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Former Victorian government minister Adem Somyurek’s motion to refer Labor’s “red shirts” scheme to the Ombudsman has passed state parliament’s upper house after a Labor MP crossed the floor to support it.

Kaushaliya Vaghela, a close ally of Somyurek, now faces suspension from the Labor party for breaking its rules after she crossed the floor to support the motion. It carried 19 votes to 17.

It means Victoria’s Ombudsman, Deborah Glass, has been asked to reconsider the “red shirts” scheme, with a view of referring it to the state’s anti-corruption watchdog.

In 2018, Glass found 21 Labor MPs had misused almost $400,000 worth of taxpayer funds to pay for campaign work, in what is now referred to as “red shirts”.

Labor repaid the money and all MPs involved were cleared of any criminal activity.

Somyurek, who quit the Labor party after it moved to expel him following allegations of branch stacking, claimed Victoria’s premier, Daniel Andrews, facilitated the scheme.

Somyurek, under parliamentary privilege, said:

He was desperate. He did something well beyond what he should have. He crossed the line. He designed this system. He told me personally that you’ve got to take part in this process.”

He said he was “very scared” of the motion passing. “I’ll be going home and not being able to sleep at night. But there’s a principal on the line.”

Last year Vaghela admitted her own husband may have been performing factional work out of electorate offices including Somyurek’s. She was dumped by the Labor party during preselection late last year.

The anti-corruption investigation into Somyurek is ongoing.

A spokesperson for Glass said the parliament “can refer any matter to the Ombudsman to investigate”.

“Should the Ombudsman receive a referral, she will determine how any investigation will be conducted and will report to Parliament in due course.”

A government spokesperson said “anything referred to the Ombudsman is a matter for her”.

The Liberal MP, Warren Entsch, has been on a journey with the religious discrimination bill – but appears to have watered down his initial dissent to the point he thinks parliament should “bank the successes” and vote it through.

Entsch said:”There is no way, in good conscience, I can vote for legislation that strips people of religious rights or any other rights as well. It’s the right of all Australians not to be discriminated against, including on grounds of faith.”

Entsch said he had long advocated for the rights of LGBTQ+ Australians and has “concerns with a number of elements” with the bill.

He said:

Quite frankly I don’t believe the bill before the house is necessary. There has been a lot of focus from what I can see on gay and gender diverse adults. A lot of these issues won’t be able to be addressed through this bill, but through the Sex Discrimination Act.”

Entsch said his first instinct was to reject the bill outright, but now says he wants to “bank the successes” of improvements to the bill, he cites removal of the Folau clause and the conscientious objection clause.

Entsch said he still has concerns with the statements of belief clause, but by improving the SDA it could address these concerns. Entsch said government amendments to prevent expulsion of gay students “is far too narrow”.

Entsch notes the attorney general has agreed to broaden the scope of the Australian Law Reform Commission review to all forms of discrimination against LGBTQ+ children.

Entsch said to reject the bill will prevent “capturing the positives we have achieved” and a future government may not step in to protect gay kids which is odd, because this is now bipartisan between the major parties – the only disagreement is whether to do MORE to help LGBTQ+ children.

Entsch concludes he will not be blocking the bill, and acknowledges this will disappoint some.

Grace Tame has responded to the government launching an investigation into her claims of a “threatening phone call” from a “government-funded agency”, tweeting that the probe “misses the point entirely”.

“Stop deflecting, Scott. It’s not about the person who made the call. It’s the fact they felt like they had to do it,” she tweeted on Wednesday evening.

Social services minister Anne Ruston and prime minister Scott Morrison’s office both said they were unaware of Tame’s claims before she included it in her National Press Club speech this afternoon.

“My understanding is that no one else in government was aware of that until that time,” Ruston told Sky News.

“Obviously it is an unacceptable thing for any agency that is funded by government who is seeking to do that, to anybody.

“I think we need to find out the circumstances around exactly what’s happened and transpired here but obviously the consequences need to match up with the action that’s been taken.”

Anthony Albanese says the government’s bill does not even prevent people being subject to vilification on the basis of their religion, religious dress or activities.

Albanese said:

The bill does not prevent a Muslim woman being abused in the street for being a Muslim, or a Hindu man for being Hindu.”

Albanese says the government changes “barely amends the Sex Discrimination Act”, and Labor will push for fuller protections, with a simple amendment to delete section 38(3) in full “to remove discrimination against all children, whether gay or lesbian, bisexual, transgender”.

He said:

All children should have a right to be who they are – and there are consequences for not doing that.”

Albanese said Labor recognises religious institutions’ right to preference members of the same faith, but it will need to be “carefully considered” by the Australian Law Reform Commission, so Labor will make amendments to protect teachers in government, because rights conflict.

