as quickly as possible.

“I’m so pleased that the state’s new High Volume Planned Surgery Centre will boost our health system’s surgery capacity to help patients receive the care they need more quickly.

“This is a win for the Northern Beaches community and for patients right across NSW.

“With the establishment of the Centre, we will be able to offer thousands more patients each year the choice to have their surgery quicker, while providing some much-needed relief to hospitals around the state.”

Northern Sydney Local Health District Chief Executive Adjunct Professor Anthony M. Schembri AM

“Northern Beaches Hospital boasts world-class surgical facilities and a wealth of surgical expertise.

“This Planned Surgery Centre will not only benefit the community of the Northern Beaches but patients right across the state who will experience quicker access to elective surgery.”

Free street events make blockbuster events accessible to all

The state’s most popular events like the Deni Ute Muster and Bluesfest will now become even more accessible and affordable for everyone, with the Minns Labor Government supporting councils to add free vibrant street parties to foundation events in NSW. 

This weekend the Tamworth Country Music Festival embraced the Open Streets program by expanding their offering with four days of free Fringe Zone programming, including line-dancing lessons, whip-cracking demonstrations and live entertainment – all free to attend. 

The NRL Grand Finals, Sydney Gay and Lesbian Mardi Gras, the Sydney Marathon and the Bathurst 1000 will also benefit through this round of funding. 

The latest $4 million grant from the Open Streets Program help major festivals and sporting events expand beyond ticketed models, recognising the cultural and economic impact these drawcard events, known as Foundation Events, have on NSW.  

The Open Streets program is designed to open public spaces for events that bring communities together without having to break the bank. Previous Council-run Open Streets events recorded local business revenue increasing by 60 percent, and almost all visitors said they would revisit the area as a direct result of the grants. 

In combination with supporting the free street events, the NSW Government’s Permit/Plug/Play program is supporting over 35 local councils to reduce the costs of activating their streets for community events. Local councils were reporting costs of around $100,000 per day for hosting street events. 

The results from the 2024 program showed councils were reducing those costs by 40% on average by installing permanent event

infrastructure including retractable bollards, and power and water facilities, as well as streamlining development applications and transport management plans. 

Upcoming Open Streets (Foundation Events)  

March 2026  
  • 28th – 29th Streets Alive Brunswick presented by Byron Bay Bluesfest  
June 2026  
  • 12th Closing Night at the 25th Biennale of Sydney  
August 2026   
  • 15th – 17th Mundi Mundi Lightfest by the Broken Hill Mundi Mundi Bash
  • 27th – 30th Garra (working title) by TCS Sydney Marathon
  • 29th – Official Opening Party at the Sydney Fringe Festival  
September 2026  
  • 29th – 30th Spirit of the Muster Street Festival by Deni Ute Muster  
October 2026   
  • 1st – 2nd NRL Fan Fest for the NRL Men’s & Women’s Grand Final
  • 6th – 11th Brock Heritage Festival by Bathurst 1000  
January 2027  
  • 6th – 10th Parkes Elvis Festival expansion
  • 20th – 23rd Fringe Zone Year 2 at Tamworth Country Music Festival  
February 2027  
  • 20th The Rainbow Mile Block Party at the Sydney Gay and Lesbian Mardi Gras   

For more information, visit the Open Streets Program website.  

Minister for Transport John Graham said:

“By supporting free street parties at these iconic events, we’re making sure everyone can join in the fun, no matter their budget.  

“We’ve scrapped the lockout laws, cut red tape and boosted local street events to bring back fun to NSW in a way that supports local businesses and helps families face the cost-of-living challenge.   

“These street parties where everyone feels welcome, have proven that they increase revenue for local business, they also harness one of our most important public spaces – our streets.  

“If you were on the fence about coming to one of these events, cost will no longer be an excuse! Come on down!”  

MC-55A Peregrine: a first-of-type capability strengthening Australia’s Defence

The first of four MC-55A Peregrine – Australia’s inaugural airborne Intelligence, Surveillance, Reconnaissance and Electronic Warfare (ISREW) aircraft – has arrived, marking a major milestone in strengthening the nation’s sovereign defence capability.

The Albanese Government is pleased to announce the first MC-55A arrived at RAAF Base Edinburgh, South Australia, late last week. Modelled on the Gulfstream G550 airframe and extensively enhanced by L3Harris Technologies, the MC-55A is a long-range, surveillance and reconnaissance aircraft designed to deliver multiple sources of intelligence in support of Defence operations.

This advanced capability reinforces Australia’s national defence posture and contributes to deterrence. Integrated within a focused and agile force, the MC-55A ensures the Royal Australian Air Force (RAAF) is ready to detect, disrupt, deter, and if necessary defeat threats – underpinning the Australian Defence Force’s (ADF) commitment to readiness and resilience.

The MC-55A will be a key component of Australia’s broader ISR enterprise, complementing platforms such as the P-8A Poseidon and MQ-4C Triton, and forming a critical link in the nation’s sovereign network of surveillance and electronic warfare assets.

Operated by Number 10 Squadron, the MC-55A Peregrine will be based at RAAF Base Edinburgh, South Australia.

the Deputy Prime Minister and Minister for Defence, the Hon. Richard Marles MP:

“The introduction of the MC-55A Peregrine represents a significant step forward in strengthening Australia’s ability to monitor and protect its strategic interests, including key maritime approaches.

