Budget & housing politics: Labor is pushing a “simplify the message” campaign for its contentious Budget tax changes, using memes and soft toys as MPs worry the public debate is getting away from them. Tax reform fight: Business groups and the Business Council of Australia want Labor’s capital gains tax overhaul limited to housing, warning broad changes will hit investors and start-ups; Labor says most small businesses will be exempt but faces fresh carve-out pressure. Cost of living watch: Australia’s inflation eased to 4.2% in April, helped by a temporary fuel excise cut, though underlying inflation remains sticky and the RBA is still on alert. Housing supply push: The government will spend about $39.3m on construction innovation, backing an open-source “kit of parts” housing system to trial faster, cheaper building. Defence spending: Defence spending is set to fall as a share of GDP next year despite Labor’s $53b pledge, raising questions about whether budgets match the strategic environment. Health & prisons: Diphtheria has reached WA prisons, with two cases linked to West Kimberley Regional Prison. Online safety: UK-style pressure is building as ministers prepare tighter rules on children’s social media design features, with debate over whether bans or targeted restrictions are the answer. Security & AUKUS: Russia’s Shoigu warns nuclear weapons could appear in Australia due to AUKUS participation. Counter-terror returns: A second group of ISIS-linked women and children has returned to Australia, with Home Affairs saying serious limits applied and that those who committed crimes face the law.