PM

Labor has accused the Federal Treasurer of trying to pre-empt bad news in Monday's mid-year budget update, by blaming everyone but himself for the state of the nation's books. Rather than railing against all debt, in a speech he made in Sydney today Scott Morrison distinguished between 'good' and 'bad' debt. The Treasurer also argued that the Opposition is putting Australia's AAA credit rating at risk, by refusing to allow its plan for a corporate tax cut through the Parliament. At the same time Mr Morrison has raised expectations in the National Party for more spending in regional Australia.

Comments from the Federal Treasurer today regarding large amounts of household debt have received scathing criticism by several finance experts. Scott Morrison told a gathering in Sydney that households carrying large amounts of debt should take some comfort by rising asset prices, including house prices. One leading in investment expert described the remark as 'inane and stupid'.

The Syrian Government has full control over Aleppo, after rebels retreated from the front line. The UN has claimed at least 82 people, including women and children, were executed as the war in the east of the city came to a close. The claim follows reports that hundreds of men and boys have either gone missing after entering Government-controlled territory or been recruited by the Syrian Army. People took to social media to post farewell messages as the siege came to an end.

The resumed inquest into the death of Sunshine Coast schoolboy Daniel Morcombe has heard that an assistant police commander told an investigator to 'f*** off, you wouldn't know anything' when he informed him Brett Cowan was the likely culprit. Cowan wasn't charged for another eight years. Another investigator has testified that his report identifying the murderer as a strong suspect went missing, as did his notebook. Thirteen-year-old Daniel Morcombe was abducted in 2003, and now the Coroner is examining the adequacy of the police investigation. The officer in charge of the major incident room told the Inquest there weren't sufficient grounds for a search warrant on Cowan.

Two decades of stories shared by rural youth through the ABC's Heywire program paint a picture of pain and progress that continues to evolve. The ABC today announced the names of 41 regional Australians, aged between 16 and 22, who have won the 19th edition of the annual storytelling competition. Heywire calls on young Australians to 'tell it like it is' and share what they love and loathe about living outside city centres. For the storytellers of Heywire, each year brings a list of new challenges - and, perhaps, a few breakthroughs.

Multiple payments scandals at the top of RSL New South Wales have been referred to the police for investigation. The interim findings of a forensic audit released yesterday reveal the former president of NSW RSL, Don Rowe, withdrew more than $200,000 in cash from a corporate credit card. The independent investigation, commissioned by the RSL, was initially set up to investigate the payment of $2.5 million in consultancy fees to senior figures from the NSW Branch, including national president Rod White, but has since expanded. Today the New South Wales Minister for Veterans Affairs, David Elliot, referred the matters on to police and to other parties, including the NSW Attorney-General.

The debate about whether to teach scripture in government schools continues across Australia, with the introduction of ethics classes and the Victorian Government axing Special Religious Instruction from its curriculum this year. However, classes in at least one religion are defying trends and growing in popularity. New South Wales public schools are struggling to keep up with the demand for teachers of Buddhism, with a growing waiting list for teachers across the state.

The path to the White House may be more difficult for Donald Trump than he expects. In the second part of his interview with PM's Mark Colvin, Atlantic Monthly politics and foreign policy writer James Fellows talks of the challenge ahead for Rex Tillerson's appointment as secretary of state in the face of hostile Republican congressmen, and notes that some 'serious' constitutional lawyers have even stated that Donald Trump's financial dealings may place him in violation of the constitution the moment he is inaugurated.

The Northern Territory youth detention Royal Commission has been told that government vitriol about young offenders created an environment for their abuse. Alice Springs criminal lawyer Russell Goldflam has given evidence during the commission's final day of public hearings this year. The hearings had been set aside for evidence from young people, but those plans were abandoned. The commission has confirmed it wants to extend its reporting deadline until August 2017.

The Federal Government has reaffirmed its commitment to the F-35 Joint Strike Fighter in the wake of US President-elect Donald Trump's Twitter post, which described the cost of the JSF program as 'out of control'. The share price of JSF manufacturer Lockheed Martin fell by nearly 2.5 per cent in the wake of the tweet. Defence Industry Minister Christopher Pyne has expressed confidence that the fighter is 'the right jet for Australia'.