Ongoing turbulence from controversial flight upgrades is set to rumble the parliament sitting week before interest rates and the US election take centre stage.

As the government looks to shift focus back on cost-of-living relief, furore over Prime Minister Anthony Albanese’s house purchase and flight upgrades threaten to overshadow.

MPs and senators return to Canberra for parliament’s first sitting week in a month, with Labor looking to close out the political year on a high.

But controversy over Albanese’s $4.3 million home purchase on the NSW Central Coast is disrupting the government’s efforts.

The opposition is also set to press the government about revelations Albanese received 22 flight upgrades from Qantas, with allegations he liaised with the airline’s former boss Alan Joyce to receive them.

Albanese has denied contacting Joyce for the upgrades.

The Coalition has also been ensnared by flight upgrades, after Opposition Leader Peter Dutton conceded receiving a free flight from mining billionaire Gina Rinehart.

The government will be hoping the week brings relief for mortgage holders, with the Reserve Bank delivering a decision on interest rates on Tuesday.

But economists widely tip no change despite inflation falling to 2.8 per cent in the past quarter, within the Reserve Bank’s target band for the first time in three years.

Interest rates have been on hold at 4.35 per cent since November 2023, with most forecasts tipping a cut in early 2025.

The RBA has indicated it would look more closely at underlying inflation, which removes more volatile price changes, rather than the overall figure in assessing whether to cut rates.

Underlying inflation fell to 3.5 per cent in the September, still above the Reserve Bank’s target band of 2-3 per cent.

While the central bank’s decision and political controversies will loom over parliament, the US election is set to eclipse Australian politics.

Results will begin to filter through on Wednesday, Australian time, with the government to find out if it will be dealing with a return of Donald Trump or a Kamala Harris presidency.

Both sides of Australian politics have stated they would work closely alongside whoever wins office, with work on a multibillion-dollar nuclear submarine deal well under way.

The upcoming sitting week will be the third last for 2024 before MPs go on the summer break.

The government is looking for legislative wins to end the year on a positive note, with the next federal election to be held by May 2025.

Student loan help

University graduates struggling with cost-of-living pressures are in Albanese’s sights as he tries to turn a new page following controversy over his Qantas flight upgrades and a home purchase.

Albanese will announce a commitment to raise the minimum repayment threshold for student loans by around $13,000 a year by 2025 so graduates will begin paying down debts once they earn $67,000 instead of $54,000.

This would be indexed to stay at 75 per cent of graduate earnings.

The government will also move to a marginal repayment system where the amount of a debt repaid is a proportion of income above a given threshold, as recommended by the Universities Accord.

Albanese will join South Australian Premier Peter Malinauskas in a campaign rally on Sunday to announce the student loan policy as he begins to lay out Labor’s agenda ahead of the next election, expected by May.

“This is what Labor governments do – we help people under pressure and we build for the future,” Albanese said.

“This will be the heart of the positive and ambitious agenda we take to the Australian people at the next election.”

An average HELP debt holder will save about $680 a year, with graduates earning $70,000 to pay $1300 less and those on $80,000 getting a cut of $850.

The changes will affect about one million young Australians and will apply to all graduates earing up to $180,000 a year.

The government will aim to legislate the changes in 2025 and has signalled more action regarding student loans.

“Labor will always be the party of education. No matter where you live, no matter how much your parents earn, we will work to ensure the doors of opportunity are open for you,” Albanese said.

-AAP