分类： politics

Weeks out from Australia’s upcoming federal budget, Prime Minister Anthony Albanese has delivered the clearest hint yet that the center-left Labor government is prepared to eliminate a contentious capital gains tax concession that benefits property investors, as the administration navigates growing political pressure over rising housing inequality from the right-wing populist party One Nation.

For months, unconfirmed reports have circulated that the Albanese government is considering rolling back Australia’s generous 50% capital gains tax discount, a policy that applies to profits earned from selling assets held for more than 12 months, including residential investment property. For context, capital gains tax is levied on profits from asset sales such as property and shares, with those profits counted toward an individual’s annual taxable income. The existing 50% discount cuts the taxable portion of these gains in half for long-term asset holders.

Speaking to Nine Entertainment’s metropolitan publications on Monday, Albanese confirmed that the government is exploring policy changes beyond its existing push to expand national housing supply, a shift that comes as One Nation has sharpened its political messaging around housing affordability and systemic inequality to win over disaffected voters.

“The system needs to work for people,” Albanese said. “You don’t change that by rhetoric and by dividing people, which is what a lot of this populist rhetoric does. You do that by giving people a stake in the economy.”

Until this announcement, Labor’s national housing strategy has centered almost exclusively on boosting housing supply, anchored by its ambitious National Housing Accord that sets targets for new construction across the country. On Monday, the Prime Minister also signaled the government would increase spending on incentives to encourage state and territory governments to hit those housing supply targets, linking housing accessibility to broader national stability.

“Resilience is also about economic resilience and social cohesion, and making sure that young Australians understand they have a stake in the economy,” he said. “And housing is obviously one of the focuses of that.”

Currently, a Liberal Party-led Senate inquiry is examining potential changes to national housing tax policy. Earlier this year, prominent financial journalist and economist Alan Kohler told the committee that the existing tax structure sends “a clear signal that capital income is preferred over labour income,” a bias that he argues lies at the root of Australia’s widening wealth gap.

Kohler noted that while the discount is framed as an inflation adjustment, it is far larger than needed to offset rising prices, and has distorted the property market by encouraging speculative investment. This dynamic, he explained, has pushed up overall housing demand and increased the maximum price investors are willing to pay for residential property, pricing out many first-time homebuyers and low-income households.

The government’s openness to changes to the capital gains discount aligns with recent comments from Treasurer Jim Chalmers, who said last week that he would be “pretty happy” if the 2026–27 budget was remembered as a landmark “tax reform budget.”

Beyond housing tax reform, Albanese also signaled that the upcoming budget will include a sweeping overhaul of the National Disability Insurance Scheme (NDIS), Australia’s landmark social support program for people with permanent disability.

“The NDIS was there to assist people who have a permanent incapacity to fully participate in society – that’s something we need to value and cherish,” Albanese said. “It’s undermined if four out of 10 kids in a class are on the NDIS. That wasn’t why it has that public support, and we need to make sure that we maintain public support by ensuring it’s sustainable.”

The government has already moved to narrow eligibility for the scheme, proposing to shift support for children with mild autism to state and territory-run systems under the new Thriving Kids program. The reform has faced significant pushback, however, with state leaders refusing to take on the extra funding burden for the initiative. Albanese has explicitly ruled out introducing means testing for the NDIS, saying that eligibility should remain tied to an individual’s disability needs and their ability to participate in community and economic life, not their income or assets.

Peru’s 2026 general presidential and legislative election, held April 12, concluded with right-wing contender Keiko Fujimori holding a narrow lead but forced into a June runoff, capping a day of widespread logistical failures, police intervention, and public frustration that deepened uncertainty over the South American nation’s efforts to escape years of crippling political instability.

Approximately 27 million eligible Peruvians turned out to select from 35 presidential candidates, an election called to resolve a prolonged period of chaos that has seen multiple presidents ousted from office or jailed in recent years. Campaigning centered overwhelmingly on two of the country’s most pressing crises: soaring violent crime and pervasive systemic corruption. Homicide rates across Peru have more than doubled over the past decade, while annual reported extortion cases have skyrocketed from just 3,200 to 26,500 over the same period, pushing public safety to the top of voter priorities.

On the eve of voting, Fujimori — the 50-year-old daughter of disgraced former Peruvian president Alberto Fujimori — laid out a hardline public safety platform to AFP, saying she would crack down on instability by deploying the military to control prisons, strengthening border enforcement, and expediting deportations of undocumented migrants. Early exit polls from leading pollsters Ipsos and Datum placed Fujimori in first place with roughly 16% of the vote, well short of the 50% majority required to win the election outright.

The tight race for the second spot in the June runoff remained too close to call late Sunday, with four candidates — Roberto Sanchez, Ricardo Belmont, Rafael Lopez Aliaga, and Jorge Neito — separated by just a few percentage points, putting all in a statistical tie for the final runoff position.

