Federal politics: Scott Morrison labels AUKUS, US alliance critics 'delusional' — as it happened

That's where we'll leave our live coverage for today. Thank you for joining us!

You can look back on today's developments below, or download the ABC News app and subscribe to our range of news alerts for the latest updates.

We'll see you again tomorrow for another day in politics news.

Anthony Albanese may not meet with Donald Trump next week in Canada as relations with the US administration sour over Australia's decision to sanction two Israeli cabinet members, plus recent disagreement over defence spending.

While a potential in-person meeting on the sidelines of the Group of Seven leaders gathering in Alberta is still anticipated, senior sources told the ABC it was too soon to be "definitive" and that there were "lots of moving parts".

The prime minister departs for North America on Friday morning for the June 15-17 summit amid expectations he will sit down with Trump to discuss US trade tariffs on Australian steel and other goods, and defence cooperation.

But there is also an awareness inside the Australian and US governments that Australia's decision to slap sanctions on two hard-right Israeli ministers — Itamar Ben-Gvir and Bezalel Smotrich — could trigger the "mercurial" Trump's ire.

Read the full story at the link below.

Keen to take a look back at the past week in federal politics? Look no further than this analysis from Brett Worthington.

He analyses the big story from today about the US confirming it will review the AUKUS security pact with Australia.

Worthington also takes a look at the federal government's sanctions on Israeli ministers Itamar Ben-Gvir and Bezalel Smotrich.

Take a read of the story below.

South Australian Premier Peter Malinauskas says it is not a surprise the US government is conducting a review of the AUKUS agreement between the US, UK and Australia.

"It shouldn't be a surprise to any of us," Malinauskas told ABC News Breakfast.

"I say that because post the change of government in all three of the jurisdictions which signed up to AUKUS, and that has occurred since AUKUS's inception, we've seen a review there."

Opposition Leader Sussan Ley has sat down for a feature interview with Hack on triple j — the first time a Liberal leader has appeared on the youth broadcaster since Scott Morrison back in 2021.

She made her pitch to voters who've drifted away from the conservative side of politics, including young people and women.

"There were points [in the election] where you could see things weren't going well," Ley says.

She detailed the experience of handing out how to vote cards at pre-polling and early voting stations, where men would take the cards but women would shun her.

"They would say, 'We're not voting for the Liberal Party because we can't see anything you're offering that's relevant for us'," Ley says.

"That was the message I was receiving over and over again."

When asked by host Dave Marchese what she would have done differently from her predecessor Peter Dutton, Ley wouldn't answer directly, but highlighted her willingness to be consultative and inclusive.

"It's important that we as leaders involve and harness the views of everyone in our party room … I am known for my work ethic, but also the listening and the consultation. I want to see people do well, and I want to see my team do well," she says.

The opposition leader warned against speculating whether or not she'd still be in the job at the next election, saying: "I've been underestimated my whole life. Underestimate me at your peril".

You can listen to the interview with Opposition Leader Sussan Ley at 5:30pm on triple j, anytime on the triple j app or wherever you get your podcasts.

Arthur Sinodinos says AUKUS will be at the top of the list for any meeting between Prime Minister Anthony Albanese and US President Donald Trump at the G7.

He says while trade is a priority, defence takes precedence.

"It's really AUKUS I think at the moment that most people will be particularly interested in. Eye balling the president and asking him about his — at this stage — preliminary intentions, given the review has only just been announced," Sinodinos says.

Arthur Sinodinos says Australia doesn't have a Plan B for AUKUS because there is no alternative.

The former ambassador to the US says the nuclear-powered submarines will play a significant role in Australia's domain, particularly because of the nation's maritime position.

He says Australia needs to stay the course with AUKUS and remain committed to it.

"The challenge here is that when you make this sort of generational commitment, unless circumstances change really drastically against you, you need to stay the course because you need to show potential adversaries in the region when you decide to do something, you mean it," he says.

