Plus: US Federal Reserve raises interest rates
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AI tipping point warning; concerns about aged care scheme; and a US rate hike | The Guardian

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17/09/2026

AI tipping point warning; concerns about aged care scheme; and a US rate hike

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Martin Farrer Martin Farrer
 

Morning everyone. One of the godfathers of AI technology has warned that we are fast-approaching a Covid-style inflection point where governments have to act to protect the public. We also report on JD Vance shrugging off calls for regulation and have an explainer on what proposals to allow an AI scrape of Australian content means.

Federal health officials were left in turmoil by an algorithm to determine aged care packages, Guardian analysis reveals how the grants program massively favoured Labor, US rates go up for the first time since 2023, and what’s behind the explosion in new Asian fast-food chains?

Australia

Anthony Albanese and Catherine King.

Granted | Federal Labor seats have received more than 90% of funds already awarded in the first five months of a controversial multimillion-dollar grants program, Guardian Australia analysis reveals, adding to concerns over the scheme’s selection process.

Aged care turmoil | Federal health officials were in turmoil before the rollout of an algorithm to determine funding packages for older Australians after discovering legislation had been drafted so rigidly that the tool could not legally be overridden by aged care assessors.

Land fear | Local Aboriginal land councils in New South Wales say they remain deeply concerned about changes to laws governing crown land that could retrospectively affect land claims.

Migration shift | Foreign students are set to face tough restrictions on the ability to bring family members into Australia as the home affairs minister, Tony Burke, prepares to outline the government’s immigration reforms at the National Press Club in Canberra today.

Emergency measure | A new institute dedicated to improving emergency medical care for severely injured children will be established in New South Wales after recent high-profile trauma events in the state.

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World

Donald Trump with his new Fed chairman Kevin Warsh.

Rate hike | The US Federal Reserve has voted to raise interest rates for the first time since 2023 as the central bank continues to fight to tamp down inflation. Follow it live.

AI tipping point | Concerns over AI safety are reaching a point where governments realise they must act to protect the public, similarly to the Covid pandemic, according to one of the “godfathers” of the technology. The US vice-president, JD Vance, has dismissed calls for global regulation of AI safety risks, telling companies: “If you’re building Frankenstein, stop.” The US House speaker called an early recess before the midterms, thwarting hopes for progress on regulation. The boom in datacentres such as the one announced for Queensland yesterday will create a “tsunami” of discarded electronics and toxic e-waste, a new report projects.

NAZA threats | Threats by the Israeli military, ministers and far-right activists have intensified against the Oscar-winning Israeli directors of NAZA, a documentary about the country’s mass killing of civilians in Gaza. It has been confirmed that the US has decided not to intervene to help Saudi Arabia drive back a Houthi advance inside Yemen.

The Hague | Hashim Thaçi, the former president of Kosovo, has been sentenced to 25 years in prison by a tribunal in The Hague for war crimes, including dozens of murders committed in Kosovo’s war against Serbia.

US immigration | The US has announced visa restrictions on some South Africans as Donald Trump’s administration continues to claim that the country’s majority black government racially discriminates against white minority Afrikaners.

 

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