Albanese references Stephen Jones’ impassioned speech last night about the suicide of his nephew and his fears for his son, and Bill Shorten’s concerns for people with disability.

He said:

We have an opportunity here to bend the arc of moral progress … To fix this flawed legislation.”

Albanese said the bill – if not amended by the House or Senate – “will only succeed in driving us apart”… “We must change this bill, all Australians deserve nothing less.”

Anthony Albanese is giving a speech on the religious discrimination bill, which he has described as “flawed”.

Albanese said:

The idea there has to be a conflict between the rights of children, and people with disabilities who would be potentially hurt from this bill and people of faith who would be protected is a false dichotomy – we surely should be able to do both. Enhancing protections against discrimination without increasing discrimination against others.”

Albanese said that’s what all faith groups he’s met wanted out of the bill. He complains that Labor has had just 24 hours to see the full bill, and states and territories whose laws have been overridden weren’t consulted at all.

Albanese said:

This bill seeks to pit those groups against each other, I seek to defend all of them. We need shields from this legislation, not swords.”

Albanese is now getting on to instances of religious discrimination, people denied employment, abused, having their houses attacked for having a shrine out front – explaining why he wants increased protections for religious people.

He said:

I don’t support doing it at the expense of increasing discrimination against others.”

Albanese is quoting Scott Morrison’s correspondence to him committing to prevent “any form of discrimination against a student on the basis of sexuality or gender identity”, which he says the bill does not do.

Albanese says if any of Labor’s amendments are passed in the House or Senate “we will insist on them”, and if they are not accepted “this bill is not good enough”.

Pauline Hanson has told The Australian that One Nation will vote against Labor’s amendments to the religious discrimination bill, and in favour of the bill – despite earlier threats not to vote for government bills.

Hanson reportedly said:

I challenge Anthony Albanese to have the courage of his convictions and move Labor’s amendments in the lower house instead of relying on the Senate to do the dirty work for him … I’ve been assured by senior religious leaders that these students [LGBTQ+] are not expelled by religious schools. Labor’s amendments are a solution looking for a problem which doesn’t exist.”

Hanson reportedly said One Nation would support the bill “despite its lack of support for my Covid-19 discrimination bill” because “it is consistent with our fight to protect the democratic rights and freedoms of the Australian people discarded or ignored during the Covid-19 pandemic”.

Speculation that official interest rates are going to rise isn’t just a plaything of investors.

They’ve been pencilling in the first move by the RBA by June to 0.25%, and a further percentage point of increases in the cash rate by December.

Anyway, that expectation is starting to spread to consumers, and dimming their confidence, if the latest Westpac-Melbourne Institute survey is any guide.

Their gauge of consumer sentiment fell by 1.3% to 100.8 in February from 102.2 in January, with family worries about rising costs a drag on confidence.

Rising petrol prices were one factor, but so was the growing view that interest rates will be on rise. The ‘finances vs a year ago’ sub-index dropped 9.2% (more than reversing the surprise 7.5% advance in January) while the ‘finances, next 12 months’ sub-index extended its decline by 1.5% to be down by 4.3% since December.

Westpac said:

The proportion of respondents expecting an increase in mortgage rates over the next 12 months lifted from 55% in January to 66% in February with over one in four consumers now expecting rates to rise by more than a percentage point.

This is the most pessimistic consumers have been about the interest rate outlook since August 2011, although on that occasion, rate hikes actually failed to materialise.”

Let’s see if they materialise this time around.

Another aspect might be the realisation that wage rises aren’t going to keep up with consumer prices. I explore in some detail here why those hoping for incomes to keep pace with inflation and then some might again be disappointed.

The federal government is already investigating Grace Tame’s claim that a “senior member of a government funded organisation” asked her not to criticise Scott Morrison, according to social services minister Anne Ruston.

Morrison’s office has called on the unnamed person involved to apologise.

Tame told the National Press Club that she got a “threatening phone call” from someone in August last year. Several journalists asked for further information following her speech on Wednesday afternoon, but Tame declined to share more details.

Tame said the person who called her had said “You are an influential person. [Morrison] will have a fear”.

Ruston told Sky News that the government was investigating.

A spokesperson for the prime minister called the incident “unacceptable” and maintains any such phone call was not made with their knowledge. The spokesperson said:

The first the PM or PMO (prime minister’s office) became aware of that allegation was during today’s Press Club speeches. The PM has not and would not authorise such actions and at all times has sought to treat Ms Tame with dignity and respect.

Ms Tame should always be free to speak her mind and conduct herself as she chooses. The PM has made no criticism of her statements or actions. While Ms Tame has declined to name the individual, the individual should apologise.

Those comments were not made on behalf of the PM or PMO or with their knowledge. The PM and the government consider the actions and statements of the individual as unacceptable.”