Jobs go as Adelaide chemical plant closes

ALMOST 100 jobs will be lost at a chemical plant in Adelaide after a potential buyer pulled out of the deal.

ADMINISTRATORS for Penrice, which owned the Osborne plant, had been negotiating a sale with an unnamed buyer since April.

But that deal has fallen through, meaning the plant will close and it 95 staff will be made redundant.The buyer blamed uncertainty about the future profitability of the plant, the expenditure required to achieve profitability and ongoing environmental issues contributed for its decision to pull out, administrators McGrathNicol said.Negotiations are continuing for the sale of Penrice's limestone quarry in Angaston, where operations continue as normal.Alternative ways to realise some value from the Osborne plant will now be pursued, McGrathNicol said.

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Lew set to win big in David Jones takeover

South Africa's Woolworths has made a $213m takeover bid for Australian clothing chain Country Road. Source: AAP

RETAIL heavyweight Solomon Lew stands to make more than $200 million by standing in the way of David Jones' takeover by a South African retailer.

DUBBED "Lew's Coup" by one analyst, the clothing industry veteran appears to have been successful in taking a major stake in David Jones in order to earn a healthy price for his interest in Country Road.

South Africa's Woolworths Holdings is the target of Mr Lew's high stakes game, as the controlling shareholder in Country Road and the company bidding $2.2 billion for control of David Jones.Mr Lew recently spent $209 million building up a 9.89 per cent stake in David Jones, enough to destabilise and potentially block Woolworths' department store chain takeover.Analysts believed Mr Lew was seeking a generous offer from Woolworths to end their often rocky Country Road association, which began 17 years ago when Mr Lew bought into the retailer to stop Woolworths taking full control.That offer came on Tuesday, with Woolworths willing to pay a generous $17 for each remaining Country Road share.That stands to net Mr Lew $209 million for his 11.9 stake - well above its most recent market value of $172 million, and the $41,500 it was worth just seven months ago.Mr Lew is yet to indicate whether he will accept the offer.But in a rare move, Woolworths will only pay out Mr Lew for full control of Country Road if its David Jones takeover gets the green light from the department store's shareholders."It's unusual to see a condition like that," CMC Markets chief analyst Michael McCarthy said."That points to the fact that Mr Lew got leverage out of his DJs stake to resolve the Country Road situation."This has been some very smart play."David Jones shareholders are due to vote on the Woolworths takeover on July 14, although that could be delayed for a second time if there are complications with the Country Road deal.Concerns have been raised about so-called "collateral benefits" regulations, which prevent inducements being offered to some shareholders in a takeover deal, but not others.But Mr McCarthy believes the deals have been carefully crafted to avoid legal challenges.David Jones shares were up 16 cents, or 4.2 per cent, at $3.95 by 1415 AEST, indicating investors now expect its takeover to go ahead, Mr McCarthy said.Country Road will be removed from the share market if Woolworths take complete ownership.

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Jodhi Meares charged with DUI

Jodhi Meares is heading to court after allegedly being caught drink driving in Sydney's east. Source: AAP

JAMES Packer's ex-wife Jodhi Meares will face court in August on drink driving charges after crashing into three parked cars in Sydney's eastern suburbs.

THE 43-year-old had to be rescued from her Range Rover, which rolled after the smash in upmarket Bellevue Hill on Saturday night.

The fashion designer, who is engaged to rocker Jon Stevens, was given a roadside breath test before being taken to the local police station.Police say she recorded a 0.181 blood alcohol reading, almost four times the legal limit.She was charged with drink driving and driving while suspended and is due to appear at Waverley Local Court on August 5.It's reported Meares could face the possibility of 18 months in jail and a fine of $3300.After a long engagement, Meares and Stevens were reportedly planning to tie the knot in September.

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Vic firies will be paid for mine fire: MFB

Victorian firefighters have begun legal action to recover wages owed since the Hazelwood mine fire. Source: AAP

FIREFIGHTERS involved in battling Victoria's mine fire will be paid outstanding entitlements for their efforts this week, the Metropolitan Fire Brigade (MFB) says.

THE United Firefighters Union (UFU) has started Federal Court action against the brigade to recover wages owing since the 45-day fire at the Hazelwood coal mine began on February 9.

The legal action concerns 240 MFB firefighters, who are each owed an average $4000 out of a total overtime bill of more than $6 million.The MFB says all outstanding payments it is aware of will be paid this week."We have provided assurances to staff that everyone will be paid all of their entitlements," acting deputy chief officer David Bruce said in a statement on Monday.The UFU says firefighters worked up to 20-hour days on their days off during the Hazelwood coal mine fire but that the MFB is unable to account for who was there.However, Mr Bruce said it had taken considerable time and effort to recognise and verify attendance records, given the size and nature of the incident.The summer's fire season involved the largest deployment of firefighters outside the MFB's immediate area of responsibility, he said."Understandably, the MFB's focus at that time was to provide assistance to the community through efficient and effective deployment of resources across the state," he said.The UFU's Peter Marshall said the legal action for firefighters' entitlements would continue despite the MFB's assurances they would be paid this week."They've been saying that every week. Show me the money is the response to that," he said."If in the interim period they pay, that's good. but to date we ain't see the money despite many assurances."Firefighters shouldn't have to wait that long and the MFB should meet their legal requirements."

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'Smart glasses' hope for blind

BRITISH-DESIGNED "smart glasses" that provide a new set of eyes for the visually impaired are being tested in public for the first time.

THE devices, which use a pair of video cameras to enhance residual vision, have the potential to transform the lives of thousands of registered blind people in the UK.

The glasses are being trialled by 30 visually impaired volunteers at testing venues in Oxford and Cambridge.Dr Stephen Hicks, of the Nuffield Department of Clinical Neurosciences at Oxford University, who led development of the glasses, said: "The idea of the smart glasses is to give people with poor vision an aid that boosts their awareness of what's around them - allowing greater freedom, independence and confidence to get about, and a much improved quality of life."We eventually want to have a product that will look like a regular pair of glasses and cost no more than a few hundred pounds - about the same as a smart phone."The device consists of a pair of video cameras mounted in a headset, a pocket-sized computer processor, and software that projects images of close-by objects onto displays in the see-through eye pieces.The software interprets nearby surroundings to make important objects such as kerbs, tables, chairs or groups of people stand out more clearly.In some cases, details such as facial features can become easier to see.Of the more than 300,000 severely sight impaired people in the UK, it is believed about a third could benefit from the technology.Twenty volunteers with a range of eye conditions and levels of vision took part in preliminary tests of an earlier version of the glasses conducted last year by the Oxford team.The new trials are being conducted with support from the Royal National Institute of Blind People (RNIB).

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Carbon tax revisited in final Senate week

IT may by the current Senate's final hurrah, as its sits for one last week before the new senators take their place.

BUT even before it begins what amounts to a farewell lap, attention is focused squarely on the Senate that will replace it.

The Abbott government will on Monday reintroduce its carbon tax repeal laws into the parliament, in readiness for the new, more conservative upper house that take effect on July 7.The legislation has already been knocked back once by Labor and Greens in the Senate, but the host of conservative crossbenchers are expected to pass the legislation."This week the government will bring the carbon tax repeal bills back to Parliament to get rid of this dodgy tax once and for all," Environment Minister Greg Hunt says.While signature policies such as the carbon tax are expected to be waved through by the likes of the Palmer United Party, others such as the GP co-payment face continued resistance.Assistant infrastructure minister Jamie Briggs is confident the new senators can be talked into supporting the co-payment and reform of universities fees - two changes opposed by the PUP."I'm not at all sure that the positions some of the new senators have outlined will necessarily be their position in a month's time," Mr Briggs told Sky News on Sunday."When they're in Canberra and they've had the discussions with the relevant ministers ... I'm very confident people will understand this is the right direction."Environmentalists also had their minds turned to July 7, with the Climate Institute bringing two life-size dinosaur replicas to Parliament House in a last-ditch attempt to save the carbon tax."There are dinosaurs in politics and business who want to hold back progress," chief executive John Connor told reporters."This is an appeal to all parliamentarians, particularly the new senators, not to be rushed into a vote literally when they haven't even got their feet under their desks in parliament."

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GM could face another fine

AN old email from a General Motors employee warning of a "serious safety problem" could help trigger another government fine against the automaker.

THE email, dated August 30, 2005, surfaced Wednesday during a House subcommittee hearing on GM's delayed recall of 2.6 million small cars with ignition switch problem. This email outlined a similar issue with a larger car.

