KPMG Chief Economist Dr Brendan Rynne says a larger proportion of Australians will be “captured” by higher marginal income tax rates, which they have still been “uncompensated for” after the Albanese government scrapped the stage three tax cuts. Prime Minister Anthony Albanese has defended his decision to change the much-promised stage three tax cuts, with the new reformers providing greater tax cuts for Australians earning below $146,486. The government claims the tax changes will benefit an estimated 11.5 million people. “Our preliminary calculations suggest that what we’re going to see is that proportionally more Australian taxpayers getting captured by higher marginal income tax rates than what was proposed under stage three. “Stage three was specifically designed to deal with bracket creep, although it wasn’t going to be fully addressing it. “Our initial analysis suggests that while the first, second and third tax brackets are largely dealt with in terms of bracket creep … it’s really the top two tax brackets that are still being uncompensated for that bracket creep.”

KPMG Chief Economist Dr Brendan Rynne says the stage three tax cuts and the Albanese government’s changes will have a “stimulatory effect” on inflation, which is “going to be a bit of a challenge”. Prime Minister Anthony Albanese has defended his decision to change the much-promised stage three tax cuts, with the new reformers providing larger tax cuts for Australians earning below $146,486. The government claims the tax changes will benefit an estimated 11.5 million people. After facing backlash for the tax cut backflip this week, the prime minister doubled down, backing his decision. “We don’t think the proposed changes themselves that the government put forward are largely more stimulatory than the stage three tax cuts themselves,” Dr Rynee told Sky News Australia. “They’re a little bit more but virtually negligible. “However, the stage three tax cuts themselves are a little bit inflationary. “I think our concern, from a timing perspective, is that we’re really trying to be in a period where we’re bringing inflation down, and this stimulatory effect regardless … is going to be a bit of a challenge.”

Israeli government spokesperson Eylon Levy says Hamas “squandered” international aid and built their network or tunnels rather than “building a prosperous city above ground” in Gaza. “We hope that a post-Hamas Gaza will give opportunities for Palestinians who understand that terrorism is a dead end – that there’s no light at the end of the tunnel,” Mr Levy told Sky News Australia. “It’s really amazing to look at how much concrete and how much international aid Hamas squandered. “It took money it received from foreign governments and built a whole maze of tunnels underneath Gaza instead of building a prosperous city above ground. “We hope that the day after this war, Gaza will be rebuilt in a sustainable way that makes sure the concrete goes to people’s houses and that terrorists aren’t able to subordinate the whole area again for the sake of their genocidal agenda.”

Israeli government spokesperson Eylon Levy says the war on Hamas will end when their goals of “the destruction of Hamas” and the “release of hostages” have been achieved. The International Court of Justice is demanding Israel do all it can to avoid acts of genocide in its war against Hamas. Judges in the Hague are considering a case brought forward by South Africa, which alleges Israel is committing genocide against the Palestinians. “This war will end when we have achieved our goals – the destruction of Hamas and the release of the hostages,” Mr Levy told Sky News Australia. “We wished that we had a magic wand that we could wave and the hostages would come home, and Hamas would stop being a genocidal terror organisation committed to our destruction, but the first thing Hamas did after slaughtering 1,200 people and abducting 253 was to tell us that it wants to do it again and again. “We’re fighting Hamas so they can’t do it again and again, and we’re fighting to release the hostages we fear are being tortured and executed and raped in its tunnels right now, and there is no way we’re going to abandon them, and so we will continue to fight, not because we want to, but because we must. “Hamas declared war on us, it started this war, and we are going to end this war – and we are going to end this war in a way that makes sure it can never hurt us again.”

Israeli government spokesperson Eylon Levy says the “heartbreaking” civilian casualties that have occurred during their war is a “strategy” for Hamas. The October 7 attacks on Israel by Hamas were the largest loss of Jewish life in a single day since the Holocaust. The Hamas-run Gaza Ministry of Health claims over 25,000 people have been killed since the war began. “It’s really heartbreaking to think that everyone who has been killed since October 7 would still be alive if Hamas had not declared this needless war and chosen to fight it from inside civilian areas, deliberately hiding underneath homes and schools and hospitals,” Mr Levy told Sky News Australia. “For us, every civilian casualty is a tragedy; for Hamas, it is a strategy, and we think it is important, therefore, that the Australian government, for example, has said Hamas must lay down its arms – there can be no room for Hamas in a post-war Gaza. “Anyone who is seriously concerned for innocent civilians, as we are, should be demanding one simple thing – Hamas should surrender; it should release the hostages, lay down its arms, hand over its war criminals.”

