Small business to take tax-break hit

The government is dumping an asset write-off for small businesses that was linked to the mining tax. Source: AAP

THE federal government is setting a "tax trap" for small business by drastically reducing a tax break before legislation for it has passed, the opposition claims.

Small Business Minister Bruce Billson's office has confirmed that the $6500 instant asset write-off introduced by the former Labor government will end from January 1.

Instead, businesses will be able to get instant tax break for assets worth up to only $1000.

The tax break was linked to the mining tax.

Its formal dumping is contained in the mining tax repeal bill, currently stuck in the Senate, but legislation for tax measures can be applied retrospectively.

Acting opposition leader Penny Wong said it was a "tax trap for 2.7 million Australian small businesses and sole traders".

Shadow treasurer Chris Bowen said it was highly unusual for a government to make tax such changes and not publicise them.

"Have we seen any information campaign for small business saying listen, if you want to make an investment you'd better make it now because your tax write-off ends on 1 January? No," he told reporters in Sydney on Tuesday.

"I don't think they're very proud of this change."

Dropping the level of the instant asset write-off was part of the coalition's election commitments.

Information on the Australian Taxation Office's website, dated December 18, says the change is "expected to come into effect" on January 1.

Business representatives - the Australian Chamber of Commerce and Industry and the Australian Industry Group - have told the government that they'd like to see the asset write-off funded in the next federal budget.

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Private sector credit growing modestly

Credit growth was moderate in November as consumers and business are wary about taking on more debt. Source: AAP

CREDIT growth was moderate in November as consumers and business are still wary about taking on more debt.

The amount of private sector credit issued by banks and other lenders was up 0.3 per cent in November, after rising by the same about in October, seasonally adjusted data from the Reserve Bank of Australia (RBA) shows.

Over the 12 months to November, total credit rose 3.8 per cent.

Commonwealth Bank senior economist Michael Workman said record low interest rates are not having the desired affect on spending.

"It's not just about interest rate levels. In our view, moderate credit growth indicates that consumers and businesses remain cautious about increasing leverage because of uncertainty over job security and profitability," he said.

"To be fair, the consumer and business (confidence) surveys are gradually improving. Better news on jobs and the growth outlook are required."

Housing credit went up 0.5 per cent in November, and rose 5.1 per cent over the year to November.

Mr Workman said firm growth in home lending is being offset by relatively high repayment rates.

"Mortgage payers have been reluctant to reduce their repayments in line with lower mortgage rates over the past two years," he said.

"Some recent RBA research has indicated that households appear to have used about two thirds of the savings from lower interest rates to repay debt.

"In some respects it negates the effectiveness of monetary policy. While housing lending has responded to lower interest rates, some of the more interest rate sensitive areas of the economy, like non-mining business investment, remain subdued."

Business credit decreased 0.1 per cent in November, after a 0.1 per cent rise in October, and over the year to November it was up 1.9 per cent.

Other personal credit was unchanged in November, after decreasing 0.1 per cent the month before and rose 0.8 per cent in the 12 months to November.

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All set for party of the year

Australia's skies are set to explode with colour this New Year's Eve, the biggest party of the year. Source: AAP

AUSTRALIANS are preparing to celebrate the biggest party of the year, with the skies above the nation's capital cities expected to explode with colour on New Year's Eve.

At the country's drawcard event in Sydney, seven tonnes of fireworks will light up the sky on Tuesday in the form of 11,000 aerial shells and 25,000 shooting comets launched from seven barges spread across six kilometres of Sydney Harbour.

For the first time in a decade, 1000 fireworks will also be shot from the top of the Opera House, as well as from the Harbour Bridge and jet skis stationed in the harbour.

Organisers expect die-hard revellers to start arriving at the iconic new year's locale between 5am and 6am, Sydney New Year's Eve producer Aneurin Coffey said.

"They are the really die-hard fans that get there early and then another group come about 8am," he told AAP.

Keen boaties won't be taking any chances, with more than 2000 vessels expected to vie for an ideal spot from about 10am, he said.

Sydneysiders will share the new year with more than 2,500 police officers expected to be deployed in the city on the night.

Victorians will ring in the new year with a fireworks show promised to be seen from anywhere that has a view of the city skyline.

More than 500,000 revellers are expected to pack the city centre, with 7.5 tonnes of fireworks to be launched from 22 locations, including city rooftops, by a team of 44 pyrotechnists.

Brisbanites will see the state's largest fireworks show yet to welcome the new year.

The skies above the river city will be lit up with five tonnes of fireworks, or 30,000 pyrotechnic effects, fired from three barges and three city rooftops at 8.30pm and midnight.

In Tasmania, tens of thousands will converge on the waterfront and Salamanca, where the state's biggest food festival, Taste, combines with the finish to the Sydney to Hobart yacht race.

Fireworks will explode over the docks at 9.30pm and midnight as foodies gorge themselves.

More than 70,000 revellers are expected at South Bank Parklands, Kangaroo Point, the Botanic Gardens and Eagle St Pier.

SA will beat the new year's drum with some live music in Adelaide's Elder Park, where local bands will provide the entertainment on top of fireworks.

Western Australia will largely leave its patch of sky alone on the night, with Perth saving up its pyrotechnics display for Australia Day.

But for those not keen to cross the country for Sydney's spectacular display, there are still a few places to ring in 2014 with a bang, including Rockingham and the Shelley foreshore.

A key draw promises to be the headline act for the Salt on the Beach NYE party at North Fremantle, New York hip-hop trio De La Soul.

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NSW workers comp changes for 2014

INJURED workers and children attending childcare will be among the winners and losers at the start of 2014, as new laws kick in across NSW.

Among the raft of new legislation to come into effect on January 1 are controversial changes to workers compensation introduced by the O'Farrell government to rein in a $4 billion budget blowout.

Up to 20,000 injured workers across the state who need ongoing medical treatment will lose out in 2014 due to the changes, the Law Society of NSW says.

"For example a worker with an amputation injury who has, up until now, been having their artificial limbs replaced by the insurer will now lose this entitlement," President John Dobson said.

Meanwhile kids will no longer be able to enrol into a childcare facility unless their parent or guardian provides an immunisation record.

Parents or guardians reluctant to vaccinate on religious or other grounds or due to medical conditions will also have to produce documentation.

"No longer will it be at the discretion of child care operators to accept or deny children who aren't immunised," Health Minister Jillian Skinner said in a statement.

"By law these operators will be unable to do so and should they do so they can be fined."

People looking to swap the city for the country air will be some of the winners in the new year with a number of grants rolling out.

From Wednesday a move to regional NSW for full-time employment will see eligible people pocket $10,000.

An existing $7000 grant to city homeowners purchasing properties in regional areas will be extended to include long-term renters in metropolitan Sydney, Newcastle and Wollongong who make the country change from January 1.

"This is about attracting much-needed skills to our regions and developing sustainable and more vibrant regional communities," Deputy Premier Andrew Stoner said.

Meanwhile the tax free threshold for land tax will increase from $406,000 to $412,000.

For those into combat sports, such as boxing, cage fighting and Ultimate Fighting, stronger health and safety requirements will come into effect, including that combatants comply with protective clothing or equipment.

The NSW Civil and Administrative Tribunal will also commence in 2014.

The tribunal is billed as a one-stop shop for 22 state tribunals, which the government says "will improve their quality, consistency and transparency".

"NCAT enables these services to exist as a network, rather than in isolation, which will improve their quality, consistency and transparency," acting Justice Minister Michael Gallacher said in a statement.

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Times Square preps for New Year's Eve bash

NEW York City's Times Square is getting ready for New Year's Eve.

The square will host millions on Tuesday night counting down the last few moments of 2013.

Starting on Saturday, six Citibikes from the city's bike share program were being installed in Times Square and connected to 12-volt deep cycle batteries.

New Yorkers and tourists will generate power by pedalling. That will help illuminate the famed ball that will descend New Year's Eve.

Each bike will generate an average of 75 watts an hour. It takes 50,000 watts to power the ball, which is lit by 30,000 LEDs.

Additionally, a giant paper shredder and a dumpster were installed in Times Square on Saturday to allow visitors to destroy bad memories of 2013.

The annual event is dubbed Good Riddance Day.

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Cyclone closer to WA's north coast

A CATEGORY two cyclone off Western Australia's Kimberley coast is expected to intensify as it heads towards the Pilbara.

Tropical Cyclone Christine was 280 kilometres off Broome at 2pm (WST) on Sunday and was moving towards the Pilbara coast about 10 kilometres an hour, the Bureau of Meteorology said.

The bureau said the cyclone was "expected to intensify further as it moves towards the Pilbara coast".

It is forecasting the cyclone to bring heavy rainfall and gales of up to 100km/h south of Cape Leveque on Sunday.

Gales are expected to extend further west along the Pilbara coast to Whim Creek late on Sunday or Monday morning as the cyclone approaches.

On Monday, the cyclone is forecast to bring "very destructive" gales and heavy rainfall to Mardie and possibly as far west as Exmouth, with winds possibly reaching 165km/h.

Coastal communities between Pardoo and Mardie have been warned of the potential for a dangerous storm tide late on Monday or early on Tuesday.

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US driver survives plunge off cliff

A driver who survived a 90-metre plunge told rescuers he intentionally drove off the ocean cliff. Source: AAP

A DRIVER who plunged 90 metres off a Southern California ocean cliff was rescued after firefighters waded into the surf to free him from the car.

KNBC-TV says the 19-year-old man, who was in hospital in a critical condition, told paramedics that he intentionally drove off the cliff.

