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Australia news as it happened: Five arrested after Melbourne students’ pro-Palestine walkout; Teal MP Chaney proposes GST reform; Butler defends PBS as Trump threatens fresh tariffs

Alexander Darling and Daniel Lo Surdo
Updated ,first published
Pinned post from 6.01pm on Aug 7, 2025
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What we covered today

By Alexander Darling

Thanks for your company. We’ll be back tomorrow with more live coverage. Here’s a recap of the day:

  • Victoria’s push to enshrine the right to work from home in law has been endorsed by Prime Minister Anthony Albanese, who said workplace changes were often met with allegations of chaos that did not materialise.
  • Health Minister Mark Butler is planning to speed up medicine approvals as US President Donald Trump threatens to put tariffs of up to 250 per cent on pharmaceutical products, which could affect $2 billion worth of Australian exports.
  • More pro-Palestine protests – this time by university students – shut down a major intersection of Melbourne this afternoon, while in Sydney, another group visited the Labor Party headquarters.
  • The major parties have poured cold water on an idea by teal MP Kate Chaney, who thinks increasing the GST from 10 to 15 per cent – in exchange for $3300-a-year payments to taxpayers – would boost the budget by $28 billion a year while driving up the nation’s living standards.
  • The Australian Council of Social Services is urging the government to recommit to abolishing negative gearing and also reforming Capital Gains Tax discounts before the treasurer’s Economic Reform Roundtable later this month.
  • And Kathleen Folbigg is to receive $2 million in an “act of grace” payment from the NSW government after a high-profile inquiry led to her convictions over the deaths of her four young children being quashed by the state’s top court.

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Five arrested after Melbourne students’ pro-Palestinian walkout

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As we reported earlier, hundreds of Australian university and school students walked off campus today to join pro-Palestinian protests.

In Melbourne, the students blocked the busy intersection of Swanston and Flinders streets in the CBD, staging a “sit-in” and refusing to move, before they relocated to nearby Federation Square.

Police attempt to arrest a protester during strike action by the National Union of Students and Students for Palestine in Melbourne.AAPIMAGE

Victoria Police has since confirmed they arrested five protesters for obstructing the roadway. They also moved on a sixth person.

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One year on: Australia’s best day ever at the Olympics

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Nina Kennedy on her way to a rare athletics gold for Australia.Getty Images

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Palestinians injured while trying to reach aid trucks entering Gaza Strip receive treatment on Tuesday.AP

“Indonesia will give medical help for about 2000 Gaza residents who became victims of war, those who are wounded, buried under debris,” spokesperson Hasan Nasbi told reporters, adding that the exercise was not an evacuation.

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Pro-Palestinian protests: Police remove demonstrators blocking major Melbourne intersection

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A major Melbourne thoroughfare has been cleared after police removed several pro-Palestinian protesters blocking traffic and public transport at the intersection of Swanston and Flinders streets.

Hundreds of protesters gathered at the intersection this afternoon, after walking off their university campuses and marching from Victoria’s State Library.

Police move on pro-Palestinian protesters at a rally in Melbourne CBD on Thursday.Nine News

Police were seen removing several of the protesters at the intersection.

Melbourne radio station 3AW producer Mark Davidson said the protesters were staging a “sit-in” before police began physically removing them.

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Missed opportunity: Teal MP responds to PM’s disinterest in GST reform

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Returning to one of our big stories today, which is independent MP Kate Chaney’s proposal to give Australians an extra $3300 a year in exchange for a rise in the GST.

That idea, first proposed by economist Richard Holden, would lift the rate of the consumption tax from 10 to 15 per cent and apply it to exempt items like food, education and health.

Kate Chaney, the MP for Curtin.Hamish Hastie

With the government’s economic roundtable to convene later in August, Prime Minister Anthony Albanese said he would not respond to every proposal before then.

‘Woefully inadequate’: Folbigg set to receive $2 million from NSW government

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Kathleen Folbigg is to receive $2 million in an “act of grace” payment from the NSW government after a high-profile inquiry led to her convictions over the deaths of her four young children being quashed by the state’s top court.

But her supporters say the figure is inadequate and indefensible in light of the decades she spent behind bars.

Folbigg was pardoned in June 2023 by the NSW governor and released from prison after serving 20 years of a minimum 25-year sentence over the deaths of her four children.

She spent more than two years waiting for the government to make a decision about an ex gratia payment.

Read more here.

Pro-Palestinian protests: University students strike across Melbourne, Sydney

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Hundreds of university students across Australia’s two largest cities have walked off their campuses this afternoon as local action calling for the federal government to sanction Israel continues.

In Melbourne, protesters began at Victoria’s State Library before blocking traffic at the busy intersection of Swanston and Flinders streets.

Pro-Palestinian protesters in Melbourne on Thursday afternoon.Nine News

In Sydney, students arrived at the ALP’s headquarters not far from Darling Harbour.

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