North Queensland MP Robbie Katter is “cynical” about the level of support residents will get from the government following cyclone Kirrily, arguing the closer residents are to voting centres, the “more attention” they get. Mr Katter’s comments come in the wake of Ex-Tropical Cyclone Kirrily, which has left thousands of Townsville residents without power. “Anything’s appreciated. I will make the observation that in Burketown, the exact same thing happened this time last year, in a small town very far remote west of Queensland ... We got $150 to people as assistance," he told Sky News Australia. “When Cairns was hit by the cyclone, they were talking about $900 to $1,000 to people straight up. “It seems to be the closer you are to the voting centres, the more attention you get from the likes of Murray Watt. “We’re a bit cynical that once it moves out west, we won’t get the same assistance from the government.”

The first piece of mail sent with a postage stamp could sell for more than $US3 million ($AUD4.5 million) The mail dates back to May 2, 1840, and features the Penny Black stamp with young Queen Victoria's profile. The original sender remains unknown, and the contents of the letter have been lost. Postal markings, however, reveal it made a 480-kilometre journey across England. Sotheby's New York estimates it could sell for between $US2.3 million and $US3.8 million.

Prime Minister Anthony Albanese has spoken on his government’s stage three tax cut changes, which are aimed “directly and squarely” at “middle Australia who are doing it tough”. The prime minister is in Orange in the New South Wales Central Tablelands, speaking on the changes to the stage three tax cuts as he tries to garner support before a stoush in the Senate. “We stand by this package, which stands by itself as a good thing to do to ensure that every Australian gets a tax cut, not just some, and, overwhelmingly, the benefit goes to middle Australia,” Mr Albanese said at a press conference on Saturday. “We have now – as a result of the declarations of the deputy leader of the Liberal Party – two positions [that] the Senate and other members will get to vote on. “We will continue to do as we do measures to assist people who are vulnerable Australians. “What we have targeted here is middle Australia – middle Australia who are doing it tough, those middle-class working families who have done it tough because of rising inflation and the cost of living. “This program is aimed directly and squarely at them.”

The United Nations is among a number of human rights groups who have condemned the first execution of a prisoner using nitrogen gas. The execution took place in the US state of Alabama. Prisoner Kenneth Eugene Smith was pronounced dead on Thursday night (US time) after breathing the pure nitrogen gas through a face mask. Mr Smith had been on death row for more than 30 years after being convicted of a murder-for-hire in 1989. He previously survived an attempted execution by lethal injection in 2022. EU officials and human rights groups have also disapproved of the execution method. Alabama is one of only three US states to approve the use of nitrogen gas in executions.

Prime Minister Anthony Albanese says he has made the “right decision” on the stage three tax cut as it will help lower and middle-income Australians “under financial pressure”. The prime minister is in Orange in the New South Wales Central Tablelands, speaking on the changes to the stage three tax cuts as he tries to garner support before a stoush in the Senate. “We know that lower and middle-income Australians are under financial pressure,” Mr Albanese said at a press conference on Saturday. “It is a responsibility of the government to do something about it; we are determined to do something about it. “We have made the right decision for the right reasons, and this will help particularly middle Australia.”

Russian president Vladimir Putin has accused Ukraine of downing a military plane carrying dozens of captured Ukrainian soldiers. The Russian leader did not specify if he thought the aircraft was shot down intentionally or by mistake. The plane crashed close to the city of Belgrod near the Ukranian border. All 74 people on board were killed - including 65 captured Ukrainian soldiers due to be exchanged for Russian Prisoners. Ukraine officials have disputed the accuracy of Moscow's claims.

The Queensland Government is under pressure to address the health system after a new document revealed staff shortages are stopping police from doing their job. The document details incidents over the past three years where police have been forced to wait for hours in waiting rooms and hospitals. They also reportedly have spent days guarding prisoners in hospitals. As well as having to ramp with ambulances outside hospitals with people who are injured or have mental health issues in their patrol vehicle. In one instance in 2022, police were forced to guard a prisoner in hospital for six days. Premier Stephen Miles has responded to the damning details, stating it is “all part of their job.”