Authorities were called to the scene at about 2am local time on Friday.

They found the car being slammed by waves.

Firefighters, lifeguards and local police helped in the rescue. The driver was finally pulled free and flown to hospital.

The crash site is on the Palos Verdes Peninsula, about 32 kilometres south of downtown Los Angeles.

* Readers seeking support and information about suicide prevention can contact Lifeline on 13 11 14 and Kids Helpline 1800 55 1800 (for young people aged 5 to 25)

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SA bushfire under control

A serious bushfire south of Adelaide has been contained the Country Fire Service says. Source: AAP

FIREFIGHTERS have protected a South Australian country town from an out-of-control bushfire, with two fire crew volunteers injured while quelling the blaze.

An emergency alert was issued at 3pm (AEDT) on Saturday about a serious bushfire burning towards the town of Mallala, north of Adelaide.

About 200 Country Fire Service (CFS) personnel battled the blaze at Lower Light with 35 appliances and the help of water bombers.

A CFS spokeswoman said firefighters contained the blaze after it had travelled seven kilometres in three hours.

"The fire was fast-moving and came close to a farming community and within three to four kilometres of the Mallala township," she said.

"But fortunately CFS firefighters managed to protect the township."

A male CFS firefighter was taken to hospital with non-life-threatening chest injuries.

A female CFS firefighter was treated at the fire for smoke inhalation.

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Great Ocean Road fire threat downgraded

THE fire threat at Peterborough near Victoria's Great Ocean Road has been downgraded but the road closure may still cause traffic delays.

The Department of Environment and Primary Industries (DEPI) has issued an alert saying the grassfire in the Peterborough area is under control.

However, the Great Ocean Road is still closed.

Victoria Police are on hand to assist with re-directing traffic.

DEPI said there may be some delays for motorists.

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US polls finds 73pc unhappy with Congress

A CNN poll says 43% are unenthused about going to the polls for US mid-term legislative elections. Source: AAP

A US poll suggests 73 per cent of people feel Congress has done practically nothing good for the country since the November 2012 elections.

Congress has approved 58 laws since its new session began in January, the lowest total since 1947.

Divided between a House of Representatives dominated by the Republicans and a Senate with a Democratic majority, congress was unable last October to avoid a 16-day partial government shutdown due to the politicians' inability to reach a budget agreement.

Congress has also been unable to move forward on finalising an immigration reform package, another bill that has been stymied for months.

The disenchantment comes before the mid-term legislative elections in November 2014.

The CNN poll, which has an error margin of +/- 3 per cent, found that 43 per cent of respondents are currently unenthused about the possibility of going to the polls, compared with 25 per cent four years ago.

In the survey, which was conducted in mid-December, 49 per cent of respondents said they intended to vote for Republicans and 44 per cent said they intended to vote for Democrats.

Two months ago, 50 per cent of registered voters said that they intended to vote for Democratic candidates in the legislative elections, compared with 42 per cent who favoured the Republicans.

The six-percentage-point decline for the Democrats occurred during the botched rollout of the Affordable Care Act, President Abreact Obama's major domestic initiative.

Persistent problems with the website that is at the heart of the AC's insurance exchanges have held down the number of people who have been able to sign up for "Obamacare".

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Toddler saved after falling into pool

A QUICK-THINKING family member used CPR to save a toddler who fell into a pool on the NSW Central Coast.

The two-year-old girl was pulled unconscious from the backyard pool on Thursday afternoon, but she was breathing by the time paramedics arrived and she regained consciousness.

CareFlight director Ian Badham praised the quick action of the family member.

The girl was airlifted with her mother to The Children's Hospital at Westmead.

"Because she had been underwater for a while, she was taken to the hospital to be checked out and kept under observation," Mr Badham said.

She remains in a stable condition.

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Nine road deaths dampen festive season

NINE people have died on Australian roads this festive season, including two friends killed in a single-vehicle incident in NSW on Boxing Day.

A man, 31, was thrown from the vehicle and died at the scene of the crash on the NSW Central Coast. A second man, 22, was trapped in the wreckage and died before he could be released.

The crash, which occurred just before 5am (AEDT), left three other men aged 29, 22 and 27 in hospital.

Police said they hoped to speak to the injured men, all from Sydney suburb Auburn.

In Canberra, a motorcyclist died after losing control of his bike late on the evening of Christmas Day.

The 22-year-old hit a traffic island in the inner-north suburb of Lyneham about 11pm on Wednesday.

He died in Canberra Hospital.

In Perth, a 17-year-old boy died after falling off the back of a utility on Christmas evening.

Police say the boy suffered severe head injuries when he fell from the tray of the Nissan ute.

A 24-year-old man in the Northern Territory was killed after losing control of his motorcycle on a dirt road near the Todd River in Alice Springs on Christmas Day.

Two Victorian women killed in a head-on collision two days before Christmas were the first fatalities for the 2013 Christmas period.

A 69-year-old Queensland man died on Christmas Eve when his car hit a tree near Bundaberg.

On Monday night police found a man dead in a sedan spilt in two following a high-speed crash into a tree north of Moree in NSW.

The deaths take the national toll to nine, compared with 16 recorded by Boxing Day in 2012.

The national road toll period runs from midnight on December 23, 2013, until midnight on January 3, 2014, local times, in line with the Australia New Zealand Policing Advisory Board.

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Man badly burned preparing Christmas lunch

A NSW man was airlifted to a burns unit after being injured in an explosion while preparing lunch. Source: AAP

A NSW man is being airlifted to a specialist burns unit after being injured in an explosion while he prepared Christmas lunch.

The 62-year-old man in Shell Cove was found by police and rescue services with burns to his face, arms and legs.

Police were told the man was preparing the family's Christmas lunch when the explosion occurred.

They are investigating reports the gas bottle to the barbecue was connected incorrectly.

The man was airlifted to Concord Hospital for treatment.

Police hope to speak with the injured man once he is well enough to get a clearer idea of how the explosion happened.

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WA police concerned for missing woman

Police are concerned for a woman who disappeared from Albany, a day after arriving from Queensland. Source: AAP

POLICE are concerned for a 79-year-old woman who disappeared from Albany on Christmas Eve, a day after arriving from Queensland.

Joan Hanson went missing from Caledonia Crescent at Goode Beach at 5.30pm (WST) on Tuesday.

Police say they are concerned for the welfare of Ms Hanson, believed to be suffering dementia and unfamiliar with the area.

She is of small, slim build and has grey hair.

She was wearing glasses, light-coloured trousers, a yellow-brown shirt, a yellow zip-up sleeveless vest and white shoes when she went missing.

Anyone with information is asked to call the Police Operations Centre on 131 444.

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Man stabbed, woman left unconscious

A man has been found stabbed and a woman found unconscious, in Sydney suburb of Guildford. Source: AAP

A MAN has been found with stab wounds to his neck and a woman has been found unconscious in Sydney's west.

Police were called to a house on Woodville Road, Guildford, just after midday on Tuesday after reports of a man and woman fighting in the yard of the premises.

The man was found with stab wounds to his neck while a woman, aged in her mid-20s, was found unconscious.

The man's age is not known.

Both were treated at the scene by NSW Ambulance Paramedics and taken to Westmead Hospital.

Their condition is not yet known, police say.

Police are investigating the circumstances surrounding the incident, while a crime scene has been established on Woodville Road with two southbound lanes closed.

They will be examined by specialist forensic officers.

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Indon official in trouble over plane rage

AN Indonesian official has allegedly ordered his staff to prevent a plane from landing because an airline refused to free up a seat for him.

Marianus Sae, the head of Ngada district in East Nusa Tenggara province, is being sought for questioning in relation to the incident, police said Tuesday.

When Sae was told there were no seats left on the Saturday morning flight from the provincial capital Kupang to his district's Turelelo Soa airport, he phoned his security officials there and ordered them to put their cars on the runway, the Kompas.com news website reported.

Unable to land, the flight operated by state-run domestic operator Merpati Nusantara was forced to return to Kupang, local news reports said.

"We have questioned several people involved and are awaiting the permission of the governor to question the district chief," provincial police chief Ketut Yoga Ana said.

The alleged action "clearly violated the law" and was punishable by up to three years in prison, he said.

Home Affairs Minister Gamawan Fauzi said Sae had endangered the lives of the people on board.

Sae said he "begged them for a seat because I had an important meeting with district council but the flight was fully booked. I explained to them I was the district chief but they ignored me," he was quoted as saying by Kompas.com.

The airline said it had rebuked its employees for refusing to issue a ticket for the district chief.

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Batts inquiry must reveal truth: family

A royal commission into the Rudd government's home insulation scheme is set to begin in Brisbane. Source: AAP

KEVIN and Christine Fuller are about to spend their fifth Christmas without their son, Matthew, but take some comfort in knowing they're a step closer to finding out why he died installing home insulation.

A $25 million royal commission into the Rudd government's bungled "pink batts" scheme to establish "what really went wrong" opened on Monday.

Mr Fuller is hopeful the commission will uncover the truth about the program that's been blamed for the death of his 25-year-old son and fellow insulation installers Rueben Barnes, Mitchell Sweeney and Marcus Wilson.

"What we've always wanted is the truth, the whole truth to come out," Mr Fuller told reporters on Monday.

"(And for) changes to be made so no one else goes through what we've been through."

Commissioner Ian Hangar QC says he will examine whether the deaths of the four men between October 2009 and February 2010 were avoidable had there been a different approach to workplace health and safety risks.