What was meant to be a step toward restoring political order instead devolved into a day of disruption marked by major logistical breakdowns. More than 100 polling stations, the majority in the capital city of Lima, failed to receive required voting materials on time, forcing dozens of locations to open hours behind schedule. At 15 polling centers, frustrated voters waited for hours under Peru’s equatorial sun before staff were forced to turn them away entirely. In total, the material failures left roughly 63,000 registered voters unable to cast their ballots on election day.

While the disenfranchised voters represent a small fraction of Peru’s total electorate, political observers warn their absence could still swing the race in the extremely tight contest for second place. In the 2021 presidential election, a margin of just 238,000 votes separated the second and third place finishers that cycle.

With polls still open, police and prosecutors launched a raid on the headquarters of Peru’s National Office of Electoral Processes (ONPE) to investigate the material delivery failure, followed by a separate raid on a private logistics subcontractor that officials have blamed for the missed deadlines. The unprecedented mid-vote police intervention and widespread delays fueled unproven allegations of election foul play from candidates and the public, casting a cloud over the integrity of the results.

Protesters gathered outside the guarded ONPE headquarters in Lima to voice frustration over the disorganization. “They have not made it easier for people to vote,” 25-year-old administration student Karina Herrera told reporters on site. Multiple presidential candidates raised concerns about the irregularities and called to extend voting into Monday if issues were not resolved; electoral officials ultimately opted to extend voting by just one hour before closing all polls.

ONPE head Piero Corvetto defended the body’s handling of the election, acknowledging the widespread logistical failures but insisting no systemic fraud was possible. “We have had a logistical problem, and we have done everything humanly possible to reduce it,” Corvetto said. “There is no possibility of fraud. There is full assurance that the election results will faithfully reflect the popular will.”

As geopolitical and trade tensions mount between Europe and the United States under the second Trump administration, Spanish Prime Minister Pedro Sanchez launched a high-stakes three-day official visit to China on Monday, with the explicit goal of deepening economic and diplomatic cooperation between Madrid and Beijing, and positioning Spain as a central connecting hub between China and the European bloc.

This trip marks Sanchez’s fourth visit to China in as many years, a frequency that underscores the Spanish government’s strategic priority of building stable, mutually beneficial relations with the world’s second-largest economy. The timing of the visit comes at a moment of growing friction between European allies and Washington, where Donald Trump’s aggressive tariff policies and erratic diplomatic approach have sparked widespread anxiety across the continent.

Tensions between Madrid and Washington escalated sharply last month, after Trump threatened to sever trade ties with Spain in retaliation for the Spanish government’s refusal to grant the U.S. military access to its bases for strikes against Iran—itself a major economic partner of China. This rift has further incentivized Spain to advance its independent diplomatic and trade agenda with Beijing, analysts say.

Sanchez is not the first Western leader to travel to Beijing in recent months: senior leaders from Britain, Canada, and Germany have already completed official visits this year, with Trump himself scheduled to travel to China for a summit in May.

According to senior Spanish government sources, the core priorities of Sanchez’s visit center on expanding market access for Spanish goods, boosting two-way investment, and opening new collaborative channels in emerging sectors. Specifically, Madrid is pushing for greater access to the Chinese market for its key agricultural and industrial exports, while exploring new joint technology partnerships with Chinese firms. Another key goal is attracting fresh Chinese foreign direct investment to Spain—the eurozone’s fourth-largest economy—and securing stable access to China’s supplies of critical raw materials that are essential to Spain’s industrial and energy transition.

On the first day of his trip, Sanchez traveled to the headquarters of Chinese consumer technology giant Xiaomi, before touring an innovation exhibition hosted by the Chinese Academy of Sciences. On Tuesday, he is scheduled to hold formal talks with China’s top leadership, including President Xi Jinping and Premier Li Qiang, before concluding his visit with a public press conference.

Bilateral trade between the two countries has expanded rapidly in recent years, but remains marked by a significant trade imbalance. Last year, Spain recorded a 42.3 billion euro ($49.1 billion) trade deficit with China, with Chinese exports to Spain far outpacing Spanish shipments to the Asian market. Even so, Spanish exports to China grew 6.8% in 2025, a gain that the Spanish government attributes to the steady deepening of bilateral ties. During Sanchez’s 2025 visit to Beijing, China agreed to open its market wider to a host of popular Spanish exports, including pork and cherries, a win that Madrid hopes to build on during this trip.

Claudio Feijoo, a leading China studies expert at the Technical University of Madrid, told Agence France-Presse that Spain holds unique strategic appeal for Chinese investors and policymakers. “Spain’s economy is growing faster than most other major European economies, and it maintains relatively low energy costs, which makes it an attractive base for Chinese companies looking to enter the European market,” Feijoo explained.

Beyond economic advantages, he noted that Beijing views Spain as a comparatively friendly, less confrontational partner in Europe, with a greater degree of policy independence from Washington than many other European allies. “China sees Spain as a more autonomous actor that can make its own decisions, which creates more space for mutually beneficial cooperation,” he said. “Spain is also perfectly positioned as a gateway to three key regions: Europe, Latin America, and North Africa. It can act as a central hub that gives Chinese companies access to multiple large markets from a single base.”

