Morning Headlines

PwC fallout threatens big four partner model

The big four accounting firms could be forced to slash partner numbers and incorporate their consulting businesses under a crackdown on governance standards flagged as a possible response to the PwC tax leaks scandal. The Fin

Big spending to widen deficits

Treasurer Jim Chalmers is planning bigger budget deficits over the next four years than forecast six months ago, as a $25 billion tax windfall fails to cover a large jump in Albanese government spending. The Fin

Lowe warns cash rate could rise again

Former Reserve Bank governor Philip Lowe has joined former governor Glenn Stevens in warning the fight against inflation ‘‘isn’t done’’ and any upside surprises would ‘‘mean the case for increasing interest rates would mount’’. The Fin

RBA rate rise odds underplayed

Governor Michele Bullock will need to defy the trends of history if the RBA holds the cash rate steady at 4.35 per cent, as most money market traders and economists expect. The Fin

From black to a deeper sea of red

Forecast deficits will deepen over the next four years as Jim Chalmers is forced to lift spending and funnel investment into new drivers of economic growth under the government’s Future Made in Australia agenda, amid growing calls for the budget to avoid “poking the inflationary bear”. The Aus

Reynolds takes on Higgins trust

Linda Reynolds is preparing a new legal action to set aside a trust established by Brittany Higgins that the former Liberal minister asserts may have been set up by Ms Higgins to protect the money she received in a $2.4m commonwealth compensation payout. The Aus

Schoolboy to ‘path of Jihad’

The 16-year-old shot dead by police after charging at them with a knife and stabbing a stranger sent a final message warning he was “going on the path of jihad tonight”. The West

The Australian Financial Review

Page 4: Three million graduates will have their student loans reduced by an average of $1200 in next week’s budget, but not have any extra money in their pockets.

Page 6: The Albanese government has kept open the possibility of extending the two-year freeze on deeming rates or phasing in a higher rate for 857,000 welfare recipients amid calls for more cost-of-living relief.

Page 7: Western Australia’s Treasurer has signalled the government will increase its long-term iron ore price assumptions in this week’s budget, but warned Canberra against ‘‘strangling’’ the mining state with GST and environmental reforms that would derail its national economic contribution.

Page 9: ATO assistant commissioner Rob Thomson said special scrutiny would be applied to rental property deductions, dodgy work expense claims and undeclared income when officials process the roughly 20 million tax returns expected to be lodged after July 1.

Page 15: One of Australia’s big industry superannuation funds has endorsed BHP chief executive Mike Henry’s vision of a global copper giant, as BHP evaluates reviving the $60 billion Anglo American deal.

Page 18: Shareholders in navy shipbuilder Austal say they want the board to at least grant due diligence to South Korea’s Hanwha Group to better Austal’s chances of extracting an improved takeover bid.

Page 21: Reserve Bank governor Michele Bullock faces the prospect of upgrading the RBA’s inflation forecasts as market economists clamour for evidence from tomorrow’s policy statement that Australia’s cash rate could rise in 2024 in a retooled fight against inflation.

Page 28: Ten’s corporate filings reveal Network Ten has already paid millions of dollars to cover its legal bills in its defamation battle against former Liberal staffer Bruce Lehrmann while revenue and profits have been falling.

Page 29: The Labor government’s flagship plan to develop 40,000 social and affordable homes over the next five years is at risk because many builders needed to do the work – particularly in regional areas – do not have the workplace health and safety certification required for Commonwealth tenders.

Page 31: Unit values in six out of 10 suburbs across the capital cities rose faster than houses over the past three months – by as much as 11 times faster – driven by strong demand from investors seeking higher rental yields and home buyers looking for affordable options, data from CoreLogic shows.

Page 31: Wall Street analysts see a double-digit upside potential for the S&P 500’s biggest losers this year: real estate stocks.

The Australian

Page 4: A $23.4m federal government initiative to bolster small business’ cyber security is on track to meet 21 per cent of its training target.

Page 5: Low Emission Technology Australia says if Glencore’s contentious carbon capture and storage project in the Great Artesian Basin does not go ahead, Australia will “effectively be closing the door on CCS technology” and the future of critical industries in this country.

Page 13: A lawsuit filed in the US has described the Miami-based owners of grounded airline Bonza as a “house of cards on the brink of collapse” and accused the firm of a multimillion-dollar fraud.

Page 13: AGL Energy is running the ruler over OVO Energy’s technology platform, sources have told The Australian, as the near 200-year-old company attempts to sharpen competition with the likes of Origin Energy in the energy software space.

Page 14: Macquarie analysts believe the Peter Botten-chaired Karoon Energy will probably put forward a payout ratio of about 30 per cent of its net profit in response to shareholder activism, which could support a rerating of the stock.

Page 15: Work-related tax deductions and rental property claims will top the Australian Taxation Office’s hit list this tax time.

Page 16: Australian shares should kick off the week in positive territory with investors focused on interest rates, bank earnings and a potential bidding war for BHP target Anglo American.

Page 19: Assistant Treasurer Stephen Jones has levelled a blistering accusation against trillion-dollar company Meta, accusing Mark Zuckerberg-owned tech behemoth of being more sympathetic to the criminal world than a free press.

Page 19: Channel 7’s trouble-plagued investigative program Spotlight will be the key focus for the media company’s newly-appointed news boss Anthony De Ceglie as the network undergoes its biggest shake-up in years.

The West Australian

Page 14: Deputy Premier Rita Saffioti was joined by Landsdale candidate Daniel Pastorelli — the current chief of staff to Premier Roger Cook — as the headline attractions for an election fundraiser charging $5500 per head.

Page 22: A big rise in complaints about superannuation death benefit delays has prompted an investigation by the financial services watchdog.

Page 22: The Federal Government is expected to paint a gloomy picture for revenue growth in next Tuesday’s Budget as its tax haul is threatened by domestic and global downturns.