The Australian share market has pared back earlier losses to coast higher at midday despite elevated oil prices and reinvigorated threats to destroy Iranian energy infrastructure.

The S&P/ASX200 was up 26.7 points, or 0.32 per cent, to 8487.7 by midday AEST on Tuesday as the broader All Ordinaries gained 25.1 points, or 0.29 per cent, to 8682.6.

Conflicting messaging from the White House kept investors cautious in overseas markets, with US President Donald Trump expressing willingness to negotiate with Iran while also reviving warnings energy plants and Kharg Island could become targets if the Strait of Hormuz remains closed.

US Federal Reserve Chair Jerome Powell confirmed a wait-and-see approach to higher oil prices in public remarks, signalling the temporary influence of energy supply shocks on the economy and inflation.

In Australia, investors are digesting the minutes from the last cash rate decision when a 0.25 percentage-point hike was deemed necessary by a slim majority of board members due to inflationary pressures.

The Reserve Bank of Australia has also banned credit and debit card surcharges despite concerns voiced by banks and small firms.

The Fair Work Commission’s decision to scrap junior pay rates is also expected to add to operating costs for retail and fast-food businesses.

Moomoo market strategist Michael McCarthy said resources names with oil exposure might offer some insulation for the local market. 

“But until there is meaningful progress on the Iran situation, the path of least resistance for broader markets remains lower,” he said.

At lunchtime, seven of the ASX-200’s 11 sectors were higher, led by a 1.7 per cent rise in technology stocks.

Energy companies continue to trade higher amid rising prices and geopolitical uncertainty, with Brent crude hovering mostly above US$100 a barrel.

Mining stocks were down 0.2 per cent as the outlook for Chinese demand for iron ore and coal cools.

Financials were higher despite tightened surcharge regulation, with CBA up 0.4 per cent to $169.45, NAB down 0.3 per cent to $41.13, Westpac 0.9 per cent higher at $39.44, and ANZ flat at $35.89.

The Australian dollar is buying 68.57 US cents, slightly down from 68.69 US cents on Monday at 5pm.

Discounted pay rates for young adults working in sectors such as fast food, pharmacy and retail have been scrapped in a workplace watchdog decision.

The Fair Work Commission on Tuesday said employees aged from 18 to 20 should receive the full award wage.

Currently, wages for 18-year-olds in those sectors are 70 per cent of the full award wage, rising to 80 per cent for those aged 19, and 90 per cent when they reach 20.

Junior wages will still remain in place for minors.

The higher wages for junior workers will start to be phased in over a four-year period from December.

The commission said there would be no changes to wage rates for workers aged 18-20 who had less than six months of experience at their current workplace.

The decision took into account factors such as labour market disadvantages for young people, the watchdog added.

Surcharge fees on debit and credit card transactions will be ditched, despite strong opposition from businesses.

The Reserve Bank’s review of merchant card payment costs recommended the fees be scrapped on EFTPOS, Mastercard and Visa transactions because they don’t help consumers make more efficient payment choices and cost shoppers about $1.6 billion a year.

Business groups panned the suggestion and said it would simply drive up prices and reduce transparency.

But the central bank on Tuesday said extensive public consultation had not dissuaded officials from making the move.

“Consumers are estimated to be paying $1.6 billion of a total $1.8 billion in card payment surcharges charged each year on designated card networks,” the RBA said.

“The surcharging framework, introduced more than two decades ago, is no longer achieving its intended purpose of steering consumers towards making more efficient payment choices.

“The increased prevalence of businesses surcharging all cards at the same rate, challenges with enforcing the current surcharging framework, and consumers using less cash have reduced the effectiveness of the surcharging regime.”

Consumers would prefer payment costs be incorporated into advertised prices, the Reserve Bank added.

The central bank will also lower the caps on interchange fees paid by Australian businesses, saving consumers about $1.2 billion.

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

Treasurer Jim Chalmers previously flagged the government was prepared to ban fees on debit transactions before the central bank recommended extending that measure to credit as well.

He noted the Reserve Bank would be able to make all the flagged changes under existing powers and would not need legislation to be passed.

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

When releasing the recommendations in July 2025, 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.

The surcharge removal will kick in from October 1.

Five social media platforms are under investigation for potentially breaching Australia’s world-first social media age limit.

Facebook, Instagram, Snapchat, TikTok and YouTube may have allowed children under 16 to access their apps after the age restrictions took effect in December, Communications Minister Anika Wells said in a statement.

Some children have been allowed to create new accounts straight after their previous one was deactivated, or repeatedly attempt age verification until they pass, the online watchdog has found.

Other platforms did not provide appropriate pathways for underage users to be reported, the eSafety Commission said in its first compliance report since the ban kicked in.

Ms Wells said the alleged breaches were unacceptable.