Australia's former ambassador to the US Arthur Sinodinos has joined Afternoon Briefing and says the review into AUKUS by the United States isn't surprising.

Sinodinos says the current US administration, which he described as being strongly partisan, would normally review decisions made by its predecessor.

The former ambassador says Australia shouldn't approach the US with an offer to secure AUKUS, but rather remind the US about the benefits of the agreement.

He says the G7 summit in Canada would be a good opportunity for Anthony Albanese to strike a personal relationship with Donald Trump.

"I have no doubt as a result of this announcement that Australian officials and the prime minister, perhaps in the margins of the G7, will take the opportunity to remind the Americans of why this is a good deal for the US, as well as the UK and Australia," he says.

Afternoon Briefing with Patricia Karvelas has started on ABC News.

Follow along for the next hour to hear what some of the guests have to say.

Scott Morrison says a lot rests on a meeting between US President Donald Trump and Prime Minister Anthony Albanese at the G7 summit in Canada.

The former prime minister says it's important to "declutter" the conversation with issues that don't go to the core issues of the US-Australia relationship.

"You want to be able to talk about the issues that are most important and from Australia's perspective, obviously, security is the most significant," Morrison says.

Asked to clarify what he means by "declutter", Morrison says he believes defence and economic issues (like AUKUS and tariffs) should be the priorities of any discussion between Albanese and Trump.

Morrison says he thinks the United States's request for Australia to increase defence spending to 3.5 per cent of GDP is a "mid to upper tier goal" for Australia.

Former prime minister Scott Morrison says he's confident US President Donald Trump is on board with AUKUS despite speculation he's not.

Speaking to ABC News, Morrison says AUKUS isn't just about Virginia class submarines, but about technology sharing.

Asked if Trump has told Morrison he wants AUKUS to proceed, the former prime minister says he won't reveal private conversations.

He says nuclear submarines are "essential" to Australia's long-term strategic defence.

"I think Australia is up to it. I think the alliance is up to it and I think it can be achieved. And I think that's a view that the government and I share," he says.

Scott Morrison says the idea that Australia could seek security guarantees from nations other than the United States is "delusional".

The former prime minister says the US is where Australia's defence and security come from.

He says the expectation that Australia should invest further in the US alliance by increasing defence spending to 3 per cent of GDP is "not a surprise".

Morrison says he doesn't think that's an overestimate of where Australia's capability needs to be.

"I hear the critics of these arrangements and the US alliance thinking there is some other power out there that can provide that level of engagement and alliance to provide our security [and that] is honestly delusional," Morrison says.

Former prime minister Scott Morrison says the United States's AUKUS review shouldn't be overinterpreted but taken seriously.

Speaking to ABC News, Morrison, who was one of the architects of the security pact, says Australia should always be making the case to build the Australia-US alliance and relationship.

The former prime minister says there has been a "very significant rebalancing" of the US's priorities under the Trump administration.

He says the US is calling on allies and partners, including Australia, to contribute more to defence.

"They've been making very clear statements to allies and partners about lifting their level of investment and their level of contribution," Morrison says.

"That was the case, certainly in Europe and NATO. And Australia is no stranger to that. So I don't think we're sort of isolated in this sense in terms of the US's interest."

Liberal Senator Linda Reynolds says she is "bitterly disappointed" the nation's corruption watchdog has dropped its investigation into the Commonwealth's $2.4 million settlement with Brittany Higgins.

The West Australian senator is suing the Commonwealth in the Federal Court, claiming it breached its duty to act in her best interests while settling the compensation claim with Higgins.

Reynolds says her primary concern has always been how the Commonwealth could settle a claim without speaking to her.

"Importantly the NACC highlighted that whether or not a corruption issue exists is a different issue to whether there has been any breach of duty, misfeasance or negligence by the Commonwealth or its lawyers in relation to the settlement," she says.

Former attorney-general Mark Dreyfus has welcomed the integrity watchdog's findings of no corruption in the $2.4 million settlement with Brittany Higgins.

