News and politics live updates: Victorian Premier Ben Carroll vows construction royal commission

New Victorian Premier Ben Carroll effectively launched the Labor Party’s election campaign today by vowing to prevent a Liberal-One Nation government taking power in a State that has been a Labor stronghold for most of this century.

After narrowly avoiding an internal leadership ballot that could have left Victoria with an acting premier for six weeks or more, Mr Carroll’s first decision was to promise a special prosecutor and a royal commission to investigate allegations of corruption in State infrastructure projects that one independent expert has estimated may have cost more than $15 billion.

Mr Carroll said the 11-year-old Labor government is “going to go in new direction”, signalling a more traditionally right-wing Labor approach and a departure from predecessor Jacinta Allan’s emphasis on social justice.

“We’ll be focused on the basics: on education, on health and on community safety,” Mr Carroll told Parliament.

At a press conference he said: “Let me make one thing very clear: I am not Daniel Andrews. I am not Jacinta Allan.”

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Australia’s prime minister has congratulated new Victorian Premier Ben Carroll.

In an Instagram post, Anthony Albanese said he looked forward to working with Mr Carroll.

“Working with Ben as Education Minister, we locked in full funding for every Victorian school,” he said.

“Premier, I’m looking forward to working together to deliver better schools, healthcare and more homes for Victorians.”

Anthony Albanese has paid tribute to former Victorian Premier Jacinta Allan.

“Jacinta is someone I think is a very decent human being, someone who is motivated by her passinoate belief in the education, health and transport of Victorians.

Mr Albanese said she can be proud of her achievements.

“I wish her well for her future.”

Oppostion Leader Angus Taylor has not denied making donations to a Christian conservative Liberal Party factional group following evidence raised at an ICAC hearing in Sydney.

Former Liberal staffer Dylan Whitelaw, who was a member of the party’s Mittagong branch in the NSW Southern Highlands, told the Commission that Mr Taylor supported the Reformers, a right-wing grouping within his party as the member for Hume in 2020.

The commission heard Dallas McInerney told Mr Whitelaw that Angus Taylor had committed to a $15,000 donation, and regular $3000 contributions.

“The Leader is not a party to the matters before the commission, nor has he been approached,” a spokesman for Angus Taylor told the The Nightly in response.

“These matters should be allowed to run their course free from political interference or commentary.

“As such the Leader will not be providing a running commentary on any matters before the commission.

“Donations and fundraising activities are declared in accordance with the rules and are a matter for the Party.”

Victorian Premier Ben Carroll has defended his decision to take over the leadership, despite previously promising not to challenge Jacinta Allan.

As speculation about a leadership spill mounted in June, Carroll said he could look Ms Allan in the eye and assure her he would not seek to replace her.

“I want to serve Jacinta Allan … I’ve got a young daughter at home, and I couldn’t be more proud to make sure she grows up knowing that I supported Jacinta Allan to be a world-class premier and get re-elected in her own role,” he said at the time.

Asked on Tuesday how he would explain the shift to his daughter, Mr Carroll said the situation had evolved.

“The circumstances changed,” he said.

“Yesterday morning, I was approached by a delegation who asked me to stand for leader. This delegation had already visited the premier and informed her that they wanted change. I’m going to be that change.”

Reserve Bank of Australia governor Michele Bullock has warned her monetary policy board may have to raise interest rates again because weak productivity is keeping inflation high.

Australia’s most powerful central banker has told a Sydney luncheon the RBA’s three rate hikes in 2026 so far may not be enough to get inflation back to target.

“One thing monetary policy can’t do, however, is address the economy’s slow productivity growth,” she told an Anika Foundation fundraiser on Tuesday.

“While this persists, the ability of the economy to grow without generating inflation is constrained, and Australians will continue to experience limited growth in real wages.”

Ms Bullock suggested another rate rise, that would take the cash rate to a 15-year high of 4.6 per cent, may be needed to bring down inflation now at 4 per cent, which is well above the central bank’s 2-3 per cent target.

“In these circumstances, the best contribution monetary policy can make is to maintain low and stable inflation and support sustainable full employment,” she said.

“The board is prepared to act as required to achieve its mandate, including by increasing the cash rate further if needed.”

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Victorian Premier Ben Carroll has sought to distance himself from his predecessors, declaring he will take a different approach to leadership.

“Let me make one thing very clear. I am not Daniel Andrews. I am not Jacinta Allan. I will do things differently, because different times require a new approach,” Mr Carroll told reporters.

Highlighting his personal background, Mr Carroll pointed to his upbringing in Melbourne’s north-west suburbs and his first job at Kmart as shaping his values.

“I understand the value of hard work and ensuring that every family has a chance to get ahead. My first job was at Kmart down the road from where I lived in Airport West,” he said.

“I still remember the joy of receiving my first pay cheque. It taught me from a young age the value of a dollar.”

Mr Carroll said that experience informs his approach to government spending, acknowledging concerns among Victorians about how public money is used.

“Every dollar my government spends will be treated with respect, carefully, responsibly, and only where it delivers the greatest value to Victoria,” he said.

New Victorian Premier Ben Caroll is speaking after being sworn in as Victorian Premier.

He has vowed to launch a royal commission into corruption in the state’s construction sector, making it his first major move after taking office.

Mr Carroll, who was unanimously elected leader of the Victorian Labor Party, said he was “honoured and humbled” to become the state’s 50th premier.

Speaking to reporters in Melbourne, he reiterated warnings about the potential impact of a Liberal–One Nation government, claiming it would lead to cuts to funding for hospitals and schools.

The new premier then confirmed he would move swiftly to address concerns in the construction industry.

“We will immediately establish a special prosecutor to work alongside the royal commission, and we will strengthen IBAC by giving it follow-the-money powers this term, not in 2027,” he said.

Opposition Leader Angus Taylor has been linked with a Christian conservative Liberal Party factional group at an anti-corruption hearing.

Former Liberal staffer Dylan Whitelaw, who was a member of the party’s Mittagong branch in the NSW Southern Highlands, told the Independent Commission Against Corruption that Mr Taylor supported the Reformers, a right-wing grouping within his party as the member for Hume in 2020.

Mr Taylor had also agreed to speak at one of their events in Goulburn, which was then in his Federal electorate.

“It refreshes my memory,” Mr Whitelaw said.

“I don’t recall Angus ever doing an event in Goulburn.”

Liberal powebroker Chris Elllis had asked Mr Whitelaw to expand the reach of the Reformers into the southern part of the State.

“I may have asked Angus if he would be able to help but I don’t have any recollection of that event happening,” Mr Whitelaw said.

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Ben Carroll has officially been sworn in as Victoria’s premier during a ceremony at Government House.

The oath of office was administered by Lieutenant-Governor Professor James Angus AO, who stepped in for Governor Margaret Gardner AC in her absence.