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(generated from captions) we can't be the envy of the world There is no reason over the coming years. Workbench Budget. to get us back in the black. The basic tools to global problems? But are we still too vulnerable with all the reaction. We're live from Canberra Brown bows out.

I have informed the Queen's private

secretary it is my intention to

tender my resignation to the Queen.

In the event the Queen accepts I

shall advise her to invite

Leader of the Opposition to form a shall advise her to invite the

government. I wish the next Prime

Minister well as he makes the

important decisions for the future. Gordon Brown resigns as British PM for a change of government. and clears the way And biting the hand. when animals attack. Stupidity on show Right across Australia, on Seven. this is a special edition of Sunrise

From the lawn orphParliament House,

Canberra, here is Kochie. to the nation's capital Good morning and welcome on the morning after Budget night. A cold and chilly morning here.

back at Brekky Central I'm guessing things are a lot warmer where Sam Armytage is. Hello, Sam.

It's tote toasty in here, it is

lovely. Enjoy out there. Great, thanks! temperature today Kochie It seems it's all about for Wayne Swan's third Budget. with a lukewarm reception And you have it all covered for us. will join us here. Yep, Kevin Rudd and Joe Hockey We'll also bring you a report card economists and commentators. from the nation's leading

hundreds of pages in the Budget And I'll cut through the and your money. to tell you what it means for you But right now, Nat is back from WA of this Wednesday. and she has the news

Welcome back. Thanks, very much,

Kochie. Good morning, everyone. to Wayne Swan's no-frills Budget. There's been a mixed reaction finances to surplus early. It includes returning the nation's Treasurer's figures don't add up. But the Opposition claims the a $41 billion deficit now, The Budget contains peaking at $93 billion within two years. the bottom line back to black but there's a commitment to drag

Three years ahead of schedule. Hear, hear. advanced economy. And ahead of every major Hear, hear. The Government is banking their claims of the next mining boom but they're imposing a $9 billion a year tax on the industry. They'll never deliver a surplus Budget. They never have, they never will. Mr Hockey has promised

the Opposition will reveal its own surplus timeline but he wouldn't say when. Britain has a new Prime Minister. The Conservatives leader David Cameron will move into 10 Downing Street after Gordon Brown resigned this morning. Sunrise correspondent Adrian Brown has been watching this morning's dramatic events unfold. Good morning, Adrian. It's been a frenetic few hours in London?

It has been an incredible

constitutional moment here in

Britain. A night of really frenetic

activity. An incredible sequence of

events but David Cameron has

events but David Cameron has entered Downing Street for the first time

Downing Street for the first time as Prime Minister. He was able to

cobble a deal with the Lib Dems but

a short time ago, David Cameron

addressed the nation and the world

saying difficult times were ahead.

Our country has a hung parliament

where no party has an overall

majority and we have some deep and

pressing problems, a huge deficit,

deep social problems, and a

political system in need of reform.

For those reasons, I aim to form a

proper and full coalition. Well,

just a short time earlier from the

same spot, Gordon Brown, the out

going Prime Minister also addressed

the nation. And as I leave the second most-important job I could ever hold

I cherish even more the first as a husband and father.

So what happens next? Well, what

happens next is they have got to

form a government. The Lib Dems are

still finalising the deal. It is

going to happen but they are still

finalising it. They have got to work

out the cabinet positions. But to

put it in perspective what happened

in Britain is like Bob Brown

in Britain is like Bob Brown and Tony Abbott going into bed together

and forming a coalition government,

it is that magnanimous. Police investigating the murder of Sydney nurse Michelle Beets have seized items from the house of a possible suspect. They've spent two nights searching an apartment block at Lane Cove West on Sydney's north shore. A resident there is among a number of people questioned since Ms Beets was killed with a knife two weeks ago. But no arrests have been made. There's anger in Perth this morning after it was revealed last night that new chairs in the State's Parliament cost $5,000 each. These are the old chairs in the Upper House. And these are the new leather chairs after the $1.3 million refurbishment. The public of Western

The public of Western Australia should be outraged that $5,000, for

a politician to sit on, um, in

Parliament, on their backsides. The chairs are only in use for about 60 days a year. The US Coastguard has released an underwater video showing the latest efforts to stop the oil leak that's pouring into the Gulf of Mexico. In the video, crews practise cutting a new end to the pipe which they'll plug with old tyres and golf balls. That's if a new containment box fails. More than $795,000 litres of oil has leaked into the ocean since a massive explosion three weeks ago.

Finance news now and just before the

close of the Dow Jones, 29 points weaker.

close of the Dow Jones, 29 points weaker. A mixed night in Europe with

London down and Germany up. In our region:

We were down 49 and 52 on our two major indices. Commodities: .

Of course, it is the morning after

the Budget. Craig James is at CommSec with his reaction to the latest Federal Budget.

What do you reckon? Did the

Government get it right? I think

they got it partially right.

Certainly the Government should be

applauded for the way they curbed

spending but at this point in

spending but at this point in time in the cycle they should be cutting

spending. The Reserve Bank is

increasing interest rates to try to

slow the economy down but the

Government isn't doing anything. It

means interest rates are poised to

go higher over the remainder of this

year and into 2011. We are looking

for the cash rate to get to 6 per

cent by the end of 2011.

