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Australia news live: Chalmers says Cyclone Alfred to add $1.2bn to budget deficit; body of missing six-year-old girl found in bushland

Good morning

Politicians have been warned against “election sweeteners” as economists flag growing fiscal holes in Australia’s budget, AAP reports.

Treasurer Jim Chalmers has started feeding commitments to the public ahead of the 25 March budget and is expected to announce disaster recovery funds for Queensland and northern NSW communities battered by ex-Tropical Cyclone Alfred.

The cyclone is projected to add at least $1.2bn to the upcoming budget, on top of $11.6bn blocked out for disaster support, new figures show. It has already dealt a billion-dollar hit to GDP, could wipe one quarter of a percentage point from quarterly growth, caused the economy to shed 12m work hours, and could put upwards pressure on inflation.

In New South Wales, the body of a six-year-old girl has been found in bushland north of Nowra after as wide-scale search and rescue operation was launched on Sunday. Inquiries are under way.

Still in NSW, the premier, Chris Minns, has announced a mini cabinet reshuffle, triggered by the resignation of former transport minister Jo Haylen last month. Interim transport minister John Graham will permanently remain in the portfolio, and Lismore MP Janelle Saffin will be promoted to a ministerial position.

And arbitration over a mass-resignation of psychiatrists in NSW over industrial disputes will begin today – more on that to come.

I’m Caitlin Cassidy, let’s get into it.

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Body of missing six-year-old found in NSW bushland

A body has been located during a search for a missing six-year-old girl, AAP reports.

The girl was last seen in North Nowra, in southern NSW, on Sunday afternoon.

Police were notified when the girl could not be located, with officers from South Coast police district launching an investigation and wide-scale search for her.

Police said a body was located during the search within bushland in the North Nowra area about 6pm on Sunday.

“While it is yet to be formally identified, it is believed to be that of the missing girl,” police said in a statement.

An investigation into the incident is under way, and a report will be prepared for the coroner.

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