Australia will miss many of its most important goals unless its environment laws undergo a long-overdue transformation, an economic heavyweight has warned.

Ken Henry – a former Treasury secretary, NAB chairman and prime ministerial adviser – has urged Australia to overhaul its main environment act as the Labor government pursues a litany of economic reforms.

Its plans to build 1.2 million houses by 2029, boost renewable energy, and develop the critical minerals industry have taken attention away from the languishing Environment Protection and Biodiversity Conservation Act.

But Dr Henry says Labor’s ambitious proposals cannot be achieved without major reform.

“If we can’t achieve environmental law reform, then we should stop dreaming about more challenging options,” the Australian Climate and Biodiversity Foundation chair will tell the National Press Club on Wednesday.

“To put it bluntly, there is no chance of Australia meeting stated targets for net zero, renewable energy, critical minerals development, housing and transport infrastructure without very high quality national laws.”

These goals are also an answer to Australia’s flagging productivity which the government has been determined to address in its second term.

“Economics has, for the most part, ignored the most important constraints on human choices,” Dr Henry will say.

“Our failure to recognise that the laws of nature affect the set of feasible choices available to us is now having a discernible impact on productivity – and things are getting worse with accelerating speed.

“We need to break the deadlock.”

Reforms to main environment laws would need to ensure Commonwealth, state and territory governments can co-operate for a shared purpose, finalise effective national standards and establish an expert, independent decision maker in the form of a national environmental protection agency.

For more than two decades, the country’s main environment legislation has remained largely unchanged, even after a landmark review released in 2021 found the act was not fit to address current or future challenges.

Labor came into office with a promise to fix the laws, but its proposals have stalled following staunch criticism from scientists, environmentalists and mining industry groups.

US President Donald Trump says he has struck a trade deal with Indonesia.

“Great deal, for everybody, just made with Indonesia. I dealt directly with their highly respected President. DETAILS TO FOLLOW!!!” Trump said in a post on Truth Social.

Trump had threatened the southeast Asian country with a 32 per cent tariff rate effective August 1 in a letter sent to its president last week.

Trump sent similar letters to about two dozen trading partners this month, including Canada, Japan and Brazil, setting blanket tariff rates ranging from 20 per cent up to 50 per cent as well as a 50 per cent tariff on copper.

The August 1 deadline gives the targeted countries time to negotiate agreements that could lower the threatened tariffs.

Some investors and economists have also noted Trump’s pattern of backing off his tariff threats.

Since launching his tariff policy, Trump has reached trade agreements with three other countries: China, the United Kingdom and Vietnam.

Relations between China and Australia reached a “low point” but are back on track under Anthony Albanese’s leadership, Chinese Premier Li Qiang says.

The prime minister on Tuesday wrapped up a day of high-level talks in Beijing when he met with Mr Li at the Great Hall of the People.

China’s premier congratulated Mr Albanese on his re-election and for his “personal efforts” to stabilise the China-Australia relationship, which soured under the former Liberal government during the COVID-19 pandemic.

“China-Australia relations have moved beyond a low point and returned to the right track of stability and development,” Mr Li said.

Since the pair last met in October last year “a lot has happened in the world”, Mr Li said, and there was growing instability and uncertainty in the global economy.

“The development of all countries is faced with new challenges. Given such circumstances, China and Australia as important trade partners, should strengthen dialogue and co-operation,” he said.

Mr Albanese said he looked forward to the two nations exploring new opportunities in trade, climate change, tourism and culture.

“We’ll also have an opportunity to have a frank and open dialogue that enables us to navigate issues that need to be discussed,” he said.

The prime minister earlier used a meeting with President Xi Jinping to raise concerns over China’s lack of notice before it conducted military drills off the Australian coast.

The live firing exercise in international waters near Australia in February forced commercial flights overhead to divert.

Speaking after Tuesday’s meeting, Mr Albanese said he had secured a commitment for China to better inform Australia on military drills in the region.

The prime minister noted the drills being in international waters did not contravene international law “but that we were concerned about the notice and the way that it happened, including the live fire exercises”.