cent by the end of 2011. Certainly it is good the Budget is moving in

surplus but as I say it is not because it is anything the

Government is doing. There are a

couple of goodies such as tax

simplication and tax cuts on deposit

but we have to wait and trust the

Government to deliver it. The tax

simplication won't happen for

another two years. You would think

it would happen tomorrow. But

inflation is going to stay under

control, growth figures are there

nicely. They are putting a cap on

the spending and tightening. They

are spending less as a percentage of

a GDP than the previous government

did? At this point in the psychoual

our economy growing very, very

strongly you would have thought they

would have found a few more savings

and cutting into spending. And if

the Government is not doing the hard

yards in terms orphslowing our

economy down, something has to

happen. It is either fiscal policy,

budget settings, or monetary policy

and it will rely on monetary Paul and it will rely on monetary policy

to slow the economy down. Great,

thank you, good to see you. Time for

sport and here is Beretts in Glen

Innes. Good morning from

Innes. Good morning from beautiful Glen Innes and boy, you know you are

alive this morning,

alive this morning, don't you? It is

a bit brisk. Port Adelaide veteran Warren Tredrea has turned to radical surgery in a bid to speed up his return from a potentially career-threatening injury. Tredrea had a synthetic ligament inserted into his injured ankle on Monday night and hopes to return in three months. At the AFL Tribunal overnight, Sydney ruckman Shane Mumford had a rough-conduct charge downgraded but will still miss two games for flinging Geelong's Gary Ablett to the turf. Panthers skipper Petero Civoniceva has decided against returning to Brisbane and will re-sign with Penrith for a further two seasons today. The Broncos have received some positive news with halfback Peter Wallace ready to return from a knee injury for Friday's local derby against the Gold Coast. Fullback Josh Hoffman and backrower Ben Teo are both certain starters. Titans fullback Preston Campbell missed training yesterday due to a knee injury. Tim Cahill is set to remain at Everton for the rest of his Premier League career by signing a new 4-year deal with the club before the World Cup. Cahill was named in the Socceroos provisional 31-man squad yesterday along with injured striker Harry Kewell. 18-year-old prodigy Tommy Oar also made the squad that will be trimmed back to 23 before the Cup starts.

Well, Grant Denyer, I know you like

beautiful places and you would

beautiful places and you would like Glen Innes, it is a gorgeous spot.

We are at St Joseph's School and

plenty of friends have come out to

see us and made their signs. The

good news on Tour de Cure, the

locals tell us she is all down hill

from here, which is great and the

weather looks good. You got to be

happy with all down hill, good to

know the hard work is over. The good

news is the cold front chat is

chasing you a bit, might make cool

nights but won't affect you much.

There are snow on the

There are snow on the ranges turning

to snow on the peaks of the Snowies.

There is showers on the

There is showers on the midnorth New South Wales coast. But it shouldn't

affect you as we take a look at the forecast. Sunrise weather brought to you by Crimsafe security doors and screens. If it's not Crimsafe, it's not crim safe. Fine with early frost in Canberra.

Kochie will be feeling it right now.

Just an eventual top of 13, starting

at Hmmm, 0! Showers easing for Hobart. Late showers in Albany.

Sam the good news is on the fiscally

responsible day as a result of a

very responsible Budget I have

brought out a responsible forecast,

I have halved it, I have halved

Kochie forecast to 0. He is feeling

every bit of it. I love the

contrast, Grant is in a T-shirt,

Kochie and Beretts not so. I win!

You do win today. Later on - Nuala's unfortgettable interview with the Wog Boys. And has 'Australia's Got Talent' found the next Justin Bieber? But after the break, it's back to Kochie in Canberra to see how the newspapers are covering the Budget. (FRENCH SONG PLAYS) When compared to an ordinary deodorant, new Rexona Crystal's best ever formulation gives you our best ever protection against white marks. Sunrise books online at accorhotels.com Enjoy a choice, enjoy your stay. Welcome back to Canberra for a special edition of Sunrise. The nation's newspapers have had their say about last night's Federal Budget. Brisbane's 'Courier-Mail' calls it a repair job aimed at winning back the trust of suburban Australia. The paper highlights the return of the budget to surplus three years ahead of schedule. Melbourne's 'Age' says the Government deserves thanks

for resisting the temptation to use the Budget for pork-barrelling before the election. And Hobart's 'Mercury' paints Wayne Swan as an action-movie figure, 'Iron Ore Man', using the superpowers of the mining super tax. It also says the Budget makes tax returns simpler for millions of Australians. Now to the editorials. The 'Sydney Morning Herald' says good luck, not good management, was the major factor in the Government's ability to deliver a fiscally responsibly Budget. 'The Australian' says the Budget contains a "beautiful set of numbers".

But it questions whether they're the result of the Government's economic management or in spite of it. And the 'Financial Review' says Wayne Swan's Budget is a workman-like effort for unusual times. But it also points out the Budget's boosted by China's runaway growth.

We are off the sheep's back and on

the rickshaw at the moment in turns

of exports to China. Sam, we'll be joined later this Sunrise by Kevin Rudd and Joe Hockey for their thoughts on the Budget.

What do you think? Do you think

What do you think? Do you think the Prime Minister and Wayne Swan have

found a bit of courage here? Look,

as you know, I was incredibly

disappointed ten days ago with the

response to had Henry review on tax

reform, called them a pack of whimps

and got into trouble for it. They

have found courage, yes, they are

riding the commodities boom, yes,

China is certainly funding a lot of

this early return to surplus, but

the fact that they are going to keep

spending growth to just 2 per cent

over the next couple of years until

we get back into a decent surplus I

think is a really responsible thing

to do. I am a little different to

Craig James, I think interest rates

will probably still go up a bit over

the next 12 months but I think the

Budget goes some way to easeing the

pressure on official interest rates

getting into a run away situation. I

think they have done a bit of the

dirty work. I think the Reserve Bank

will be pleased with it. It is also

good news I for your job and your

pay packet, I will tell you about it later. And if you have questions about the Budget and what it means for you and your money, just head to our website and email us. Or you can send an SMS and Kochie will have some answers later in the show. Also ahead this morning - the teenager who astounded the judges on 'Australia's Got Talent'. And when animals attack due to our stupidity. But next, more claims some NAPLAN tests were fudged. And are pokie machines addictive?