Tech Guide Editor Stephen Fenech has been left in disbelief after Optus was found to be writing welfare checks to customers who were unable to access Triple Zero calls during the November blackout. Optus initially informed a Senate inquiry they had called 229 customers and checked on their welfare, however, the telecommunications company revealed several months later they had discovered nearly 2,700 people were restricted – around ten times more than initially accounted for. “They’ve got another 2,468 people to check on – no word on whether anyone was affected,” Mr Fenech told Sky News Australia. “They are saying they are writing to these customers not just calling them. “They are writing to them? I think, they’re a telco, pick up the phone and get in touch.”

Former Howard government advisor Peter McGauran has suggested people should "not underestimate” Anthony Albanese as he makes a “cunning” Prime Minister. "Don’t underestimate the Prime Minister – he is cunning and that has proven to be the case,” Mr McGauran told Sky News Australia. "However, you can’t so blatantly break a promise and not think people are going to think less of you. 'It will feed into a perception – remember, he has broken a promise on the superannuation." Mr McGauran also described Opposition Leader Peter Dutton’s call for stage three tax cut amendments to be taken to election as “hyperbole”. “But he should, he has got to ramp it up – this is a gift to an Opposition Leader if you play it right,” he said.

Former Howard government advisor Peter McGauran says Anthony Albanese has “taken the biggest risk” of his political life after breaking a Party campaign promise which assisted in his election as Prime Minister in 2022. His comments come after the Labor government announced changes to the stage three tax cuts, a piece of legislation they promised not to touch both before and after the Party’s triumphant 2022 federal election campaign. “He will pay a political price – it is just a question of to what extent,” Mr McGauran told Sky News Australia. “It allowed the Leader of the Opposition, Peter Dutton, to call him a liar and nobody disagreed. “But he is gambling the benefit to a large number of people will outweigh those who have lost out.”

Public schools in Victoria were underfunded by more than $1.7 billion in 2023. Analysis by Nine Papers and the Australian Education Union has revealed state school funding shortfalls are close to 15 percent in all jurisdictions, except in the ACT. Victoria's funding gap is expected to reach almost 14 percent in 2024 – estimated to be a $1.5 billion shortfall. States and territories will begin negotiations with The Commonwealth for new funding deals. Education Minister Jason Clare is vowing to fix the gap.

Donald Trump’s Lawyer Alina Habba has delivered a scathing assessment of her client’s time in a New York court. The former US president was ordered by the jury to pay E. Jean Carroll $US83 million in damages at the conclusion of a defamation trial. “Don’t get it twisted, we are seeing a violation of our justice system,” Ms Habba told media in New York. “Imagine a point where a judge tells a lawyer, ‘before your client’ – the former president of the United States, the leading candidate and obvious nominee for the Republican Party – ‘before he takes the stand to defend himself, Miss Habba, tell me the questions you are going to ask in open court and tell me exactly what he is going to respond’. “And then edited my questions, edited the response he was allowed to give, and guess what my client did – he took the stand, he abided by the rules of this corrupt system. “We will immediately appeal – we will set aside that ridiculous jury.” Ms Habba gave her final words to the media, “the former president does not live his life in fear”, as she was escorted into her car.

A US jury has found former president Donald Trump must pay more than $US83 million to E. Jean Carroll in a defamation trial. The case was brought by the former magazine columnist who claims he raped her in the mid-1990s and then defamed her when he denied her allegations. The jury decided Donald Trump should pay $US18.3 million in compensatory damages and $US65 million in punitive damages. Last year a jury in New York found the former president had sexually assaulted Ms Carroll in the 1990s. Mr Trump continued to deny the claims.

Australians have turned out across the country on Friday to enjoy the nation’s public holiday despite debate continuing to rage on over the date. Many have acknowledged January 26 as a day celebrating the coming together of different cultures. Sydney hosted a harbour race with ferries full of exited passengers, a city skyline flyover and the now-patriotic sausage sizzle. Para-Olympians raced in the city’s 35th annual 10 kilometre Australia Day wheelchair race. Several cultural twists were made at Australia’s sausage sanger including a Vietnamese Barbeque Sausage Roll and A Greek Lamb and Sausage Gyro.

Invasion Day protests see tens of thousands of people turn out in Australia's capital cities to participate in solidarity and mourning on Australia Day. The biggest rally was held in Melbourne, where the crowd gathered on the steps of Parliament House and demanded a change to the date. Victoria’s Opposition copped heavy criticism for withdrawing support from a political treaty process. Speeches continued for over two hours as solidarity was drawn with Palestinians in Gaza. Politicians were also called upon to visit the families of Indigenous victims who died while in custody.