“The kind of tactics we’re seeing deployed by social media platforms to undermine Australia’s world-leading law are right out of the big tech playbook,” she said.

“If eSafety finds these companies have systemically failed to uphold their legal obligations, I expect the commissioner to throw the book at them.”

Systemic breaches of the age restriction laws can be punished with fines of up to $49.5 million.

When the ban took effect, some children said their accounts had not been deactivated.

Others reported being able to bypass age verification with relative ease.

Prime Minister Anthony Albanese has long conceded not every young person would be kicked off social media, but enough would be for the restrictions to be effective.

A number of other countries are now considering following suit and barring children from social media, including Austria, France, Denmark, Spain, Greece and Malaysia.

Indonesia also began blocking under 16s from having accounts on YouTube, TikTok, Facebook, Instagram, X, Bigo Live and Roblox on Saturday.

Coal and gas mine expansions are getting an easier ride under the safeguard mechanism compared to brand new projects, potentially undermining Australia’s climate goals.

Roughly 20 million tonnes of greenhouse gas emissions could slip through this “loophole” analysed by RepuTex on behalf of the Australian Conservation Foundation and the Climate Council. 

Without more stringent pollution rules on mine expansions and other safeguard mechanism flaws, the climate and environment groups warn emission reduction goals are at risk.

The safeguard mechanism captures more than 200 of Australia’s big polluting facilities and forces them to lower emissions against legally binding limits – known as baselines – via genuine cuts through electrification or efficiency, or by buying carbon credits to offset their pollution.

A federal review of the scheme starts mid-year.

Australia has obligations to slash emissions under the international Paris agreement aimed at limiting dangerous global warming.

The safeguard mechanism is key to meeting Australian targets of a 43 per cent emissions cut by 2030 and 62-70 per cent by 2035. 

The analysis prepared by the energy modelling consultancy suggests a bigger emissions-reduction burden will be shouldered by households and other industries if coal and gas companies are not forced to go harder.

Tougher rules on mine extensions is one opportunity.

The expanding footprints of existing sites are presently able to dodge stricter pollution limits on new greenfield projects.

Stronger pollution controls for new sites acknowledges facilities can be more easily built from the ground up with low carbon technology compared to retrofitting.

Especially so for factories but less so coal mines, which do have ready opportunities to electrify and stop methane escaping as sites sprawl.

Coal and gas expansions are already more common than new mine proposals despite both generating carbon pollution.

NSW recently became the first state to ban new greenfield coal mines, but expansions remain on the cards for at least another 25 years.

Climate Councillor and former BP executive Greg Bourne said coal and gas companies were getting a “free ride” while future-focused manufacturers were doing the hard work to make real emissions cuts.

“Every day we remain tethered to coal and gas, we are at risk of energy price pain caused by overseas conflicts and escalating climate costs in a warming world,” he said.

“Closing loopholes in the safeguard mechanism will support a more resilient economy.”

Shortcut baselines for coal were also criticised as they ignore huge variety in pollution generated by each site, allowing some miners to attract credits they can sell without making genuine emissions cuts.

Systemic under-reporting of fugitive methane at mine sites further threatens to blow out emissions budgets.

Australians could face worse cost-of-living pressures over the coming months despite temporary relief through a cut to the fuel excise.

From Wednesday, petrol and diesel costs around the nation will be slashed by 26.3 cents a litre as the federal government moves to head off the worst effects of the war in the Middle East.

That equates to $10.50 on a small 40-litre tank or $21 for Australia’s best-selling new car – the Ford Ranger – which has an 80-litre tank.

Independent economist Saul Eslake said while the move would be welcome relief for motorists battling high fuel prices, it would likely lead to higher interest rates over the longer term.

The tax cut would leave drivers with more money in their pockets which they would likely spend in other parts of the economy, driving up inflation, Mr Eslake said.

“What the government giveth in these circumstances, the Reserve Bank may taketh away,” he told AAP.

Treasurer Jim Chalmers has said the policy would likely reduce headline inflation by half a percentage point, but the Reserve Bank prefers to rely on underlying inflation, which often ignores fuel prices due to their volatile nature.

Mr Eslake said the fuel tax could also exacerbate existing shortages by driving up demand for cheaper petrol and diesel.

“You would have thought that a part of any sensible response to a threat to supply is to try to reduce demand where you can. (This will) do the opposite,” he said.

Fellow economist Chris Richardson said while he understood the politics of cheaper petrol, the economics of the policy were poor.

“There will be joy at the new round of handouts. But they’ll come with a sting in their tail. They’ll keep inflation higher here for longer,” he said.

The Spirit of Tasmania ferry is one of the latest operators to pass on higher costs to customers, imposing a 15 per cent fuel surcharge on all voyages between Geelong and Devonport.

