Australia news LIVE: Chalmers says inflation still lower than expected after rise, but another rate hike on horizon; Crew members, passengers intervene after midair pilot stabbing

Emily KaineUpdated October 1, 2026 — 7:06am,first published 6:45amWhat’s making news this morningBy Emily KaineHello and welcome back to our live coverage of national news for Thursday, October 1. Here’s what is making headlines today.Treasurer Jim Chalmers said this week’s inflation increase was lower than expected after figures released yesterday showed inflation in August had jumped to a four-month-high. It signals tougher times ahead for mortgage holders, increasing the chance of another interest rate hike later this year.The Greens elected David Shoebridge as their new leader yesterday, with Victorian senator Steph Hodgins-May as deputy. During a press conference, Shoebridge told reporters he wanted to bring about a return of hope to politics, and Hodgins-May vowed the new leadership team would “play hardball” with the Labor Party.As of today, card payment surcharges – the small amounts consumers are charged on debit, prepaid and credit cards – will be scrapped under Reserve Bank reforms.And abroad, a commercial aircraft flying from Dubai to Tel Aviv made an emergency landing in Saudi Arabia after issuing an alert that sparked fears of a disaster. One of the two pilots stabbed the other in an apparent attempt to crash the plane. Israeli Benjamin Netanyahu praised crew members and passengers for preventing a disaster by entering the cockpit and stopping the attacker.Latest Posts7.06am‘Denial and contempt’ in Labor’s response to rate hike, inflation: McKenzieBy Emily KaineNationals senator Bridget McKenzie says there is a “deep level of denial and contempt” in Labor’s approach to economic management after the Reserve Bank lifted interest rates to a 15-year-high this week and inflation increased through August. McKenzie accused the Albanese government of failing to accept responsibility for its role in driving up inflation through high levels of government spending. “Everyone watching this has seen real wages go backwards, the largest drop in living standards in the developed world, and highest interest rates of industrial countries other than Iceland. They are the real economic indicators of the level of incompetence of this Labor government,” she told Nine’s Today show this morning. Senator Bridget McKenzie.Alex EllinghausenAppearing alongside the Victorian senator on a regular panel was Environment Minister Murray Watt, who noted Labor reported a lower deficit in its final budget outcome than it had inherited when it came to office. “It’s also far lower than was predicted when we first came to office, so that’s the result of the changes that we’ve been making and the savings that we’ve made,” he said. “The great bulk of spending that is happening in the economy at the moment is not from government; it’s actually coming from the private sector, and that is because we are continuing to reduce government spending.” 6.45amCredit and debit card surcharges scrapped from todayBy Emily KaineCredit and debit card surcharges will be scrapped as of today, in a move the government says will take pressure off consumers and businesses and help with the cost of living.Consumers will now be able to use their credit and debit cards without these added surcharges. The Reserve Bank estimates the change will save them $1.6 billion a year.But experts have warned the reforms could see many customers paying more for their credit card while getting less value and fewer rewards in return.You can find out more about what the reforms mean for you here.6.28amPilot arrested after midair ‘stabbing and crash attempt’By David CroweLondon: A commercial aircraft flying from Dubai to Tel Aviv made an emergency landing in Saudi Arabia after issuing an alert when one of the two pilots stabbed the other in an apparent attempt to crash the plane.Israeli Prime Minister Benjamin Netanyahu praised crew members and passengers who prevented a disaster by entering the cockpit and stopping the attacker.The midair crisis began when flydubai Flight FZ1073, carrying more than 170 people, suddenly lost altitude and issued an emergency alert two hours into its journey, leading the Israeli government to scramble fighter jets in response.Netanyahu made his televised remarks on Wednesday afternoon in Israel (shortly after 11.30pm AEST) in the first official statement on the attacks by the Israeli government after hours of speculation about whether the incident was a hijacking, an altercation between pilots or a brutal attempt to kill all on board.What’s making news this morningBy Emily KaineHello and welcome back to our live coverage of national news for Thursday, October 1. Here’s what is making headlines today.Treasurer Jim Chalmers said this week’s inflation increase was lower than expected after figures released yesterday showed inflation in August had jumped to a four-month-high. It signals tougher times ahead for mortgage holders, increasing the chance of another interest rate hike later this year.The Greens elected David Shoebridge as their new leader yesterday, with Victorian senator Steph Hodgins-May as deputy. During a press conference, Shoebridge told reporters he wanted to bring about a return of hope to politics, and Hodgins-May vowed the new leadership team would “play hardball” with the Labor Party.As of today, card payment surcharges – the small amounts consumers are charged on debit, prepaid and credit cards – will be scrapped under Reserve Bank reforms.And abroad, a commercial aircraft flying from Dubai to Tel Aviv made an emergency landing in Saudi Arabia after issuing an alert that sparked fears of a disaster. One of the two pilots stabbed the other in an apparent attempt to crash the plane. Israeli Benjamin Netanyahu praised crew members and passengers for preventing a disaster by entering the cockpit and stopping the attacker.1 of 1