The $2.8 billion program launched by Kevin Rudd in early 2009 to inject money into the economy has also been linked to at least one serious injury and hundreds of fires.

The royal commission will investigate whether the government sought or received advice about the program and how it responded.

It will also investigate the actions of the government and the public servants involved.

Mr Fuller says both state and federal public servants still had a lot to answer for as previous inquiries had only established that employers "did things wrong".

Lawyer Bill Potts says he would like to cross-examine Mr Rudd and other ministers involved in the program on behalf of his client Murray Barnes, the father of Rueben.

However, Mr Potts says the commission mustn't turn into a political witch hunt.

"What we want to know is whether there were warnings, and if there were warnings why weren't they heeded?" he told reporters.

Mr Potts said there was little to protect Rueben, 16, from being electrocuted while installing home insulation at Rockhampton.

"He received three weeks' training and the only safety equipment he had was sunscreen," he said.

"Rueben Barnes died, and at Christmas there is an empty space at his father's table."

Those affected by the bungled scheme will be called to appear at the inquiry, however some testimonies may be made in private.

Counsel Assisting Keith Wilson QC says 76 parties have been summonsed to appear.

Public sittings are expected to be held in March and April next year, with the commission to deliver its findings mid-year.

Asked whether it made Christmas easier now that the commission was finally underway, four years after her son's death, Mrs Fuller said: "It does help."

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Two women killed in Victorian crash

TWO women killed in a collision on a Victorian highway are believed to be Australia's first road fatalities for the Christmas-New Year period.

Police say a car and a 4WD vehicle collided on the Calder Highway, 8km north of Ouyen in the state's northwest about 1pm (AEDT) on Monday.

A 22-year-old Mt Waverley woman in one car and a 63-year-old woman in the other died at the scene.

The women were both passengers in the vehicles that are believed to have collided head on.

Five other people were in the vehicles with four suffering serious but non-life threatening injuries.

Road Policing Command Assistant Commissioner Robert Hill said he could not stress enough to people the need to act safely on the roads.

"It's Christmas, please look after yourselves, your family, your loved ones and take care while you travel on our roads."

The national road toll period runs from 0001 December 23, 2013 until 2359 January 3, 2014, local times, in line with the Australia New Zealand Policing Advisory Board.

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Man critical after CBD assault

Police would like to speak to this man in relation to a serious assault in Brisbane's CBD early Sunday morning. Source: Supplied

Police would like to speak to this man in relation to a serious assault in Brisbane's CBD early Sunday morning. Source: Supplied

A MAN has come forward over a bashing in Brisbane CBD overnight, which left another man with critical injuries.

A man voluntarily attended Petrie police station a short time ago and is currently speaking with detectives.

The other man is still in hospital in a critical condition with life threatening injuries.

EARLIER, police relased CCTV images of a man as part of ongoing investigations into the serious assault of a man in Brisbane's CBD.

Police are searching for a man who intervened in a couple's fight, seriously injuring a 38-year-old man in the early hours of Sunday morning.

The couple were arguing on the footpath of Queen Street near the intersection with Wharf Street around 4am when an unidentified man stepped in, seriously injuring the 38-year-old.

Brisbane region detective inspector Ian Park said the partner of the injured Arana Hills man was by his bedside in hospital.

"She's very upset obviously by what's happened," he said.

He said the man today remained in Royal Brisbane and Women's Hospital in a critical condition with serious injuries after being resuscitated at the scene.

Insp Park said alcohol may have been a factor.

"I guess it's a fair assumption that at 4 o'clock there is going to be alcohol involved, so we would appeal to people to just be careful with alcohol and look after themselves and each other and not to drink to excessive levels, which is always a deadly cocktail."

There were reports that people performed CPR on the man before paramedics arrived.

Alessandro Vosolo, who is staying on the 44th floor of the building, said the fight sounded violent and lasted less than four minutes.

"Fighting, screaming, arguing like guys getting thrown around, that sort of thing," he said.

One witness said he was on the 20th floor of the hotel and heard the fight.

"A dude got beat up... We heard it but then police rocked up."

Police insp Park said a number of witnesses had already been interviewed but appealed for more people to step forward, particularly the man, understood to be Caucasian and in his 30s, who was involved in the fight.

The injured man was taken to the Royal Brisbane and Women's Hospital in a critical condition.

"Initial information suggests that a man and a woman were seen arguing on the footpath of Queen Street near the intersection with Wharf Street when another man intervened just before 4am," police said in a statement.

Police said the two men were then involved in a fight in which a 38-year-old Arana Hills man sustained a serious head injury.

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Detective inspector Ian Park said police were also investigating the assault of a man who got into a fight with a hotel staff member at the Orient about 4.30am.

A 37-year-old man fell down the stairs and suffered serious head injuries when his head hit the concrete pavement.

"I believe the may have been a disagreement between this person and a staff member but as to what actually took place is subject to investigation," Insp Park said.

The man was taken to the Princess Alexandra Hospital where he is in a serious condition.

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In a third incident, a man was allegedly glassed in the face at the Family Nightclub on McLachlan St in the Fortitude Valley about 3am Sunday.

Police said a 19-year-old was struck in the face with a glass, receiving cuts to his cheek area. Police said the man did not have life-threatening injuries.

A spokesman said security staff and patrons stopped the alleged attacker and held him until police arrived.

A 20-year-old Calamvale man has been charged with assault occasioning bodily harm. He is due to appear in the Brisbane Magistrates Court on Monday morning.

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Six horses slaughtered in SA stable

SIX miniature show horses have been found slaughtered in a stable at Clayton Bay, about 70 kilometres south of Adelaide.

Police describe the incident as "bizarre and cruel".

Three other miniature horses in the same stable were not harmed.

The distraught owner of the horses reported the incident to police on Saturday.

The owner's son, Daniel Spong, told ABC Radio it may have been a targeted attack but it was not known why.

"It just would take an extremely sick individual, I think, to carry this out. We just can't believe it."

Police say the horses are believed to have been killed some time between Friday night and Saturday morning at a property at Clayton Bay.

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Homicide cops investigate Rosebud body

A WOMAN'S body has been discovered in a home on Victoria's Mornington Peninsula.

The body was found at a property on William Crescent, Rosebud West, about 1.30pm (AEDT) on Saturday.

Homicide Squad detectives were en route to the scene on Saturday evening and the circumstances surrounding the death were being investigated.

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Gay couples wed in Utah after ruling

A US judge has struck down Utah's same-sex marriage ban in a decision that marks a drastic shift towards gay marriage in a conservative state where the Mormon church has long been against it.

Friday's decision set off an immediate frenzy as the clerk in the state's most populous county began issuing marriage licences to dozens of gay couples while state officials took steps to appeal the ruling and halt the process.

Cheers erupted as the mayor of Salt Lake City led one of the state's first gay wedding ceremonies in an office building about three miles from the headquarters of the Mormon church.

Deputy Salt Lake County Clerk Dahnelle Burton-Lee said the district attorney authorised her office to begin issuing licences to same-sex couples but she couldn't immediately say how many had been issued.

Just hours earlier, US District Judge Robert Shelby issued a 53-page ruling saying the constitutional amendment Utah voters approved in 2004 violates gay and lesbian couples' rights to due process and equal protection under the 14th Amendment. Shelby said the state failed to show that allowing same-sex marriages would affect opposite-sex marriages in any way.

"In the absence of such evidence, the State's unsupported fears and speculations are insufficient to justify the State's refusal to dignify the family relationships of its gay and lesbian citizens," Shelby wrote.

The decision drew a swift and angry reaction from Utah leaders, including Republican Governor Gary Herbert.

"I am very disappointed an activist federal judge is attempting to override the will of the people of Utah. I am working with my legal counsel and the acting attorney general to determine the best course to defend traditional marriage within the borders of Utah," Herbert said.

Late on Friday, the state filed both a notice of appeal of the ruling and a request for an emergency stay that would stop marriage licences from being issued to same-sex couples. It's unknown when the judge will make a decision on whether to grant the stay.

If the ruling stands, Utah would become the 18th state to allow gay marriages, said Jon Davidson, director of Lambda Legal, which pursues litigation on LGBT issues nationwide. That's up from six before the US Supreme Court last year struck down part of the Defense of Marriage Act that defined marriage as between a man and a woman. The District of Columbia also allows same-sex marriage.

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Rio Tinto looking beyond China

MINING giant Rio Tinto is looking beyond China for its future growth, saying it's well placed to benefit from the industrialisation of South America, Africa and the Middle East.

"Beyond China none of us should forget there's India, there's the Asian nations, there's the Middle East, the former Soviet Union, South America and Africa," Chief executive Sam Walsh told a British Chamber of Commerce lunch in Perth on Friday.

"All of these in their time, at different rates, are going to go through the same urbanisation and industrialisation process and they're going to need the types of commodities that we in the mining industry supply for that growth."

But the company still expects China to remain a key driver of demand for iron ore, with Mr Walsh saying economic growth in the world's second largest economy could be a touch stronger than the company's previously forecast 7.5 per per cent.

"If you look at China, the growth is going to continue to be there - I'm very optimistic about that," he said.

Steel mills in China would continue to increase production as the urbanisation process in China continued, Mr Walsh said.

He is confident that 80 million tonnes of excess capacity will be reduced, as smaller, inefficient and higher polluting mills are closed.

"They also happen to be the mills that we don't supply to - we supply to the larger mills," Mr Walsh said.

