Live: Productivity Commission rebuffs 'unacceptable' criticism of GST interim report

The Productivity Commission has rebuffed criticism of its interim report into the GST carve-up, saying the comments have crossed a line.Follow all the updates in our live blog. Wed 26 Aug 2026 at 8:59amWed 26 Aug 2026 at 8:59amTreasurer says he 'respects' role and work of Productivity CommissionTreasurer Jim Chalmers has backed the Productivity Commission following criticism of its interim report into GST carve-up.In comments first reported by the Australian Financial Review, Chalmers says he respects the institution and its people.While the treasurer did not elaborate on the contents of the Productivity Commission's interim report, he respects its work."The PC is a really important institution full of good people. I respect their role and their work," Chalmers says."We expect some of their conclusions to be contested from time to time, and that's why we always encourage genuine and constructive engagement with stakeholders of all kinds."Following the release of the interim report, WA Premier Roger Cook dismissed the commission as "east coast clowns" and criticised the report a "dodgy, deceitful and, quite frankly, dumb".Wed 26 Aug 2026 at 8:31amWed 26 Aug 2026 at 8:31amProductivity Commission says criticism of GST carve-up report has crossed a lineThe Productivity Commission has rebuffed comments criticising its interim report on the GST carve-up, saying the criticism has crossed a line and is "unacceptable".The commission found the carve-up to be a "costly mistake" and has recommended the federal government scrap it.It came under stiff opposition from WA Premier Roger Cook, who dismissed the commission as "east coast clowns" and criticised the report a "dodgy, deceitful and, quite frankly, dumb". Meanwhile the prime minister accused the commission of being "economic rationalists".Angela Jackson, who co-authored the report, says the comments have undermined and attacked the commission's integrity."We are used to public debate. In fact, we welcome it at the Productivity Commission … it makes our work stronger, Jackson says."Our view is that a line was crossed in terms of the nature of those comments from the Western Australian premier."To undermine and I guess attack our integrity, I think is an additional bridge too far, and I think something that more broadly we are seeing in public debate internationally."Jackson also concurred with the prime minister's criticism that the commission is "economic rationalists"."The PM, of course, is always free to say what he will. There's no issue with that, but that won't impact our processes," she says."I would say that yes, we are economists. I hold a PhD in economics, as does my colleague Dr Alex Robson … so we are definitely economic rationalists."Wed 26 Aug 2026 at 8:14amWed 26 Aug 2026 at 8:14amAnthony Albanese remembers Dolly Parton's magicPrime Minister Anthony Albanese has paid tribute to Dolly Parton, saying she made the world a better place in so many ways.He also reflected on his heroic intervention that allowed Parton to use her mega bus on Australian roads during a 2011 tour."One of the joys of my time in government was when I was able to help Dolly overcome a bit of red tape and get her tour bus on to Australian roads in 2011," he posted on social media."It was a magical experience meeting her, but what was even better was seeing her among her legions of local fans," Albanese said."There are a lot of broken hearts in Australia and across the world today. Wherever you are, turn your stereo or your phone to Dolly then turn the volume up. And may the great Dolly Parton rest in peace".Wed 26 Aug 2026 at 8:12amWed 26 Aug 2026 at 8:12amLuke Gosling charges have not been politicised, NT chief minister saysNT Chief Minister Lia Finocchiaro has rejected claims that charges levelled at federal Labor Member for Solomon Luke Gosling have been politicised.Gosling has been charged with breaching his bail conditions, less than a month after he was arrested over allegations he assaulted the Northern Territory administrator.In July the Labor MP was charged with two counts of assault over an alleged incident involving NT Administrator David Connolly at a community event in Darwin earlier that month.Speaking to ABC Radio National Breakfast, Finocchiaro says there are important questions about whether Gosling should remain in his role as special envoy."I think these are really important questions that everyday Australians are raising of the prime minister. There's an expectation of behaviour of elected members of parliament, no matter what level you sit at," Finocchiaro says."I think Australians are making up their own mind about this one. And of course, it's a matter for the prime minister to deal with his own team."Wed 26 Aug 2026 at 8:07amWed 26 Aug 2026 at 8:07amNT chief minister accuses Commonwealth of being 'heavy handed' over data centresNorthern Territory Chief Minister Lia Finocchiaro has accused the federal government of being "heavy handed" about how data centres should be powered.The NT and Queensland are opposed to a federal government plan to force new data centres to underwrite their own renewable energy to power their operations.Speaking to ABC Radio National Breakfast, Finocchiaro says the Commonwealth shouldn't dictate to states and territories what energy mix data centres should use.The chief minister says today will be the first opportunity to ventilate those issues."We do not want to be dictated to by Canberra. I can tell you, Tom, there's nothing Territorians hate more than a heavy-handed federal government," Finocchiaro says."I'll be here to stand our ground and make sure that Territorians are put first at the national cabinet today."Wed 26 Aug 2026 at 8:03amWed 26 Aug 2026 at 8:03amDolly Parton gave Anthony Albanese a shout-out?If you thought there was no way there'd a federal politics spin on Dolly Parton's sad passing, turns out you're wrong.It involves now Prime Minister Anthony Albanese.In 2011, the country music legend was touring Australia, but her 14.5-metre bus was too big for Australian roads, so she wasn't going to be allowed to use it.But then-transport minister Albanese came to the rescue and as a result got thanked my Parton herself on stage."He was so good to make sure we got my bus here," Parton said."I hear there was quite a bit of press about that."She said if Albanese was in the crowd she'd "smear lip gloss all over him".A couple of years ago, Albanese reflected on his intervention."