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Tonight - low income

families, the winners from a

Budget tax overhaul. This is

about Labor values. We want to

redistribute income within the

city. We want to ensure that

those who are doing it tough

get a hand up. Over to the

banks. The Reserve cuts official interest rates by

another quarter of 1%.

Recriminations and

investigations into the people

smugglers who hoodwinked

Australian immigration. The high-profile rugby league

supremo resigns after 10 years

in the job. It is the right

time for a fresh approach for

the game.

Good evening. Craig Allen

with ABC News. The ACT has

embarked on an ambitious

journey to transform its

taxation system. Today's

Territory Budget has revealed

the first stage of what will be

a 20-year program of change.

The reform is being sold as

Labor to its core, a Robin Hood

Budget of sorts, taxing the

rich and giving to the poor.

But while taxes judged unfair

will be phased out, many

households will be slugged

hundreds of dollars in extra

charges. We will talk to the

Treasurer Andrew Barr shortly.

But first Anna Morozow begins

our coverage. Second call

now. From tomorrow, buying a

house will be cheaper as stamp

duty is lowered and ultimately

abolished. It is all part of

the massive overhaul of the

Territory's tax system. The new

system will be simpler, fairer

and more efficient. On the

chopping block are duties for

general and life insurance,

stamp duty is also being phased

out and more businesses will be

exempt from payroll tax. Land

for commercial properties is

being abolished.

The lost revenue will be made

up through an expansion in

rates. The fixed service charge

will remain but the flat rate

will be replaced with a tax

based on land values. About a

quarter of households will see

rate bills go down. The rest

will cop an average increase of

$123 a year. At its core, it is

about Labor values. We want to

redistribute income within this

city. We want to ensure that

those who are doing it tough

get a hand up. Middle income

families will be paying

significantly more. They will

be paying more than they've

ever paid. They are already

struggling under the cost of

living pressures. We need to

move to a new tax system. The

reality is that, currently,

having a transaction tax on

stamp duty, it is just not

sustainable. The massive

shake-up of the tax system announced today has overshadowed much of the other

news outlined in the Budget. As

expected, the Budget papers

reveal a whopping deficit for

the coming financial year. The

ledger will be more than $300

million in the red in 2012-13.

But the Government insists it

is still on track to reach a

surplus by 2015. As the

Commonwealth withdraws

spending, the ACT will step in,

bringing forward capital works

projects and continuing to grow

frontline services. Hospitals, emergency services and

transport will get a boost.

But, once again, public

servants will bear the brunt of

the belt tightening. Every

initiative in this Budget is

aimed at ensuring that those

who are less welloff get a hand

up. With one eye on the October

election but not taking the

other off the bigger picture.

The business community is

divided over whether the Budget

will help or hinder economic

growth. There is praise for the

Government's decision to spend

its way through tough times but

developers say they are being

hit by increased charges that

will throttle growth. The

decision to ditch stamp duty

will give aspiring home owners

a spring in their step but it

has cast a heavy cloud over the

big end of town. This is

probably the worst Budget we

have seen handed down from this

Government in terms of its impact on the commercial

property sector in particular. That's because

while the Government will phase

out stamp duty over 20 years,

for the next five years, for

property worth more than $1

million, it is going to rise

from tomorrow. That affects

pretty much every large-scale

project and developers are

fuming. The Government says

those who can afford to pay

more should, but developers say

it will drive cash and jobs

away. I think it will signal a

message to the rest of

Australia that the ACT isn't a

great place to invest in. In

the long-term, stamp duty will

be completely eradicated but in

a property down-turn,

developers aren't willing to

bear the short-term pain. The

commerce sector is impressed

with the tax reform. I think

the new Treasurer with his

first Budget gives the

opportunity to review things. I

am pleased for the changes with

the tax. It means we are

getting sensible outcome,

eliminating duplications and

eliminating the useless

taxes. In a world where deficit

is a dirty word, the Government

is being applauded for spending its way through tough

Government could have done is times. The worst thing the ACT

slash and burn to reduce the

deficit. Business says the

Federal Government's

determination to return to surplus damages the ACT economy

and it is glad the ACT Government resisted the

temptation to do the same. But

some were wishing for even

looser purse strings. We were

disappointed there was ng n -

there wasn't a renewed focus on

transport, homelessness

services and biding up the -

building up the public housing stock. Another move that will leave Canberrans waiting for

more is the Government's

decision not to make a decision

on light rail. There is no cash

but it will set up a working

group for what might happen in

the city to Gungahlin corridor,

at some point down the road.