We've got the evidence on Sunrise. WOMAN: I've been in the same job for nine years. Never missed a shift. I absolutely love my job. I really love my job. And then came along new owners at the same time as WorkChoices, and they left contracts for us. We were told if we didn't sign it that we'd have our hours cut back, and I returned it unsigned, and I had my hours cut back and then I was sacked. That was WorkChoices. going on at EPIC, Canberra's biggest event venue. from bountiful banquets... WOMAN: Yum. ..to memorable meetings, from fresh farm produce... (ROOSTER CROWS) ..to fresh new technology. visit epic.act.gov.au. MAN: Mmm. Hey, let me tell me about something we really value at Sunrise - it's called Schools First. A national awards program providing $5.2 million to Aussie schools this year. It is an awesome idea by NAB, the Foundation for Young Australians and the Australian Council for Education Research. Basically, the scheme awards schools that are part of an effective partnership or for schools that have an idea for a partnership but need a bit of cash to get started. Jump online and learn more at schoolsfirst.edu.au Let's have a look at some of the stories apart from the Budget, which are attracting your interest on the internet. We had soapbox messages yesterday suggesting some parents were encouraged to keep their kids home from this week's NAPLAN tests. The Melbourne 'Age' confirms that today. It says the father of a struggling Year 7 student was told the boy didn't have to sit the tests. Do you agree with the dad, who says schools are trying to makethemselves look better than they are? NAPLAN tests continue today and tomorrow.

I know your little boy is doing it?

Laughlin started his yesterday and

he seemed to finish quickly. There

are two ways to interpret that. But they are two ways to interpret that. But

they have been practising for ages.

We are flooded with the soapbox

people saying so many kids are being

kept home and didn't have to sit it.

It is a real worry. I always thought

the tests were meant to not be

studied for, they were just to give an indication of how kids were

going, no pressure, but really as a

sounding board to find out what

clauszs, what schools needed help

and kids needed help but it sounds

like it is taken way too seriously

and people see it like going into

and people see it like going into a Grand Final, which is sad for the

kids. We have been having practise

tests and I know a lot of schools

have, for weeks and weeks and weeks.

Each school wants to perform well,

because it is on the web site now.

It is the fallout. The teachers

It is the fallout. The teachers seem to be more stressed about it than the kids. Are poker machines designed to be addictive?

No! Didn't we already know this? Dr Kevin Harrigan from Canada's Waterloo University has used freedom of information documents to prove they are. 'Today Tonight' reporter James Thomas explains how pokies are programmed to make you lose.

Let's say you put a $

Let's say you put a $1 into the

machine and at the end of the spin

you get back 20 cents. The machine

will celebrate the payout with

flashing lights and music, making

you feel like you are winner but the

truth is you actually lost 80 cents.

It is known by some as losses

disguised as wins. If you are not

getting losses disguises as wins you

may get near wins, the jackpot

symbols come down, you think you

will win and at the last second you

miss out. Professor Harrigan and the

documents he accessed said they are

not random events but deliberately

programmed into the machines to make

you feel like you are about to get a

big win and you keep pumping the

money in. They are addictive, I

don't mind putting a few coins in

but knowing you will never win.

Shouldn't you go in saying I want to

spend my $

spend my $5 or the 10. I can't

believe it is news they are

programming them like that, Kochie?

Well, I don't know, I gave up pokies

when they stopped pulling the arm

down. It was so simple, now you got

topress all the but nszens, I can't

quite work it out. -- got to press

all the buttons, I can't work it

out. They are fun, as long as aio only put $ only put $2 in. And have you wondered how travellers get upgraded? A new survery says young Aussies are most likely to whinge about nearby fliers or hotel guests or complain about food or service in the hope of getting an upgrade. Others admit to posing as business travellers to try to get a better deal. Do you have any tips on how to be upgraded?

Nat? You are the expert at this. No

I'm not. You smile, undo a button on

your blouse. That's enough Kochie.

Someone cut him off, get the link

and cut it to Canberra. Anyway, Sam,

what do you think? I am going to try

it next time I fly, the smile and

the unbuttoning. There is no

unbuttoning to be done! Okay, no

unbuttoning on the way to Exmouth,

let me tell you. If you have got

tips, let me know and I will try them next time. On the way - we'll get the PM on record about his Budget promises. Kevin Rudd will join Kochie live in Canberra. And later, Claudia does Demi. The supermodel poses pregnant for 'Vogue'. Plus, a teenager set for bigger things.

# Talking to me

# After all the things we been

through yirex I mean

# All all the things we got into # The performance that amazed the judges on 'Australia's Got Talent'.

# In the night

# I hear them talk

# Coldest story ever told # In the meantime, there's DryNites.

VOICEOVER: John Howard's WorkChoices took away the rights of working Australians. You can't sack me. Really? A minister who backed those laws is today's Liberal leader, Tony Abbott, who now says... Er, the phrase 'WorkChoices' is dead. He chose not to say WorkChoices was dead, just the name. The phrase 'WorkChoices' is dead. Tony Abbott will bring back WorkChoices, he just won't call it that. Good morning. Conservative leader David Cameron is Britain's new Prime Minister. Mr Cameron met the Queen to be formally confirmed as the country's new leader before making his way to what will be his new residence at 10 Downing Street. Nick Clegg and I are both political leaders who want to put aside party differences and work hard for the common good and for the national interest.

Gordon Brown says he's looking forward to spending more time with his family following his resignation. Now to today's other big story and the Prime Minister and Treasurer are this morning starting the hard sell of what they admit is a tough Budget. Wayne Swan says his third Budget is not a vote winner but is responsible, returning the country to a surplus in 2013. The economic cycle doesn't necessarily match the political cycle and what we have to do is what's right for the country and bringing the country back to surplus in three years is a pretty important priority. But the spending will be paid for with controversial taxes on smokers and mining giants. If the resources boom falters, the Government's Budget strategy will collapse. The Opposition will reply on Thursday.

They're already promising a surplus sooner, setting the stage for a very lean election campaign. Police will today question the drivers of two school buses that crashed in the New South Wales Blue Mountains, injuring dozens of students. Paramedics were forced to treat wounded students on the footpath after one bus rear ended the other. We stopped a bit fast at the lights and the other bus behind us didn't see us and went into the back and we ran into another car. 43 teenagers were taken to hospital with several still recovering this morning but most injuries are minor. The search will resume this morning for a fifth angler, presumed drowned, after a Mother's Day tragedy off the New South Wales central coast. The bodies of a woman and three men have already been recovered after the group was reported missing on Sunday. They'd been rock-fishing in treacherous conditions at Catherine Hill Bay, south of Newcastle. In my 20 years of being in this command, I've never seen a rock-fishing tragedy with these numbers. The group had been travelling from Sydney to fish in the area for five years but most didn't know how to swim. A man has been arrested after a house in Sydney's south-west was gutted by fire. Police suspect the blaze was deliberately lit in the bedroom of the Panania house which went up in flames about 11:00 last night. It was feared the man's mother was trapped inside but she was later found safe outside. The 22-year-old man is being questioned. The house was destroyed.