Australia’s position on there being no unilateral change to the status quo over Taiwan was also conveyed to the president, he said.

“We want peace and security in the region, that is in the interests of both Australia and China,” Mr Albanese replied when asked whether he had raised China’s unprecedented military build-up.

Mr Xi didn’t raise reports the United States had asked Australia to commit to teaming up during a potential conflict with China over Taiwan, nor Labor’s commitment to terminate a Chinese company’s lease of the Port of Darwin, Mr Albanese added.

The prime minister also raised the detention of Australian writer Yang Hengjun but said he did not expect immediate progress on the case.

Dr Yang was given a suspended death sentence in China on secretive national security charges that Australia rejects.

“I raised the case, you wouldn’t expect there to be an immediate outcome and that is not the way things work,” Mr Albanese told reporters.

The president was all smiles as he greeted his Australian guest in the East Hall – one of the many ornate chambers in the Great Hall of the People.

In a pointed prod at US isolationism under Donald Trump, Mr Xi said countries should work together to “support multilateralism and free trade, defend the UN-centred international system and the international order”.

The Chinese readout noted the prime minister “reaffirmed Australia’s commitment to the one-China policy and its opposition to ‘Taiwan independence'”.

The bilateral meetings with President Xi, Premier Li and Communist Party Chairman Zhao Leji – the three highest-ranking members of China’s ruling committee – mark the centrepiece of Mr Albanese’s six-day tour of the Middle Kingdom.

In his meeting with Mr Zhao, the chairman noted Mr Albanese’s visit so soon after his re-election showed the importance of the Sino-Australian relationship.

Earlier on Tuesday, Chinese security officials tried to stop Australian journalists, who were travelling with the prime minister’s delegation, from leaving a tourist attraction in Beijing after filming in the area.

The group of reporters had permission to film at the location, but were stopped by security officials and were told to hand over footage before police arrived.

The journalists were able to leave the site with the footage, despite being followed by security.

Australian and Chinese CEOs are pushing for increased mutual recognition of qualifications and the development of smart agriculture technology.

A roundtable of 28 business leaders – 14 from each country – has also called for more work on green steel and regular meetings between education ministers, in a report provided to the nations’ leaders.

The high-powered gathering in Beijing on Tuesday comes after Prime Minister Anthony Albanese met China’s top leaders in the centrepiece of his six-day sojourn to the Middle Kingdom.

Mr Albanese’s visit has focused on growing economic engagement between the two nations despite concerns over Chinese economic coercion.

In his meeting with President Xi Jinping, neither side brought up Australia’s plan to tear up a Chinese-owned company’s lease of Darwin Port, nor stringent restrictions on Chinese foreign investment in Australia.

An article by a Chinese state media-linked influencer published ahead of the meeting suggested Beijing could restrict Australian imports, including iron ore trade valued at more than $100 billion, in response.

Business Council of Australia chief executive Bran Black said business leaders should continue to pursue diversification as an “inherent good in and of itself” as well as increasing links with China.

“We want to see more trade, more Australian jobs, and a real future for Australian products in China – from decarbonisation of steel, to beef and rice products – and that was reflected in our discussion here in Beijing,” he said.

“One in four Australian jobs is trade dependent and so it is vital we increase trade opportunities with all our trading partners, including China.”

Australia’s economic reliance on China was exposed during the COVID-19 pandemic, when Beijing imposed restrictions across $20 billion worth of key exports over political grievances with Canberra.

At the time, Australia pursued a policy of trade diversification, successfully making up much of the shortfall with increased exports to countries such as Japan, South Korea and India.

But since a thaw in relations following Mr Albanese’s election in 2022, trade between Australia and China has rebounded.

“So from our perspective, we say let’s try and have the best possible relationship that we can with China. Let’s try and make sure that we can establish trade opportunities that help jobs and businesses back home,” Mr Black told reporters in Beijing.

“But let’s also concentrate on the engagements that we have overseas with countries like the United Arab Emirates, countries like India, countries like those in Southeast Asia.”

