Australia news LIVE: Polling data shows scale of One Nation’s win in Farrer; Government gears up to deliver federal budget; Iran responds to US’ newest ceasefire proposal

Deputy Liberal leader Jane Hume conceded this morning that the Coalition’s loss of a long-held seat in Farrer is evidence her party has lost the trust of voters.

“We always knew that it was going to be a tough byelection with the retiring of a local member who’d been there for a quarter of a century.

“The community were feeling disillusioned. We’ve heard the message loud and clear. We need to rebuild trust. We’ve lost trust in the last few years, and we need to rebuild that now,” Hume told ABC’s News Breakfast program.

Until Saturday, the seat of Farrer had been held by the Coalition for 77 years.

US President Donald Trump has dismissed Iran’s response to the US proposal for peace talks to end the war as “totally unacceptable”.

“I have just read the response from Iran’s so-called ‘Representatives’,” Trump said in a post on his Truth Social media site about 6.15am on Monday (Australia time) without giving further detail. “I don’t like it – TOTALLY UNACCEPTABLE!”

Earlier, Iranian state media reported that Tehran had sent a response focused on ending the war on all fronts, especially in Lebanon, and on the safety of shipping through the Strait of Hormuz, without indicating how or when the vital waterway might reopen.

Iran also offered to transfer some of its stockpile of highly enriched uranium to a third country, but rejected the idea of dismantling its nuclear facilities, The Wall Street Journal reported.

It followed a US proposal to end fighting before talks begin on more contentious issues such as the nuclear program.

Pakistan, which has been mediating talks over the war, forwarded the Iranian response to the US, a Pakistani official said. There had been no immediate US comment.

Anthony Albanese said social cohesion in Australia was still a major concern after a mother was charged for allegedly hurling an antisemitic slur at a Jewish netball team.

“I understand there are charges here so I won’t go into the specifics, but the idea that anyone would go to a children’s sporting event and say anything that is hateful, let alone anything which is hateful on the basis of race or faith, is just beyond belief, frankly,” the prime minister told Radio National.

“We as a society need to come to terms with that. We need to be better. We need to have the discussion, which is a good thing that that is occurring, and it’s good that this was called out.”

The prime minister said he hoped his British counterpart, Sir Keir Starmer, would keep his job after the UK Labour Party was decimated in local elections at the weekend.

“He is a friend of mine, and I hope that Keir Starmer continues to serve as prime minister of the United Kingdom. He was elected a relatively short period of time [ago],” Albanese told Radio National.

“I’ve dealt with four prime ministers of Great Britain since I was elected as prime minister, and the revolving door of leaders does not lead to stability.”

Anthony Albanese has defended breaking his promise not to change negative gearing.

“The last year has been a year of delivery, but we also said that wasn’t the limit of our ambition,” the prime minister told Radio National.

“You’d recall we certainly didn’t say that we would cut fuel taxes, but we’ve done that in response to the circumstances which are there. We’ll respond to the circumstances that are here now when it comes to intergenerational equity.”

Asked how circumstances had changed in the past year to make the government target negative gearing after promising not to do so, Albanese said:

“How they are different is that they continue to be entrenched without reform, and that’s the point. For a long period of time, young people have tried to save for a home. Another year has passed since the election, and not enough has changed, and so many people have had another year of missing out at auctions, of renting and paying someone else’s mortgage, and too many young people are close to giving up on the opportunity of owning their own home.”

The prime minister said the Liberal and Nationals parties made a “big mistake legitimising One Nation”.

“In adopting many of their policies, being a lighter version of them, and then following that up by giving them preferences [in the Farrer byelection], they were saying, effectively, that it was OK to vote for One Nation rather than the traditional conservative party,” Anthony Albanese told Radio National following the landslide One Nation victory in Farrer on Saturday.

Albanese said he respected people’s right to vote how they wanted to, but said One Nation was not a party of government.

“They are a political party led by someone who’s promoted grievance rather than solutions. And I understand, though, a protest vote will be cast. In this case, it was a devastating result for Angus Taylor and the Liberal Party.”

Labor chose not to contest the seat of Farrer at the weekend.

Finance Minister Katy Gallagher insists the government’s focus remains unchanged following One Nation’s win in Farrer on Saturday.

“I’m not saying we ignore what happens when you see events like this, but I’m saying our focus doesn’t change from what we need to do and what we are doing, which is, you know, delivering on the commitments we made, and then dealing with some of these bigger challenges and looking after people and fighting for people,” she told ABC radio in Canberra.

Gallagher said the government did not underestimate One Nation, but that Pauline Hanson’s style of politics was centred on divisiveness.

“Pauline Hanson has made a career out of being divisive and turning one group against another. And I think that seems to be her political strategy, of politics of grievance and going around and, you know, stirring up discontent … It’s pretty easy to play that game.”

Incoming One Nation MP David Farley has denied his landslide win in Farrer at the weekend was a protest vote.

“It was a vote of relief, someone seeking a better future,” Farley told Sky News.

“The campaign will roll on. We’ll keep our communication strong. We’ve got a set of goals we want to deliver in the period, whether it’s 18 months or 24 months. I’m sure the competing parties will still be alive, but if we’re there with quality communications and quality results, we’ll be ready for [the federal election in] ’28.”

Farley said he was with One Nation “absolutely for the long haul” amid speculation that he was a flight risk.

One Nation MP Barnaby Joyce this morning confirmed reports that the party was eyeing Labor seats in the western suburbs of Sydney following its historic win over the Coalition in Farrer.

“We are very much in the mind for the western suburbs of Sydney,” Joyce told Seven’s Sunrise.

“I was talking to people from the western suburbs of Sydney last night, both on the ground. To be quite frank, I was even talking to potential candidates. People are very enthusiastic.

“They get the idea that when you have record insolvencies in small business, when you have a government that’s just incapable of understanding that people are over climate change policy … they’re over their power bills. They’re over Australia having so much potential, [we] don’t seem to like putting it on the paddock,” Joyce said.

Appearing alongside Joyce was Social Services Minister Tanya Plibersek, who said it was important to listen to what Australians were telling the government. She also accused Joyce of inaction on key social issues while he was deputy prime minister of the country.

“We are acting on housing affordability after 10 years of inaction from the Coalition government where Barnaby Joyce was the deputy prime minister and never did any of the things he now says are important,” Plibersek said.

One Nation is an “extreme and chaotic party” and does not bring Australians together, Environment Minister Murray Watt said this morning.

Speaking on Nine’s Today show just now, Watt made the comments in response to questioning about One Nation’s win in Saturday’s byelection.

“If anyone thinks that One Nation is bringing us together, I think they’ve got another thing coming,” he said.

“I think that any honest observer can see what they stand for, and it’s not about bringing our country together.”

One Nation claimed a historic win in Farrer at the weekend, seizing a seat that had been held by the Coalition for 77 years.