Finance news now and the

Finance news now and the Dow Jones

index has closed weaker.

Finance news now and the Dow Jones index has closed weaker. European

market were mixed, London down 53

with their discussions in politics

trying to form government.

Oil just under $

Oil just under $67 a barrel and the Aussie dollar not that much change

from this time yesterday, still

around the 90 US cent mark and 60

British pence. Our mate,

around the 90 US cent mark and 60 British pence. Our mate, Beretts is

doing a sterling job on the Tour de Cure.

doing a sterling job on the Tour de Cure. This morning he is in Glen

Innes, Beretts, you have got the

sport? Sure do, day 6 of the Tour

and a bit fresh out. Veteran midfielder Ben Cousins has revealed he's keen to play on next season. The Richmond star is confident he can earn an extension to his one-year deal, and says he's forever indebted to the Tigers for giving him a second chance following his 12-month drug suspension. Cousins rejected claims his drug use tainted West Coast's 2006 premiership success. Johnathan Thurston has called on his Queensland Origin team-mate,

Israel Folau, to remain loyal to the NRL. Thurston signed a 3-year contract extension with the Cowboys yesterday and hopes the Brisbane centre will follow his lead. With Mark Gasnier set to re-join the Dragons, Super Rugby side the Melbourne Rebels may increase their already lucrative offer to Folau. Adelaide United head into tonight's do-or-die clash against Jeonbuk Motors confident they can seal a berth

in the quarterfinals of the Asian Champions League. The Reds will be without young forward Matthew Leckie due to suspension. Samantha Stosur's blistering clay court form has continued at the Madrid Open overnight. The eighth seed downed Spaniard Maria Jose Martinez Sanchez

in straight sets. Stosur has now won 13 of her last 14 matches on clay.

Well, we originally set out to do

1,400 kilometres from Sydney, brecky 1,400 kilometres from Sydney, Brekky

Central to Mooloolaba to raise money

for cancer research, to find a cure

for cancer and support those goes

through the disease. We started in

Sydney, been through a Lote Tuqiri

of towns, past halfway, as the --

been through a lot of towns.

Yesterday we headed from Armidale, a

great trek to Glen Innes, beautiful

countryside, along the way, people

put out signs and came to see us and

dropped off cash. Thanks to Harry

and Billy and jack And Tom, who put

out a sign to let me know we had

passed the highest point, from my

leg's point of view, a good news.

Today we are heading from Glen Innes

to Grafton, back to the coastline,

the second longest day of the tour.

But the local tell me, if I am

connect, it is all downhill, which

is fantastic news. It is very happy

for me, because otherwise, Zac, who

is normally very happy boy, I would

have to do this his death stare, is

that terrifying or what? Scared the

pants off me. If you can help or

would like to donate, duck into any

Westpac and throw your money on the

counter, say you want to donate it

to Tour de Cure. Grant, looking for

the weather today. And I will save

Zac from giving you the death stare.

I spoke to someone yesterday who

went past you and described your

performance, your legs were like a

couple of big Mac truck pistons,

pounding away. They feel like fairy

floss. Do they? Awesome job. Enjoy

Celtic country, steeped in Scottish

tradition in that part of the world.

Fantastic and fun weather contrasts

at the moment. The cold front from

Tasmania has made things warm ahead

of it. Sydney, 27 yesterday, the

warmest day in the season since

1996, but it has change today.

Victoria, Tasmania and parts

Victoria, Tasmania and parts of New South Wales cooler. Showers floating

around and may even make it up to

here, in Burleigh Heads where the

temperatures will change over the next couple of days. Sunrise weather brought to you by Crimsafe security doors and screens. If it's not Crimsafe, it's not crim safe. A cold front is bringing fresh winds and a cold change to New South Wales. A high is keeping the interior and Western Australia generally clear.

A trough is triggering storms and rain in southeast Queensland. Fine with some early frost in Canberra. A fine day tomorrow and the rest of the week. It should remain fine over the weekend. Showers easing in Hobart.

I tell you who is living the dream

at the moment, everybody who lives

in Burleigh Heads in Queensland. The

conditions are beautiful, the skies

are blue, it is warm but the

temperatures will reduce over the

next couple of days. Little Jackson

wanted to come down to wave to his

sister before school, who is in bed

sick, get better Lauren! See you in

half an hour. Get better, Lauren. In a moment - what Ned Kelly might have in common with the Budget. Kochie will have live reaction. And later -

never a dull moment for Nuala when she meets the Wog Boys. It wasn't an interview, it was stand-up. But after the break - awesome talent or a Bieber wannabe?

Nobody better than me

# In the night # The boy who brought 'Australia's Got Talent' to a standstill.

# Story every told # Step 2 - bag, mix and roast. Step 3 - assemble the family for dinner. Tasty chicken in 3 easy steps. after eating and drinking. Let's see how they like this. A very foggy view of Brisbane through the jetstar skycam. Dry and 25 today. But colder in Canberra. Kochie's there. Most people are calling this Budget safe and a little boring. Let's go through some of the new announcements made by Wayne Swan. A faster return to surplus, now expected by 2013. A lower-than-expected Budget deficit of just under $41 billion. And the big spend is $7.3 billion on health. Other headline spending includes more than $1 billion on border security

and $652 million on climate change. There'll also be more incentive to save money and simplified tax returns. As well as new electronic health records.

Our expert Budget panel has been up all night examining every aspect of this Federal Budget. So what's their verdict? It's over to our chief political correspondent, Mark Riley, Chris Richardson from Access Economics and Samantha Maiden from 'The Australian'. Chris, let's get the economics out of the way. Did the Government's numbers stack up?

