Australian news and politics live: Gallagher tells Government to slash costs by 5 per cent, save $5.6 billion

Sussan Ley has repeatedly refused to say whether the Coalition would support extending energy subsidies for households, arguing “that decision is not one for the Opposition - that decision is one for the Government”.

The Opposition Leader has criticised Labor’s current energy relief, saying the Government’s policy of “spending more money, borrowing more money, appearing to be generous with borrowed money is not answering the real challenges in the energy grid”.

Asked repeatedly during an interview on Sky News whether the Coalition would oppose an extension of the subsidies, Ms Ley refused to say.

“Any proposal that comes to us, we will consider with due diligence, as we should. It is, with respect, a hypothetical question, but it does go to something that is incredibly important right now, and that is the energy cost price increases that households are experiencing”.

Prime Minister Anthony Albanese has staged a children only press conference ahead of the under-16 social media ban. Other questions referenced the issues of bullying only and if the government had a youth advisory council to inform their decision making.

It comes a fortnight before the controversial ban is due to come into effect on December 10.

The PM gave a short address alongside Communications Minister Anika Wells before taking questions from 15 students in Years 6 to 9 from three schools in Canberra.

The first student asked about it how the ban would be upheld and what measures would be in place to prevent people from bypassing the security system.

The students came up with the questions themselves.

The episode will go to air on the ABC’s Behind The News program on Tuesday.

Opposition Leader Sussan Ley says Prime Minister Anthony Albanese has again broken an election promise, as his Labor Government eyes $5.6 billion in savings,

Finance Minister Katy Gallagher’s target could see 22,500 public servants become jobless.

“Labor promised this city (Canberra) that there wouldn’t be any cuts,” Ms Ley told ABC on Wednesday.

“They made that promise before the last election. So, are they backing away from the promise? Or have things got so bad since the election that they actually have to address savings as a matter of urgency?” she questioned.

“We want an efficient public service that delivers for all Australians and recognises the responsible role of the public service. I’ve been a public servant in this city and outside it, and I support our public service.”

Treasurer Jim Chalmers has refused to rule out mass job cuts that could see 22,500 public service jobs cut.

“In every budget, there’s reprioritisation,” Dr Chalmers told Sky News on Wednesday.

“Whether it’s people, whether it’s public investment services and programs that governments provide.

“Overwhelmingly, we’ve been investing in the public service to provide those services.

“We’ve asked every department for suggestions on their lowest priority spending to see whether we should redirect that to higher priority areas… It’s not especially unusual or controversial.”

Finance Minister Katy Gallagher told departments to save 5 per cent, to free up $5.6 billion for the Albanese Labor Government.

Anthony Albanese has told his Labor colleagues to get out in their communities and work hard talking about cost of living help, road safety, natural disasters, the social media ban and better funding for schools during the summer break.

The Prime Minister made pointed remarks about the Coalition making a mistake in the lead up to this year’s election by choosing to “stop working in January,” as he thanked colleagues and “the entire labour movement” for helping to win a massive majority in May.

“If people are having a holiday, they’re still on their phones, there’s still a level of engagement, and it’s still important to be making the case (for the Government),” he said.

He also thanked his caucus “for giving me this incredible privilege as a Labor prime minister of this country.”

Mr Albanese might be battling a head cold this week but he’s finishing the year on a high and probably a honeymoon.

Read the full story.

The Coalition has lost its 40-year streak of being preferred over Labor when it comes to managing the economy.

The Australian Election Study, led by Australian National University and Griffith University, shows voters now trust Labor’s approach to economic issues, with the coalition losing its long-held advantage.

The Liberals suffered their lowest rating in the 2025 study, dropping to an average score of 4.2 on a zero to 10 scale of how much people like the party.

Voters signalled a clear preference for Anthony Albanese as Prime Minister, with former opposition leader Peter Dutton’s lack of popularity at May’s Federal Election breaking several records in the study.

“Dutton was the least popular major party leader the study has ever polled,” co-author Ian McAllister said.

“According to voters, the leadership qualities he most lacked were ‘inspiration’, closely followed by ‘compassion’.”

Read the full story.

Finance Minister Katy Gallagher has told Government departments to slash costs by 5 per cent to hand the Albanese Government $5.6 billion in savings.

That financial savings target could see 22,500 Australian public servants jobless.

Defending the move, Housing Minister Clare O’Neil said it was “practical”.

“This is a really important and practical part of government,” she told Sunrise.

“Taxpayer dollars are really precious. This is not our money and for everyone whose watching at home, they work hard for their salaries and contribute to the tax system in good faith that their dollars will be looked after and invested on critical things like supporting our aging population, supporting child care, supporting our Medicare system, the National Disability Insurance Scheme and other services that many Australian families rely on is absolutely appropriate.”

Host Nat Barr asked directly, how many jobs would be cut.

“That’s going to be a part of the budget conversation,” Ms O’Neil said, dodging the question, adding: “The Finance Minister has said to the departments you need to make sure you’re taking this seriously, and those conversations will continue as we lead up to budget”.