Morning Headlines

Rocky outcrops put WA in line for $1.5b

The Western Australian government is set to cash in on an estimated $1.5 billion in royalties should the Woodside-led Browse project go ahead, after the discovery of tiny rocky outcrops gave the state majority ownership over the lucrative Torosa gas field, at the expense of the Commonwealth. The Fin

Deeper woes at spin-off South32

The first detailed look under the hood of BHP Billiton spin-off South32 has revealed the deep challenges within some of its business units, with strikes, power shortages and a nasty $US1.9 billion ($2.6bn) writedown all marring the group’s maiden quarterly report. The Aus

RBA cuts economy’s speed limit

Reserve Bank of Australia governor Glenn Stevens has warned Australia’s growth potential may have fallen, increasing the need for a productivity boost to avoid a sustained slide in living standards. The Fin

Review blasts Serco contract

An independent review of Fiona Stanley Hospital has confirmed a number of issues with patient care and clinical services, revealing failures to prioritise urgent surgery and cope with excessive emergency department demand. The West

Bunge digs deep to double up in Bunbury

Global grain trader Bunge has marked the first anniversary of the maiden shipment from its Bunbury port terminal by starting site work on a major receival site near Arthur River. The West

Leader backs boat returns, queries FTA

Opposition leader Bill Shorten has decided to take on the Left of his party and support turning back asylum seeker boats if Labor wins the next federal election. The Fin

Power prices ‘certain to rise’ under increased RET

The $120 billion energy sector has declared there are “no ifs, no buts” that increasing renewables to 50 per cent of electricity supplies will increase power prices. The Aus

Sale delays port tender

The bidders for Fremantle’s container terminals have been left in limbo amid speculation the tender process has been scrapped until port development plans become clearer. The West

The Australian Financial Review

Page 1: Reserve Bank of Australia governor Glenn Stevens has warned Australia’s growth potential may have fallen, increasing the need for a productivity boost to avoid a sustained slide in living standards.

A push by state leaders to increase the Medicare levy has been shot down by the federal government while the NSW proposal to increase the GST without any associated tax reform was also given short shrift.

Page 3: Treasurer Joe Hockey will have to pay 85 per cent of his own legal costs in a defamation case against newspaper publisher Fairfax Media that has left him with a shortfall of around $300,000 to cover his lawyers’ fees.

Page 4: The Western Australian government is set to cash in on an estimated $1.5 billion in royalties should the Woodside-led Browse project go ahead, after the discovery of tiny rocky outcrops gave the state majority ownership over the lucrative Torosa gas field, at the expense of the Commonwealth.

Page 5: Opposition leader Bill Shorten has decided to take on the Left of his party and support turning back asylum seeker boats if Labor wins the next federal election.

Page 9: A plan to increase the Medicare levy instead of the GST would push the top tax rate to more than 50¢ in the dollar for the first time in decades – a move tax experts say is ‘‘economically unwise’’.

Page 10: Western Australia needs to shed its ‘‘dusty mining town’’ image in China to ensure it continues to attract investment in the next wave of growth or risk losing out to other states.

Page 17: BHP Billiton will cut back production this year in all of its ‘‘pillar’’ commodities except iron ore, adding to the pressure falling prices have placed on its progressive dividend and growth commitments.

CIMIC’s attempts to dismiss claims by a former employee who raised questions over cost blowouts on the construction group Gorgon’s jetty project and the accuracy of its financial reporting have been rejected by the Federal Court.

Page 19: Almost a year after outlaying $2.1 billion for David Jones, South African retailer Woolworths is preparing to sell two of its landmark central business district stores to fund hundreds of millions of dollars of investment in IT systems, stores and new food venues – reversing years of underinvestment at Australia’s oldest department store.

Page 23: Newly listed miner South32 is better placed than most in the sector to grow shareholder returns over the next few years using its free cash flow and the strong balance sheet BHP Billiton gifted it, analysts say.

The Australian

Page 1: Labor has failed to detail the cost to consumers and electricity generators of its ambition to rapidly accelerate Australia’s renewable energy use to 50 per cent in just 15 years, condemning Bill Shorten to a re-run of the electorally fatal carbon tax campaign.

Page 2: The Abbott government is embracing “compassionate conservatism” in a bid to use private investment to address housing shortages and unemployment.

Page 3: Betting giant Tabcorp has been hit with legal action by the financial intelligence agency for alleged noncompliance with rules designed to stop money laundering and terrorism financing.

Page 4: The government’s national curriculum reviewers have criticised plans for online exams in schools.

Page 6: The $120 billion energy sector has declared there are “no ifs, no buts” that increasing renewables to 50 per cent of electricity supplies will increase power prices.

Page 19: Australia’s sovereign wealth fund has dramatically ramped up its allocation to cash in the past quarter, as it struggles to find value in pricey asset markets.

The first detailed look under the hood of BHP Billiton spin-off South32 has revealed the deep challenges within some of its business units, with strikes, power shortages and a nasty $US1.9 billion ($2.6bn) writedown all marring the group’s maiden quarterly report.

Page 21: Boral has flagged significantly higher earnings for the financial year to the end of June, expecting a net profit of between $240 million and $250m, compared with previous analyst expectations of about $208m.

As the temperature plummets along the east coast, Coca-Cola Amatil chief executive Alison Watkins might be the only one sweating, with soft drink sales typically drying up as the weather turns frosty.

Page 22: Reserve Bank governor Glenn Stevens has given his blessing for the major banks to pass on the cost of stricter regulation to homeowners, saying it would not be “surprising or controversial” if borrowing rates were to rise.

Page 23: Three months after providing some support for the iron ore market by flagging slower expansion, BHP Billiton has dashed the hopes of anyone thinking it was pulling back from an oversupplied market, exceeding full-year guidance and flagging more iron ore production this year than many analysts had been expecting.

The West Australian

Page 1: Perth emergency departments are being swamped by unusually high numbers of seriously mentally ill patients waiting up to three days for a psychiatric hospital bed.

Casuarina Prison inmates are to be locked down for longer and forgo rehabilitation programs under new staff roster procedures the Government admits could trigger a riot if mismanaged.

Page 4: A Federal by-election caused by the sudden death of veteran WA Liberal MP Don Randall is seen by both major parties as a career-defining moment for their leaders.

Page 7: An independent review of Fiona Stanley Hospital has confirmed a number of issues with patient care and clinical services, revealing failures to prioritise urgent surgery and cope with excessive emergency department demand.

Page 12: The WA Labor Party looks set to push back at a new demand to give average members a greater say in choosing senators, raising fears left-wing unions will continue to dictate who represents the State in the Upper House.

Business: The Department of Mines and Petroleum’s geological treasure trove is set for a $7.3 million expansion after the State and Federal governments yesterday chipped in another $2.5 million.

The bidders for Fremantle’s container terminals have been left in limbo amid speculation the tender process has been scrapped until port development plans become clearer.

The group building a $140 million gas pipeline in the Goldfields says the network will have capacity to support more development along the route.

First Quantum Minerals says the atmospheric leach circuit at its Ravensthorpe nickel operation is being re-commissioned after a shutdown because of a tank failure last December.

Global grain trader Bunge has marked the first anniversary of the maiden shipment from its Bunbury port terminal by starting site work on a major receival site near Arthur River.

Investors who applied for payment in TPG Telecom shares under the $1.6 billion takeover of iiNet will be scaled back after demand exceeded the scheme’s limit.

WA is a step closer to opening up a major new market for sheep meat in China after the signing of a memorandum of understanding in the city of Harbin.