Pacific Defence Shock: Australia and Fiji signed the Ocean of Peace Alliance and the Vuvale Union in Suva, with $1bn over 10 years and a mutual-aid defence commitment—Australia’s fourth alliance and Fiji’s first—aimed at boosting security and resilience in the South Pacific. China Missile Backlash: Hours later, China test-fired a long-range, nuclear-capable missile with a dummy warhead in the Pacific; Australia and New Zealand called it destabilising, with Penny Wong warning it undermines stability and transparency. Modi’s Indo-Pacific Run: PM Narendra Modi departed on a six-day tour of Indonesia, Australia and New Zealand to advance Act East and MAHASAGAR, with talks expected to cover defence, trade and diaspora links. CGT Reversal: The government dropped retrospective foreign resident CGT changes after industry pressure, limiting reforms to events from commencement and adding safeguards around prior assessments. Workplace Flex Fight: Business groups warned a bill could “recklessly endanger” the economy, arguing flexible work already works; unions and employers are still debating how much discretion should remain with companies. Inflation Watch: Australia’s core inflation is flagged as the second-highest among advanced economies, with spending and policy settings blamed. Markets: ASX futures point slightly lower as investors digest last week’s gold-led rally and upcoming inflation and jobs data. Defence Industry Push: The 2026 Defence Industry Development Strategy sets targets for workforce growth and apprenticeships, plus funding for internships and schools pathways. Kylie Minogue Fallout: Albanese apologised after “shag, marry, date” podcast comments sparked political backlash.