Mr Walsh also expects the Chinese to focus on a higher grade ore product to improve the environmental performance of mills.

Earlier this month Rio Tinto announced it will cut its capital spending almost in half and shelve projects as it tries to bring down costs and win back the confidence of its shareholders.

The company plans to cut its capital spending to $US8 billion by 2015, below the $14 million it spent this year and well below last year's $17.6 billion peak.

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Hockey calls for disaster inquiry

The federal coalition wants the Productivity Commission to investigate spending on disasters. Source: AAP

THE federal coalition wants the Productivity Commission to look at how much the nation spends on disasters and how to help communities recover in a sustainable way.

Treasurer Joe Hockey says most existing disaster funding models are weighted towards response and recovery, with a focus on immediate humanitarian and economic relief and restoration of infrastructure to its previous standard - instead of longer-term resilience.

He has asked the commission to examine the full scope of national expenditure on disasters and the effectiveness of current mitigation support arrangements, which help prevent similar events from affecting communities the same way in the future.

"Further, the commission will be asked the best ways to reduce the impact of natural disasters on communities and how they recover in a sustainable way," Mr Hockey said in a statement on Friday.

Opposition leader Bill Shorten said cutting support for bushfire victims is wrong.

"But that's exactly what the Abbott government has done in the Blue Mountains," he told AAP.

"My concern is this review will become another excuse for the government to make savage cuts."

The Insurance Council of Australia said it was a positive step towards improving community resilience and it looks forward to helping the inquiry.

"Though disaster response and recovery are an essential component of government relief efforts, the insurance industry believes mitigation infrastructure has long-term benefits for exposed communities and the taxpayer," the council said in a statement.

Deloitte Access Economics estimates the total economic cost of natural disasters in 2012 was more than $6 billion.

In the last five years, natural disasters around the country have claimed more than 200 lives and devastated hundreds of thousands of Australians.

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Sea ice trip reopens Mawson's Huts route

TWO Australian explorers have made it over dangerous sea ice to Mawson's Huts in Antarctica, which have been inaccessible for several years.

Conservator Ian Godfrey and heritage carpenter Jon Tucker navigated 70km of sea ice on an amphibious vehicle to reach the huts.

Their visit was part of a privately funded expedition of nearly 30 scientists and others to commemorate the centenary of Douglas Mawson's exploration of the Cape Denison area.

The Mawson's Huts Foundation says this is the first time it has attempted such an ambitious and potentially hazardous crossing of the ice.

It was a joint operation between the foundation and the Australian Antarctic Division.

The huts on Cape Denison have been inaccessible for many years because an iceberg about the size of the ACT blocked the entrance to the bay.

Dr Godfrey said the trip across the sea ice was the journey of a lifetime.

"Mawson's Huts seem to be in good condition but we may only have a day here so we're doing all the essentials such as changing data loggers and assessing the condition of the building structure," he said.

He was hopeful the success of this mission meant the Mawson's Huts Foundation could resume annual visits.

Expedition manager Rob Easther said several of the scientists had planned to also make the full journey to the huts to conduct many of the experiments carried out there by Mawson's 1911-14 Australasian Antarctic expedition.

However, weather conditions mean it's likely the modern expedition team will have to leave the area sooner than hoped.

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Boy critical after 'horror' Sydney crash

A young boy is in a critical condition after a crash involving a cement truck in Sydney's southwest. Source: AAP

A SIX-YEAR-OLD boy is in a critical condition after being thrown from a van in a "horror crash" involving a cement truck in Sydney's southwest.

Police said the Toyota Tarago was stopped in a breakdown lane on the Hume Highway just before noon (AEDT) on Thursday when the cement truck crashed into its rear.

The boy, who was sitting in a rear booster seat, was thrown some 10 metres from the van by the force of the crash and suffered head, chest and pelvic injuries and leg fractures, CareFlight said.

The green van was left a mangled and crushed wreck.

Describing it as a horror crash, CareFlight said one of its trauma doctors performed emergency roadside surgery on the boy.

The six-year-old was then placed in an induced coma before being flown by helicopter to Westmead Children's Hospital in a critical condition.

His 13-year-old sister, who was sitting in the front passenger seat of the van, sustained minor injuries including cuts and abrasions and was also taken to Westmead.

Their mother, standing outside the van at the time of the crash, suffered suspected pelvic injuries and was taken to Westmead Hospital for treatment, police said.

The driver of the cement truck and his passenger were trapped in their vehicle before being freed by emergency services and taken to hospital.

The truck driver, believed to be in his 30s, is undergoing mandatory blood and urine tests.

Southbound lanes of the motorway have been re-opened.

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Bushfire comes close to SA homes

A BUSHFIRE has come close to homes in the Adelaide Hills as South Australia swelters through extreme weather conditions.

The Country Fire Service (CFS) had about 200 firefighters supported by six aircraft tackling the blaze near Rockleigh.

It burnt strongly for much of Wednesday, destroying about 1000 hectares of grassland as it headed towards the town of Callington.

It came within about one kilometre of homes before a wind change but was still listed as uncontrolled.

Temperatures across SA surged above 40C with conditions forecast to get worse on Thursday.

The Bureau of Meteorology said Adelaide could expect 43C with 45C forecast for some regional centres.

A cool change was not expected across South Australia until late on Friday.

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Group of friends claim $70m lottery ticket

THE hunt for Australia's biggest single lottery winner is over after a group of female friends produced the winning ticket purchased on the Gold Coast.

The women won $70 million in Tuesday's Oz Lotto draw and have vowed to split it equally.

The syndicate leader said she checked the unregistered ticket on Wednesday morning and was shocked to discover that they had won.

"When I realised we'd won, I just sat there shaking like a leaf," she said.

The women regularly meet up for lunch and decided to use their loose change to buy a ticket.

"I told everyone on the last occasion to throw in some loose change and I'll buy a lotto ticket in a big draw before Christmas," she said.

"I saw Oz Lotto had jackpotted to $70 million so purchased a QuickPick entry."

She's not sure what she'll do with her share.

"My husband told me he wanted to buy a racehorse but I said 'It's not your prize'," she laughed.

The winning 12-game ticket was bought from a Runaway Bay news agency.

Lotto players still have an opportunity to win big this week with a $40 million Powerball jackpot on Thursday.

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Hockey paints bleak budget picture

Treasurer Joe Hockey will blame Labor over the expected dismal mid-year economic outlook. Source: AAP

THE federal budget could remain in deficit for the next decade and drive national debt to two-thirds of a trillion dollars, the government warns.

Treasurer Joe Hockey painted a bleak picture when he handed down the mid-year budget review on Tuesday, telling Australians they would need to adjust their expectations.

Mr Hockey was making the case for broad-based savings, which will come in next year's budget, against a backdrop of weaker economic growth and higher unemployment for a number of years.

"Returning the budget to sustainable surpluses will not be achieved by piecemeal savings here and there," Mr Hockey told the National Press Club in Canberra.

"All options are on the table."

The 2013/14 federal budget has blown out by $17 billion since before the election and is forecast to be the third largest deficit on record at $47 billion.

There is no immediate sign the budget will return to surplus, after the previous forecast for a $4.2 billion surplus in 2016/17 was wiped out.

Instead, there will be a $17.7 billion deficit in that financial year.

Budget deficits are also projected for every year to 2023/24 unless action is taken, the government said.

The last surplus, of $19.7 billion, was in 2007/08.

If the government's forecasts stand, by 2023/24 the federal budget will have been in deficit for 16 years.

"Australians will now have to adjust their expectations of what government can sustainably provide, otherwise our nation's prosperity and our people's quality of life will be at risk," Mr Hockey said.

Shadow treasurer Chris Bowen said Mr Hockey should have outlined a path back to surplus.

"Joe Hockey is softening up the Australian people," Mr Bowen said.

"He is preparing the ground for deep and brutal cuts come budget time."

The budget deterioration reflects two key factors: a softer economic outlook and steps taken by the coalition to address unresolved issues inherited from the former Labor government, such as the $8.8 billion recapitalisation of the Reserve Bank of Australia.

Slower growth has resulted in a $37 billion reduction in tax receipts over the forward estimates and the economy remains in transition from a mining investment boom to broader sources of growth.

The economy is likely to expand by a sub-trend 2.5 per cent in 2013/14 and into 2014/15. Trend growth is usually about 3.25 per cent.

Unemployment is forecast to be six per cent by mid-2014, but rising to 6.25 per cent in 2016/17. The jobless rate is now 5.8 per cent.

Government debt is also expected to rise, from $320 billion this year to $460 billion by 2016/17, and a staggering $667 billion by 2023/24.

Australian Chamber of Commerce and Industry chief executive Peter Anderson said the figures were alarming.

"The only true solution to this alarming cycle of debt and deficit is for the government to provide the private sector with more economic freedom and a fairer deal to create the wealth required to get us out of this budget hole," he said.

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Qld pilot died doing what he loved: wife

Authorities are searching for a newly-wed couple after their plane crashed off Queensland's coast. Source: AAP

PILOT Alexander Rae died doing what he loved, his wife says.

Jimmy, as he was known, was flying a 21-year-old French woman on a scenic joy ride in a Tiger Moth when the biplane crashed into the water off South Stradbroke Island, killing them both

Campers and resort guests saw the red and white plane spear into the water in an almost vertical position about 400 metres off the island, near the Gold Coast, on Monday afternoon.

In his last radio communication, Jimmy said: "Conducting aerobatics over 3500 feet", The Courier-Mail reported.