“This capability will integrate seamlessly with allied and partner systems, enabling the Air Force and ADF to share intelligence with security partners like the United Kingdom and United States – reinforcing our collective security and enhancing regional stability.”

Minister for Defence Industry, the Hon. Pat Conroy MP:

“This investment strengthens Australia’s sovereign intelligence, surveillance, and electronic warfare capability and ensures our Defence Force is prepared for the challenges of tomorrow.”

Chief of Air Force, Air Marshal Stephen Chappell DSC, CSC, OAM: 

“The introduction of the MC-55A to Air Force’s fleet will ensure we have a critical enabler for advanced ADF capabilities and, as identified in the 2024 Integrated Investment Program, provide important intelligence information to support ADF missions.  

“The MC-55A Peregrine is more than an aircraft—it is a strategic capability that reinforces our ability to protect national interests in an increasingly complex security environment.”

Strengthening partnerships with Pacific Island Leaders

Today, we welcome Solomon Islands Prime Minister Manele, Tongan Prime Minister Lord Fakafanua, Palaun President Whipps and the Secretary General of the Pacific Islands Forum (PIF) Baron Waqa to Australia for a meeting of the PIF Troika in Brisbane.

The Albanese Labor Government will strengthen our commitment to backing Pacific-led climate solutions by investing a further $550 million for the Australian Infrastructure Financing Facility for the Pacific (AIFFP).

At the invitation of the PIF Secretariat, Minister Bowen will join the PIF Troika, consisting of the current PIF Chair (Solomon Islands), incoming Chair (Palau) and outgoing Chair (Tonga), to discuss progress on arrangements for a special pre-COP hosted in the Pacific.

Minister Bowen will sign a Memorandum of Understanding on a Renewable Energy and Climate Partnership with Tonga, and meet with President Whipps to discuss climate solutions and progress of the Palau-Australia Renewable Energy Partnership.

Minister Wong will welcome Lord Prime Minister Fakafanua for his first visit to Australia since his election as Prime Minister in December 2025, and since Australia and Tonga committed to elevate our partnership through the Kaume’a Ofi agreement.

Minister Wong will also meet with Prime Minister Manele to discuss Australia’s commitment to our economic, development and security partnership with Solomon Islands.

In discussions with President Whipps, Minister Wong will confirm Australia’s support for Palau to deliver a successful and impactful PIF Leaders meeting later this year.

The AIFFP, Australia’s major critical infrastructure provider, is already delivering 58 projects across 11 countries, including ports, airports, renewable energy infrastructure and undersea cables. For more information visit: The Australian Infrastructure Financing Facility for the Pacific (AIFFP)

Foreign Minister Penny Wong:

“Australia is backing Pacific-led climate solutions – investing in the Pacific Resilience Facility and in new energy partnerships.

“At a time of major global uncertainty, Australia’s additional $550 million investment will deliver further critical infrastructure projects, with a particular focus on digital infrastructure development.

“As a founding member of the PIF, Australia is a reliable partner for the Pacific, working to shape a peaceful, stable and prosperous region.”

Climate Change and Energy Minister Chris Bowen

“We are bringing the world to the Pacific to see climate impacts and solutions through the COP process.

“Climate action remains the greatest lever to protect the livelihoods, security and wellbeing of the people of the Pacific.

“Today Australia and Tonga strengthened our collaboration on renewable energy and climate action, delivering on Pacific priorities to cut emissions while cutting the cost of energy.”

GREENS SAY THINGS WILL ONLY GET WORSE WITH NEW COAL AND GAS AS AUSTRALIA SET TO BE THE HOTTEST PLACE ON EARTH TODAY AND RECORD TEMPERATURES TO HIT VICTORIA

The Greens are calling for an end to new coal and gas projects as record temperatures are set to hit Victoria today and Australia is forecast to be the hottest place on earth.

The Victorian town of Ouyen is expected to hit 49 degrees, which would set a new record for Victoria while Melbourne is forecast for 45 degrees. 

With a total fire ban, regional communities are anxiously watching for new fires as an out of control fire burns in the Otways. 

Meanwhile over the last 9 months, Victorian Labor approved 5 new coal and gas projects. Labor cleared fossil fuel giant ConocoPhillips to start drilling the Otway Basin early last year, and hit gas in November.

Labor continues to fast-track new fossil fuel projects in Victoria. In December alone, the Allan Labor government opened parts of Gippsland and the Otways for gas drilling, a day before the Albanese government opened five new areas for offshore exploration.

The Greens say with Labor opening up new coal and gas projects, we should expect to see more extreme heat days and unpredictable weather. 

Acting Leader of the Victorian Greens, Sarah Mansfield. 

“Every week since the start of this year, Victorians have experienced a catastrophic climate event. In my electorate, along the Great Ocean Road the same communities have faced devastating fires, floods, and now fires again. Yet just offshore from them last month, Labor has approved multiple new gas projects in the Otway Basin. Labor’s disconnect is astounding.


“It’s unconscionable that Labor is continuing to approve new coal and gas. What we’re experiencing is what climate scientists have warned us about for decades – it’s terrifying that those warnings have become our reality, and with Labor’s new coal and gas projects in the pipeline, things will only get worse. 

“Meanwhile, the fossil fuel corporations who are causing this are being allowed to rake in billions while CFA volunteers risk their lives to protect communities and we’re left to clean up the mess. It’s completely unjust.