Employee Laura Andres wrote that she was driving a 2006 Chevrolet Impala home from work when she hit a bump and the engine stalled on a busy road near Detroit. The car behind her had to swerve to avoid a crash. A GM mechanic told her the cause was likely a faulty ignition switch."I think this is a serious safety problem ... I'm thinking big recall," Andres wrote in an email to 11 GM colleagues.Yet it wasn't until Monday that GM recalled the Impalas, Buick LaCrosses and other models with the same switch, almost nine years after Andres' email. Safety regulators received dozens of similar complaints about the cars during that time.GM said that excess weight on a keychain could cause the ignition switch to move out of the "run" position if the car is jarred, like when it hits a pothole. The engine stalls, and the drivers loses power steering and power brakes.Under federal law, automakers must notify the National Highway Traffic Safety Administration within five business days of determining a safety defect exists. A maximum $35 million fine is possible if the agency finds an automaker took too long to report a problem.GM paid a $35 million fine last month for its 11-year delay in reporting defective ignition switches in the Chevrolet Cobalt and other small cars.Multiple fines are not without precedent. From 2010 through 2012, NHTSA fined Toyota Motor Corp. four times for a total of $66 million due to safety-related violations.GM wouldn't comment Thursday on the possibility of another fine. NHTSA also wouldn't comment on the Impala case, but said it reviews all recalls to make sure they comply with the notification law and it takes "appropriate action" when it finds problems.Andres's e-mail alone isn't enough to trigger the five-day rule, because it only suggests the ignitions are unsafe. But it's proof that some GM employees knew about a potential problem for almost a decade. GM has not yet submitted a required timeline to NHTSA that will say when it officially determined the Impala switches were defective.Andres, who still works for GM in design and engineering, could not be reached for comment. But in her 2005 email, she urged engineers to build a "stronger" switch.Andres' warning was brushed off by GM engineer Ray DeGiorgio, who replied that he had recently driven a 2006 Impala and "did not experience this condition." He also noted that the Impala had "a completely different column/ignition switch" than the one that was causing problems in GM's small cars.DeGiorgio is a central figure in the small-car recall saga. GM says he approved using the switches even though they failed to meet company specifications, and then took actions that hid the defect for years.Andres's email wasn't the only indication of problems. NHTSA's Web site lists more than 100 complaints about stalling for 2006-2009 Impalas alone. Those are complaints GM would have had access to.In one 2012 complaint, an Impala stalled in the middle of a large intersection. The owner took it to a dealer four times but couldn't get it repaired."I'm fearful I will be the one causing a fatal pile-up," the driver wrote.

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Man charged over NSW south coast death

FURTHER charges could be laid against a man accused of assaulting another man who was found dead in a NSW south coast home a day after he was attacked.

THE 41-year-old's body was on Thursday found in a Moruya unit and "officers were told the deceased man had been assaulted at the location the previous day," police said.

The man accused of assaulting the dead man and his 60-year-old male housemate was on Friday arrested and charged with two counts of assault occasioning actual bodily harm.But more serious charges could be laid against him."We're waiting on the results of the post mortem," a police spokeswoman told AAP.Police wouldn't say if the death was suspicious, whether the men were known to officers or if they were related.The accused was denied bail in Batemans Bay Local Court on Saturday and is due to reappear on Monday.Forensic officers are continuing their investigation and a report is being prepared for the coroner.

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Vic building workers face drug tests

BUILDING workers on Victorian government projects will face random drug and alcohol testing from July 1.

VICTORIAN Finance Minister Robert Clark said requiring all building companies that tender for taxpayer-funded projects worth $10 million or more to test workers for drug and alcohol use among measures he said would cut substance abuse, intoxication and drug dealing on building sites.

Head contractors must perform a minimum number of random tests on workers each month and identify what methods they will use, Mr Clark said on Friday.Contractors will determine the level of intoxication they deem unsafe and how workers will be sanctioned if drugs or alcohol are detected in their systems, he said.Tenderers will have to list site security measures, which may include CCTV, a swipe card access system and photographic or biometric security systems in a bid to stamp out criminal activity."We believe this will save taxpayers' money and it will help ensure law-abiding workplaces," Mr Clark said."We are introducing these guidelines to ensure that every contractor that tenders for Victorian government construction projects needs to commit to have processes in place to guard against drug and alcohol abuse in their workplaces and also to ensure site security."When the guidelines were first announced, Construction Forestry Mining and Energy Union (CFMEU) Victorian secretary John Setka said the guidelines would unfairly single out construction workers."There is no epidemic of drug taking on construction sites," he said.

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Westfield gets restructure gets go-ahead

Westfield's shareholders are set to approve a $70 billion restructure of the company. Source: AAP

WESTFIELD will leave its Australian shopping centres behind in search of growth opportunities overseas after winning a tough shareholder battle over its $70 billion restructure.

THE restructure got the green light on Friday after shareholders in Westfield Retail Trust, which owns half of the shopping centre giant's Australian and New Zealand assets voted in favour of the controversial plan.

Westfield Group will be split in two from June 25, pending final approval from the NSW Supreme Court, with the new Westfield Corporation taking on the company's international business and the Australian and New Zealand shopping centres transferred to a new company called Scentre.Both companies will be chaired by Westfield founder Frank Lowy and the Lowy family will maintain holdings in both businesses.But Australian shoppers won't notice any difference, with the Westfield brand to be maintained under Scentre Group.The move gives Westfield greater freedom to focus solely on growth opportunities overseas, without the distraction of its Australian shopping centre business, which has little room left to expand."The strategy of Westfield Corporation is to own, develop and operate iconic shopping centres in some of the world's great cities," co-chief executive Steven Lowy told reporters on Friday.That includes the massive Westfield World Trade Centre development, a planned development in Milan which the company is billing as "the best shopping centre in Europe" and major centres in the UK.But the move almost didn't go ahead.Westfield Group shareholders overwhelmingly backed the move at a meeting last month, but WRT investors looked set to vote down the proposal, with only 74.1 per cent of proxy votes cast in favour of the restructure.On Friday, the total vote was 76 per cent in favour.A significant minority of shareholders in WRT, which was itself spun off from Westfield in 2010, opposed the move on the grounds it would create a higher risk business with more debt than the passive property trust they bought into.Australian Shareholders Association spokesman Stephen Mayne said Westfield had run a well orchestrated campaign to win over institutional investors in the past few weeks."Ultimately they ran a very successful lobbying campaign against those institutions that voted against it or didn't vote," he told AAP."The question is, who flipped?"Steven Lowy downplayed concerns about debt levels, noting credit ratings agencies S&P and Moody's had already given Scentre A ratings."We felt that debate was well overplayed," he said on Friday.Fellow co-chief executive Peter Lowy said Westfield Corp would maintain its listing on the Australian stock exchange but is looking at the possibility of a dual listing overseas.

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$A at the mercy of two central banks

DOVES are meant to symbolise peace, but the Australian dollar is getting caught in a tug of war between two of them.

IN financial jargon, a dove is a central banker who prefers interest rates to stay low.

Record low interest rates in Australia should be helping Reserve Bank governor Glenn Stevens guide the stubbornly high Australian dollar lower to help the local economy.However his aim is being frustrated by interest rates in the US that are even lower, with Federal Reserve boss Janet Yellen signalling they will remain low for a "considerable time".The Aussie fell to a two-week low of 93.22 US cents on Tuesday after minutes of the RBA's June board meeting showed it wants to keep the cash rate at a record low of 2.5 per cent "for some time yet", and included a downbeat assessment on Australia's economic growth prospects.But the dollar bounced back up through 94 US cents early Thursday morning after Dr Yellen wound up the Fed's two-day policy meeting saying she would keep the federal funds rate steady despite a recent spike in inflation."There were some expectations that they would hint that they were concerned about inflation, but they didn't, and they reiterated they are maintaining their dovish stance," Easy Forex currency dealer Tony Darvall said.Mr Darvall said it was unclear if the Aussie dollar will rise to 94.60 US cents, its highest level this year, or fall towards 92 US cents if commodity prices remain under pressure."You'd think that the RBA at the next meeting would continue with the dovish talk," he said."The June minutes were crafted to try and stop the Aussie from rallying and if we get above 95 US cents it will probably be more explicit about the concern."BK Asset Management managing director Kathy Lien said investors were disappointed by Dr Yellen's policy announcement."When pressed for a definition of `considerable time' she refused to provide any details, saying only that there is no formula for what considerable time means," Ms Lien said."In other words, unlike other central banks that have recently expressed their desire to become more active, the Fed remains comfortable with their current course and has no desire to alter the market's expectations."

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House prices tipped to continue to rise

ONE of the country's largest property developers believes house prices will continue to rise for years to come, with the Sydney market set for a "golden decade".

STOCKLAND chief executive Mark Steinert expects nationwide house prices to rise by four to five per cent on average for the foreseeable future, with Sydney leading the charge.

Despite a sharp rise in house prices in the past 12 months, an undersupply of property and improving confidence meant the growth was set to continue, he said."At the moment it is fair to say there is at least three years of undersupply in every major capital city," Mr Steinert said."Because of this demand-supply fundamental, we anticipate at least four to five per cent compound growth in new house prices for the foreseeable future."Mr Steinert said the NSW government's efforts to increase housing supply and infrastructure plans would boost Sydney's new property market."We are particularly bullish on Sydney," he said."I think it's fair to say that we are going to see Sydney and to a certain extent NSW have a golden decade."Mr Steinert's optimism contrasts with warnings from economists and analysts that house prices are likely to flatten or slide over the next few years.Credit Suisse analyst James Ellis has said a collapse in prices was unlikely, but he expects prices to remain flat for several years, which would amount to a decrease in prices in real terms, relative to incomes."Our base case scenario is one of real erosion of house prices," he said.Recent figures from the bureau of statistics suggest the housing market boom is cooling, with no growth in home loan approvals in April.Meanwhile, house prices suffered their biggest monthly fall in five years in May, dropping 3.6 per cent across capital cities, according to research from RP Data.But prices remain substantially higher than a year ago, especially in Sydney, were prices have risen 16.6 per cent in the past 12 months.

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Child dead, 19 injured after US tornadoes

One person is dead and 16 more are in a critical condition after two massive tornadoes hit Nebraska. Source: AAP

A POWERFUL storm with tornadoes has ripped through northeast Nebraska, destroying more than half of the tiny town of Pilger, killing a five-year-old child and injuring at least 19 people.

THE National Weather Service said dual twisters touched down within roughly a 1.6 kilometres of each other.