As well as greater collaboration on education and agriculture, the business communique pushed more work in healthcare, resources, and the green economy.

The men behind a landmark climate case say they will continue their fight to save their homelands.

On Tuesday, a court rejected a case led by Uncle Pabai Pabai and Uncle Paul Kabai that argued the Commonwealth owes a duty of care to protect their homes from the impacts of climate change.

The uncles filed the landmark case against the government in the Federal Court in 2021, claiming it failed to protect their homelands in the Torres Strait from the impacts of climate change.

They sought orders from the court that would require the government to take steps to prevent harm to their communities, including cutting greenhouse gas emissions in line with the best available science.

The court heard evidence communities on Boigu and Saibai could have less than 30 years left before the low-lying islands between northern Queensland and Papau New Guinea become uninhabitable.

“I’m feeling very emotional,” Uncle Pabai Pabai told AAP after the decision.

“I wasn’t thinking we’d lose this case … I’m very heartbroken.”

Mr Pabai said his main focus during the case had been his two-year-old son, and that was who he would keep fighting for.

“For the love of my son and for all the people in our community in the Torres Strait, for the bushfire and flood survivors, the farmers, kids and grandkids,” he said.

“I’ll keep fighting and will sit down with my lawyers and look at how we can appeal”

In handing down his decision, Federal Court Justice Michael Wigney accepted many of the key factual elements of the case, including the impacts of climate change on the islands.

“Unless something is done to address global warming and the resulting escalating impacts of climate change, there is a very real risk that the applicants’ worst fears will be realised, and they will lose their islands, their culture and their way of life, and will become, as it were, climate refugees,” he said.

Justice Wigney also found the Commonwealth had “paid scant, if any, regard to the best available science” when setting emissions targets between 2015 to 2021. 

The case failed because negligence law does not allow compensation when it comes to government policy decisions, he said.

Following the decision, Climate Change Minister Chris Bowen and Indigenous Australians Minister Malarndirri McCarthy said the government understood the Torres Strait Islands were vulnerable to climate change and were already feeling its impacts. 

“Where the former government failed on climate change, the Albanese government is delivering – because it’s in the interest of all Australians,” they said in a joint statement.

Shocked at the outcome, Uncle Paul Kabai said he’d like to ask the prime minister what to tell his family when he returned to Saibai Island. 

“Mr Albanese and his expensive government lawyers will stand up and walk away just like they walk out the door of this court today,” he said.

“They go home and sleep soundly in their expensive beds. We go back to our islands and the deepest pain imaginable. 

“I want to ask Mr Albanese what I should say when I go home to my family? How do I tell them we have less than 30 years left?”

Mr Kabai said he and Mr Pabai would take things “one step at a time” but were confident they would eventually win the battle. 

“The government is not listening to us,” he said.

“They know (climate change) is happening and they keep approving mining, keep pushing mining. 

“I want them to listen to our voices, not only ours but people around Australia and around the world.”

Tesla has opened its first showroom in India, marking the electric vehicle maker’s long-anticipated debut in the world’s third-biggest automotive market.

In the Bandra-Kurla Complex, an upscale business centre in the financial capital Mumbai, the showroom will serve as Tesla’s flagship retail and experience outlet as the company introduces its EV line-up to Indian customers.

Tesla’s entry to India comes after years of delays and policy friction, marking a pivotal expansion in a fast-growing consumer base while global sales are plunging and the company faces challenges in its two core markets, China and the US.

Sales of Tesla electric cars fell sharply from April to June as boycotts over tech billionaire Elon Musk’s political views continued keeping buyers away.

For India, Tesla’s entry signals rising investor confidence and strengthens its move towards clean mobility.

The country’s nascent electric vehicle market made up a little more than two per cent of total car sales in 2024. 

But the government wants to change that and increase the electric vehicle share to 30 per cent by 2030.

Tesla will begin by importing and selling its popular Y model cars in India. 

The base price would be 6.78 million rupees ($A120,000) for the long-range, rear-wheel drive vehicle, according to a presentation by the company during the showroom launch on Tuesday. 