Some criticism, particularly by the

Opposition last night saying the

numbers are rubbery. The forecasts

of big terms orphtrade figures, big

exports, what is going on? I

wouldn't call them rubbery, they are

a bit of a stretch compared to our

forecast. The treasury has growth a

bit stronger, yet inflation stays

down, coal and iron ore prices stay

down. A bit of a stretch. You used

to work at Treasury, you guys put

the numbers together, the Government

doesn't? No they don't, not

impossible in gumpts past to get a

phone call with a suggestion or two,

this government hasn't done that.

Have they done the right thing in

capping spending? I am not sure they

capped it enough. If you add in the

emissions trading scheme, to look

what spending was doing,

rising to $

what spending was doing, steadily rising to $9 billion in the last

year, in a preelection budget, no

surprise but disappointing for

economists. Is it an

election-winning Budget? It depends

how the Government sells it. The

problem for the government is

selling its message. The message is

stable and dependable economic

development. Kevin Rudd convinceed

the electorate it is what he

presents. It is similar to the

character he presented in 2007, the

ads, I the Kevin Rudd I have been a

financial economic conservative all

my life and went through

my life and went through the global financial crisis spending like Paris

Hilton as the opposition said, now

been to rehab and emerged a reborn

fiscal conservative, he has to sell

it. A couple of things people will

like, simple tax return, throw away

the shoe box, a great line, click a

box and get $

box and get $500 automatly, $ box and get $500 automatly, $1,000

next year. Do you think the

electorate has grown up, seeing what

happenedened bewith Greece and we

dodged a bullet with

dodged a bullet with the global financial crisis we are the luckiest

country in the world but we can't

risk it. We are greedy but we are smart enough to

smart enough to know these are

pressing times and there are times

to tighten the budget, all families

know it and the Government has to do

it. Sam, nasties for child care?

Yes, a little nip and tuck to the

child care rebate, it has been taken

down a couple of hundred. It is down to $

to $7 500. But the

to $7 500. But the real sleeper is

they will freeze indexation for four

years. The value of that will come

down as childcare costs rise. The

government argues it will affect the

highest income earners but more and

more people could fall into it as

time goes on. There is a cut good

for families and that is the cut to

the Pharmaceutical Benefits Scheme

but it will result in cheaper

medicines for some popular

cholesterol and other drugs. They

are spending more on border security than climate

than climate change in this budget.

Is it a surprise? Not really, they

got a good hit to the budget bottom

line by taking the emissions trading

scheme out, an extra $

scheme out, an extra $3 billion but

not much for climate in the budget,

for renewables but nothing to say

about that. Final word, fail, pass,

credit or distinct. Pass, not really

a credit. A pass. I will give them a

credit. Well, done, Riles. It is an

election year, they haven't spent

like drunken sailors to get

re-elected, credit. Thank you, thank

you for showing me up as being an

absolute whimp in Canberra todayads

you don't have big coats and stuff

like that. Great! Good to see you,

thank you. The PM joins us live

after seven o'clock. If you have questions about the Budget and what it means for you, just head to our website and email us. Or you can send an SMS and we'll try to answer it later in the show. The first semifinal of 'Australia's Got Talent' was on last night and after wowing the judges at his audition a few weeks ago, 15-year-old Bobby Andonov continued to shine. Here's the wonder kid singing the Kanye West's hit 'Heartless'.

# In the night

# I hear them tong

# Coldest story ever told

# Far along this road

# Lost the soul to a woman # Could

you be so heartless swrirex

# Couldia be so

# Could you go so cold

# As a winter wind when it breezes

# Just remember you are talking to

me

# Just remember you are talking to

me # I mean

# After all the things we been through

# I mean after all the things we got into

# Some things you ain't told me

# I did some things

# In the night

# I hear them talk #

# Story ever told # We are far

beyond this road lies the soul to a woman

# You want to tell your friends you

are leaving me

# You wait a couple of months

# And then you going to see

# Never nobody better than me # In

the night here them talk

# The story ever told

# Somewhere far along this road lies

the sole of a woman so dark baby

let's just not get on

# They don't know what we been through

# They don't know about me and you

# Oh

# Could you be so heartless?

# Oh

# How could you be so heartless #

CHEERING AND APPLAUSE Thank you. Thanks. That feel

That feel good? It was awesome. Kick

off. I hate you (exhales)

off. I hate you (exhales). You got

to ruin people like me. I try and

sing songs for a living and you come

along and make a show of everything

amale singer in this country. You

are a superstar. are a superstar. CHEERING AND APPLAUSE

He has got a great voice, hasn't he.

Just 15, let us know what you think. Coming up - will the Prime Minister rule out big election promises after the Budget?

We'll get him on the record when he joins Kochie live. Speaking of PMs, Britain has a new one this morning with David Cameron becoming the youngest leader there in 200 years. We're live to London shortly. And before he was famous -

the Aussie star uncovered in a music video years before he became a Hollywood star. Call 13youi or go to youi.com.au. Shh! (SNARLS) Visit your local Woolworths for specials on Colgate oral care products. Bacteria down for the count! Colgate 360 Actiflex.

Weet-Bix is giving you the chance to get up close and personal with the Socceroos before the boys head off to South Africa to play the world's best. You and a friend could win airfares, accommodation, VIP tickets to the Socceroos farewell in Melbourne and a double pass to the friendly match against the All Whites. To enter, head to the Sunrise website and tell us in 25 words or less who your favourite Socceroo player is and why. The Sunrise Showbiz Report brought to you by 'New Idea'. For all the latest celebrity news and more.

Showbiz editor Nelson Aspen is in Hollywood. And Claudia Schiffer has showed off her baby bump for a magazine cover.

What is the reaction? It is one heck

of a bump! She is due later this

month. We can breathe a sigh of

relief, Claudia has proven 40 is the

new 20. For German 'Vogue' magazine

she got together with Karl

Lagerfeld, looking smashing. Her

third child, believe it or not. third child, believe it or Not

re-creating the famous Demi Moore

cover, 1990 1, people like Britney

Spears have been trying to replicate

it. We saw Kylie looking fabulous at

41 and here is Claudia, sporty 40. Moving on, and there's been some controversy surrounding Julie Andrews's return to the stage?