Emergency crews and residents spent the evening sorting through demolished homes and businesses in the community of about 350, roughly 160 kilometres northwest of Omaha."More than half of the town is gone - absolutely gone," Stanton County Commissioner Jerry Weatherholt said."The co-op is gone, the grain bins are gone, and it looks like almost every house in town has some damage. It's a complete mess."Victims were taken to three regional hospitals, and at least one had died from unspecified injuries, hospital officials said.Jodi Richey, a spokeswoman for Faith Regional Health Services in nearby Norfolk, said one person died and 16 others were being treated at the hospital.Hospital officials initially described those patients as being in critical condition, but said later that some had been released after treatment.The Stanton County Sheriff's Office confirmed late on Monday that the person killed was a five-year-old child. It didn't specify the child's gender.One was transferred to a trauma centre in Omaha, while others required surgery, said Dr Doug Dilly, who was in the emergency room when patients arrived.Providence Medical Centre in nearby Wayne treated three tornado patients, including two who had lacerations, said hospital spokeswoman Sandy Bartling.Two were released Monday evening, and the third patient was in stable condition, she said.Stanton County Sheriff Mike Unger estimated that 50 to 75 per cent of Pilger was heavily damaged or destroyed in the storm.The local school is likely beyond repair, he said."It's total devastation," Unger said.Authorities said the first tornado touched down around 3:45 pm and downed several power lines before it levelled a farmhouse. Four people were trapped inside.While local crews removed them from the debris, a second tornado was spotted southwest of Pilger, according to the Stanton County Sheriff's Office.Shortly afterward, the town suffered a "direct hit" that levelled several buildings, including the Fire Department building, the sheriff's office said.Several people near Main Street in Pilger suffered critical injuries, including the child who later died.Nebraska Governor Dave Heineman declared a state of emergency, and the National Guard was preparing to assist local emergency responders and help with the clean-up.Pilger was evacuated for the night, and the Nebraska State Patrol closed all roads into town.

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Super funds continue to grow

SUPERANNUATION funds with the greatest exposure to international share markets posted the best returns in May.

AUSTRALIA'S $1.84 trillion super industry has posted solid growth in the past year, with the industrywide rate of return for large funds at 11.5 per cent in the year to March.

Investment researcher Morningstar says returns continued to grow in May, although at a slower rate than previous months, with the median growth fund in its latest survey returning 1.1 per cent.That takes median annual returns to May to 12 per cent.Listed property investments were the source of greatest returns in May, followed by international shares.Local shares and local listed property provided more modest returns.International shares were also the greatest source of returns in the year to May, at nearly 23 per cent.That reflects the strong performance of equity markets around the globe, driven by Wall Street, which has repeatedly hit new record highs as the US economy continues to show signs of sustained recovery.Growth super funds had more than 50 per cent of investments in equities in May, and almost half of that in overseas markets, Morningstar said.

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One in 10 homes sold at a loss

- Whether you make a profit selling your home depends a lot on when you bought it.

AND where.

In the three months to March, 90 per cent of homes sold fetched more than their purchase price, according to RP Data's "Pain and Gain" report.But the rest sold at a loss.A year ago, that figure was 12 per cent, or nearly one in eight, sold at a loss.The average loss on sales in the March quarter was $60,544, while the average gain was nearly four times bigger, at $225,088.These gains and losses don't include costs like maintenance or debt servicing, nor do they include rental income.While real estate agents are fond of saying the three most important attributes of a property are location, location and location, the timing of the purchase makes a huge difference too.Only 12 per cent of properties sold at a loss in the March quarter were bought within the past three years, and that proportion rises to over 19 per cent for properties acquired three to five years ago.The proportion of loss-making sales declines the further back the purchase was made, falling as low as 0.4 per cent for periods of 15 years or more.But location still matters.In Sydney, loss-making transactions made up only three per cent of total sales in the March quarter.At the other end of the spectrum, regional Queensland had 23 per cent of sales at less than the purchase price.The weakness in regional Queensland mostly reflected previously weak conditions in "lifestyle markets", and increasing weakness in areas linked to the resources sector, RP Data said.Those lifestyle markets included Wide Bay and Gold Coast, with more than one in four sales in the red, but things may be turning around in those areas."It is important to note that across lifestyle areas the proportion of loss making sales is reducing as we start to see some low levels of value growth return to these housing markets," RP data said.When the figures are broken down into local council areas, they show some wide divergences.At one extreme, Sydney's Hunters Hill had no loss-making sales, with the median (the middle in a ranked list) property yielding a gross profit of $400,000.At the other extreme, in Hobart's Brighton, one in three homes were sold at a loss, albeit at a median amount of only $8,000, while the median profit on the other two thirds was a modest $52,500.

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Iraq tensions weigh on kiwi dollar

THE New Zealand dollar may fall this week as growing Middle East tensions weigh on investor confidence.

THE kiwi increased to 86.84 US cents at 5pm in Wellington from 86.68 at 8am and 86.66 cents at 5pm in Wellington on Friday. The trade-weighted index edged up to 80.85 from 80.68 last week.

Investors have sought relatively safe assets, lifting the price of gold to a three-week high, as increasing violence in Iraq has markets nervous OPEC's second biggest producer of crude oil may plunge deeper into conflict."The kiwi will remain elevated, but I think the risk-off trade will be more of a problem in the market" as investors are spooked by the rising Middle East tensions, said Martin Rudings, senior advisor at OMF."The market is already long on New Zealand dollars so it'll be like a fire in a cinema, the first one out the door or a rush for the exit, so I am a wee bit wary, and I certainly wouldn't be buying kiwi dollars up at these levels with what's going on."Government data on Thursday is expected to show the economy grew 1.2 per cent in the first quarter of the year, from a 0.9 per cent pace in the fourth quarter of 2013, according to economists polled by Reuters."We're expecting a good number from GDP, even if it is slightly less than what's expected, it is still probably a pretty strong number compared to most other countries around the world," said Mr Rudings.The kiwi rose to 92.31 Australian cents at 5pm in Wellington from 91.99 cents on Friday, was almost unchanged at 88.32 yen from 88.31 yen and advanced to 64.09 euro cents from 63.92 cents.

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Firies cancer law not ruled out: Vic govt

Volunteer firefighters rally in Melbourne for access to compensation for cancer contracted at work. Source: AAP

THE Victorian government says it hasn't ruled out changing the way firefighters access cancer compensation as hundreds rallied in Melbourne to try to break down barriers to claims.

THE government says it simplified cancer claims for firefighters and encouraged both career and volunteer firefighters to lodge a claim if they believe they had contracted cancer as a result of their duties.

"The Victorian government is not ruling out presumptive legislation and will continue to consider new medical and scientific evidence as it becomes available," a government spokesperson said.Volunteer Fire Brigades president Bill Watson said firefighters wanted a law that lists the 12 typical "firefighter" cancers and presumes them to be work-related, providing the firefighter has enough years of service behind him or her and relevant risk exposure.Mr Watson said there is plenty of evidence firefighters are more likely to suffer certain cancers, but it can be difficult to prove which fire or chemical incident caused their illness."It's not like a broken bone where you know exactly when and where it happened," Mr Watson said."The burning car or house fire you attended today may cause a cancer that doesn't show up for decades, which makes it nearly impossible to prove it was work related."The federal government introduced presumptive legislation in 2011.Tasmania, Western Australia and South Australia also have laws that recognise the link between firefighting and cancer.Mr Watson said any legislation would have to include eligibility guidelines."We're not after a free ride," he said."We just want to make sure they're looked after if they get sick."The Victorian government has been under pressure to make changes to the way compensation is accessed after a 2012 report found firefighters who trained at the CFA Fiskville site had been exposed to dangerous chemicals going as far back as the 1970s.Last year they introduced a review panel to assist both volunteer and career firefighters seeking compensation for cancer caused by their work.Opposition leader Daniel Andrews said Labor would introduce the legislation if elected in November."I have committed to the introduction of presumptive rights," Mr Andrews said.

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Afghan voters defy Taliban threat

Afghans have braved threats of violence and searing heat to vote in the presidential elections. Source: AAP

THE United States praised millions of Afghan voters who defied Taliban threats and attacks to vote in a presidential run-off election securing the country's first democratic transfer of power, with counting set to begin.

WITH turnout higher than expected after a largely peaceful day of voting, Washington hailed the polls as a "significant step" for the country's democracy, commending "the voters, electoral bodies and security forces for their commitment to the democratic process".

"These elections are a significant step forward on Afghanistan's democratic path, and the courage and resolve of the Afghan people to make their voices heard is a testament to the importance of these elections to securing Afghanistan's future," the White House said.Ahead of the ballot, which decides the next president of the country ahead of the withdrawal of NATO troops later this year, the Taliban had threatened to kill voters and officials, saying the election was an American plot "to impose their stooges".Polling day saw no major attacks in cities, but there were at least 150 minor attacks - including a Taliban rocket that hit a house near a polling station, killing five members of the same family.Eleven voters in the western province of Herat had their fingers - which were dipped in ink to register their ballot - cut off by insurgents, Deputy Interior Minister Ayoub Salangi said on his Twitter account.The polls result, due out next month, will confirm whether former foreign minister Abdullah Abdullah or ex-World Bank economist Ashraf Ghani will lead Afghanistan into a new era of declining international military and civilian assistance.The two candidates came top of an eight-man field in the April first-round election, triggering the run-off as neither reached the 50 per cent threshold needed for outright victory.Abdullah secured 45 per cent of the vote with Ghani on 31.6 per cent.Counting the ballot will take weeks. The preliminary result is due on July 2 and a final result on July 22.The United Nations also praised the elections, congratulating the "courageous" Afghans who set out to cast their ballots in the face of Taliban threats."With the same determination, resilience and courage the world saw in the first round of elections, the people of Afghanistan today once again decided to take their destiny in their own hands and demonstrate their desire for a peaceful, prosperous, and united Afghanistan," the UN Secretary-General's Special Representative for Afghanistan, Jan Kubis, said.While high turnout may lend legitimacy to the winner if the gap between the two candidates is clear, a close count could mean a contested outcome.Both candidates swiftly alleged fraud after the closure of the polls Saturday."We know there has been fraud, you have seen it, we have seen it," Abdullah said.Ghani called for a full investigation into vote-rigging, saying "unfortunately there were cases of security forces involved in fraud, we have the evidence".A smooth handover in Afghanistan's first democratic transfer of power would be a major achievement for the 13-year US-led effort to establish a functioning state after the depredations of the Taliban era.President Hamid Karzai, who has ruled Afghanistan since 2001 and was re-elected in a 2009 vote marred by ballot-box stuffing, is constitutionally barred from a third term in office.

