The Foreign Minister, Penny Wong, spoke with her Palestinian counterpart, Varsen Aghabekian, on Friday evening, her office said. The two officials agreed that senior officials from both governments should meet in the coming months to strengthen bilateral relations and discuss key priorities.
Aghabekian briefed Wong on the progress of the Palestinian Authority's reforms. Wong stated on social media that Australia is committed to a two-state solution and reiterated that Hamas must have no role in a Palestinian state. She also stated that she and Aghabekian agreed that Israel must halt its illegal settlement activity and hold to account those responsible for violence by settlers.
Wong told Aghabekian that Australia continues to press for the full implementation of the peace plan for Gaza and to ensure unhindered humanitarian access to the area.
In a separate development, the Treasurer, Jim Chalmers, said that artificial intelligence would play a key role in driving long-term growth in Australia's productivity. Chalmers said the AI revolution was the most significant development since the 2023 report and the greatest economic transformation in our lifetime. He said the effects of AI on productivity, investment and the labour market would be dramatic.
The intergenerational report shows that from 2030 onwards, each additional 0.1 per cent of growth in productivity could improve the fiscal outcome by 0.7 percentage points and reduce the gross debt by 0.3 percentage points over the decade. Chalmers highlighted that Australia must be focused and thoughtful in its adoption of AI to realise its benefits, adding that Australians are adopting AI at a rate higher than almost all other G20 countries.
Chalmers outlined five key challenges identified in the intergenerational report: the impact of the AI revolution on the economy; a fragmented world shaped by rising geopolitical tensions; the transition to clean energy; a shrinking and increasingly aged population driven by falling fertility rates; and changes in the industrial sector driven by AI and the energy transition. He stressed that these challenges must be addressed through a holistic approach.
The minister warned that a smaller workforce means a proportionally smaller tax base at a time when pressure on social services and government instruments, including defence, is rising, alongside the fiscal risks of climate change and more frequent disasters. Despite these pressures, Chalmers said, the budget is strengthening, with government spending over the next 40 years expected to rise significantly less than previously forecast.
Meanwhile, in Tasmania, an inquest into the death of six primary school children in a blow-up castle accident began on Monday. The castle was anchored at only four of the eight designated points, it was heard at the inquest. The children died during a celebration of the end of the school year at Hillcrest Primary School in Devonport on 16 December 2021. The inquest was delayed for years following criminal proceedings against the operator, Rose Gamble, who was acquitted in 2025 of breaching workplace safety regulations. Gamble had overseen the setup that day and had a policy not to operate the castle if wind speeds above 25 km/h were expected. According to the Bureau of Meteorology forecast for 16 December, the wind was expected to be light, at 15 to 20 km/h.