Debris from the crash began to wash up on the beach as a frantic search for survivors in choppy waters wore on into the evening until it was suspended in the darkness.

At dawn on Tuesday underwater visibility had improved and a few hours later police divers using sonar found the plane's fuselage lying on the seabed.

The pilot and his passenger's bodies were inside.

Jimmy's wife Alice thanked search crews and well wishers.

"On behalf of all of Jimmy's family and friends, we would like thank everyone for their support and well wishes," she said in a statement.

"We all know Jimmy died doing what he loved."

The family of the French tourist is yet to make a statement.

The Australian Transport Safety Bureau is investigating the crash and has appealed to anyone who saw it, or picked up debris that washed ashore, to come forward.

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Kiwi extends gains over Aussie dollar

THE New Zealand dollar has extended its rally against its trans-Tasman counterpart as the divergence between the neighbouring economies makes New Zealand interest rates more attractive.

The kiwi rose as high as 92.49 Australian cents on Monday, the highest since October 2008, trading at 92.40 cents at 5pm in Wellington from 92.26 cents on Friday in New York.

The NZ dollar traded at 82.78 cents from 82.56 cents at 8am and 82.63 cents on Friday in New York.

The kiwi has been making fresh five-year highs against its Australian counterpart as the slowing economy in Australia and burgeoning local recovery underline the different stages of the interest rate cycle each nation's central bank is in.

New Zealand's Reserve Bank is keen on hiking rates next year, while Australia's is sitting on record-low rates to keep the stimulus coming.

Investors will be looking to see any hint of an easing bias when the minutes to this month's Reserve Bank of Australia policy meeting are released on Tuesday.

"Their central bank is quite determined to get the Aussie dollar lower to get a more sustainable mix in their economy," said Dan Bell, head of corporate sales at HiFX in Auckland.

"It looks like the kiwi/Aussie could get up to the 95 cent level" over the next month before it "runs out of puff," he said.

The kiwi fell to 85.04 yen at 5pm in Wellington from 85.31 yen on Friday in New York, and was little changed at 60.16 euro cents from 60.19 cents.

The trade-weighted index was steady at 77.92 from 77.90.

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Wesfarmers sells underwriting operations

DIVERSIFIED conglomerate Wesfarmers is selling its Australasian insurance underwriting operations to Insurance Australia Group (IAG) for about $1.85 billion - its biggest ever divestment.

Wesfarmers managing director Richard Goyder said the sale followed approaches by a number of parties that were interested in the underwriting business.

Wesfarmers had spent a lot of money in recent years getting the Australian and New Zealand insurance underwriting business into much better shape.

"But it hasn't delivered satisfactory returns on average over the last five years to Wesfarmers," Mr Goyder told reporters.

"And over a period of time, if any of our businesses don't generate satisfactory returns, we'll look and see what we do with it."

Mr Goyder said the sale of the insurance underwriting business also reduced some of the risk in Wesfarmers' portfolio of industrial, mining, retail and financial businesses.

There was inherent volatility in the insurance business because of catastrophic events like earthquakes in New Zealand, and Cyclone Yasi.

The sale does not include the insurance division's broking operations in Australia, New Zealand and the UK, and its Australian and New Zealand premium funding businesses which will remain part of Wesfarmers.

Wesfarmers expects a pre-tax profit of about $700 million to $750 million from the transaction, which will be included in the financial results for the second half of the 2014 financial year.

Mr Goyder said Wesfarmers had not yet decided what to do with the proceeds from the sale.

The sale is subject to regulatory approval, which is expected to take several months.

The acquisition comprises Wesfarmers' underwriting companies trading under the WFI and Lumley Insurance brands, and a 10-year distribution agreement with Coles.

IAG chief executive Mike Wilkins said the acquisition was a compelling strategic fit for IAG.

"Acquiring these businesses supports the group's strategic priorities of accelerating profitable growth in Australia and sustaining our market-leading position in New Zealand, and we expect attractive EPS (earnings per share) accretion," Mr Wilkins said.

IAG expects the acquisition will lift earnings per share by a modest amount in the first full year of ownership and by at least five per cent in the second year.

The acquisition will be partly funded from a $1.2 billion placement of shares to institutional investors, at $5.47 per share.

The integration of Wesfarmers' underwriting businesses is expected to generate pre-tax net benefits of about $140 million a year, with a significant proportion derived from reinsurance.

The integration process is expected to be substantially complete within two years, with pre-tax integration costs of $120 million.

Shares in Wesfarmers were 20.5 cents higher at $41.51 at 1515 AEDT. IAG shares are in a trading halt until the start of trading on Wednesday, December 18. They last traded at $5.70.

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Eight more dead in Bangladesh riots

10 people have been killed in Bangladesh's violence over the execution of an Islamist party leader. Source: AAP

EIGHT more deaths were reported in Bangladesh in intensified riots and protests sparked by the execution of a top Islamist leader, as the prime minister warned of a crackdown on the violence.

Police said Islamist supporters torched houses and fought running street battles with officers in towns and cities during a third day of unrest over the execution of Abdul Quader Molla for war crimes.

Two people were killed on Sunday in the northern town of Patgram and another six elsewhere overnight, police said, as Islamist supporters enforced a nationwide strike over the execution of Molla, a senior leader of the Jamaat-e-Islami party.

"Police fired shotgun pellets to disperse the Jamaat protesters who torched at least 20 houses belonging to ruling party supporters," government administrator Habibur Rahman told AFP of the violence in Patgram.

Molla's hanging on Thursday night triggered fresh unrest in the impoverished country, already reeling from political violence in the build-up to a deeply divisive national election scheduled for January 5.

Twenty people are now known to have died and dozens more have been injured in the clashes since Thursday between outraged Jamaat activists and police and between the activists and supporters of the ruling Awami League.

Prime Minister Sheikh Hasina warned of strong action against the rioters, saying "we have shown enough patience. We will not tolerate anymore."

"People of the country know how to reply to these atrocities (the latest violence), we (government) also know how to respond to, control you (the rioters)," she told a rally late on Saturday to commemorate those killed in the 1971 war of independence from Pakistan.

Molla, 65, became the first person to be executed for his role in that war. Jamaat called the hanging a "political murder" and said it would avenge it.

Molla had been found guilty in February by a much-criticised domestic tribunal of having been a leader of a pro-Pakistan militia that fought against the country's independence and killed some of Bangladesh's top professors, doctors, writers and journalists.

He was convicted of rape, murder and mass murder, including the killing of more than 350 unarmed civilians. Prosecutors called him the "Butcher of Mirpur", a Dhaka suburb where he committed most of the atrocities.

Of the six killed overnight, police said three died in the southern town of Companyganj, two in the northern town of Ramganj and one in the coastal town of Laxmipur.

At Companyganj, an opposition bastion, police fired rifles to disperse at least 8,000 rampaging Jamaat supporters who torched four government offices and attacked officers with crude bombs and guns, a senior police officer said.

In Ramganj, activists of Jamaat and its main ally, the main opposition Bangladesh Nationalist Party, attacked a convoy of ruling party lawmakers, leaving two people dead, sub-inspector Ershadul Alam told AFP.

Molla was one of five Islamists and other politicians sentenced to death by the International Crimes Tribunal, which the opposition says is aimed at eradicating its leaders.

The sentences have triggered riots and plunged the country into its worst violence since independence.

Some 250 people have now been killed in street protests since January, when the first verdicts were handed down.

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Red-suited revellers hit NY bars

The costumed New York pub crawl known as SantaCon has seen thousands of Santa's partying in bars. Source: AAP

SANTA Claus came to town despite snow and widespread criticism of the costumed New York pub crawl known as SantaCon.

New York City's SantaCon started on Saturday morning in Tompkins Square Park in the East Village. Thousands of red-suited revellers then spread out through the city's bars and snowy streets.

This year's SantaCon takes place in New York amid criticism that the event has become too rowdy. SantaCon participants were told to make charitable donations and encouraged to bring small gifts to bestow on one another and passers-by.

Organisers say similar events were set for more than 100 other cities worldwide on Saturday, including San Francisco; Portland, Oregon, Newport Beach, California and Vancouver, British Columbia.

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Severe storm warning for wind and hail

ANOTHER round of severe thunderstorms is set to pummel the southeast.

The weather bureau issued a severe thunderstorm warning after storms were detected over the Scenic Rim region near Mount Barney, Laravale and Kooralbyn.

The southeast Queensland warning said damaging winds and large hailstones are likely.

Forecasters from the Bureau of Meteorology said the thunderstorms were moving in a northerly direction, with Brisbane, Ipswich and the Gold Coast put on alert.

The storms are predicted to hit Beaudesert about 5.30pm.

More to come.
 

Queensland Fire and Emergency Services advises that people should:
* Move your car under cover or away from trees.
* Secure loose outdoor items.
* Seek shelter, preferably indoors and never under trees.
* Avoid using the telephone during a thunderstorm.
* Beware of fallen trees and powerlines.
* For emergency assistance contact the SES on 132 500.
 

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Sydney road and railway line reopen

A MAIN road and part of a railway line that were shut after a train malfunction on a level crossing in Sydney's northwest have reopened.

Garfield Road at Riverstone and the T1 western railway line between Mulgrave and Quakers Hill station are open but the Transport Management Centre says delays could still occur on trains in the area.

No delays are expected on local roads.

Supplementary buses are running and users of public transport are being asked to allow extra travel time.

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Coleman keen to clinch an overseas deal

WOODSIDE Petroleum boss Peter Coleman would love to pull off a big overseas deal and set his company up for years of strong growth.

