Here is your Last Week in Australia roundup – seven days of the biggest national headlines (all served up in under a two-minute read). Australia saw seismic shifts in Middle East policy, clashing diplomatic flashpoints, bold economic reform agendas, and ecological headwinds. Social unrest, political turnover, and domestic safety reforms captured headlines
Diplomatic storm and the Gaza conflict
Australia’s decision to recognise the State of Palestine continues to reverberate. Prime Minister Anthony Albanese faces a diplomatic rupture with Israel after the visa refusal for far-right politician Simcha Rothman, triggering reciprocal visa cancellations for Australian diplomats and harsh remarks from Israeli PM Benjamin Netanyahu, who labelled Albanese “weak.” Foreign Minister Penny Wong defended the government’s stance, calling Israel’s response “excessive” in a period marked by heightened public support for Palestine.
Protests and the public pulse
A massive pro-Palestine march took place across Sydney Harbour Bridge on 3 August, drawing between 225,000 and 300,000 participants according to rally organisers – even against a more conservative estimate of 90,000 by police. Simultaneously, Melbourne saw a smaller but significant mobilisation, though met by police blockade.
Queensland now braces for its largest-ever such demonstration, with thousands set to march through Brisbane’s CBD on 24 August via a revised route from Queens Gardens to Musgrave Park – after police concerns shut down the originally planned path.
Economic reforms on the table
Treasurer Jim Chalmers and the PM convened an economic roundtable in Canberra, bringing together policymakers, business, union, and academic leaders. The forum focused on 10 reform areas, including tax simplification, AI development, housing, and investment. Proposals included a radical cashflow-based corporate tax system and income tax bracket indexation – aiming to rebalance the burden toward wealthier older Australians.
A Newspoll revealed public resistance to new or higher taxes – 57 percent of voters oppose such moves, preferring spending cuts. Meanwhile, the Productivity Commission urged long-term tax reforms (including carbon pricing and a 5 percent cashflow levy on large firms) to foster economic dynamism – a view meeting opposition from big business.
Defence Pact amid regional frictions
In response to increasing assertiveness by China in the South China Sea, Australia and the Philippines announced plans for a formal defence agreement in 2026. This pact will bolster collaboration via regular joint exercises and upgrades to five Philippine bases, reinforcing regional peace building.
Environmental emergency: algal bloom
In an unannounced visit to Kangaroo Island, Prime Minister Albanese pledged $6.25 million to support communities impacted by an ongoing algal bloom affecting South Australian coasts. The funds will back local councils, research, monitoring, and toxin testing – though critics argue that the response remains tepid given the ecological and economic threats.
Child safety and legal developments
Childcare reform took centre stage at a national level, with $189 million committed for enhanced safeguards. The package includes a national childcare-worker register, CCTV trials in 300 centres, mandatory safety training, mobile bans from September, and increased inspections.
In Victoria, Premier Jacinta Allan pledged full implementation of a childcare review’s 22 recommendations – establishingan independent regulator after safety breaches.
Meanwhile, privacy prevailed in a Monash IVF mix-up review – its findings will remain sealed.
Tasmania saw a leadership change: Josh Willie replaces Dean Winter as Labor leader in the wake of electoral setbacks.
The government also committed $2 billion to the “Thriving Kids” initiative, aimed at diverting developmental-delay children away from the NDIS.
Crime, regulation, and consumer safety
Police in WA charged a woman after a baby’s body was discovered in a stormwater drain.
A former financial adviser was extradited from New Zealand over allegations of misappropriating $4.1 million from clients.
AUSTRAC launched an audit into Binance Australia over weak anti-money laundering controls.
Sunscreen maker Ultra Violette pulled its Lean Screen product after inconsistencies were found in SPF testing.
The AFP seized 54 kg of cocaine concealed in flour shipments and arrested a postal worker linked to $1.5 million in bank fraud.