I think I hope Kochie is off getting

a hot cocoa and not listening to

this. Dame Julie was doing a show in

the 0 2 Arena,

the 0 2 Arena, 'An Evening with Julie Andrews', an evening of

conversations. She had throat surgery years ago and has been

working and hoping to salvage some

of her singing ability puble. In the

show she performs 3 numbers with a

backup, she has a limited range. The

nerve of some people, about 50

people asked for refund, saying they

were disappointed they weren't

getting a concert of out of her.

They should be grateful the icon is

on stage, sharing herself and her

stories. Maybe if Kochie can get out

of Canberra, he should go over and

enjoy the show. He would love it. He

would. Thank you,

would. Thank you, talk to you soon. Now, still to come on Sunrise this morning.

There is no reason we can't be the envy of the world over the coming years. Workbench Budget. The basic tools to get us back in the black. But are we still too vulnerable to global problems? We're live from Canberra with all the reaction. Yes, new Prime Minister.

Her Majesty the Queen has asked me

to form a new Government and I have

accepted. I aim to form a proper and

full coalition between the

Conservatives and the Liberal Democrats. David Cameron becomes Britain's next PM. We're live to London. And biting the hand. Stupidity on show when animals attack. Right across Australia, this is a special edition of Sunrise on Seven. From the lawn of Parliament House, Canberra, here's Kochie.

It is a gorgeous sparkling day here

in Canberra, a little chilly bit I

have all the hot news from last

night' Federal Budget, warm, dry,

nice, currently 23 degrees

apparently is going to be the top

here, a long way to go. A warmer

morning at Brekky Central with Sam

Armytage. It sure is. The PM will join Armytage. It sure is. The PM will

join you shortly to talk Budget

stuff but here is the news first. Good morning. There's been a mixed reaction to Wayne Swan's third Budget.

In a bid to focus the looming election squarely on health, $2.2 billion will go towards after-hours GP services and more nurses. But working parents may be disappointed,

with the childcare rebate capped. And environmentalists say a $652 million energy future fund doesn't make up for the Government's dumped emissions trading system. This is the meanest Budget for the environment I've seen for years. This is a solid Labor Budget that consolidates jobs, shores up living standards. In a year where there's very little in the Budget

for many other areas of the economy, health has done particularly well. Despite a forecast return to surplus, some economists say the Government is still spending too much and risking the mining boom with its tax on super profits. Conservative leader David Cameron has been named as Britain's new Prime Minister after Gordon Brown handed in his resignation this morning. Sunrise correspondent Adrian Brown joins me with the latest. Good morning, Adrian. Explain just how big an event this is in British politics?

It has been a great constitutional

moment. It has been an evening of

extraordinary frenetic activity.

After the wrangling and the twists

and the turns of the previous days,

Britain finally has a Prime

Minister. David Cameron, just 43,

almost 10 years younger than Kevin

Rudd is the leader of the country.

He arrived at Downing Street a short

time ago with his wife beside him.

He address the nation, he said

Britain had great days ahead but had

difficult ones allude faog the fact

Britain has a deficit of --

alludeing to the fact it has a

deficit of AUD $

deficit of AUD $270 billion. Our

country has a hung parliament and

deep problems, a huge deficit, huge

social problems and a political

system in need of reform. I aim to

form a full and proper coalition.

Just a few hours earlier, Gordon

Brown, the out going Prime Minister

who stood in the same spot with his

wife and two young children beside

him. In a moving and very dignified

address he had he wanted to contrait

on the most important job of all,

being a husband and father. And as I leave, the second most important job I could ever hold I cherish even more the first as a husband and father.

So how long before David Cameron

formathize new coalition,

formathize new coalition,? The new

government? Well the

government? Well the Liberal

Democrats are yet to sign off. Their

next job of course is to appoint the

cabinet. But the priority of the new

government when they sit down to

work tomorrow morning will be to

tackle Britain's huge deficit

problem. Nat. Thank you, Adrian. A 22-year-old man has been arrested after a house in Sydney's south-west was gutted by fire. Police suspect the blaze was deliberately lit

in the bedroom of the Panania house, which went up in flames about 11:00 last night. It was initially feared the man's mother was trapped inside but she was later found safe. High speed is being blamed for a crash in Melbourne's north-west that's left a man dead and a woman seriously injured. Their high-powered sports car skidded off the road at Burnside

and into a park, rolling several times.

There's ample evidence of a very

high' sheed involved. And at this

stage, the female is in hospital, in

a serious but stable condition. Four people have been killed on Victorian roads in the past 24 hours. And Dame Helen Mirren has come face to face with her double. at London's Madam Tussauds. The actress says her husband is pretty pleased with the wax figure.

My husband wants to marry her,

actually. You know, she is not so

argumentative as I am. The wax model took four months to complete and cost more than $250,000.

Finance news and the Dow Jones has

closed 37 points weaker.

Finance news and the Dow Jones has closed 37 points weaker. London, the

FF fell 53. The German market made

ground though. To our region yesterday: yesterday:.

They would be waiting for some direction from Wall Street,

remember, they kicked off the

resurgence in financial markets on

Monday. To the commodities:

Time for sport and here is Beretts in Glen Innes. Time for sport and here is Beretts in Glen Innes.

Time for sport and here is Beretts in Glen Innes. . Kochie, the

wonderful people of Glen Innes say

hello this morning, talk to them more but first: Port Adelaide veteran Warren Tredrea has turned to radical surgery in a bid to speed up his return from a potentially career-threatening injury. Tredrea had a synthetic ligament inserted into his injured ankle on Monday night and hopes to return in three months. At the AFL Tribunal overnight, Sydney ruckman Shane Mumford had a rough-conduct charge downgraded but will still miss two games for flinging Geelong's Gary Ablett to the turf.