But this week's announcement that the oil and gas giant will defer a $1.25 billion investment in Israel isn't going to get him to that point anytime soon.

The well-touted Leviathan LNG project in the Mediterranean Sea is getting increasingly complicated, as a series of regulatory delays and problems with its joint venture partners force the company to tread carefully.

Some believe Woodside should concentrate on what it knows best - delivering low cost LNG from offshore gas fields in Western Australia.

But Mr Coleman has larger growth aspirations.

This week he said Woodside would wait another two months before committing to a 30 per cent stake in the Leviathan project with US-based firm Noble Energy.

That's more than a year after he announced the project.

"We're not in it to do a deal for a deal," Mr Coleman told analysts.

"It needs to be a compelling value case given the amount of investment involved in the decision."

Some analysts have highlighted the geopolitical risks involved and questioned the viability of exporting gas from Israel which is grappling with its own gas reservation policy and tax regime.

Late last year Woodside said it planned to stump up $1.4 billion for Leviathan, a decision which was based entirely on a Tzemach advisory panel report.

The Tzemach report recommended Israel export just over half of its gas, but it sparked outrage among Israelis who want most of the gas reserved for domestic purposes.

Mr Coleman said the new Israeli government had given Woodside assurances around LNG export volumes.

Further legal challenges could create more uncertainty.

It comes as Woodside awaits the outcome of a review into Israeli tax law relating to LNG and pipeline exports which is due to be released in early February.

In addition, joint venture partners are reportedly talking about building a pipeline into Turkey.

For all of the "moving parts" involved in doing business in the Middle East, Mr Coleman remains upbeat but cautious ahead of committing shareholder funds.

"There's still an opportunity for Woodside to create significant value within the joint venture, but first and foremost we are focused on ensuring that we have a commercial outcome that delivers value to us," he says.

He has previously said the company would prefer to give money back to shareholders if a project doesn't stack up.

"We have other options that we're also pursuing and in this case we're ensuring that whatever we do, if we do enter into this joint venture, it's done in a way that's a commercially sensible outcome for all of us."

Woodside's overall estimated investment expenditure for 2013 has dropped to $US1.1 billion ($A1.21 billion) from the previous guidance of $US2.3 billion ($A2.53 billion) due to the deferral of expected expenditure on Leviathan.

Total investment expenditure in 2014 is expected to be between approximately $US2.0 billion ($A2.25 billion) and $US2.4 billion ($A2.70 billion).

It comes as Mr Coleman was this week quizzed about Woodside's stalled Sunrise project in the wake of the East Timor spy scandal, and a fortnight after Mr Coleman completed a trip to Japan where he began marketing gas from the proposed Browse floating LNG project in north Western Australia.

He would not reveal details of recent price negotiations, but indicated the company was in a strong position in Japan as the nation struggles to secure energy after the Fukushima nuclear accident.

Woodside spent more than $1 billion on the controversial Browse onshore proposal near Broome but abandoned it after widespread community opposition, citing higher costs.

The risks of outlaying a similar amount will be in the front of Mr Coleman's mind next year as Woodside crunches the numbers on Leviathan, factoring in a substantially weaker Australian dollar.

Around this time the company is due to open an office in Myanmar as it continues exploring in New Zealand, Ireland and WA.

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Asylum seeker baby seeks citizenship

Lawyers for an asylum-seeker family have lodged a citizenship application for their newborn baby. Source: AAP

LAWYERS for an asylum-seeker family have lodged a citizenship application for their sick baby, who was born in Australia.

Baby Ferouz was born in a Brisbane hospital in November after his mother, father and two siblings were transferred there from the Nauru detention centre.

The family, who come from Myanmar (Burma), have been fighting against being returned to Nauru because Ferouz, who was born early, and his mother, who has diabetes, are still weak.

Earlier this month, the law firm acting for the family applied for a protection visa for the newborn.

On Friday, the firm said it had lodged a citizenship application for the child.

"Ferouz was born in Brisbane. He has a Queensland birth certificate and there is no other country where he has a right to citizenship," Maurice Blackburn associate Murray Watt said in a statement.

He said Ferouz's family was from the persecuted Rohingya minority group in Myanmar, and the government there does not recognise them as citizens.

"Only last month, the government of Myanmar rejected a United Nations resolution urging it to grant citizenship to the Rohingya," Mr Watt said.

"In these circumstances, the law is clear that baby Ferouz is entitled to Australian citizenship, and therefore to remain in Australia permanently."

He again called on Immigration Minister Scott Morrison to show some compassion and allow the family to remain in Australia.

Mr Watt said the protection visa lodged for the baby last week was still being considered by the government.

Comment from Mr Morrison has been sought.

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Echo says debt restructure to cost $22m

Casino owner Echo Entertainment has restructured its debt arrangements to reduce finance expenses. Source: AAP

CASINO owner Echo Entertainment will incur a one-off charge of $22 million from changes made to its debt arrangements.

But the owner of Sydney's The Star said the changes will reduce its finance costs from the second half of the 2013/14 financial year to the 2015/16 year.

Echo had closed out some of its interest rate swap positions and restructured its lending arrangement, it said.

That will involve pre-tax expenses of $22 million which will be recognised its in results for the first half of the 2013/14 year.

Echo shares were down 7.5 cents, or 3.1 per cent, at $2.325 at 1412 AEDT.

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Vic zoo elephant herd welcomes new calf

An Asian elephant calf has been welcomed by his herd at Melbourne Zoo in his first group outing. Source: AAP

HE'S only two days old but Melbourne Zoo's boisterous elephant calf is already stomping his way around his enclosure, even trying a bit of rock climbing.

The baby Asian elephant suckled from mother Dukkoon, played with older sister Mali and tried to climb the enclosure's boulders during the family's first group outing.

"He is very boisterous already," Melbourne Zoo elephant keeper Andy Durham said on Tuesday.

"He loves to explore.

"He's very confident and he's got a big set of lungs on him."

The zoo will begin selecting names, based on the calf's personality, to be translated into Thai.

A public "name the baby' competition will likely be held, Mr Durham said.

The calf's birth on Sunday has lifted the spirits of the herd after the death of 11-month-old calf Sanook last Tuesday.

Even grieving mother Num-Oi is helping feed the new arrival, unusual for elephants in captivity.

"When a new calf is born, it's not uncommon for that calf to feed off a related adult female," Mr Durham said.

"In captivity, it is a little more unusual because the elephants aren't related."

The calf can be seen by zoo visitors from Wednesday.

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Job cuts will cause commuter delays: union

A PLAN to outsource electrical jobs on the Greater Sydney rail network will lead to lengthy delays for commuters, a trade union warns.

The Electrical Trades Union NSW (ETU) also says a move to contract out RailCorp's electrical maintenance instead of keeping jobs in-house has already been tried, tested and failed.

The union says 21 electrical workers from RailCorp have been told they will not have a job next year due a restructure.

The positions to be culled include emergency response roles, electrical manager and maintenance engineer.

ETU NSW Secretary Steve Butler said the job cuts - from Sydney, Newcastle and Wollongong - would lead to delayed responses to breakdowns for commuters.

"Past RailCorp reviews have confirmed that retaining electrical maintenance personnel within the company was the most efficient way to maintain assets and respond to critical incidents," he said in a statement on Monday.

He said industry insiders had told the union that response times would be between six to 48 hours for major incidents that happened outside of business hours, including blackouts or people being trapped in lifts.

Mr Butler also claimed RailCorp tried to outsource electrical maintenance work on the Hunter line several years ago but ended up reinstating the positions in-house.

Comment has been sought from the office of NSW Transport Minister Gladys Berejiklian.

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Fire inquiry hears of exploding ordnance

RECOMMENDATIONS for hazard reduction burning were ignored by the department of defence at a training ground where a botched explosives exercise started a bushfire which destroyed homes in the Blue Mountains.

The exercise at the Marrangaroo Training Area near Lithgow set off unexploded ordnance on October 16 and grew into the massive fire that burned for more than a month, a commission of inquiry has heard.

The inquiry on Monday heard details of explosives going off, endangering Defence firefighters, and embarrassingly inadequate preparation by the Defence Force.

A Rural Fire Service investigation was satisfied the training exercise caused the fire, which became known as the State Mine fire.

Defence has apologised for sparking the blaze.

Senior counsel assisting the inquiry, Lieutenant Colonel David Jordan, told the hearing the fire became a significant danger to Defence members after it was caused by a botched explosive ordnance training exercise.

Defence personnel tried to put the blaze out with shovels and some were almost hit by shrapnel from explosives.

"This was not exactly a safe method of operation," Lt Colonel Jordan said during his opening statement.

"There was a lot of unexploded ordnance.

"It became exploded as the fire passed through."

The unexploded ordnance made it too dangerous for firefighters to get close to the blaze and it was not declared extinguished until November 20.

Lt Colonel Jordan said detonations were banned when there was a "very high" fire rating and on that particular day it was "high" in Lithgow.

But a "very high" rating was in place in the greater Sydney area, including the nearby Blue Mountains.

The inquiry also heard that a report by consultants GHD in 2011 found the area was at risk of a bushfire.

Hazard reduction hadn't taken place at the site for almost 20 years despite a Rural Fire Service (RFS) recommendation two years earlier to have it done.

Lt Colonel Jordan also discussed the "inadequate" firefighting capability on the base.

After the fire started, a hose used by Defence personnel was not long enough to reach it.

Wing Commander Paul Anthony Muscat, who was in charge of the training school, said the explosives training exercise was considered low risk.

