The electorate of Farrer is holding a by-election this weekend and we’re expecting the contest will be a good one.

The NSW seat, which hugs the border with Victoria, belonged to former opposition leader Sussan Ley for 25 years. Now, it’s a microcosm of the pressures the Coalition is under from independent candidates and One Nation.

And as Inside Politics host Jacqueline Maley puts it, Labor has grabbed the popcorn and is sitting this one out.

Also this week, RBA boss Michele Bullock made some unusually pointed remarks about inflation and government spending when she raised the cash rate again. Plus, we’ve been reporting on tax relief that’s expected to be announced in next week’s budget.

Joining Maley today is chief political correspondent Paul Sakkal.