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Palmer may be 'saviour' like Hanson: Truss

NATIONALS leader Warren Truss reckons Clive Palmer could go the way of other political "saviours" such as Pauline Hanson.

HE said those who voted for him in protest were ignoring their obligations to democracy and putting their country at risk.

Mr Truss, acting prime minister while Tony Abbott is overseas, said the coalition took its responsibilities seriously and would get on with the job of delivering what was important for Australia.He said other parties could worry about themselves.Asked if Mr Palmer's Palmer United Party was just a "flash in the pan", he said there had always been independent parties."We have had plenty of saviours in the past, like Pauline Hanson and Bob Katter. They all made a little bit of an impact for a while," he told reporters at the NSW Nationals conference in Queanbeyan.Mr Palmer was the big winner at the 2013 federal election, gaining his own seat and three Senate spots.Pauline Hanson roared onto the Australian political landscape in 1996 but was only in federal parliament for a single term.Despite big predictions, the vote for the Katter's Australian Party of longtime Queensland MP Bob Katter was disappointing at the last election, and Mr Katter's personal vote slumped.Mr Truss said there was always a protest vote."Sometimes these people will gain support from that element," he said."Those who throw away their vote in some kind of protest are in fact ignoring their obligations to their democracy but also putting their country at risk."

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Athlete from Fiji killed in US shooting

A RUNNER from Fiji has been killed in a gang shooting in northern California just weeks before he was set to attend the University of Louisiana, friends and authorities say.

ROY Ravana Jr and another man, Kevin Ohta, were shot on Monday in Sacramento County by two juveniles who opened fire with two handguns and a rifle on behalf of the Norteno street gang, prosecutors said.

The 21-year-old Ohta was expected to survive, the Sacramento Bee reported.The suspects, 17-year-old Elias Guevara and 16-year-old Rozco Gutierrez, have been charged as adults with murder and attempted murder. They were arraigned on Wednesday but did not enter pleas, Shelly Orio, a spokeswoman for the Sacramento County District Attorney's Office said.Orio said they were appointed counsel, but she did not have the lawyers' names.The exact circumstances of the shooting were unclear. Sheriff's Sergeant Lisa Bowman told the Bee this week it was not clear whether the victims fired any shots or whether they had gang affiliations.Friends and family of Ravana say they were not aware of his involvement in any criminal behaviour.Fiji's prime minister, Voreqe Bainimarama, called Ravana an innocent bystander and said he was a great athlete and wonderful role model."Many people dream of being given an opportunity to pursue success overseas," the prime minister said in a statement. "Roy was living that dream when he died. And many young Fijians, even those who didn't know him personally, will feel a sense of shock and loss at his passing."Ravana, 20, represented Fiji in the heats of the 60-metre race at the 2012 International Association of Athletics Federations (IAAF) World Indoor Championships in Istanbul and later in the same year in the 400-metre race at the IAAF World Junior Championships in Barcelona, Spain, the association said in a statement. He was also a 400-metre hurdler.He went to the US two years ago and spent a year at Iowa Central Community College, according to the Bee.Ravana had come to Sacramento, where he has extended family, to await final word on his admission to the University of Louisiana, his friend, Ilene Lasaisamoa, 21, said.She said a confirmation letter came about a month ago, and Ravana was planning to start school in the autumn."We considered him family," she told the Bee.

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Sydney among most expensive to visit

SYDNEY is one of the most expensive city destinations in the world, a survey reveals.

The NSW capital came in 10th on a city cost-of-touring table compiled by TripAdvisor, with London the most expensive destination for visitors.

A meal with wine for two, plus pre-meal cocktails, two short taxi journeys and a one-night stay at a four-star hotel in Sydney costs on average $404.

The package cost $561 in London, $550 in second-placed Paris, followed by New York at $540 and Stockholm with $516.

The rest of the 10 most-expensive cities were Oslo, Zurich, Copenhagen, Helsinki, Toronto and Sydney.

The world's best-value destination surveyed was Hanoi in Vietnam, which came in at an average of $165.

While a four-star hotel in Sydney was priced more reasonably than London, Paris and New York at $211 a night, Sydney ranked the third most expensive city in the world for a meal at $140 for two with wine, behind Stockholm and Oslo, respectively.

TripAdvisor spokesman Scott Wegener said the results showed that Asian destinations were still the most affordable, while European destinations continued to top the most expensive list.

"However, eastern European countries such as Bulgaria and the Czech Republic seem to be bucking this trend, so may serve as the alternative places for Australian travellers looking for a city break in Europe."

The TripIndex Cities study compares the cost of an evening out in 48 key tourist cities.

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Chief magistrate appointed Qld's top judge

Chief Magistrate Tim Carmody QC is believed to be the front runner to be Queensland's Chief Justice. Source: AAP

TIM Carmody's ascension from chief magistrate to become the state's top judge has finally been confirmed.

AFTER months of speculation and a public spat between the judiciary, Premier Campbell Newman made the announcement at the Supreme Court library on Thursday.

Judge Carmody, QC, who was recruited as chief magistrate from the bar nine months ago, will replace long-running Supreme Court chief justice Paul de Jersey who becomes Governor next month.Mr Newman said the government consulted widely on the appointment, including within legal circles, and he made the decision on Wednesday."His honour has the keen legal knowledge, administrative skills and integrity that are essential qualities for the role of Chief Justice," he said.Judge Carmody humbly accepted the appointment."I will work hard every day to prove worthy of the public's trust in me," he said.His elevation has split the legal fraternity.Several lawyers, including former Crown Solicitor Walter Sofronoff QC and former Supreme Court judge Richard Chesterman QC, have raised concerns about Mr Carmody's perceived closeness to the Liberal National government and his backing of its controversial anti-bikie laws.Mr Sofronoff, who resigned as solicitor-general in March, also questioned Mr Carmody's experience.Judge Carmody served as Counsel Assisting in the Fitzgerald Inquiry into police corruption in the 1980s and became special prosecutor of official corruption arising from the landmark inquiry.From 1998 to 2002 he was Queensland's Crime Commissioner and was appointed a Judge of the Family Court in 2003, before returning to private practice in 2008.Before his appointment as District Court Judge and Chief Magistrate in September 2013, he served as Chairman of the Queensland Child Protection Commission of Inquiry.

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Banned heater starts Sydney blaze

A HEATER that caused a blaze in a unit block in Sydney's east was banned from sale by the fair trading watchdog after a spate of fires.

A 94-year-old woman had to be rescued from the burning building and was taken alongside her daughter to hospital on Tuesday night.

The elderly woman lived in a unit separate to her daughter and son, NSW Fire and Rescue said.

The women, who were treated for smoke inhalation, were released from hospital on Wednesday.

The Rose Bay fire started when a cabinet heater caught fire in a neighbouring unit.

The owner of the heater initially tried to put the fire out but it spread to the kitchen.

NSW Fire and Rescue Superintendent Tom Cooper said the gas bottle in the cabinet heater, banned by the NSW Department of Fair Trading, caught fire.

"They have been banned from sale in NSW but there are still a number of these items that are still around in the community," he said.

Last July, fair trading officers raided shops and markets in Sydney to remove the dangerous heaters.

The department said at the time that a cabinet heater had been responsible for a house fire in Port Macquarie and another at East Gosford.

The Rose Bay owner of the heater told emergency services he bought the troublesome item 12 months ago.

"If anybody has one of these heaters or knows someone that has one of these heaters or sees one for sale, immediately notify the Department of Fair Trading," Supt Cooper said.

Neighbour Ezri Lerba said he heard a large rumble before seeing the flames.

"I didn't hear an explosion but I could hear the eruption of a pipe, so a large siss noise," he told reporters.

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Shark sighted near dead whale off WA

PEOPLE are being urged to avoid a 10 metre-long whale carcass on a West Australian southwest beach after a shark was sighted in the area.

The humpback whale was spotted on Saturday by a member of the public, partially submerged at Buffalo Beach near Australind.

A Parks and Wildlife spokeswoman said the carcass has several bite marks, possibly from a shark.

At least one shark has been sighted in the area.

The spokeswoman said the department was considering its options for removal of the carcass and requested people did not access the remote, 4WD-only beach while the whale was there.

Signs warning people to stay out of the water and away from the whale have been placed on the beach.

Shark sightings should be reported to Water Police on 9442 8600.

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BHP axes 170 jobs at WA iron ore mine

BHP Billiton has slashed 170 jobs at its massive Mt Whaleback iron ore mine in Western Australia's Pilbara region, saying the cuts are part of the company's bid to increase export volumes while reducing costs.

The mining giant said it would assist affected employees through the process and seek redeployment opportunities where possible.

BHP Billiton said its iron ore unit regularly undertook reviews to ensure it was operating as efficiently as possible.

"This includes reviewing the size and structure of our workforce to ensure it supports the delivery of our productivity agenda," the company said in an emailed statement.

"We have been open with our employees about the work being done to improve productivity."

BHP Billiton last week axed about 100 staff from its iron ore division headquarters in Perth.

Chief executive Andrew Mackenzie last week told reporters in Beijing that the iron ore market was oversupplied.

"We don't quite see the case for the scale of investment we saw in the last 10 years," he said.

