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Tobacco and carbon credits bills return, and gaps in how Health manages AI on the agenda

October 12, 2026

Parliament returns with the illicit tobacco and carbon credits bills, a Senate list of document answers and two Auditor-General reports, plus a summary of the youth justice report.

Second reading, second wind

Welcome back. Parliament has returned this morning from a very busy three weeks away; it sadly also saw the passing of former Liberal member Bruce Baird (Cook, 1998 to 2007), and John Andrew, former Speaker in the Senate and Liberal member for Wakefield, both being marked today in the House. Beyond, it's the cost of living again. The ATO will stop accepting credit cards for tax payments after 30 November, and Senator Cash (Liberal) has an urgency motion listed arguing the government's surcharge ban only hides card fees. The tobacco excise fight is back too: the Coalition and One Nation want deep cuts, while the government says enforcement is the answer. Here's where to watch.

Today, in the House

The Customs and Other Legislation Amendment (Illicit Tobacco Enforcement Modernisation and Other Measures) Bill 2026 is a carry-over: it was meant to finish on 17 September, but debate was interrupted mid-speech and never resumed. Today it is listed to resume from noon, with the government hoping it passes before end of day. Being debated is an amendment from Ryan (Independent) to prevent the bill cutting the tobacco excise now. Joyce (One Nation) has also put a new amendment for consideration. This morning's ad hoc edition of Krafted. noted the Senate's inquiry into the bill reported on 8 October and recommended it pass.

The Carbon Credits and Other Legislation Amendment (Integrity and Transparency) Bill 2026 is listed to follow once it is returned from the Federation Chamber, where it stalled on 17 September. Tehan (Liberal) will likely decline the bill a second reading, citing the government's 10 September Senate deal. Joyce (One Nation) will add a call to repeal transitional capital gains tax discounts for foreign investors selling large renewable assets. Even if the House finishes debate today, the bill's page shows the Senate's inquiry into the bill has until 24 November to report.

Two private members' bills were introduced this morning, each with debate adjourned: Leeser's (Liberal) Antisemitism in Higher Education Bill 2026, amending the Australian Research Council and Tertiary Education Quality and Standards Agency Acts, and Spender's (Independent) Sex Discrimination and Fair Work Amendment (Equality in Treatment in Religious Schools) Bill 2026. Assistant Minister Hill is introducing the Autonomous Sanctions Amendment (Iran and Syria) Bill 2026, with debate to be adjourned.

Four bills that were live on 17 September back for this sitting period:

  • Military Rehabilitation and Compensation Amendment (Veterans' Healthcare Without Caps) Bill 2026: passed the Senate, then deferred in the House to this sitting by an 85–40 vote.
  • Private Health Insurance (National Joint Replacement Register Levy) Amendment Bill 2026: second reading adjourned on 17 September; a Senate committee report is due 16 October.
  • Sport Legislation Amendment (World Anti-Doping Code Implementation) Bill 2026: second reading adjourned on 17 September.
  • Child Support and Family Assistance Legislation Amendment (Ending Financial Abuse in the Child Support Scheme No. 1) Bill 2026: second reading adjourned on 17 September; a Senate committee report is due 12 November.

Today, in the Senate

The Universities Accord (Opening the Doors of Opportunity) Bill 2026, still at second reading after three second-reading amendments were negatived on 17 September (13–23, 13–23 and 21–32) is back on the list. As is the Health Insurance Amendment (Incentive Payments and Other Measures) Bill 2026, with an amendment from Ruston (Liberal) on the table.

Two bills arrive from the House. The Anti-Money Laundering and Counter-Terrorism Financing Amendment Bill 2026 comes up on a message for concurrence after passing the House on 16 September with 25 government amendments. It lets the AUSTRAC CEO restrict or prohibit reporting entities from using high-risk mechanisms to provide services, and extends terrorism financing to cover financing a state sponsor of terrorism. The Aged Care Legislation Amendment (Aboriginal and Torres Strait Islander Aged Care Commissioner and Other Measures) Bill 2026 is listed, subject to introduction, with its committee report tabled during the break.

McKim (Greens) on urgency motion will raise publicly owned supermarkets to break up the Coles and Woolworths duopoly, and Cash (Liberal) also on urgency motion will raise the credit card surcharge ban noted above. Gallagher (Labor) will move a motion on private senators' bills for this week and D Smith (Liberal) has a motion to introduce a Census and Statistics Amendment (Parliamentary Oversight of the Census) Bill 2026. McKim is also calling for a select committee on fuel tax credits for mining and resource companies. Eight answers to Senate orders for documents raise public interest immunity claims and are up for debate:

  • Circular Quay Renewal Program
  • Commonwealth-funded infrastructure projects
  • Department of Home Affairs, Metrea Australia
  • Illicit tobacco and e-cigarettes, Deloitte contract
  • Nauru, Intergenerational Trust Fund No. 2
  • Suburban Rail Loop East
  • Swan River ferry network
  • Thriving Suburbs Program.

Importantly, two Auditor-General reports are also up for debate. Report No. 5, Artificial intelligence and Medicare benefits integrity, tabled on 21 September, rates the Department of Health, Disability and Ageing's enterprise-wide AI governance as largely effective but its management of AI in provider compliance as only partly effective. An AI-enabled model in the Medicare fraud detection system ran from July 2024 to December 2025 without prior assessment of ethical, legal, privacy or cyber risks. The report also notes Services Australia's concern about medical providers using AI to suggest billing options, against a 2023 estimate of $1.5 billion to $3 billion in provider non-compliance. The department agreed to all three recommendations: assess AI risks in healthcare, including provider billing; tighten authorisation and legal-risk controls; and strengthen cyber and audit-closure assurance. The other is Report No. 6, Effectiveness of the Strategic Commissioning Framework.

From the committees

One public hearing is on today: the Joint Standing Committee on Treaties takes evidence on the Vanuatu-Australia Nakamal Agreement. Later this week, all in Canberra: Select Committee on Women's Health (13 October), Joint Select Committee on Artificial Intelligence (14 October), and the Foreign Affairs, Defence and Trade References Committee's inquiry into Department of Veterans' Affairs funded health treatment (15 October).

In the Senate, the Environment and Communications References Committee is listed for two extensions: the Australia Post retail network inquiry from today to 22 October, and the Greenwashing inquiry from 2 November to 17 March 2027.

And a summary I owe you from before the break. The Legal and Constitutional Affairs References Committee's report on Australia's youth justice and incarceration system, received out of sitting on 18 September after 128 submissions and nine hearings, makes four recommendations under chair Senator Blyth (Liberal): national minimum standards with the states and territories, a National Child and Community Safety Taskforce, an education campaign on alternatives to incarceration, and a Community Affairs References Committee inquiry into what drives youth incarceration. Labor senators say that falls short, especially for First Nations children, and add eight recommendations of their own. Shoebridge (Greens) and McLachlan (Liberal) jointly urge a national minimum age of criminal responsibility of 14, set under the external affairs power and implemented by 31 December 2027, and note that no Northern Territory government official appeared. Thorpe (Independent) also filed additional comments.

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Until tomorrow!

— Mia

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