"Low risk doesn't mean no risk," he told the hearing.

"It's not negligent. It's just [that] we couldn't fight the fire ... We just need to make sure we don't have this happen again."

The inquiry will investigate whether the fire caused injury to any person at the training area, whether it damaged property and the qualifications and experience of the Defence people involved in fighting the fire.

The fire burnt through 50,000 hectares and destroyed five homes and seven other structures in the Lithgow area.

The inquiry before former Sydney judge John O'Meally continues on Tuesday.

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Abbott, Shorten to attend Mandela service

PM Tony Abbott and Opposition Leader Bill Shorten will attend a memorial service for Nelson Mandela. Source: AAP

PRIME Minister Tony Abbott and Opposition Leader Bill Shorten will present a united Australian front to honour and farewell Nelson Mandela.

The pair will this week fly to Johannesburg to join world leaders past and present, mourning the former South African president who died at his home on Thursday (local time) aged 95.

A huge memorial service is planned for the nation's first black leader on Tuesday, with US President Barack Obama already confirming his attendance.

On Saturday Mr Shorten's office said the Labor leader had accepted an invitation from Mr Abbott to accompany the prime minister to South Africa. Both men will miss most of the final 2013 parliamentary sitting week.

It is unknown how long the men will be out of Australia.

"There is a long bipartisan history of Australian support for South Africa and the campaign to abolish apartheid," Mr Abbott said, announcing his intention to attend the service.

After facing criticism for not lowering flags at the news of Mr Mandela's death, Mr Abbott said Australian flags will be set at half mast on the day of the official memorial.

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Urban, Lorde receive Grammy nominations

Keith Urban has been nominated for a Grammy Award in the category of Best Country Duo/Group. Source: AAP

VETERAN rapper Jay-Z topped nominees for the 2014 US Grammys with nine nods, while Taylor Swift and Daft Punk were among those in the running in major categories.

Australia's Keith Urban has been nominated for Best Country Duo/Group Performance category for his collaboration with Tim McGraw and Taylor Swift, called Highway Don't Care, while New Zealand teenager Lorde was nominated for four awards, mostly for her debut single Royals.

The 17-year-old schoolgirl, who performed live during the Los Angeles ceremony, is in the running for song of the year, record of the year, best pop solo performance and best pop vocal album for Pure Heroine.

In second place with seven nods apiece were California hip-hop star Kendrick Lamar and rapper Macklemore and Ryan Lewis, as well as Justin Timberlake and Pharrell Williams, while rapper Drake scored five.

The nominees in key categories were announced during an hour-long concert at the Nokia Theatre in downtown Los Angeles, including video-link performances by Swift from Australia and Katy Perry live from Canada.

In the coveted Album of the Year category, songstress Swift's Red will compete with French electro duo Daft Punk's Random Access Memories, Macklemore and Ryan Lewis's The Heist, Lamar's Good Kid, M.A.A.D City and Sara Bareilles' The Blessed Unrest.

Record of the Year candidates are Daft Punk and Williams' ubiquitous Get Lucky, Lorde's Royals, Radioactive by Imagine Dragons, Hawaiian crooner Bruno Mars' Locked Out Of Heaven and Robin Thicke's Blurred Lines, made infamous by Miley Cyrus' twerking at the MTV Video Music Awards show.

Shortlisted for Song of the Year - for songwriters, as opposed to performers - were Just Give Me A Reason sung by Pink Featuring Nate Ruess; Locked Out Of Heaven sung by Bruno Mars; Roar sung by Katy Perry; Royals sung by Lorde, and Same Love sung by Macklemore and Ryan Lewis.

Macklemore and Ryan Lewis was also nominated for Best New Artist, up against James Blake, Kendrick Lamar, Kacey Musgraves and Ed Sheeran.

While big-hitters Jay-Z and Timberlake scored lots of nods, they were mostly in rap and pop/R&B categories respectively. Neither the rapper's heavily marketed Magna Carta ... Holy Grail, nor Timberlake's The 20/20 Experience made it onto the Best Album shortlist.

The 56th annual Grammys show - music's version of the Oscars - will be held on January 26 at the Staples Center.

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Fuel deal a win for consumers, business

CONSUMERS should expect lower grocery prices at Coles and Woolworths in 2014 due to an agreement from the supermarket giants to limit fuel discounts.

Hailed as a win for independent supermarkets, Coles and Woolworths agreed on Friday to limit discounts to a maximum four cents a litre as part of undertakings given to the nation's competition watchdog.

The retail behemoths told the Australian Competition and Consumer Commission (ACCC) they would stop funding the discounts through their supermarkets division, and any future discounting would need to be covered by their fuel retailing business.

The chains made the voluntary undertakings to address ACCC concerns their discount offers would reduce competition in the fuel retail sector.

The move comes after the consumer watchdog probed the supermarkets' shopper dockets following extended periods of eight cents a litre discounts.

Coles managing director Ian McLeod said the supermarket chain didn't believe its discounts amounted to a breach of law, but he recognised the ACCC's concerns.

Woolworths, meanwhile, denied there had been a competition problem arising from the discounts.

Consumer advocate Choice said the pledge should mean lower prices at Coles and Woolworths from January 1.

"Consumers have every right to expect grocery prices will fall at Coles and Woolworths as the supermarket giants reverse the flow of subsidies away from fuel," Choice spokesman Tom Godfrey said in a statement.

He said anything less would "expose the so-called price wars as nothing more than advertising slogans".

Australian Retailers Association executive director Russell Zimmerman said the deal was "the first step in fixing serious misuse of market powers issues".

He told AAP small, independent supermarkets had been "really badly hurt" by deep fuel discounts given by Coles and Woolworths.

"It does give (independent supermarkets) an opportunity to compete on a more level playing field."

The Australasian Convenience and Petroleum Marketers Association, which represents independent service stations, also backed the deal.

"It's not perfect, but we welcome it as a step towards levelling the playing field in the fuel industry," group chief executive Nic Moulis said.

He said about 1000 independent service stations had shut in the past four years, partly due to cost pressure caused by heavy fuel discounts at Coles and Woolworths.

Coles said it would continue to offer fuel discounts of four cents a litre.

Woolworths said it would offer eight cents a litre discounts to supermarket customers who spent an additional $5 on merchandise at its petrol stations.

Independent senator Nick Xenophon said the undertaking would still "lead to the widespread ripping off of supermarket shoppers and petrol station customers".

Senator Xenophon said the fuel discount limit would be offset by Coles and Woolworths "scams" like increased supermarket prices and high fuel prices at the bowser.

"Smaller independent supermarkets and service stations will still be driven out of the market by this unfair system," he added.

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Barnett won't be rushed on new WA laws

WEST Australian Premier Colin Barnett has defended the state government's efficiency at passing legislation, saying parliamentarians shouldn't be rushed to vote on bills.

The state government has come under fire for not introducing by the end of this year a planned law that would send violent home invaders straight to jail.

It was the first election pledge by the Liberals in February before they convincingly won a second term.

And parliamentary debate over some of the bills that have been introduced has become bogged down, with a proposed law to increase regulation of the taxi industry descending into filibustering.

But Mr Barnett said he wasn't going to rush, reintroducing bills when necessary.

"Given there was a significant number of new members, I was not going to simply reinstate legislation at the stage it was before the election," he told reporters on Friday.

"That would have meant you would have had a significant number of members of parliament voting or conceding, if you like, on legislation that they hadn't had the chance to see.

"So I said we would actually go back and reintroduce legislation that had not finished its passage.

"I think that was a very proper thing to do."

Mr Barnett said he hoped bills on workplace reform, amalgamation of port operators, and the merger of utilities Verve and Synergy would be passed through the upper house next week.

Thursday was the last sitting day of the year for the Legislative Assembly but the Legislative Council has another week.

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Poorer women prone to giving birth early

A study has revealed poorer women, older women and smokers are prone to having a pre-term baby. Source: AAP

POORER women, older women and smokers are at risk of having a pre-term baby, according to a new study that also highlights a danger among Aboriginal women.

Mothers from the most disadvantaged areas with the least resources face the greatest risk.

In these areas, the chance of having a baby at least three months early is 45 per cent higher than in the most privileged areas.

A third of mothers giving birth to significantly premature babies live in disadvantaged areas, but only 28.5 per cent overall live in such areas, according to the University of Sydney study published in the Australian and New Zealand Journal of Public Health.

The researchers analysed births in the 10 years to 2004 to assess the link between pre-term birth and low socioeconomic status.

"Our study found a strong association between socioeconomic deprivation and an increasing risk of pre-term birth," said lead author Deborah Donoghue.

The risk of having a pre-term baby was also significantly higher for older mothers and Aboriginal women, she said.

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Myanmar baby applies for protection visa

Lawyers say a Myanmar asylum seeker's baby born in Australia is entitled to a protection visa. Source: AAP

LAWYERS for a Rohingya asylum seeker's baby, who was born in Australia, have applied for a protection visa for the newborn.

Ferouz was born in a Brisbane hospital last month after his mother Latifar, his father and two siblings were transferred there from a Nauru detention centre.

The family, who come from Myanmar, do not want to return to the Pacific Island nation because premature Ferouz and his mother, who suffers from diabetes, are still very weak.

Last week their lawyers struck a deal with the Department of Immigration allowing the family to stay in Brisbane until their case was heard for "procedural fairness".

Maurice Blackburn associate Murray Watt says an application for a protection visa for Ferouz was lodged on Wednesday.