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Kiwi gains amid interest rate speculation

THE New Zealand dollar gained on speculation the Reserve Bank will reiterate its projection for rising interest rates at this week's review.

The kiwi rose to 85.13 US cents from 84.89 cents at 8am in Wellington and up from 85.01 cents at the New York close on Friday. The trade-weighted index rose to 79.36 from 79.11 on Friday.

The Reserve Bank is expected to raise the official cash rate a quarter point to 3.25 per cent when releasing the monetary policy statement on Thursday.

But there has been speculation it may soften the track of future hikes to the OCR, signalling borrowing costs don't need to rise as much as it has flagged.

That leaves open a risk that governor Graeme Wheeler will reiterate the interest rate track given in March, stoking gains in market rates and the currency.

"Market pricing is quite a bit below where the RBNZ's track is," said Mark Johnson, senior client adviser at OMF. "The Reserve Bank is trying to prep the market for a normalisation of rates."

Still, the central bank governor may also repeat his view that the kiwi dollar is unsustainably high and can't keep appreciating.

Wheeler may be hoping the greenback eventually comes to their aid amid signs the US economy is recovering.

That was reinforced by US non-farm payrolls data on Friday that showed the world's biggest economy added more than 200,000 jobs for the fourth straight month, helping drive stock benchmarks on Wall Street to a record close.

The New Zealand dollar was little changed at 91.01 Australian cents from 90.95 cents on Friday. Australian banks are closed for the Queen's Birthday public holiday.

The local currency gained to 62.40 euro cents from 62.14 cents on Friday and edged up to 50.65 British pence from 50.48 pence. The kiwi rose to 87.29 yen from 86.83 yen on Friday.

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Man dies in cliff fall south of Sydney

A MAN has died after falling over a cliff in the Royal National Park south of Sydney.

It's believed the man was with a group of walkers when he fell about 10 metres down the cliff, north of Little Marley Beach, about 10.30am on Sunday.

Police say the operation to retrieve the body will take several hours.

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WA woman's death due to 'misadventure'

A WOMAN who died after a case of misdiagnosis still may not have survived if doctors had correctly identified her ailments sooner, a West Australian coroner has found.

Julissa Teresa Gilbert, 57, was an obese smoker with a history of hypertension, arthritis, asthma and chronic obstructive airways disease.

On September 17, 2008, she ate a hotdog for lunch, felt abdominal pain and vomited that night.

She visited Geraldton Regional Hospital and had an appendectomy the next morning.

The doctor who saw Ms Gilbert after her surgery believed her subsequent hypotension was due to septic shock and ordered more fluids with increased Aramine infusions.

But Ms Gilbert died a little over two hours later from an intra-abdominal haemorrhage.

In her findings, Deputy State Coroner Evelyn Vicker noted that because the doctor determined Ms Gilbert was suffering from septic shock rather than an internal haemorrhage, he considered it a medical problem rather than a surgical or anaesthetic problem.

As a result, he did not consult the surgeon or an anaesthetist, who may have offered a different perspective, Ms Vicker said.

"This may have presented an alternative view for the deceased's deterioration, but may still have been too late to have altered the outcome," she said.

The coroner noted there was some doubt about whether there would have been enough time to supply Ms Gilbert with sufficient blood products and return her to surgery to stem the bleed and save her.

Given how rapidly her condition deteriorated, it was impossible to predict whether a correct diagnosis earlier would have saved her, Ms Vicker said.

"The deceased needed blood or blood products in sufficient quantities to replace the loss and provide appropriate perfusion, and surgery to correct the source of the blood loss, if it could be located," she said.

Ms Vicker noted there had been changes made to medical practices since 2008, including improvements in the management of deteriorating patients.

She concluded that Ms Gilbert died due to misadventure.

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NSW govt to extend home owner grant

Next week's NSW budget will extend eligibility criteria for a first home owner grant. Source: AAP

THE NSW government has freed land for 6600 new homes in Sydney's northwest and will extend the first home owner grant in this month's budget.

Land at Marsden Park North, Richmond and Blacktown has been released or rezoned for housing, Premier Mike Baird announced on Saturday.

The Marsden Park land has space for 4000 new homes and is close to where the North West Rail Link is being built, while the land at Blacktown is on an old golf course.

"In western Sydney, there is a massive housing boom occurring and the unlocking of up to 6600 new housing lots at three sites will boost housing supply and make homes more affordable," Mr Baird said in a statement.

The government claims 100,000 new homes have been built across NSW since the March 2011 election.

Treasurer Andrew Constance also announced that the June 17 state budget will extend eligibility criteria for the first home owner grant by $100,000.

It means first-time buyers who purchase new properties worth up to $750,000 will qualify for the $15,000 payment. The previous threshold was $650,000.

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New report spells out phone tap powers

Government tapping of people's phones is widespread around the world, a new UK report shows. Source: AAP

GOVERNMENT tapping of people's phones is widespread around the world with Australia among a long list of countries permitting access to phone networks.

But Australia rates better than some, a report compiled by one of the world's largest phone companies says.

The detailed report by UK mobile carrier Vodafone examines legislative frameworks for telecommunications interception in 29 countries where it operates.

It says this is its contribution to the global debate on telecommunications interception.

The report says Australian carriers have legislative obligations to assist law enforcement and national security agencies, including an obligation to disclose information where authorised.

Interception is authorised by warrants issued to law enforcement and security agencies - though it may occur without a warrant in specified urgent circumstances.

Of substantial concern is the revelation in Vodafone's report that in six countries, authorities can bypass all legal requirements such as warrants to directly access an operator's network.

"In those countries, Vodafone will not receive any form of demand for lawful interception access as the relevant agencies and authorities already have permanent access to customer communications via their own direct link," the report said.

Vodafone doesn't specifically say which countries.

But in a detailed appendix compiled by an international law firm, it says Albania, Egypt, Hungary, Ireland, Qatar and Turkey all have provisions allowing authorities to request unfettered access.

In two other countries, India and the UK, legal provisions are unclear.

The report doesn't spell out the extent of telecommunications interception in Australia.

But the 2012-13 annual report, required under the Telecommunications (Interception and Access) Act 1979, says a total of 3330 interception warrants were issued, more than half to NSW police and the NSW Crime Commission.

Around two-thirds were for drug trafficking and organised crime.

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Senior SA Liberal to retire within a year

FORMER Liberal leader Iain Evans will quit the South Australian parliament within 12 months, which will spark a by-election.

The opposition treasury spokesman made the announcement on Friday after meeting state Liberal leader Steven Marshall.

He said he would not seek a shadow cabinet position in Mr Marshall's coming reshuffle.

"After 21 years representing the electorate of Davenport and my 46-year involvement in politics, I have made the decision to leave the SA parliament in the next 12 months and seek a new career in the private sector," he said.

Mr Evans, 55, has served as a minister, as SA Liberal leader and as deputy leader.

His announcement comes less than two weeks after former fellow frontbencher Martin Hamilton-Smith defected to become a minister in the minority Labor government.

Ten other MPS are on the Liberal front bench.

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WA oppn calls for puppy breeder register

WEST Australian Opposition Leader Mark McGowan is calling for the immediate introduction of a puppy breeder register to drive out dodgy dog dealers.

His comments come after Katherine Lisa King, 43, was found guilty of three animal cruelty charges on Thursday for keeping a dozen dogs in an underground bunker at her South Doodlakine property.

RSPCA inspectors discovered a further 38 dogs on her property, with many suffering from ear mite and secondary infections due to untreated conditions.

King was fined $11,000 by the Perth Magistrates Court and banned for five years from being within 10 metres of an animal.

Mr McGowan said WA had only voluntary registration for dog ownership.

"The most important thing we have to remember is let's stop it happening in the future with a proper registration system backed up by enforcement for puppy breeders to make sure the good ones are in the business and the bad ones are kicked out the back door," he said.

"That is the only way we'll drive the mistreatment of our dogs out of the system."

Mr McGowan said people buying a puppy from a breeder should demand to see the pup's parents and look at the circumstances in which it was brought up.

And breeders should be required to prove their accreditation when advertising and selling puppies, he said.

"I think West Australians are shocked when they see what can happen and what is going on across this state," he said.

"If people are aware of mistreatment of animals, they should report it to the RSPCA."

In 1999, Mr McGowan introduced the state's second-largest petition to parliament, seeking to strengthen animal welfare laws, with about 66,000 signatures.

The legislation was passed through parliament in 2002.

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Kiwi drops to six-month low against Aussie

THE New Zealand dollar has dropped to a six-month low against its trans-Tasman counterpart after figures showed an improving Australian economy, on growing exports and accelerating home building.

The kiwi fell as low as 90.70 Australian cents, trading at 90.73 cents at 5pm from 91.25 cents on Tuesday.

It also fell to 84.12 US cents from 84.27 cents at 8am and 84.59 cents on Tuesday.

Australia's economy grew 1.1 per cent in the first three months of the year, beating the 0.9 per cent growth forecast in a Bloomberg survey.

"The market's long on kiwi crosses, and it's a continuation of the unwinding," said Tim Kelleher, head of institutional FX sales New Zealand at ASB Institutional in Auckland, referring to the position where an investor bets an asset will appreciate.

"I wouldn't get too carried away, the kiwi's at the bottom end of the range."

Also weighing on New Zealand's currency was another drop in dairy prices at the latest GlobalDairyTrade auction.

The kiwi fell to 61.79 euro cents from 62.17 cents on Tuesday and to 86.37 yen from 86.55 yen.

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Hackers may be behind NSW 'swatting' hoax

HACKERS from anywhere in the world could have gained access to a Sydney teenager's computer and sparked an elaborate shooting hoax in the city's south.