Feijoo added that Spanish agricultural products hold particularly strong growth potential in the Chinese market, as China cannot meet all of its own domestic demand for high-quality food products, while Spain is one of the world’s top producers of a wide range of premium agricultural goods.

Chinese Foreign Ministry spokesperson Mao Ning highlighted the positive trajectory of bilateral ties in a press briefing earlier this week, describing Spain as a “an important partner of China within the EU.” She added that Sanchez’s visit represents a key opportunity to “promote bilateral relations to an even higher level” for both sides.

The warming of relations between Madrid and Beijing has already been on display in recent months: last November, King Felipe VI and Queen Letizia completed a state visit to China, the first by a Spanish monarch in 18 years, a trip that widely was seen as a reflection of the growing closeness of ties between the two countries.

Sanchez, one of the few remaining left-wing heads of government in Europe, is traveling to China with his wife Begona Gomez and Foreign Minister Jose Manuel Albares.

Fresh from the collapse of high-stakes weekend peace talks between US and Iranian officials in Pakistan, the United States has launched a formal blockade of Iranian ports along the Strait of Hormuz, triggering a split in Australia’s top political and military leadership over whether the nation will join the operation.

Former US President Donald Trump first announced the blockade in an overnight social media post, which drew immediate international attention for its confrontational tone. “The United States Navy, the Finest in the World, will begin the process of BLOCKADING any and all Ships trying to enter, or leave, the Strait of Hormuz,” Trump wrote. He added that any Iranian strike on US vessels or civilian shipping would be met with overwhelming force, framing the Iranian government’s warnings of potential maritime hazards in the strait as “world extortion” that the US would never accept.

US Central Command later clarified the parameters of the operation, confirming the blockade would take effect at midnight AEST, and would only target vessels traveling to or from Iranian ports across the Arabian Gulf and Gulf of Oman. Freedom of navigation for ships heading to non-Iranian destinations would remain unimpeded, the command said. Under international law, a formal blockade is widely classified as an act of war.

The announcement comes after 21 hours of marathon mediated talks in Islamabad, where US Vice President JD Vance confirmed the US delegation tabled its “final and best offer” to Iranian negotiators, but walked away without a breakthrough. “I think that’s bad news for Iran much more than it’s bad news for the United States of America,” Vance told reporters after the talks concluded.

Australia’s response to the US move has exposed a clear divide between the nation’s civilian political leadership and its top military commander. Speaking at a press conference on Monday, Vice-Admiral Mark Hammond—Australia’s Chief of Navy, who is set to take over as head of the Australian Defence Force in July—confirmed the country’s naval fleet is fully prepared to join the blockade if requested by the government.

“We’ve got 10 surface combatants right now. Eight of them are at sea today,” Hammond told reporters. “And they are fitted with one of the most advanced radars in the world … and some of the most advanced missile and point defence systems in the world. When asked if Australian warships were fully capable of countering Iranian drone threats as part of the operation, Hammond answered definitively: “Absolutely.”

Hammond emphasized that any decision to contribute forces rests exclusively with the Australian federal government, and noted that no formal request for participation has been received to date. Prime Minister Anthony Albanese has already moved quickly to rule out any additional Australian deployments to the Middle East, echoing the prime minister’s stance that Australia has not been asked to join, and has no intention of committing to the operation.

Assistant Foreign Affairs Minister Matt Thistlethwaite went further earlier this week, all but ruling out Australian involvement entirely. “We’re not considering joining the blockade,” he told Sky News, adding that it was “disappointing” that the weekend US-Iran talks failed to reach a resolution. “We believe that the best way to get lasting peace and to ensure ultimately that petrol prices come down for Australians is a negotiated settlement. That’s the only way that you’re going to see the Strait open permanently, the international economy restored, and energy costs lowered for households across Australia and the world.”

Senior Cabinet minister and Environment Minister Murray Watt, one of Albanese’s most trusted advisors, echoed that criticism, warning the US blockade carries a severe risk of escalating the ongoing conflict between the two nations. “If there’s any further escalation of this conflict, whether it be economic or militarily, that is going to impose further costs on the world, and of course, greater cost of human life, which is not something we want to see,” Watt told ABC’s Radio National. He added that any action that raises the risk of wider conflict is “a bad thing for the world”, noting that thousands of lives have already been lost in the ongoing tensions, and the conflict has already driven up energy prices for Australian consumers.

Australia’s top diplomat, Foreign Minister Penny Wong, released a formal statement calling on both sides to maintain the fragile two-week ceasefire that has been in place and return to the negotiating table. “It is disappointing that the Islamabad talks between the United States and Iran have ended without agreement,” Wong said. “The priority now must be to continue the ceasefire and return to negotiations. We continue to want to see a swift resolution to this conflict. Any escalation in the conflict would impose an even greater human cost and further impact the global economy.”

Pakistan, which brokered the original ceasefire and hosted the failed weekend talks, issued a similar appeal for de-escalation and a return to diplomatic negotiations.