"Ferouz's family come from a persecuted minority group in Myanmar that is not recognised as citizens by the government there," Mr Watt said in a statement.

"For that reason, baby Ferouz is considered stateless and, having been born in Australia, he is entitled to apply for a protection visa.

"We strongly urge the federal government to grant this protection visa for Ferouz, and we will also be seeking protection for his family to ensure they can remain together, as any reasonable person would expect."

Mr Watt said Ferouz was likely to apply for Australian citizenship at a later date.

The family's bid to stay in the country is due to be aired in the Federal Circuit Court on March 21.

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ABC rebuked over spy stories

PRIME Minister Tony Abbott has publicly rebuked the ABC for publishing stories about Australia's spy agencies, but says he has no plans to retaliate by cutting funding to the public broadcaster.

Government MPs expressed anger at the intelligence stories at a closed party-room meeting on Tuesday as the ABC's managing director Mark Scott went on television to defend the reports.

The ABC and The Guardian last month sparked a diplomatic crisis with Indonesia when they published leaked documents showing Australia had tracked the mobile phones of Indonesia's President Susilo Bambang Yudhoyono and members of his inner circle.

The documents included a power point presentation, leaked by fugitive American intelligence contractor Edward Snowden, who has sought sanctuary in Russia.

"I think the ABC was guilty of very, very poor judgment," Mr Abbott told reporters, adding he was concerned the ABC helped promote a story by The Guardian, which he described as a left-wing British newspaper.

Mr Abbott said he understood why many in the media believed the ABC had an unfair competitive advantage because it received around $1 billion a year in government funding.

But he had no plans to punish the ABC by cutting its public funding.

"It has been thus (publicly funded) for many a long year, and this government has no plans to change that," he said.

"My intention is to speak plainly and candidly with the Australian people in the hope that ABC management will see sense."

Mr Scott earlier appeared on ABC television to defend the public broadcaster's coverage of the intelligence leaks, which he called a "very important story".

"Yes, it has caused some short-term difficulty but we absolutely feel it was in the public interest," he said.

"When an important story was presented to us, were we really going to walk away from that because it was controversial?"

Mr Scott said the ABC did not have an ongoing arrangement with The Guardian on future Snowden leaks but he would not rule out further collaborations.

"It would depend on the story, and it would depend on our ability to independently verify that story, and it would depend on whether we felt that story was in the public interest," he said.

In the past, the ABC has taken part in collaborative reporting ventures with Fairfax Media.

South Australian Liberal Senator Cory Bernardi, who raised concerns about the ABC in Tuesday's government party-room meeting, suggested taxpayers could decide on whether ABC funding should be cut.

"The ABC seems to have made their choice. Maybe Australian taxpayers should be able to express their choice as to whether the ABC is worthy of their tax dollars or not," he told AAP.

Defence Minister David Johnston, meanwhile, has told a closed meeting of industry and defence experts that the government was prepared for further damaging intelligence leaks from Snowden.

"We are watching with great acuity what is happening in the space. But we must assume the worst. There is no alternative for us," Johnston told the meeting, according to The West Australian newspaper.

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Bali punch victim wakes from coma

An Australian man who suffered injuries when he was allegedly punched in Bali has woken from a coma. Source: AAP

AN Australian surfing teacher who suffered major head injuries when he was allegedly punched in Bali has woken from a coma and is able to smile, wink and nod, his family says.

Matt Scarff, 41, suffered major head injuries when he was allegedly punched by a stranger outside the Townhouse Club in Seminyak on November 15 while going to the aid of a woman in danger.

A Facebook page was set up by family members to raise money for Mr Scarff's travel expenses to return him to Australia because he did not have insurance.

He has undergone two operations since arriving in Perth.

Tony Maguire, who runs the Facebook page, posted on Monday night that his cousin had woken up.

"He is out of the induced coma but still in intensive care," he said.

"Matt is still not out of the woods but his condition is improving and he is interacting.

"He is giving us nods, winks, thumbs up, and a few of his cheeky grins."

Mr Maguire said it is hoped that in time, and with a lot of hard work, Mr Scarff will be up and about again.

He added that Mr Scarff would require further surgery at Royal Perth Hospital in the near future.

"We are still taking things day by day," Mr Maguire said.

"He is loved by so many people and we know he will get through this."

Mr Scarff runs Bali Learn To Surf - a surf school that mainly teaches southeast Asians, including orphans, and includes surf trips to Java and up the coast.

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Qld man dissolved wife's body in acid

A FAR north Queensland man has admitted causing his wife's death and dissolving her body in acid.

Klaus Andres, 70, is accused of murdering his wife, Li Ping Cao, 42, on October 30, 2011, in Cairns.

He's been charged with one count each of murder and interfering with a corpse.

His trial, set down for two weeks, began on Monday in the Cairns Supreme Court.

On Monday afternoon Andres' lawyer read out a list of 10 admissions by Andres to the jury.

Andres admits causing his wife's death on October 30, 2011, buying acid from a hardware store and putting her body in a wheelie bin to dissolve her in it.

He has already admitted to interfering with his wife's body, but denies intentionally killing her.

Andres also admitted pouring the contents of the wheelie bin down a storm drain outside the couple's house.

Only Li Ping Cao's prosthetic teeth were recovered by investigators.

Andres' lawyer told the court Andres admits pushing his wife during an argument in the couple's kitchen on October 30, 2011.

Li Ping Cao fell to the ground and blood began oozing out of her nose and ears.

Andres tried to communicate with his wife and then put a pillow under her head, but she was unresponsive.

He then panicked as he thought he'd be blamed for her death.

Andres says he pushed his wife because she had stabbed his knuckles and fingers with a fork.

He had no intention of killing her, he says.

Principal Crown Prosecutor Nigel Rees told the court Andres killed his wife to get rid of her so his mistress, who lived in Thailand, could move in with him.

Andres began a sexual relationship with the Thai woman while she was on holiday in Cairns in August 2011.

In an email penned on the day after Li Ping Cao died Andres wrote to his mistress: "Now I have good news, the other person has finally left".

Andres told police his wife had packed her things and left him, as she had on a number of occasions.

He said she had likely returned to China.

Andres fronted a media conference after Le Ping Cao's death seeking information about his wife's whereabouts.

The jury will decide whether Andres intended to kill his wife or whether it was an accident.

The trial continues.

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Sydney toddler dies after pulled from pool

A TWO-YEAR-OLD boy who was pulled unconscious from a Sydney pool on the weekend has died in hospital.

The toddler was pulled from a backyard pool at Cronulla on Sunday evening and was taken in a critical condition to Sydney Children's Hospital, police say.

On the same day, a three-year-old girl was found face down in a pool at the Sydney Aquatic Centre at Homebush.

She remained in a stable condition on Monday, The Children's Hospital at Westmead said.

NSW Ambulance Inspector Ian Johns urged everybody to take care when swimming, particularly when children are around.

"Toddlers are at risk because they are inquisitive," he said in a statement.

"They can get themselves into trouble and often can't get themselves out."

He's also reminded beachgoers to swim between the flags this summer.

"Teenagers and young adults often overestimate their ability and look for adventure which too can get them into trouble."

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PM stands by election schools promise

PM Tony Abbott has denied the government is breaking its pre-election schools funding promise. Source: AAP

PRIME Minister Tony Abbott insists the government will keep the promise it made on school funding before the election - not the promise some people think it made.

But the Opposition's education spokeswoman Kate Ellis says that's just "clever words".

And she hasn't ruled out backing any industrial action by teachers angry at the coalition reneging on school funding deals struck between the former Labor government and a majority of the states and territories.

Before the September election, the coalition said schools would receive the same amount of funding as under the so-called Gonski model.

"We are going to keep the promise that we made, not the promise that some people thought we made or the promise that some people would like us to make. We are going to keep the promise that we actually made," Mr Abbott told Network Ten on Sunday.

The prime minister refused to repeat the promise word for word, but said schools will get "the same quantum of funding over the four years that they would have under Labor".

The coalition will fund schools as planned for 2014 before introducing a new scheme from 2015, which Education Minister Christopher Pyne is trying to nut out with state and territory counterparts.

Labor says the coalition is making excuses.

"The government is clearly determined to break their word - that's what's happening," Labor senator Penny Wong told ABC TV.

"They aren't the government they said they'd be before the election."

Ms Ellis says there's no way the government can justify its move.

"A promise is a promise," she told Network Ten.

"They were very specific in their words before the election ... a promise they have now walked away from."

Ms Ellis said teachers and parents across Australia had a right to be angry about the government's decision and didn't rule out backing industrial action.

"I would certainly support ... us fighting to make sure these huge and important reforms are not tossed aside," she said.

State and territory leaders will get the chance to eyeball the prime minister about school funding at a Council of Australian Governments (COAG) meeting on December 13.

"It will absolutely be an agenda item," Tasmanian Premier Lara Giddings said on Sunday.

"This Gonski reform is one of the top issues."

South Australian Premier Jay Weatherill, who faces a state election in 2014, said the school funding issue may filter through to be an influencing factor.

"(The government) know that they can't be seen to break a promise so that's why they're pretending that they haven't broken a promise," Mr Weatherill said.

The Australian Education Union accused the prime minister of spinning a line on school funding.

"No school worse off over four years, promised Tony Abbott," Union deputy president Correna Haythorpe said in a statement.

"It's an insult to parents and teachers to hear the prime minister now say that this clear, unambiguous commitment from the Coalition is something 'some people' thought he said, or 'some people' would like him to have said."

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