More than 20 police in bullet-proof vests swarmed a home in Bonar Street, Arncliffe early on Wednesday morning after receiving reports of shots being fired at the property.

But it turned out to be a hoax with the teenager at the centre of the incident apparently caught up in an elaborate "swatting" hoax, whereby pranksters trick police or SWAT crews into thinking there has been a major incident.

"At this stage of inquiries, the matter is being investigated as a public mischief incident," police said in a statement.

Mathew McGrath, 18, was questioned by police and released without charge pending further inquiries - including an examination of three computers and a mobile phone taken from the home.

His mother told reporters a text message was sent from his mobile phone to triple-zero in Queensland, prompting the police response.

NSW Blue Mountains-based computer security expert, Stilgherrian, who goes by a single name, said it would be entirely possible for hackers anywhere in the world to gain access to Mr McGrath's computer and spark the hoax.

"Once they've hacked his computer they can either make online or Skype calls out through it," he told AAP.

Computer programs could also have been used to send out text messages from his mobile phone.

The incident is believed to be the first case of swatting in Australia that's prompted an emergency services or police response.

There have been numerous cases of the prank in the US, including those targeting celebrities such as Selena Gomez, Justin Bieber, Paris Hilton, Tom Cruise, Clint Eastwood and Ashton Kutcher.

Stilgherrian said in some cases hackers had invented a scoring system, whereby they get additional points if the incident appears on television or attracts a response of more than 50 police officers.

Lawmakers in California have introduced stiff penalties for those caught swatting, including paying back the costs involved in the emergency response.

In any case, Bonar Street got a wake-up call at 4.40am on Wednesday when police arrived.

Neighbour Ray Anderson told AAP he was woken by bright lights, before seeing police and TV crews lining the usually quiet street.

"I woke up to a great big light shining in my window," he said.

"It was still dark."

Mr Anderson described the teen as "a very nice lad".

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US taking direct action on carbon: Abbott

THE United States is taking direct action steps to reduce its emissions just like Australia, Prime Minister Tony Abbott says.

The Obama administration will reduce emissions from its power sector by 30 per cent by 2030, a significant pledge from the world's biggest economy and second-largest polluter.

The commitment has put pressure on Mr Abbott ahead of his trip to Washington next week, and he was asked in parliament if he will discuss the science of climate change with President Barack Obama when they meet.

The US and Australian government policies on climate change have something in common, Mr Abbott told question time.

"There is no carbon tax in the United States," he said.

"There is no emissions trading scheme in the United States."

The Abbott government is determined to ensure there will be no carbon tax and no emissions carbon scheme in Australia.

"What the United States is doing is taking sensible direct action steps to reduce its emissions, which is exactly what this government is proposing to do."

Mr Abbott said it was not sensible to protect the environment by damaging the economy, which is why neither the US nor Australia should have a carbon tax.

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Second body located after sons find mum

HOMICIDE detectives have found a second body while investigating the suspicious death of a mother-of-two in Lithgow, west of Sydney.

The 46-year-old woman's sons, aged 13 and 18, awoke to find her lying unconscious and fatally injured in the home about 8am on Tuesday.

Her death is being treated as suspicious, although it is not yet known how she died.

Now investigators have discovered the body of a 54-year-old man at another property at nearby Wolgan Valley.

Police say his death isn't being treated as suspicious.

The investigation continues and a report will be prepared for the coroner.

* Readers seeking support and information about suicide prevention should call Lifeline on 131 114 or the Suicide Callback Service on 1300 659 467.

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No relief in sight as 'warm wave' rolls on

AUSTRALIA has experienced its hottest two years on record and high temperatures are set to continue through winter in a clear sign climate change is having an impact, a new report warns.

May 2012 to April 2014 was the hottest 24-month period ever recorded in Australia, but that is likely to be eclipsed by the two years between June 2012 and May 2014, according to the Climate Commission's latest report, Abnormal Autumn.

"We have just had an abnormally warm autumn, off the back of another very hot 'angry summer'," Climate Council Professor Will Steffen said.

"The past two-year period has delivered the hottest average temperature we have ever recorded in Australia.

"Climate change is here, it's happening, and Australians are already feeling its impact."

The average temperature across Australia in April was 1.11C above the long-term average, the report says, citing Bureau of Meteorology figures.

The average minimum temperature was 1.31C above normal.

Unseasonable temperatures in the autumn "warm wave" set records, with Sydney, Adelaide and Melbourne setting benchmarks for the consecutive number of May days when the mercury reached 20C or higher.

In its report, the Climate Council says the abnormally warm weather in April and May "are part of a longer-term trend towards hotter conditions in the summer months and more warm spells in autumn and winter".

It says each of the 12-month periods ending in January, February, March and April 2014 have been record warm periods for Australia, with May figures on track to also be a new high.

"Such records are consistent with the ongoing global and Australia-wide, multi-decadal trends towards a hotter climate," the report says.

Meteorologists predict a high likelihood that Australia will experience an El Nino event - characterised by below-average rainfall in the east and south - in coming months.

The Climate Council says an El Nino could worsen the impacts of climate change, leading to hotter, drier weather.

The Climate Council is a crowd-funded, independent organisation created by the members of the former Climate Commission, which was axed by the coalition government when it came to power in 2013.

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Pub attacks fall but assaults at home rise

Assaults at licensed premises in Kings Cross have fallen by 30.5 per cent, figures show. Source: AAP

THERE has been a dramatic fall in the number of assaults in pubs and clubs in Kings Cross and the Sydney CBD over the past two years but violence in the home is on the rise.

Figures from the Bureau of Crime Statistics and Research released on Monday show assaults at licensed premises in Kings Cross have fallen by 30.5 per cent in the past two years.

Assaults at venues in the Sydney CBD have fallen by 15.1 per cent over the same period, while across the state there was a 5.6 per cent fall in assaults committed in licensed premises in the two years to March.

"Police across the state are doing a great job in preventing violence in our pubs and clubs," NSW Police Commissioner Andrew Scipione said on Monday.

However, the period covered by the statistics suggests it's unlikely much of the decline in assaults in licensed venues in the city's trouble spots can be attributed to recent changes to alcohol laws, largely prompted by a spate of fatal one-punch assaults.

The NSW parliament only passed legislation for tougher sentences involving alcohol and drug-fuelled violence in January.

Mr Scipione has also voiced concern about a 2.5 per cent rise in violent assaults in the home, as figures showed almost half (47 per cent) involved incidents between parents and their children.

"It doesn't matter who it is: whether it is parents assaulting their children, grown children assaulting their parents or any other person guilty of domestic assault, you will be held accountable," Mr Scipione said.

"But victims must come forward and report the incidents to police so we can take action," he said.

The figures showed there had been a 25.7 per cent rise in transport offences, while fraud was up 8.6 per cent.

Police said there had also been an increase in cyber crime with more people reporting unauthorised access of their bank accounts.

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Man charged after baby attacked

A 30-YEAR-OLD man has been charged with grievous bodily harm and cruelty after an injured baby was admitted to a Brisbane hospital.

The one-year-old boy was taken to hospital with unspecified injuries, police say.

The man will appear in the Pine Rivers Magistrates Court on Monday.

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NSW police reach stricken yacht

A YACHT stranded off the coast of Port Stephens, on the NSW mid north coast, is being towed back to Coffs Harbour after engine trouble.

The sole person on board - a 46-year-old man from Sydney - is not believed to have been injured, police said on Sunday.

The 16-metre single-masted sailing boat sent a distress radio beacon on Saturday night, 200 nautical miles offshore, reporting engine problems.

Water police left Port Stephens late on Saturday, reaching the stricken boat on Sunday afternoon.

The vessel, believed to have been sailing to New Zealand, is now under tow back to Coffs Harbour.

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BBC faces review of 'everything': UK govt

All aspects of how the BBC is run and paid for will be reviewed when its charter is renewed. Source: AAP

ALL aspects of how the BBC is run and paid for will be reviewed when its charter comes up for renewal, Britain's culture secretary says.

Sajid Javid said "everything" would be looked at, including licence fees and governance structures, when negotiations get under way.

Senior Tories have previously called the compulsory annual charge paid by British viewers out of date and warned it faces the axe but BBC executives insist a subscription system could end up costing more money.

Javid said plans for the process of renewing the charter, which expires in December 2016, were being worked on.

He told Total Politics: "We will announce plans in due course. That will be a time to look at all aspects of the BBC: governance arrangements, licence fees and so forth. That's where we plan to look at everything."

The renewal negotiations will take place on the back of a torrid few years in which the British broadcaster was lambasted for its handling of the Jimmy Savile scandal, massive executive pay-offs and a Newsnight investigation that led to the late Lord McAlpine being wrongly accused of child abuse.

Conservative MP John Whittingdale, chairman of the Culture, Media and Sport Committee, reportedly told senior BBC executives earlier this month that he did not believe the licence fee would survive.

Tory Party chairman Grant Shapps warned the corporation last year it could lose its exclusive right to the STG3.6 billion ($A6.57 billion) raised by the licence fee if it failed to tackle what he believes is a culture of secrecy, waste and unbalanced reporting in the organisation.

The government has frozen the annual licence fee, which is paid by every British household with a TV, at STG145.50 ($A265.58) for the rest of the charter period.

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Boy charged after Sydney party stabbing

A teen is in a critical condition in hospital after being stabbed at a party in Sydney's inner west. Source: AAP

POLICE have charged a 16-year-old boy with assault and affray after two other boys were badly hurt in an alleged fight at a Sydney house party.

Police were called to a house in Five Dock on Friday evening following reports of a backyard fight.

Officers found a 17-year-old boy with stab wounds to his chest and side, and another who had allegedly been hit on the head with a bottle.