Australia only has to avoid a heavy defeat against the Windies in St Lucia this morning

to progress to the semifinals of the World Twenty20. Chris Gayle has won the toss and elected to bat with the Windies needing to win by at least 23 runs Sri Lanka is sweating on the result of the match after moving to the brink of the final four with a thrilling last-ball win over India. Panthers skipper Petero Civoniceva has decided against returning to Brisbane and will re-sign with Penrith for a further two seasons today. The Broncos have received some positive news with halfback Peter Wallace ready to return from a knee injury for Friday's local derby against the Gold Coast. Fullback Josh Hoffman and backrower Ben Teo are both certain starters. Titans fullback Preston Campbell missed training yesterday due to a knee injury. Tim Cahill is set to remain at Everton for the rest of his Premier League career by signing a new 4-year deal with the club before the World Cup. Cahill was named in the Socceroos provisional 31-man squad yesterday along with injured striker Harry Kewell. 18-year-old prodigy Tommy Oar also made the squad that will be trimmed to 23 before the Cup starts.

Well, what a great turnout in Glen

Innes this morning. The kids here

from St Joseph's School, good

morning, everyone. Because we are at

had halfway stage, all the riders

want to say hello to their families

and let you know we have made it

half way, we are on the down hill

run heading to Grafton today. Grant,

thank you for the weather, you have

done a great job and loved Boby last

night. Wasn't he sensational. We

might have earmarked a talent or

two. A young talented singer, a

young and cool guy, he picked the

right song. He told me off stage he

picked it for the "

picked it for the "ladies." And it

might have worked for the process.

He is a talent. It is a shame

He is a talent. It is a shame to see

watermelon man stumble at the last

hurdle and unable to break the

watermelon on his head but Bob

great. And jack in the box, great

too, Grant. Sunrise weather brought to you by Crimsafe security doors and screens. If it's not Crimsafe, it's not crim safe.

I think we know how to fix the

Budget deficit, whack Wayne Swan on

a bike ride with Beretts, he is so

good at collecting money, boom!

There is your Budget right there.

Beretts and Wayne Swan around

Australia plugging a big hole. Yes,

they are done a wonderful job and

great generosity from

great generosity from everybody on the route to kick in. Great to see

you in a T-shirt here in chilly old

Canberra. Before we talk to

Canberra. Before we talk to the Prime Minister, let's take a look

what the Budget means to you. I

think sometimes we forget the

Federal Budget is a blue print into

your life for the next 12 months,

what you can expect and your

household can expect. I have done a

few graphics.

household can expect. I have done a few graphics. Your bills will stay

reasonably under control because

because the consumer price index

will go up 2.

will go up 2.5 per cent. Your job is

safe. Unemployment will drop to

safe. Unemployment will drop to 5 per cent. You are likely to get a

pay rise. The Budget is factoring in 3.

3.5 per cent to 4 per cent pay

increases. The Budget should keep

the Reserve Bank reasonably happy.

It is not a guarantee the interest

rates won't go up but there was a

danger they could go up in an

out-of-control way. In terms of what

you will get, bits orphhandout. Of

course, the last of the tax cuts

started back in 2007, they come

through on 1 July. You are going to

get a tax break on savings, the first $

first $1,000 in interest you earn

from savings accounts or term

deposits or whatever will be taxed

at half your marginal rate. The $

at half your marginal rate. The $500

automatic tax deduction on your tax

if you want to do that so you won't

have to bodgy up your receipts and

do creative accountingch. There is

going to be more support for

low-income earners. If

low-income earners. If you are

oolow-income earner you won't pay

tax until you earn above $

tax until you earn above $16,000.

Belt tightening, there is a bit of

that. There will be a crack down on

disability pensions. Samantha

explained the childcare rebate which

is capped and the indexation come

off. The cocontributions to

superannuation is going to go up from $ from $1.

from $1.50, against your dollar, now

it will be kept at dollar for

dollar. And it isn't much of a

preelection war chest which we will

talk about in a minute. It is a

rough outline of how your life will bueffected by the Budget. rough outline of how your life will bueffected by the Budget. rough outline of how your life will bueffected by the Budget. . Today, the Rudd Government begins the Budget big sell. The Prime Minister joins me now. Good morning, Mr Rudd.

A lot of people are saying the

Budget is based on us continuing to

ride the rickshaw, China is our

saviour with the huge xhaoudties

boom. Some saying they are too

rubbery and too optimistic. What is

your view? I think it is a

responsible budget based on

responsible economic management, it

is something I believe in

fundamentaly. You have got to be

careful about the assumptions they

are based on. Part of it lies on our

continued export performance. But

let's be very blunt about this. It

all-depends on the fact we have

generated positive economic growth

in this country, kept a quarter of

million or more peep in work, they

paid taxes not unemployment

receipts. We kept businesses

operating, they are paying taxs and

we brought about savings in terms of

expenditure items. Bring those three

things together they make for a

responsible budget that halves our

peak debt rb brings the Budget back

to black three years early and in

three years time. It is based on the

best terms of trade in 60 years. We

are riding the rickshaw. Are you

confident in the figures and

confident China is not just a house

of cards? The boom can keep going?

We got a lot riding on it? The

treasury boffins analyse these

things very carefully. You don't put

the numbers together? The treasury

boffins to. They have analysed

carefully China's economic growth

potential, where commodities prices,

talking about Japan and Korea they

take huge exports and also India.

Where they are pitching commodity

prices for the future, it is quite

low against what the market analysts

are saying. We believe it is

conservative, responsible economic

management. Mining the golden goose,

will your supertax kill the goose?

Why tax them am The bottom line is

this. If you look at our long-term

reform for the economy, what I

believe in is making sure all

companies remain as competitive as

possible. It is why we are bringing

down the company tax rate. You got

to pay for it. But the big miners

are saying we are going to krap

projects and take business offshore.