Multiple figures had called for the National Anti-Corruption Commission (NACC) to investigate the compensation payout, including former opposition leader Peter Dutton and Senator Linda Reynolds.

In a statement, Dreyfus says the settlement was conducted in a manner that was consistent with the Commonwealth's legal obligations.

"I regret the baseless allegation of corruption has been so widely publicised ahead of this finding and hope future matters can be resolved in a more timely manner," Dreyfus says.

"I also regret any further distress caused to Ms Higgins as a result of this matter."

Western Australia's Premier Roger Cook says he expects his state will have a key role to play in maintaining nuclear submarines, irrespective of the US review.

A multi-billion dollar defence precinct is planned in a shipyard south of Perth, as well as a nuclear waste storage facility on a nearby naval island.

"[The review] wasn't unanticipated, but we are watching that space very closely," Cook told reporters on Thursday morning.

"The other element of our part in the AUKUS partnership is rock solid and that is the federal government's commitment to base frigate and other surface vessel construction at [the shipyard].

"The US and the UK will need to deploy their subs to Western Australia … for the purposes of light maintenance and sustainment.

"That will continue to be an important part and obviously we want to be able to see ultimately, nuclear subs be sustained and maintained in Western Australia, moving forward to eventually Australian crewed subs, but we just need to await the outcome of that review."

Former PM Malcolm Turnbull says he doubts Australia will ever receive US submarines as part of the AUKUS defence pact.

The US launched a review of the AUKUS deal overnight, aimed at ensuring it aligns with the Trump administration's "America First" agenda.

Turnbull, who has been a long-term critic of the pact, says it is wrong to assume Australia will be looked after under the deal when America has its own production issues.

"I think this is going to become a reality check and it is remarkable. That you know, in the UK parliament is having a review of AUKUS, the US Defense Department is having a review of AUKUS," he says.

"But in Australia, our parliament, with the most at stake has been the least curious, the least well-informed and is having no review."

Sussan Ley says the Australian government's sanctioning of two Israeli government ministers yesterday is "unprecedented".

Australia joined the UK, Canada, New Zealand and Norway in sanctioning Itamar Ben-Gvir and Bezalel Smotrich for human rights abuses in the West Bank.

The opposition leader says it appears Foreign Minister Penny Wong has acted unilaterally in sanctioning the ministers.

"We want peace, we want an enduring peace for the people of the region, we all want that more than ever and the US has explained that these actions are actually counterproductive to securing that ceasefire and that peace, and the government should be paying attention to that," she says.

Ley says the Magnitsky-style sanctions were never intended to be used this way.

She says the opposition thinks the government overstepped by applying those sanctions to Ben-Gvir and Smotrich.

Opposition Leader Sussan Ley says the Coalition is concerned about the Pentagon's review of AUKUS because they're not sure what standing the government has with the US administration.

Speaking to Sky News, Ley says while she wants Australia to do well, she feels that the prime minister is taking a "bystander approach" to relations with the US.

She says the government needs to secure a meeting with US President Donald Trump at the earliest time possible to secure the future of AUKUS.

"This does look, Kieran, as if the government has been caught somewhat flatfooted by the announcement of this review," she says.

Ley says it seems the government was "somewhat unprepared" for the news of the review and urged the prime minister to form a personal relationship with the US president.

Remember the election? I know, it feels like a distant memory (unless you're reading this from Tassie, soz fam about the state election coming your way). Anyway, I digress.

The Australian Electoral Commission returned the writs for the federal poll to Governor-General Sam Mostyn earlier today. It means the clock has now begun on a challenge of the results.

A challenge has to be lodged with the High Court (in its capacity of the Court of Disputed Returns) within 40 days of the writs being returned.

So any challenge, say for example the one the Liberal candidate Gisele Kapterian has been mulling over in Bradfield, must be lodged by July 22.

Bradfield was the closest race at the election. After a recount, independent Nicolette Boele clinched the seat by 26 votes.