By comparison, the price tag is about $US44,990 ($A69,000) in the US without a federal tax credit.

The rear-wheel drive will sell for about six million rupees in India. 

Delivery was expected to start from the third quarter, Tesla officials said.

Tesla’s higher pricing is likely to make its cars unaffordable for most Indians.

Tesla will compete mostly with German luxury car makers such as BMW and Mercedes Benz Group AG, and not budget Indian players such as Tata Motors and Mahindra & Mahindra. 

The luxury car market makes up just about one per cent of total vehicle sales

The debut by American EV giant, however, would bring in world-class technology to the country, auto analysts said.

Prime Minister Narendra Modi’s government has wooed Tesla for years for its global brand value and to boost the country’s clean energy endeavours.

Anthony Albanese has used a meeting with Chinese President Xi Jinping to raise concerns over China’s lack of notice before it conducted military drills off the Australian coast.

The live firing exercise in international waters near Australia in February, which forced the diversion of commercial flights, was among topics on the agenda during talks between the two leaders in Beijing.

Speaking after Tuesday’s meeting, Mr Albanese said he had secured a commitment for China to better inform Australia on military drills in the region.

The prime minister noted the drills being in international waters didn’t contravene international law “but that we were concerned about the notice and the way that it happened, including the live fire exercises”.

Australia’s position on there being no unilateral change to the status quo over Taiwan was also conveyed to the president, he said.

“We want peace and security in the region, that is in the interests of both Australia and China,” Mr Albanese replied when asked whether he had raised China’s unprecedented military build up.

Mr Xi didn’t raise reports the United States had asked Australia to commit to teaming up during a potential conflict with China over Taiwan, nor Labor’s commitment to terminate a Chinese company’s lease of the Port of Darwin, Mr Albanese added.

The prime minister also raised the detention of Australian writer Yang Hengjun but said he didn’t expect immediate progress on the case.

Dr Yang was given a suspended death sentence in China on secretive national security charges that Australia rejects.

“I raised the case, you wouldn’t expect there to be an immediate outcome and that is not the way things work,” Mr Albanese told reporters.

In his opening remarks ahead of the meeting, Mr Xi hailed improved relations with Australia.

The president was all smiles as he greeted his Australian guest in the East Hall – one of the many ornate chambers in the Great Hall of the People.

“The most important thing we can learn from this is that a commitment to equal treatment, to seeking common ground while sharing differences, pursuing mutually beneficial co-operation, for our countries and peoples,” he said.

China’s president pointed to past meetings as “in-depth discussions on the strategic overarching issues critical to the direction of China-Australia relations”

“With joint efforts from both sides the China-Australia relationship has recovered from the setback and turned around,” Mr Xi said.

Tuesday’s bilateral meetings with President Xi, Premier Li Qiang and Communist Party Chairman Zhao Leji – the three highest-ranking members of China’s ruling committee – mark the centrepiece of Mr Albanese’s six-day tour of the Middle Kingdom.

With China and Australia’s comprehensive strategic partnership entering its second decade, Mr Xi said he was ready to push the relationship further to reap greater benefits for both peoples.

The meeting comes as the Chinese-Australian free trade agreement passes its 10th anniversary.

Co-operation between the two nations has increased following a falling out during the COVID-19 pandemic.

An article by a Chinese state media influencer suggested Beijing could restrict Australian imports as retaliation, risking financial blowback for Australian companies.

It comes as Chinese security officials tried to stop Australian journalists, who were travelling with the prime minister’s delegation, from leaving a tourist attraction in Beijing after filming in the area.

The group of reporters had permission to film at the location, but were stopped by security officials and were told to hand over footage before police arrived.

The journalists were able to leave the site with the footage, despite being followed by security.

The Liberals have launched a last-ditch attempt to overturn one of the federal election’s tightest results, but they might not have a leg to stand on.

One week before the new parliamentary term kicks off, Liberal candidate Gisele Kapterian has begun a challenge in the Court of Disputed Returns over the north Sydney seat of Bradfield.

Independent Nicolette Boele won the electorate by 26 votes after a month-long tally and recount.

