National News Live: One Nation win in historic victory as Liberal Party lose regional NSW seat for first time in 77 years

Jim Chalmers is laying the groundwork for Tuesday’s budget in a media blitz this morning.

The treasurer is making the case for mooted changes to the capital gains tax discount, negative gearing, and family trusts.

“The status quo in the housing market and in the tax system is broken. It’s not working. It is locking out too many Australians, and we’re not building enough homes,” Chalmers told the ABC.

“Any responsible government like ours needs to take seriously the very genuine intergenerational concerns that people have and make the housing market fairer and make the tax system fairer as well. We’ve made it clear for some time that those are our priorities, without preempting anything that may or may not be in Tuesday night’s budget. I think people know and share our concerns that the status quo in housing and tax is unacceptable because it’s unfair.”

Jim Chalmers has predicted last night’s byelection in Farrer would doom Angus Taylor’s leadership and the prospect of the Coalition forming government without One Nation.

“It wasn’t a byelection. It was a bloodbath,” the treasurer told Sky News. “Angus Taylor went big on division and lost really badly ... it would surprise me if the clock wasn’t already ticking on his leadership.”

Chalmers said the vote showed the Coalition could not beat One Nation, so would have to join them.

“It’s very hard to imagine a future Coalition government without One Nation in it, which would be a three-ring circus of right-wing parties. So Labor is now the last one standing when it comes to the sensible centre of Australian politics.”

Jim Chalmers said the government had been focused on housing supply at last year’s election when questioned over the government’s promise not to touch negative gearing settings.

“When it comes to comments that we have made in the past, I do acknowledge that during the election campaign, the focus was almost exclusively on supply, plus the 5 per cent deposits. I think our comments and commitments at the time reflected that, but we also need to understand, and I’m increasingly of the view that we need to go beyond supply,” Chalmers told Sky News.

Pressed on whether he had always had ambitions to make changes to negative gearing, he said:

“My goal at the election was to build more homes, and we’re doing that. We’ve got building commencements up, I think, more than 26 per cent in the most recent data. That was our commitment at the election campaign, and we’ve been following through with that.”

Deputy Liberal leader Jane Hume said the 12.4 per cent of first preferences her party received in the Farrer byelection last night was “disappointing”.

“We always knew it was going to be a tough ask when a retiring member, particularly one that has been long serving [for] more than 20 years, retires, when Labor chooses not to run and there is an anti-establishment push – and that’s really what we’ve seen,” Hume told Sky News this morning.

She said the Liberal Party would hear the message sent by the people of Farrer, attributing last night’s result to a loss of trust.

“It was lost with two splits to the Coalition in just 12 months. It was lost when we abandoned all of our policies and people didn’t know what it was that we stood for,” Hume said.

“It’s up to Angus Taylor and I now, to start rebuilding that trust because, as Angus said last night, trust can be lost in an instant, but it takes time to rebuild that.”

Pauline Hanson is vowing to come after more seats in federal parliament after One Nation seized the regional NSW electorate of Farrer from the Liberals, removing it from Coalition hands for the first time in its 77-year history.

Saturday night’s byelection result is a major upset for Liberal leader Angus Taylor, whose party recorded a paltry 12 per cent of the vote in a seat it held for 25 years. Taylor conceded a year of chaos for the Coalition had damaged his chances of retaining Farrer, which Sussan Ley vacated after being dumped as leader.

Hanson’s candidate, David Farley, surged ahead of community independent Michelle Milthorpe in almost every booth outside the major hubs of Albury and Griffith as the votes were counted, winning with about 60 per cent of the two-candidate preferred vote at 9.30pm.

Read the full story here.

Hello and welcome to today’s live coverage during what is a big week in federal politics.

Here’s what you need to know.

• One Nation has elected an MP to the House of Representatives for the first time in last night’s historic Farrer byelection vote. David Farley will join Barnaby Joyce in the lower house, who has held his seat there since defecting from the Nationals.
• Pauline Hanson said One Nation would come for more seats, and Farley declared “we’re going through the ceiling”.
• Opposition Leader Angus Taylor said the Liberal Party needed to return to being a party of “conviction, not convenience”.
• Jim Chalmers is gearing up to deliver what he has described as his most ambitious budget yet on Tuesday. The treasurer will reveal more details on the housing supply measures in the budget later today.