[I] said, 'For goodness sake, surely going from A to B with Dolly Parton's bus [should be allowed],'" he said.Wed 26 Aug 2026 at 7:59amWed 26 Aug 2026 at 7:59amMinister brushes aside Productivity Commission concerns over report criticismThe industry minister has brushed aside criticism of the Productivity Commission's interim report on Western Australia's GST carve-up.The commission authored an report that called the carve-up a "costly mistake" and inequitable.It has come under criticism from WA Premier Roger Cook, who dismissed the commission as "east coast clowns", while the PM accused them of being "economic rationalists".The deputy chairman Alex Robson told the Australian Financial Review the commission rejects "inappropriate comments" about its report on the carve-up.But speaking to ABC Radio National Breakfast, Tim Ayres says the government is respectful of alternative views."We should be comfortable and confident about the way that we engage with each other and the Productivity Commission's got important work to do," Ayres says."The government will continue to respect the role of the Productivity Commission and all of the independent agencies and state governments that occasionally have alternative views to the view that the government adopts."Wed 26 Aug 2026 at 7:48amWed 26 Aug 2026 at 7:48amTim Ayres says rules for AI data centres 'absolutely critical'Tim Ayres says it's "absolutely crucial" to ensure Australia doesn't have a race to the bottom on artificial intelligence standards.Federal Labor plans to impose national standards for data centres, which would require developers to bring their own renewable energy.Premiers and chief minister are heading into national cabinet divided over how Australia should meet the rapidly growing energy demands of AI data centres.Speaking to ABC Radio National Breakfast ahead of today's of state and territory leaders in Sydney, the industry minister says Australia risks missing a "big opportunity"."It's absolutely essential as we rebuild and modernize our electricity system, that Australia doesn't go backwards in terms of our electricity system, but that is a system that is based on solar and wind, backed by gas and backed by storage," Ayres says.Wed 26 Aug 2026 at 7:32amWed 26 Aug 2026 at 7:32amIndependent senator questions whether Australians will get return from data centresData centres are set to be a topic of discussion at national cabinet today when premiers and chief minister meet in Sydney.The federal government plans to impose national standards for data centres, which would require developers to bring their own renewable energy, which Queensland and the Northern Territory are opposed to.ACT senator David Pocock and Liberal MP Andrew Wallace have been asked about data centres on Channel Nine this morning.The independent senator says he does think data centres can be an opportunity for Australia if the country gets the settings right."One of the big things that I haven't heard any leaders talking about is: what is the long-term benefit? Where is the data centre tax or the return to the Australian people?" Pocock says.Wallace says Australia must get on board because it has great potential for Australia."We have to seize it, but we've got to get the balance right. We've got to look at the community expectations, planning problems that we would have and energy and workforce," he says.Wed 26 Aug 2026 at 7:14amWed 26 Aug 2026 at 7:14amTaylor renews calls for Luke Gosling to be stood down from special envoy roleAngus Taylor has renewed calls for Labor MP Luke Gosling to be stood down from his role as special envoy after being charged with breach of bail.In July, Gosling was charged with two counts of assault over an alleged incident involving NT Administrator David Connolly at a community event held in Darwin earlier that month.In a statement yesterday, a spokesperson for Gosling said no details had been shared by police regarding the alleged breach.But the opposition leader says it's a test of the prime minister's leadership."If it was a test then, it's an even stronger test today. He must act. It's completely unacceptable for a second charge to be placed on Luke Gosling," Taylor says."He should be stood down. Presumption of innocence is important in our system, but he should be stood down whilst these proceedings continue."Wed 26 Aug 2026 at 7:11amWed 26 Aug 2026 at 7:11amAll energy technology must be used to power data centres, Angus Taylor saysOpposition Leader Angus Taylor has says the government must use all types of energy to power new data centres in Australia.The federal government wants new data centres to contribute as much energy to the grid as they consume, using both renewables and firming power.As my colleague Clare Armstrong reports, premiers are heading into national cabinet today divided over how Australia should meet the rapidly growing energy demands of AI data centres.Speaking to ABC News Breakfast, Taylor says the government shouldn't discriminate which energy is used to power data centres."If it's not technology-neutral, it will raise the cost of energy for all Australians," Taylor says."If you've got more supply options, you get lower prices. This is well understood … All technologies should be available. That's how you get downward pressure on prices."Wed 26 Aug 2026 at 7:07amWed 26 Aug 2026 at 7:07amGood morning 👋Hello hello and a very warm welcome to our federal politics blog! It's great to have you join us early this Wednesday morning.I'm Josh Boscaini joining you live from Parliament House in Canberra, here and ready to bring you all of today's federal politics news.National cabinet is meeting in Sydney today and there's lots on the agenda. Gun buybacks, artificial intelligence and data centres are all shaping up to be the hot topics.Let's get this show on the road and see what happens today!