The company was facing an 80 per cent rise in fuel prices, projected to hit its bottom line by more than $50 million, TT-Line chairman Ken Kanofski said in a statement.

Asked about Australia’s policy of cutting the fuel excise, New Zealand’s Prime Minister Christopher Luxon blasted the idea.

“Our advice is pretty clear: it’s poorly targeted, It actually benefits high-income households and it actually encourages fuel use when it’s constrained,” he told reporters in Wellington.

Alongside the fuel excise cut, the government will also pause the road user charge for heavy vehicles, easing some financial pressure on already-stretched supply chains.

The two policies are expected to cost taxpayers $2.55 billion between April and June.

NRMA spokesman Peter Khoury said despite the cut, petrol prices were likely to continue rising for as long as the war drags on.

“We’ve broken the record several times, we break it on a daily basis, so cutting the excise won’t take long before those prices get back up, and that’s going to be the challenge,” he said.

State leaders are planning to give up any windfall GST revenue from higher petrol prices and were due to discuss the idea at a meeting on Monday evening.

A gun pulled by Dezi Freeman in his final moments belonged to one of the officers the self-proclaimed sovereign citizen executed, as authorities await formal identification of his body.

Police tracked the 56-year-old to a rural property in Thologolong, near Walwa on the Victorian-NSW border.

Freeman was wrapped in what appeared to be a blanket when he emerged from a container-like structure on Monday morning following a three-hour stand-off with heavily armed officers.

Victoria Police Chief Commissioner Mike Bush said he had viewed footage of Freeman pulling the gun from underneath the cloth and turning it towards police.

“I can now confirm that it is a police firearm, and we believe it was taken from one of our murdered officers on the 26th of August,” he told reporters in Wodonga on Monday evening.

It is not known if Freeman fired the gun before multiple officers discharged their weapons.

Freeman was wanted over the fatal shootings of Neal Thompson and Vadim de Waart-Hottart, who were among a team of officers serving a warrant at his home in the small town of Porepunkah in late August.

The property is about 150km from where Freeman was shot dead.

Officers moved into position on Sunday but Mr Bush would not confirm whether they received a tip-off about Freeman’s whereabouts.

Police are investigating how the fugitive evaded capture for 216 days and exploring the possibility he received help.

“We’re very keen to learn who, if any, but I’m sure some, actually assisted him getting away from Porepunkah to where he was located,” Mr Bush said.

Mr Bush said Freeman’s appearance was slightly altered from his last confirmed sighting, fleeing into dense bushland the day of the shooting.

“His hair was a little bit longer and he had a beard,” he said.

State Coroner Liberty Sanger visited the scene on Monday to formally confirm the man’s identity.

The commissioner said he expected the process to take 24 to 48 hours.

“The deceased is still on site so that will take some time,” Mr Bush said.

“We’re confident of who that person is.”

Premier Jacinta Allan rejoiced at police bringing the manhunt to a close, declaring an “evil man” was dead.

“It is over in terms of the operation but it will never be over for those families,” she said.

Police Association secretary Wayne Gatt said the memories of the fallen officers would live forever.

“The memory of cowards fades quickly but with heroes it lives on forever,” he said.

Hundreds of police from across Australia took part in the search for Freeman in extreme conditions, including snow and heat, and dense bushland in mountainous terrain.

Investigators in December revealed they had shifted their search efforts to locating the killer’s body.

Victoria Police offered a $1 million reward and the possibility of indemnity for information leading to his capture – the largest financial offer in the state’s history for facilitating an arrest.

Australia’s universities and research institutions are at the forefront of robotics innovation, but the nation is still failing to translate that into scalable solutions to drive economic activity.

Additional public and private investment in the sector could add $201 billion to the country’s economy by 2040, according to a new report.

It could also increase annual incomes by $6500 and create an average of 128,900 new jobs a year, the report by ACIL Allen, and commissioned by Amazon Australia, released on Tuesday shows.

Tye Brady, the chief technologist at Amazon Robotics and the founder of robotics incubation program MassRobotics, told AAP in an interview from Boston that robotics was transforming the entire nature of work.

Amazon credits its 300 robotic warehouses around the globe, including an enormous facility in western Sydney, with helping make its operations safer and easier while creating new job categories and upskilling opportunities for its employees.

For example, its Hercules mobile robots can lift up to 500kg of inventory, which Amazon says allows its employees to reduce physical strain and focus on work that requires human judgment and skill. 

“So I took the job at Amazon because it’s very applied. It’s not parkour, it’s not robots doing backflips,” Mr Brady said.

“It’s the real, the mundane and the repetitive that we’re eliminating, and we’re making it easier and better in a safer environment for our employees.

“It has completely transformed our business in the right way – with job growth, with good jobs, with upskilling opportunities.”

