Australia news LIVE: Majority back Voice to parliament; interest rate rises add $120b to budget bill

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Soaring global interest rates will add more than $120 billion to the federal budget’s long-term interest bill, putting at risk government services and infrastructure proposals while increasing pressure on Treasurer Jim Chalmers to make early spending cuts.

This masthead can reveal the rise in interest rates causing pain to millions of home buyers is punching a substantial hole in the structural integrity of the federal budget.

Jim Chalmers’ October budget is expected to show an increase in interest costs of more than $120 billion over the coming decade.

Jim Chalmers’ October budget is expected to show an increase in interest costs of more than $120 billion over the coming decade.Credit:Alex Ellinghausen

When Josh Frydenberg released his version of the 2022-23 budget in March, the interest rate on 10-year government bonds was around 2.3 per cent. Now, due to global inflation fears, they are about 3.8 per cent.

The 1.5 percentage point increase is affecting a record level of gross government debt which last week was at $884.6 billion. Another $4.1 billion, including $800 million that will not be repaid until 2023, is to be sold to investors this week.

It is translating into much higher interest payments.

Read the full story here.

Australians have backed the idea of an Indigenous Voice by a clear majority of 64 per cent in favour of draft wording from Prime Minister Anthony Albanese to give First Nations people a more powerful say in national affairs.

The first survey on the wording the prime minister put to Indigenous leaders in July shows support for the hard-fought change is strong enough to secure most voters in most states in a referendum to amend the constitution.

But the exclusive survey also highlights a weakness in the argument for change because many voters are unsure about the practical benefits of the Voice and have relatively soft views in favour or against, raising the prospect of a sharp change if the “yes” case does not have bipartisan support.

More on the latest polling here.

Good morning and thanks for your company.

It’s Monday, September 26. I’m Broede Carmody and I’ll be anchoring our live coverage for the first half of the day.

Here’s what you need to know before we get started: