The day in federal parliament

TODAY IN FEDERAL PARLIAMENT

* The House of Representatives only is sitting this week.

* Senate committees are quizzing bureaucrats and ministers in budget estimates hearings.

WHAT'S MAKING NEWS

* A major global ratings agency warns the big banks are undermining Australia's ability to hold on to its prized AAA rating, while Citi's chief global economist suggests the nation faces the prospect of a recession as early as next year.

* As the government reviews the military call-out powers in relation to terrorism events, the federal police chief says there are factors against any change.

* Australia's domestic intelligence chief Duncan Lewis hasn't appeased One Nation leader Pauline Hanson despite clarifying his debunking of links between Middle East refugees and terrorism.

* Twice as many households will be worse off under the government's plan to raise the Medicare levy by half a percentage point than under Labor's alternative, according to new modelling by the ANU's Centre for Social Research and Methods

* Federal officials have considered drug testing new welfare recipients for well over a year, and expect 10 per cent of people to fail the first time.

* India declines an Australian request to take part in multilateral naval exercises in July over fears it could unnecessarily inflame diplomatic tensions with China.

* As Donald Trump ponders whether he will withdraw the United States from the Paris Climate Agreement, the chief of the United Nations makes an impassioned appeal to the rest of the world to remain united.

WHAT'S ON THE AGENDA

*The House of Reps: The government introduces new legislation including for Medicare Guarantee Fund; tobacco excise; foreign acquisitions and takeovers fees; foreign resident capital gains withholding payments. MPs debate 0.5 per cent hike in the Medicare levy to fund the national disability insurance scheme.

* Senate budget estimates hearings: Social Services; Industry Innovation & Science; Education & Training; Foreign Affairs & Trade

ARGY-BARGY

* Government spin: Our commitment is to deliver a budget that is fair, that defends the vital services Australians need and provides the opportunity for them to get ahead. And we have done exactly that.

* Opposition attack: How is it fair that in this budget a nurse earning $60,000 a year gets a $300 tax increase, while a millionaire gets a $16,400 tax cut?

WHAT THEY'RE SAYING

"There unfortunately seems to be a reluctance to name the source of the vast bulk, if not all, of the extremist and terrorist behaviours that are being experienced in the Western world." - veteran Liberal senator Eroc Abetz.

TWEETED

@TurnbullMalcolm: What a win! Congratulations @NSWRL!