Beyond e-commerce, robots had much to offer Australia’s mining, agriculture, fishing and oil and gas industries, Mr Brady said.

“They’re ready for this, right? And when you do it right, you become more productive, you create more jobs, you create a better job, and you also upskill your employees,” he said.

Australia has some “legends” in the field of robotics, Mr Brady noted, but it needed a “spark” to translate that academic capability into widespread commercialisation and adoption.

“Get your startups out there, get a pool of venture capitalists, have that infrastructure, have the ecosystem, have the community support, and let’s get one startup at a time and start to grow a cluster,” he said.

“Because when you grow the cluster, then guess what? More talent comes to you. They get to learn from each other. They become more productive. So the cluster gets bigger and bigger.

“There’s tremendous opportunity in this.”

Realising that potential requires a coordinated effort, the report says, to create stronger pathways and partnerships that connect Australia’s university research capabilities with industry expertise and real-world opportunities.

People who vape are at higher risk of cancer than those who do not, a landmark study has found, casting doubt over whether the habit is safer than smoking.

Public health experts and scientists generally don’t consider e-cigarettes to be safe but early marketing has offered nicotine-based vapes as a less harmful alternative to cigarettes that could supposedly help people quit.

The review, led by the University of NSW and released on Tuesday, has found these kinds of vapes are likely to cause lung or oral cancer.

People who use nicotine-based vapes were found to have changes in their tissue indicative of cancer development, including DNA damage, oxidative stress and inflammation.

Researchers also examined case studies of oral cancer in those who only vaped and looked at animal experiments, including one where mice that breathed in aerosols from e-cigarettes developed lung cancer and changes in the bladder consistent with the eventual occurrence of cancer.

“Objectively and from the totality of available literature … e-cigarettes are likely to cause lung cancer and oral cancer,” lead researcher Bernard Stewart told reporters.

“Not only are we concerned about cancer development, but we cannot definitively say these things are safer than smoking.” 

Vapes can only be sold in Australian pharmacies to help people quit smoking or manage nicotine dependence.

However, the study also showed growing evidence smokers who switch to vapes don’t necessarily give up cigarettes, meaning they are stuck in a “dual-use-limbo” that means they are at a four-fold increased risk of developing lung cancer.

As vapes have only been available for sale in Australian since about 2008, it will take decades for scientists to gather enough long-term information from people who have only vaped to definitively prove e-cigarettes cause cancer.

But this study has enough data for its authors to urge regulators to act, comparing the situation to early studies on cigarettes.

It took about a century before smoking was officially recognised as a cause of lung cancer in 1964, even after reports from the 1860s showed links between tobacco and tuberculosis, emphysema and more.

“Vapes have only been going for 20 years here, we don’t have to wait 80 years to get a response,” co-author Freddy Sitas said.

“We have a very good opportunity to be proactive.”

Large, nation and statewide studies must be funded to get early results about the potential for early onset cancer among young Australians, Prof Sitas said.

Rather than examining the impact of e-cigarettes alone, previous studies have focused on comparing vaping to smoking, delaying progress on e-cigarette awareness, according to Prof Stewart.

“Being approached from the perspective of ‘is this safer than smoking’ is as crazy as saying we’ll assess the safety of knives by seeing whether they’re more or less dangerous than sub-machine guns,” he said.

Central bank watchers are waiting on more colour from the “robust” conversation at the Reserve Bank’s last board meeting as they try to predict its next move.

Minutes from the RBA’s March meeting will be released on Tuesday and will be closely picked over after it ended in a 5-4 split in favour of a hike – the narrowest decision since the RBA started publishing unattributed votes in July 2025.

“The RBA’s meeting minutes … will attract attention for additional information on the ‘robust discussion’ behind the Board’s split 5-4 decision earlier this month,” said analysts at JP Morgan, quoting governor Michele Bullock’s characterisation of the meeting. 

Ms Bullock said the disagreement was a question of timing rather than direction, with the four doves arguing to wait until May to get a clearer picture of the impact of the Iran war, but agreeing that more tightening was required to get inflation under control.

Forecasters at all of Australia’s big four banks expect the RBA to hike again in May, which would put the cash rate back at its peak before the start of the cutting cycle in February 2025.

Westpac chief economist now predicts the central bank to go five from five, with additional hikes in June and August, which would leave the cash rate at the highest level in 18 years.

The RBA’s inflation fears would have been heightened further by the federal government’s decision to halve the fuel excise, ostensibly to support households as the cost of living bites.

“There’s a chance that, what governments give us via extra handouts, the Reserve Bank will taketh away by having rates higher than they’d otherwise be,” said independent economist Chris Richardson.

Handing more money to consumers will only increase demand without adding to supply at a time when the RBA is already concerned that the economy is over capacity, economists warn.