The boy with stab wounds has undergone surgery at Royal Prince Alfred Hospital and remains in a critical but stable condition.

The other boy was also treated at the hospital.

Officers arrested a 16-year-old after he received treatment for a head wound at Concord Hospital.

He was charged on Saturday afternoon.

He was given conditional bail to appear at a children's court on Friday, June 20.

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Kiwi drops againt major currencies

THE New Zealand dollar may extend its decline as the prospect of European Central Bank stimulus stokes demand for the greenback, while sliding business confidence locally saps demand for the kiwi.

It fell to 84.80 US cents at 5pm in Wellington from 84.95 cents at 8am and 85.36 cents on Wednesday.

The trade-weighted index dropped to 79.17 from 79.71 on Wednesday.

The kiwi fell to a two-month low 84.68 US cents on Wednesday after the greenback rallied on weak German employment data, which heightened speculation the ECB will stimulate the regional economy when it reviews monetary policy next week.

The local currency came under pressure after a survey showed New Zealand business confidence fell for a third month, the same day Fonterra cut its forecast payout to farmers on declining dairy prices.

"The market is looking to sell the kiwi and is looking for excuses," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland.

The kiwi fell to 91.37 Australian cents at 5pm in Wellington from 92.18 cents on Wednesday to 86.23 yen from 87.03 and to 62.30 euro cents from 62.64 cents.

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ASPI warns of defence spending spree

DEFENCE has done so well from a tough budget that it has raised concerns the money might be wastefully splurged on expensive new equipment.

The latest Australian Strategic Policy Institute (ASPI) defence budget brief says the extra money has given the government a good start on its promise to lift defence funding to two per cent of gross domestic product in a decade.

Based on growth projections, that would be about $42 billion in today's money in 2023/24. The 2014/15 defence budget is $29.3 billion, an increase of $2.3 billion, which takes defence share of gross domestic product to 1.8 per cent.

The report's author, ASPI analyst Mark Thomson, said the budget established a credible base to reach the two per cent target, although it would still need 5.3 per cent annual growth from 2017/18.

But the risk was defence would splurge on new equipment and extra personnel.

Recent proposals exemplified the risk of generous funding leading to wasteful spending, he said.

They include suggestions to retire Anzac frigates early to give work to local shipyards or the "equally profligate proposal" for Australian construction of support ships that could be bought more cheaply overseas.

"By setting a generous financial target for defence, the government has effectively sent the military on a shopping expedition," he said.

Dr Thomson said the government's commitment to increased defence funding would be tested.

In the next three to five years, it will want to balance the books, giving it a choice between sustaining defence funding or delivering an early surplus at an opportune time in the electoral cycle.

Ability to spend up on defence will also depend on voters' willingness to cop higher taxes and forgo social services.

Australia's 10 million workers would each contribute about $5000 a year to sustain defence spending of two per cent of GDP, he said. However, polls show support for higher defence spending has fallen from 60 per cent in 2001 to less than 40 per cent now.

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Aristocrat set to launch mobile games

POKER machine maker Aristocrat Leisure will soon have its popular Facebook games ready for play on smartphones and tablets.

Aristocrat says its "Heart of Vegas" suite of games on Facebook is growing and was one of Facebook's top new games of 2013.

A new Facebook application, the "Jackpot Dreams" suite of games, has also been launched.

Both applications are soon to be launched on mobile platforms.

"Over the second half of 2014, we'll launch both Heart of Vegas and Jackpot Dreams on mobile platforms, representing out first major entry into the dynamic mobile channel," Aristocrat chief executive Jamie Odell said on Wednesday.

Part of Aristocrat's strategy is to modify games that have been successful on its "land-based" poker machines into similar games that can be played online, including on social sites such as Facebook.

Mr Odell said Aristocrat's acquisition in 2012 of US-based Product Madness, which now provides Aristocrat's gaming applications on Facebook, had been a great buy.

"I'd love for that business to become very significant in the next two to three years. It has the potential and every reason to do it," he said.

Aristocrat's online revenue for the first six months of the company's fiscal year increased fivefold to $16.1 million as it developed a greater presence on Facebook.

Aristocrat is also expanding its online distribution in Europe and says it has established a strong position in Italy.

Aristocrat on Wednesday reported a net profit of $57.4 million for the six months to March 31, up 9.1 per cent on the result a year earlier.

Profits were boosted by better operational performance, market share growth in the critical US market, and foreign and exchange and tax benefits.

Aristocrat's North American and online operations made more money, but profits in Australia and other regions and segments were lower.

Aristocrat gained a larger market share in the US market on the back of new games such as Walking Dead and the continued popularity of Tarzan.

In Australia, earnings were lower due to one-off licensing revenues received in the prior corresponding period.

But Aristocrat strengthened its position in NSW and Queensland as new games for the Australian market were rolled out.

Aristocrat expects strong profit growth for the full year.

Shares in Aristocrat were 19 cents higher at $5.36 at 1540 AEST.

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Ramsay Health appoints new chairman

Michael Siddle has been made chairman of Ramsay Health Care after the death of Paul Ramsay (pic). Source: AAP

RAMSAY Health Care has appointed Michael Siddle as its new chairman following the death of the company's founder Paul Ramsay.

Mr Siddle served as Mr Ramsay's deputy chair for 17 years.

The private hospitals operator has appointed Peter Evans as its new deputy chairman.

Mr Ramsay, one of Australia's richest men, died in early May after suffering a heart attack while sailing in Spain.

He founded Ramsay Health Care in 1964 and left most of his fortune to charity.

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Bishop defends her record, then boots Lib

THE government is trying to force Labor to apologise to Speaker Bronwyn Bishop after unearthing a 14-year-old report of a Labor member holding a party fundraiser in the Speaker's dining room.

Leader of the House Christopher Pyne moved a motion to force his opposition counterpart, Tony Burke, to apologise to Mrs Bishop for saying her reported use of her suite for a budget-night fundraiser was unprecedented.

He said the Australian Financial Review reported in 2000 a story of Hawke government speaker Leo McCleay holding a fundraiser in the suite.

Mr Burke responded that it was a "silly childish game" from Mr Pyne and the government had not handed over any evidence to support its claims.

The move came after a question time where Mrs Bishop rose to defend her impartiality - and then promptly booted a Liberal MP from the chamber for the very first time.

She said the Australian practice of the "so-called independent speakership" differs from the United Kingdom in that speakers here change when the government does.

"This provides a speaker who is politically affiliated but who is required to be impartial in the chair," she told parliament to laughter from opposition MPs.

She's come under fresh fire from the opposition this week over reports a Liberal Party fundraiser was held in the Speaker's suite on budget night.

One of Labor's chief grievances has been that the hardy Liberal Party warrior contributes to debate from the chair.

Mrs Bishop also said that in House of Representatives practice it was unusual for speakers to participate in debate but there was no rule against it.

"I trust this provides some perspective on how I see my role as Speaker," she said.

One minute after question time began, Mrs Bishop turfed out Queensland coalition MP Ewen Jones.

That makes one coalition MP expelled and 102 from Labor.

Former Labor government speaker Anna Burke said she and her Labor predecessor Harry Jenkins never used the Speaker's office, or made it available, for party political events.

She said health minister Peter Dutton was wrong in saying that previous speakers had done just that.

"To do so would have been highly inappropriate," she told parliament.

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Rogerson charged with student's murder

DISGRACED ex-NSW detective Roger Rogerson has been charged with the murder of university student Jamie Gao.

Police confirmed the human remains found floating in waters off Cronulla in Sydney's south on Monday morning were those of Mr Gao.

Rogerson was charged with murder and large commercial drug supply.

He has been refused bail to appear in Bankstown Local Court on Tuesday.

A handcuffed Rogerson was frogmarched out of his Sydney home in dramatic scenes on Tuesday morning and taken to Bankstown police station for questioning.

Fellow former Sydney detective and self-titled whistleblower Glen McNamara was charged on Monday with Mr Gao's murder.

Police said a post-mortem examination of Mr Gao's body had not been completed.

Rogerson's lawyer, Paul Kenny, earlier on Tuesday said the disgraced former policeman had been "treated like a dog" by police.

Rogerson was meeting with Mr Kenny at his Padstow Heights home on Tuesday morning when police swooped, banging on his door and surrounding the home.

Mr Kenny said he would be calling NSW Police Commissioner Andrew Scipione to complain about his client's treatment.

"He was treated like a dog. I've never seen conduct like this by NSW police," Mr Kenny said.

"This is like something off a TV show, but a bad TV show."

Mr Kenny said Rogerson, 73, was just about to head off to a meeting with police when the officers arrived.

"Police starting smashing at the door and a number of them came into Mr Rogerson's office where we were having a legal conference to make arrangements to go into the city," he said.

"I was just about to call Superintendent (Luke) Moore to let him know we were on our way."

The NSW Police said in a statement that they were not satisfied with Rogerson's arrangements and decided to arrest him.

Police allege Mr Gao was killed last Tuesday after a drug deal went wrong.

Mr Kenny said on Tuesday that Rogerson was shocked at being linked to the murder.

He appealed for calm, telling journalists Rogerson wanted to avoid any media hysteria.

"We don't want any OJ Simpson situation," he said.

Rogerson is one of the most infamous policemen in NSW history.

The highly-decorated detective was dismissed from the force in the 1980s after being convicted of conspiring to pervert the course of justice.

His police career was later depicted in the ABC drama series Blue Murder.

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Qld treasurer says asset sales more likely

QUEENSLAND'S treasurer has hinted that federal government budget cuts have made state asset sales more likely.

Tim Nicholls says cabinet will have to sign off on the final plan next Monday, before the state budget is handed down the following day.

The government wants to sell or lease $30 billion worth of assets, increase taxes or reduce services to help pay down $80 billion worth of state debt.