While the margin is slim, any change could take months to cement and election analyst Kevin Bonham said precedents could work against the Liberals.

If the Australian Electoral Commission follows principles better understood after a High Court challenge to 2007 election results in Melbourne electorate McEwen, he said it may well be that the Liberals “don’t have a lot of leg to stand on”.

“It sounds like a lot to turn around,” Dr Bonham told AAP.

More than 118,000 ballots were cast in the seat of Bradfield at the May election, with Ms Kapterian leading the original count by eight votes before the automatic recount declared Ms Boele the winner.

Although the result was confirmed in early June, the Liberal candidate did not announce her bid until Monday evening.

Ms Kapterian stressed her confidence in the integrity of Australia’s electoral system but said there was a need to re-examine the papers given the “highly subjective nature of decisions relating to interpreting voter intentions”.

She wanted a targeted review of some “line ball” ballots.

This commonly refers to votes where numbers are written in an unclear way and a decision must be made on whether the characters are distinct enough to count the ballot, or if it must be regarded as an informal vote.

“Pursuing this final step will provide collective confidence that the final result reflects the true wishes of the voters in Bradfield and remove any remaining doubt created by the two conflicting counts,” Ms Kapterian said.

Dr Bonham did not know the exact grounds of the challenge, but said there was good reason margins changed throughout the count because they depend on which votes were scrutinised and at what stage of the process.

If there was an obvious problem with the electoral commission’s rulings, then that would have likely appeared earlier in the tally.

That doesn’t mean the result cannot change, with Dr Bonham noting the margin during the McEwen count in 2007 shifted by 19 votes to extend the Liberal’s lead from 12 to 31, more than seven months after the 2007 contest.

But the expert did not see an unusual level of complaints from Liberal scrutineers in the aftermath of the May election.

“It may be that they don’t necessarily have a lot of hope,” Dr Bonham said.

“But they just want to be able to say, ‘we didn’t die wondering, we did everything we could to try to win’.”

Ms Boele affirmed her confidence in the process that led to the result and said she would defend her victory, though she reached out to her community for help to pay her legal bills.

“Everything we’ve worked for is on the line,” she said.

“The Liberal Party has a legal team and enormous resources. I have community.

“But we can’t rely on volunteers in the High Court, we need good lawyers and that is expensive.”

If Ms Boele won and the Liberals were asked to cover her legal costs, she committed to offering every donor a refund.

The independent has already attended an orientation workshop on the procedures of the lower house before parliament’s return on July 22.

Removing surcharges fees on debit and credit card transactions could save consumers more than $1 billion, but small businesses say the changes will just hide the costs in increased prices.

The Reserve Bank of Australia’s review of merchant card payment costs recommends the fees be scrapped on EFTPOS, Mastercard and Visa card transactions because they don’t help consumers make more efficient payment choices.

Consumers are estimated to pay $1.2 billion in surcharges on payments each year, the equivalent of $60 per card-using adult.

Lowering the cap on interchange fees paid by businesses – another recommendation – would save Australians $1.2 billion.

The fee is paid by a business to a customer’s card issuer when a transaction occurs.

But the Australian Restaurant and Cafe Association slapped down the proposal, and suggested the “tone deaf” policy would simply drive up menu prices.

“Who the hell does the RBA think will bear the cost of this ridiculous decision?” chief executive Wes Lambert said.

“A blanket ban on surcharging will undermine small businesses, reduce price transparency and mandate price hikes across every menu in Australia.”

The Council of Small Business Organisations Australia said businesses would just raise their prices and the changes would hide, rather than remove, surcharges.

The Independents Payment Forum – a body that represents small businesses including retailers, cafes, service stations and convenience stores – said other merchant fees would still eat into profit margins.

“The proposed regulatory options fail small businesses and the local communities they serve,” co-founder Bradford Kelly said.

“They benefit big business, big banks and big offshore companies.” 

The RBA’s proposals go further than previous federal government suggestions and are likely to be pushed through by the central bank, pending the outcome of a short feedback window.

