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The Reserve Bank has raised the official cash rate to 4.85 per cent - the highest it has been since 2008.
The decision had been widely expected by bond markets and economists in a bid to address still rising inflation, which the bank believed would worsen amid higher oil prices and elevated spending on artificial intelligence infrastructure.
For the average mortgage holder with a $600,000 loan, the five rate rises in 2026 mean monthly interest repayments will be more than $450 higher than in February.
The rate rise heaps extra pressure on Treasurer Jim Chalmers to find savings in December's mid-year budget update, but the Prime Minister says they have the economy under control.
"My message to Australians is that we'll continue to work each and every day to keep our economy stronger. And that includes engaging in global trade and engaging in the world."
Israel's president is holding talks with the country's smaller parties to resolve the post-election political deadlock.
The consultations between Isaac Herzog and the parties will be broadcast live on television as the president decides on the candidate he believes has the best chance of forming a government.
Incumbent Benjamin Netanyahu has called for a broad coalition government under his leadership without the Arab-led parties who won a record 19 seats in the 120-member Knesset.
But Israel Democracy Institute political scientist Gideon Rahat says a coalition could be formed quickly if Netanyahu was excluded from the final coalition.
"The easy solution would be a unity government, but once again, the elections were about Netanyahu. So it was for Netanyahu (or) against Netanyahu. So if you take out Netanyahu (of the political equation), you will have a unity government tomorrow, I think, no problems. The thing is Netanyahu and his wish to stay the prime minister. That's the issue at the end of the day."
Two Australians have been confirmed as victims of the high speed train collision in Spain last week.
Spain's Integrated Data Center says analysis to identify all 69 people killed in the crash has now been completed.
Besides the two Australians, the foreign victims include four Americans, two Japanese and one each from Argentina, Canada, the Czech Republic, France, Mexico, Portugal and Tunisia.
The families of all 69 victims have been notified of the identification results.
A One Nation volunteer has been injured after an alleged assault near Melbourne.
Victoria Police say the 60 year old man was allegedly attacked with a baseball bat following a dispute over political signs at his home in Torquay on Sunday morning.
A 37-year-old man has been remanded to appear in court in November, while a 14-year-old boy has been issued a caution over the incident.
One Nation Victoria leader Warren Pickering has labelled the alleged attack 'un-Australian', and Premier Ben Carroll says it's a disgrace.
"I'm very clear, whether you're wearing a red, a blue, an orange or a green t-shirt. They are volunteers. They are out there doing what they believe is right - and no-one should be coming under attack. Let's have a civil, peaceful election."
The High Court has begun hearing arguments on a challenge to Australia's world first social media ban.
The nation's top court is being asked to decide whether limiting children's political engagement outweighs the harm done by social media platforms.
Reddit's barrister Perry Herzfeld argued the government's ban is "ill-targeted" and "over-broad", with four in 10 children aged 10 to 15 remaining active on social media three months after the ban began.
Renee, the mother of original plaintiff Noah, says the blanket aged-based ban is counter-productive.
"We can actually make children safer by having them resilient, by having digital citizens coming into the ages as they go into their voting years understand how the internet works, understanding how content works and being really brave and bold in those spaces."
The federal government is making a change to the way NAPLAN tests are conducted following a meeting with state education ministers.
The tests were fully digitised by 2022 except for year 3 writing exams and for students with special needs.
But Year 5 students will again take the standardised national tests with pen and paper from 2028, after federal Education Minister Jason Clare questioned whether screen-time was to blame for the declining scores.
Those NAPLAN results showed reading scores were worse than in 2025 for every tested grade level, while Year 5 students were the only group whose writing ability had improved.
Point of Law has won this year's Melbourne Cup.
The Ciaron Maher trained horse ridden by Ethan Brown beat Zahrann, who finished in second place, and Juja Kibo, who finished third in the $10.2 million race.
The iconic race had earlier been marred by the scratching of the Chris Waller-trained Asterix after a medication was found to have been administered in its stable.
A Nup to the Cup protest picnic has also taken place next to the racecourse - but this bookie tells SBS News the day remains iconic.
"You know the pressure is on. We've got the balance and all of that. But it's part of the Australian tradition and you can't take that anywhere. The nation stops; now the world is embracing it."