"More cuts on cuts, more taxes on taxes has made it more difficult for the government in terms of dealing with that $80 billion worth of debt and obviously that weighs on our decision making process," Mr Nicholls said.

"The federal government's decision has made those choices tougher for us in terms of looking at tax increases and cuts to services."

Mr Nicholls said a public share offering could be considered for any asset sold.

Premiers are revolting against $80 billion in federal budget cuts to health and education over the next decade, and a $7 doctor co-payment.

Mr Nicholls wouldn't say if any money raised from potential asset sales would help make up the shortfall.

Deputy Opposition Leader Tim Mulherin has questioned how much money reaped from asset sales will be used to pay down debt, as originally planned.

He also attacked the LNP for keeping up the charade over whether or not they're selling assets.

"No matter how much fake consulting the treasurer has done will stop the fact that he made up his mind up in 2012," Mr Mulherin said.

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ECB may hold clues for kiwi's direction

THE New Zealand dollar has held near the bottom of its recent band as the European Central Bank (ECB) forum may give investors clues to how the monetary authority will stave off threats to the regional economy.

Holidays in the US and UK are likely to keep trading volumes light, traders said.

The kiwi traded at 85.33 US cents 5pm in Wellington from 85.36 cents at 8am and 85.39 cents on Friday in New York. The trade-weighted index was 79.73 from 79.78 at the Friday close.

Traders are looking for any clues as to how the ECB will overcome low inflation and whether the bank will ease monetary policy further through a series of stimulus measures.

"The ECB speakers have started off fairly dovish" and "there's still more ECB rhetoric to come," said Alex Hill, head of trading at HiFX in Auckland.

"The euro is under pressure, which is keeping the US dollar bid firmly and commodity currencies down."

Mr Hill said the lack of liquidity in the market means traders could push the kiwi around in the northern hemisphere session.

The kiwi is trading about 20 basis points above a strong support level, he said.

It traded at 86.98 yen at 5pm in Wellington from 87.06 yen on Friday in New York, and was little changed at 92.37 Australian cents from 92.44 cents and at 62.66 euro cents from 62.63 cents.

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New prison unit for dangerous Vic crims

THE Victorian government will build a maximum security prison wing to house a growing number of underworld figures, bikies and violent offenders.

The new unit of 40 cells will be built adjacent to Barwon Prison, near Geelong.

A spokesman from Corrections Victoria said the wing was needed to house the state's growing prisoner population.

"It will build on the prison system's capacity to manage an increasingly complex prisoner population, including outlaw motorcycle gang members, underworld figures and violent prisoners," he told AAP.

The Banksia Unit - used to house protected prisoners - will also be upgraded, he said.

The spokesman said the government was seeking expressions of interest from contractors to build the unit, which is expected to be built by the middle of 2016.

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We won't compromise on co-payment: Hockey

Treasurer Joe Hockey has all but ruled out compromise on a GP co-payment. Source: AAP

TREASURER Joe Hockey has all but ruled out compromise on a GP co-payment, as Labor finally confirmed it would not block the government's deficit levy for the rich.

A bullish Mr Hockey on Sunday said the government would be willing to negotiate with senators on the budget, but warned against outright opposition to every measure.

"If the immediate answer of everyone in the Senate is no, then I think the Australian people have a low, low tolerance for that," he told Sky News on Sunday.

Labor, the Greens and cross-benchers have said they will oppose many of the unpopular changes in Mr Hockey's first budget, including the $7 Medicare co-payment.

But Mr Hockey said he did not think the government should compromise on the payment, $5 of which will go into a new medical research future fund.

"If the independents and the Labor party want to have a medical research future fund, there has to be a co-payment," Mr Hockey said.

"You cannot have both."

Health Minister Peter Dutton also signalled an unwillingness to negotiate on the $7 co-payment.

"As people realise that this package really is about strengthening Medicare ... I think that will bring pressure to bear on the senators," he told the Ten Network.

"Some people advocated that we get rid of bulk billing altogether, but we haven't."

Labor Senate leader Penny Wong revealed her party would not stand in the way of the proposed deficit levy for those earning more than $180,000, after weeks of hinting it may support the new tax.

However, the opposition was "not for moving" on changes to pensions and Medicare, or cuts to health and education funding, she said.

Senator Wong ruled out negotiation on plans for university deregulation, which will allow them to charge higher student fees.

Labor's opposition to the Medicare co-payment was also non-negotiable, she said.

"If Tony Abbott wants to do that he's going to have to come through us in the Senate," she told ABC Television.

Prime Minister Tony Abbott has said he won't surrender his government's budget commitments to the Senate, and has hinted a double dissolution election isn't out of the question if negotiations fail.

But Greens leader Christine Milne labelled Mr Abbott untrustworthy and incapable of negotiating with the senators.

Mr Abbott was leading a "lame duck government", she said.

The prime minister said the government's tough budget was "absolutely necessary" to rein in the country's debt and deficit.

"We need to take action now or an even greater burden will fall on our kids' generation," Mr Abbott said in a brief statement.

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Budget will pass eventually: PM

Tony Abbott says he won't compromise on his budget as pressure mounts from all sides. Source: AAP

PRIME Minister Tony Abbott says he won't surrender his budget in the face of pressure to compromise over its most unpopular measures.

Mr Abbott is confident the coalition's first budget will pass the Senate because the alternative would be a double dissolution election.

Senior government ministers have signalled compromising on key budget reforms such as higher education interest rates and the GP co-payment, amidst a fierce public backlash and a hostile Senate.

Continuing the budget sell on Saturday, Mr Abbott said his team "absolutely" understood the "iron necessity" of sticking with difficult and unpopular budget measures.

"We are not going to surrender our budget commitments," Mr Abbott told reporters in Adelaide.

But negotiations were inevitable.

"You have got to negotiate your legislation through the parliament," he said.

Mr Abbott was confident that the government would get the budget through the Senate in the end, because the alternative would be a double dissolution election.

"Because let's face it, there have been many governments over many years that have had to negotiate budgets through the Senate.

"The only time that wasn't successfully done ... that was a different bill in 1975."

Last week, Mr Abbott appeared to back away from a threat to hold a double dissolution election after earlier signalling incoming Senate cross-benchers would be unlikely to keep their seats if there was a new election.

Labor, the Greens and Palmer United Party have vowed to block changes such as the Medicare co-payment and pension cuts.

Education Minister Christopher Pyne, who has faced a slew of student protests this week over university deregulation measures, has signalled compromising on some reforms.

He said it was in recognition the government did not have a majority in the upper house.

"We will of course seek to consult and negotiate with the minor parties and the crossbenches to ensure these important reforms are delivered," Mr Pyne said in a statement to AAP.

The industry is also being consulted to "refine the details" of the changes, with two higher education stakeholder working groups providing feedback.

Opposition finance spokesman Tony Burke said the government's willingness to compromise showed it was in disarray and its budget unravelling.

If any measures change in the parliamentary process, Labor will apply the same "tests" to vote them down in the way it's opposing changes affecting pensioners, university students, Medicare, and fuel and cost-of-living prices.

"If they want to keep changing the budget because they're in disarray and chaos, we will keep applying the same principles," Mr Burke told reporters in Sydney.

Meanwhile, the Australian Medical Association is set to hold urgent talks with Health Minister Peter Dutton to seek a compromise on all medical co-payments flagged in the budget.

A vote was passed at the group's national conference on Saturday to push to have the payment targeted at higher-income earners.

The group is concerned co-payments will hit vulnerable groups hard and add pressure on hospitals.

"The health minister has made it clear he wants to engage with the profession about the future of the health system," president Steve Hambleton said in a statement.

"The AMA is well-positioned to help the government design a fairer and more equitable model."

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Qld Labor downplays by-election chances

LABOR'S candidate for the Brisbane seat vacated by maverick former government MP Chris Davis has vowed to be a thorn in Premier Campbell Newman's side if he's elected.

But maxillofacial surgeon Dr Anthony Lynham is playing down his chances of winning Stafford, an electorate devoid of representation after Dr Davis quit parliament on Friday.

His dramatic departure means the LNP is facing a by-election battle just three months after suffering a 17 per cent swing against it in the Redcliffe poll.

However, Dr Lynham says winning Stafford won't be a cakewalk.

"We are not taking anything for granted, we have to earn it," he told AAP while campaigning on Saturday.

As an anti-violence campaigner, Dr Lynham says he's already taken Mr Newman to task and will up the ante if he enters parliament.

"I have a proven track record of standing up to Newman," he said.

"The people of Stafford need someone desperately to stand up to Newman on health and education.

"I will be a thorn in his side."

Opposition Leader Annastacia Palaszczuk has already promised to give Dr Lynham a senior position if he's elected, but she's also downplayed her party's chances of regaining Stafford, which the LNP holds by a 7.1 per cent margin.

Ms Palaszczuk says Dr Davis' resignation was a vote of no confidence in Mr Newman's leadership and has called on the premier to immediately announce a by-election date.

Dr Davis said he was partly demoted because he raised concerns with the premier about looming changes to political donations.

He was sacked as assistant health minister a week earlier after clashing with colleagues over the proposed individual contracts and changes to the state's corruption watchdog.

At the time of his resignation, Dr Davis released polling showing most voters in his Stafford electorate backed him and believed he had been unfairly treated.

Treasurer Tim Nicholls said Dr Davis' exit was disappointing and came after colleagues had urged him to stay with the party and effect change within government.

Mr Nicholls said the government expected a tough fight at the by-election.

"The premier is getting advice about the timing of calling a by-election and I'm sure he'll make an announcement in the near future," he told reporters.

Brisbane Central MP Robert Cavallucci would represent the interests of Stafford in the interim, he said.

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