One of the former heads of the

mining council said you will hear

lots of people crying wolf, it is

standard negotiate. But can I say

this, our independent treasury

modelling on the mining industry

said it will grow by something like 5. said it will grow by something like

5.5 per cent because we are taxing

profits, not volume. Which means the

smaller companies are out thereing

taxed on the profit they earn. Some

can't get a start because they get a

tax on early volumes. Wayne Swan has

capped spending increases at toper

cent, can you guarantee today,

today, that you are going to keep to

that 2 per cent cap, even during the

election campaign remember we have

got it on tape. Absolutely. Whatever

you say now we are going to play

back to you. No more

porbl-barreling? Absolutely. The

reason is we said coming otout of

the extraordinary measures we had to

take last year to keep the economy

afloat, all the amer major

afloat, all the amer major economies crashed into recession. We took

extraordinary measures and kept a

quarter of a million Australians in

work. We did big things then but to

track our way back to surplus we had

to impose core budget rules and

to impose core budget rules and one is to off set all new expenditure

and the second is to keep

expenditures within a growth of

expenditures within a growth of 2 per cent and we will stick to that

for the future. Spending more on

border protection than the

environment? Seems a bit funny and a

bit crazy. In the case of border

protection, there are basic things

like the replacement of Customs

vessels. These are lumpy items, but

you have got to deep with thel and

make sure the people on the front

line have the resources they need.

But climate change, this is a big

investment, $

investment, $650 million into a

renewable energy scheme. It is Tony

Abbott's scheme? We building on a

initiative of $

initiative of $4.

initiative of $4.5 billion on top of

that, it is solar and wind and the

rest to make a difference on the

renewable energy front because

climate change ain't going away.

Just quickly, a new Prime

in the United Kingdom, David Cameron, met him? A good bloke? I

have met him a couple of times on

preefrbious visits to the United

Kingdom. We have had good

conversations at Australia House and

elsewhere. The Australia/

elsewhere. The Australia/United

Kingdom relationship goes beyond

party politics. I am speaking to him

not long after I get off this

program. I congratulate him on

becoming Prime Minister of

becoming Prime Minister of the United Kingdom, it is a high office

and I would like to acknowledge the role of Gordon Brown. A critical

role last year, the London G-20

comsummit so critical in coming outf

out of the GFC. Back to you. Rightly or wrongly, animals have been used for our entertainment for centuries. But on Sunday, at least one animal got his own back. In the US, an alligator handler was attacked during a show in Florida. Known as the 'Swamp Master' Jeffrey Quattrocchi was prodding the 2.5 metre 'gator in front of a big crowd when the reptile decided enough was enough and latched onto the handler's right arm. After surgery, and with an armful of stitches the Swamp Master is expected to be back on the job in just a few days. So should people take more responsibility for their own safety around animals? And do these thrill-seekers deserve what they get? Tim Faulkner from the Australian Reptile Park on the New South Wales Central Coast

deals with alligators every other day. Good morning.

Don't take your eyes off that one. No! Tim, to me it looked like the alligator was being tormented by the handler. Can we blame it for biting back?

No, I mean you can see these guys

here, alligators are the puppy dogs

of the crocodilians. They are very

placid, timid and shy. The only

reason they get that way is because

they are tormented. How do you

handle yours? There were some methods that were appropriate

methods that were appropriate that he had. For example, he looked like

he knew what he was doing to some

degree, he just didn't give the

animal too much respect.

degree, he just didn't give the animal too much respect. These guys

the easiest way to get them up is

with a bit of food. Tim! Come on big

boy. You go? Very, very, come on. Up

you come. They are very cold at the

moment. Come on. Come on. Up you

come. Oh! Up you come. But as you

see, an easy way to get an

alligator. It is how we like to make

them perform, to perform some

natural behaviours. If we needed to

catch an alligator for treatment or

inspection, we just entice them up

with a bit of food. Then we would

jump on the back. It is the best way

to restrain an alligator. It is some

credit there, that is the best way

to actually jump on and pin the

'gator down. But the poker and as

cranky as the 'gator was, it takes a

build up to get to that point.

build up to get to that point. Do you think we as a society have lost

our respect it dangerous animalsb? I

am talking about snakes and other

animals here. I see good people who

I xh to the park and have a lot of

healthy respect for animals. There

is always the minority. As people,

as the population grows

is always the minority. As people, as the population grows we are going

to spread into animal environments

as the population grows we are going to spread into animal environments

and inencounters will become more

prolific. We just need to keep

educating people and maintain the

respect? Tim, good to talk to you,

keep an eye out behind you. Thank you, see you. Coming up - is the Budget surplus made in China? Then, an Aussie hunk uncovered, years before he became famous. So just who is the Hollywood star in this video from the vault? And soon, Nuala tries to chat with the 'Wog Boys'.

They are going to be able to get 30

seconds, the bit whether I say Helio

and the bit you say goodbye. Did they stop heckling her long enough to talk about their new movie?

You'll see the result later this hour. Look to your stomach because not all Paracetamol pain relievers are the same. with Optizorb formulation are a smart choice. to be effective on pain and still gentle on stomachs. New Panadol Caplets with Optizorb formulation. A smart choice. to help every Australian driver afford the keys to a brand-new car with the Holden Owner's Grant. So we're running out the Commodore International with SIDI Direct Injection and a six-speed auto as well as 18-inch alloys, bluetooth and leather-appointed seats from just $34,990 driveaway, thanks to the Grant. See your Holden dealer during the Commodore runout and make it happen with the Holden Owner's Grant. Go better. Why is it I pay good money for health insurance but I still have to pay for my glasses? Doesn't seem right to me. That's why at Specsavers, if you've got private health insurance with any of these companies, you can choose two pairs of glasses with single vision lenses from our $179 range and we'll take care of your claim on the spot. That's two pairs of glasses and your health fund will cover the cost without you paying an extra cent. Want two pairs, no gap? Should've gone to Specsavers. ('SOMETIMES' BY MIAMI HORROR PLAYS) Put the call out. $30 now gets you unlimited SMS to any five friends on any network. Plus, choose the 3G Optus U1200 for a low $49. Save $50. Or this Nokia 2730 with 2-megapixel camera for just $99. So now you and your crew can choose to live life without limits. Only at your local Optus 'yes' shop. Hey, let me tell me about something we really value at Sunrise - it's called Schools First. A national awards program providing $5.2 million to Aussie schoo