Treasurer Jim Chalmers had said the government was prepared to ban fees on debit card transactions from the start of 2026.

But the RBA has included credit cards.

The government will consider the recommendation, but Dr Chalmers on Tuesday noted the RBA expected to be able to make the changes under its existing powers.

The central bank proposed removing prohibitions on “no surcharge” rules to achieve scrapping the fees.

It expected the card networks would then follow by implementing “no surcharge” rules based on historical experience and arrangements in other jurisdictions.

If that did not occur, the RBA would recommend the government legislate to ban surcharge fees.

Canstar data insights director Sally Tindall said consumers were fed up with being slugged with extra fees at the checkout.

“Our research shows the vast majority of Australians want this annoying bugbear off their backs for good,” she said.

Banks and other payment systems backed the changes because they kept pace with the reality of the modern-day transaction.

“It makes sense that consumers know the final price before they get to the checkout,” an Australian Banking Association spokesperson said.

“Banks will work with the government to provide Australians with more certainty and transparency on the costs of digital payments.”

RBA governor Michele Bullock said consumers and businesses would benefit as fewer and fewer Australians made cash payments.

“The time has come to address some of these high costs and inefficiencies in the system,” she said.

Lowering the cap on interchange fees by businesses is predicted to benefit small businesses the most, because they often pay higher fees.

The central bank found small businesses would be $185 million better off under the changes, with 90 per cent of them benefiting.

Better transparency achieved by forcing card networks and large acquirers to publish what fees they are charging has also been recommended to foster competition between networks.

Any changes won’t kick in until July 2026.

Chinese President Xi Jinping has hailed improved relations with Australia as he met with Prime Minister Anthony Albanese in Beijing.

Mr Xi was all smiles as he greeted his Australian guest in the East Hall – one of the many ornate chambers in the Great Hall of the People.

With the Australian and Chinese national flags adorning the walls, the leaders sat on opposite sides of a long polished table, where Mr Xi praised Mr Albanese for fostering stronger ties.

“The most important thing we can learn from this is that a commitment to equal treatment, to seeking common ground while sharing differences, pursuing mutually beneficial co-operation, for our countries and peoples,” he said.

China’s president pointed to past meetings as “in-depth discussions on the strategic overarching issues critical to the direction of China-Australia relations”

“With joint efforts from both sides the China-Australia relationship has recovered from the setback and turned around,” Mr Xi said.

Tuesday’s bilateral meetings with President Xi, Premier Li Qiang and Communist Party Chairman Zhao Leji – the three highest-ranking members of China’s ruling committee – mark the centrepiece of Mr Albanese’s six-day tour of the Middle Kingdom.

With China and Australia’s comprehensive strategic partnership entering its second decade, Mr Xi said he was ready to push the relationship further to reap greater benefits for both peoples. 

Mr Albanese was keen to echo his host, adding that he looked forward to working on areas of shared interest such as steel decarbonisation. 

“It is my pleasure to meet with you again here today,” he said, adding that he “very much” appreciated the Chinese hospitality.

“I note your comments in your opening remarks about seeking common ground while sharing differences,” he said.

“That approach has indeed produced very positive benefits for both Australia and for China.”

The meeting comes as the Chinese-Australian free trade agreement passes its 10th anniversary.

Co-operation between the two nations has increased following a falling out during the COVID-19 pandemic.

Mr Albanese is likely to raise Australian concerns over increased Chinese militarism, including Chinese naval exercises off Australian waters, and the detention of Chinese-Australian writer Yang Hengjun.

Beijing’s dissatisfaction over Australia’s plan to tear up a Chinese-owned company’s lease of Darwin Port is also likely to be broached. 

An article by a Chinese state media influencer suggested Beijing could restrict Australian imports as retaliation, risking financial blowback for Australian companies.

It comes as Chinese security officials tried to stop Australian journalists, who were travelling with the prime minister’s delegation, from leaving a tourist attraction in Beijing after filming in the area.

The group of reporters had permission to film at the location, but were stopped by security officials and were told to hand over footage before police arrived.

The journalists were able to leave the site with the footage, despite being followed by security.