Received

The threat of a sharper economic slowdown and job losses played into the Reserve Bank of Australia's decision to keep interest rates on hold.

The minutes from the RBA board's July meeting contained few surprises, with the board again weighing a 25 basis point hike against pausing rates.

It ultimately landed on a second pause in the hiking cycle, leaving the cash rate unchanged at 4.1 per cent.

The document emphasised the lag between interest rate movements and the impact on borrowers and other sections of the economy, as a key reason for keeping interest rates steady.

The board also discussed the possibility of the economy slowing more than expected, with "considerable uncertainty" still hanging over the household sector.

Higher interest rates on deposit accounts could weigh on spending by encouraging saving.

The impact of inflation, tax payments and mortgage payments on household disposable incomes was also raised.

Mortgage interest payments reached a "historical peak" of 9.4 per cent of household disposable income in May, with the expiry of low fixed-rate loans expected to continue pushing these numbers up.

If consumption slows much more than forecast already, the minutes said demand for labour would slow and the unemployment rate would be likely to rise beyond the rate required to ensure inflation returns to target in a reasonable timeframe.

In support of another hike in July, the board members noted inflation was still very high, especially services, energy and rents inflation, and the jobs market was remarkably strong.

"The case to increase the cash rate further was centred on the observations that inflation was forecast to remain above target for an extended period and there was a risk that this timeframe would be extended without further monetary policy tightening," the minutes said.

The board left the possibility of more hikes on the table, with the RBA keeping its reference to further tightening if needed.

CommSec economist Craig James said circumstances were leaning in favour of one more hike, with upcoming jobs data to feed into the board's next call along with the June quarter consumer price index next week.

"A stronger-than-expected print could push policymakers into hiking rates again," Mr James said.

The board will also have an updated set of staff forecasts about the state of the economy and the risks pushing it in different directions.

NAB still believes two more hikes will be needed to return inflation to target, whereas ANZ now expects the RBA to stay where it is in an extended pause.

Treasurer Jim Chalmers declined to comment on where rates were heading but agreed Australia's inflation was moderating in welcome ways.

Speaking on the sidelines of the G20 meeting of finance ministers and central bankers in Gandhinagar, India, Dr Chalmers said Australia was facing a very similar inflation challenge to other countries at the event.

He was cautious about drawing comparisons between the US and Australia's inflation trajectories following a softer-than-expected consumer price reading out of the world's biggest economy last week.

"The US peaked earlier than Australia and has been moderating for longer, and so we don't draw any direct comparisons," he told Bloomberg News.

"We hope to see inflation moderate in the next data, and we expect that it will, but it can't moderate fast enough - people are under pressure."

He also said the Australian economy would continue to grow, as forecast by both the RBA and Treasury, but really quite slowly.

Dr Chalmers travelled to the G20 meeting with RBA Governor Philip Lowe.

© AAP 2023

The Indigenous voice 'yes' and 'no' campaigns have unveiled their pitches, with opponents warning of legal risks as those in favour say it will improve lives.

The Australian Electoral Commission published the cases - written by federal politicians - on its website on Tuesday.

All households will receive a printed pamphlet in the coming months ahead of the referendum, to change the constitution to enshrine an Indigenous voice to parliament, to be held between October and December.

Asking people to vote for a "better future for Aboriginal and Torres Strait Islander people and all Australians", the 'yes' campaign has the endorsement of Indigenous stars including former tennis world No.1 Evonne Goolagong Cawley, the NRL's Johnathan Thurston and AFL great Eddie Betts.

Supporters of the voice argue the advisory body will be a committee of Aboriginal and Torres Strait Islander people who will advise the government on issues that affect them.

Members of the voice will be chosen by Indigenous people in their local area and will serve for a fixed period.

Thurston said Indigenous young people "deserve the chance to be their best" and giving them a say will mean "more of our kids reach their potential".

Goolagong Cawley said voting in favour of the change was a chance to "help the next generation chase their dreams".

"Let's grab this moment with both hands," she wrote.

Opponents of the proposal argue the voice goes beyond recognition, is "legally risky, with unknown consequences", and is divisive.

"If you don't know, vote no," the essay reads.

Quoting a number of former judges, those against the voice argue the proposal lacks detail and won't improve outcomes for Indigenous Australians.

It also claims a centralised voice might overlook the needs of regional and remote communities.

Constitutional lawyer and prominent 'yes' campaigner Greg Craven said he was enraged with voice opponents for including his quotes, which criticised the government's preferred model for the advisory body, in their essay.

"We had discussions over the drafting ... but I have made it absolutely clear over the last two months that I am 100 per cent committed both to supporting the voice and campaigning for it," he told ABC TV on Tuesday.

A joint statement from Uluru Dialogue co-chairs Professor Megan Davis and elder Pat Anderson slammed the 'no' camp for using "taxpayers' money to distribute misleading information aimed at holding our people back".

Polling shows support for the voice has plunged, but Prime Minister Anthony Albanese said there was a strong case to be made for the proposed advisory body.

"We have four out of the 19 Closing the Gap targets currently being met," he told reporters on Tuesday.

"We need to do better - if Australia votes 'no', that is saying that we'll keep doing things the same way."

Former Liberal MP Warren Mundine, who is campaigning against the voice, said he was "pretty comfortable" with the essay submitted for his camp but conceded there were things wrong with it.

Liberal MP Julian Leeser, who quit the party's front bench over his support for the voice, said there were people using "echo arguments" heard at other times in Australia's history.

The referendum's success depends on majority support across the country and in four of six Australian states.

The question to be put in the referendum is: "A Proposed Law: to alter the Constitution to recognise the First Peoples of Australia by establishing an Aboriginal and Torres Strait Islander Voice. Do you approve this proposed alteration?"

© AAP 2023

Authorities are trying to work out what to do with a large mystery object that washed up on a remote West Australian beach, as experts try to confirm if it is part of a space rocket.

The barnacle-encrusted and rusty cylinder was found on Sunday near Green Head, about 250km north of Perth, where it remains under police guard after being declared safe.

The Australian Space Agency says the device, which is about 2.5m high and partly made of a gold-coloured woven material, could be part of a space vehicle.

"The object could be from a foreign space launch vehicle and we are liaising with global counterparts who may be able to provide more information," the agency said in a tweet.

It is working with experts from multiple national and international agencies to determine if that is the case and, if so, where it came from.

WA Police are managing the scene and talking to stakeholders about how to safely remove the device from the beach.

It said additional precautions would be taken because of its unknown origin.

Discussions are also under way with several state agencies and the Shire of Coorow about storing it.

"At this time, it is believed the item is space debris and will be managed as such until it can be determined otherwise," a police spokesman said.

Premier Roger Cook said if the object was found to be from space it could find a home in a WA museum with the wreckage of Skylab that fell back to Earth in WA in 1979.

"It might add to our growing collection of space debris," he said.

Locals gathered around the object after it washed up, with some posing for photos before authorities cordoned it off.

Some users of social media site Reddit speculate the device could be Indian space junk from an LVM3-M4 rocket, as news about it was shared across the world.

Authorities have ruled out an aviation link after suggestions it may have been part of an airliner.

Police late on Monday said expert analysis had determined the object was safe and "there is no current risk to the community".

"This includes those who have come into contact with the object prior to it being reported to police," a spokesman said.

Skylab was the US's first space station. It was orbiting unmanned for just over five years before breaking up and scattering debris across the Esperance region.

© AAP 2023