The Treasurer Andrew Barr is

already out selling the Budget. Tonight he is delivering a

speech at a function at the

National Press Club. Andrew

Barr, surely your tax shake-up

is going to hurt most

households when they get next

year's rate bills? No, Craig,

it is designed to be a fairer

system, to ensure we are

delivering significant benefits

to those low and middle-income

households. When you combine

the impact of abolishing

insurance taxes, people's home

contents insurers will be cheaper, motor vehicle

insurance will be cheaper and

we are delivering targeted

rates reductions to a quarter

of properties in the

Territory. You are expecting a

near-record deficit. Surely

that's going to be a pretty

tough pitch to sell as you

approach an election? What we

are seeking to do is support the Territory economy through

this difficult period with the

Commonwealth government

contracting its expenditure, it

falls to the Territory

Government and private sector

to grow and keep the economy

moving, so we have a strong

capital works program and supporting growth in the private sector through the significant payroll tax cut and

the other changes to taxation.

So businesses will pay less

insurance tax too. It is an

election year, where are all

the sweeteners? This Budget is

a measured and sensible

response to our current

economic circumstances. I don't think people want to see

vote-buying Budgets. What they

want to see is a plan for the

future. This Budget outlines a

five-year plan for reforming

our tax system to make it

simpler, fairer and more

efficient. It also supports new

frontline services, so more

doctors, more nurses, more

teachers, more emergency

service workers, more care and

protection workers. We are

putting new resources into

areas of highest community need

and what we are seeking to do

is, through reform of our tax

system, to ease the burden on

low and middle-income

households. Andrew Barr, we

just heard Katherine Carter

from the property council

describe this as the worst

Budget this Government has

handed down. Don't you think

there is a danger increasing

stamp duty for big projects

could hinder investment? I

don't believe so. If you look

at the package of reform over

the five-year period and

recognising these are marginal

tax rate, you see stamp duty

coming down and the elimination

of a number of other taxes that

were paid in the commercial

sector. These things have

checks and balances, there is

ones and offs when you

undertake tax reform but the

principles are consistent with

Ken Henry's review of taxation

and consistent with the

recommendation of the Quinlan

review to ensure a fairer tax

system. That's what people want

to see. Andrew Barr, thanks for

joining us. My pleasure. There

is no crisis in the Australian

economy but interest rates are

heading back to levels not seen

since there was one three years

ago. The Reserve Bank has cut

rates for the second time in as

many months. Average borrowers

will be almost $600 a year

better off. Financial insurance

against global instability.

Here is Mark Simkin. In markets

like Melbourne, property prices

are falling. At $343,000 in

front. Although this apartment

is going, going ... Are you

all finished? Are you all

silent? Gone. Property

sold. The lucky buyer is

Eleanor King. The RBA has given

her a house warming present,

assuming her bank passes it

on. Now apparently they could

be going down, I will have more money to spend every

week. Someone with an average

mortgage will save $11 a week,

$570 a year. Today's interest

rate cut will be welcome by

Australian families and

businesses that work hard to

make our economy strong. RBA

cut is 25. The 25 basis point cut follows last month's super-sized reduction. The

official rate is now just 3.5%.

It is a dramatic change from

where rates were decades ago.

The GFC was the low point but

rates are starting to approach

those levels again. It is a win

for households and it is a dividend of returning our

Budget to surplus. An

Opposition double act disputes

that. This is much more a

reflection of weak economic

conditions than it is of strong

economic management. The

Reserve Bank in its statement

did not make any mention of the

Government's Budgetary

position. In his statement,

the governor said the decision reflected modest domestic

growth and a weaker and more uncertain international

environment. I think the

announcement today from the

Reserve Bank gives Australians

confidence that the Reserve

Bank has further room to

move. Labor's banking on that.

It wants economic management in

general and lower rates in

particular to be key parts of

its re-election strategy. It is

a delicate balance, given that

lower rates reflect higher

risks. Ultimately, where rates

end up in this cycle will

largely be a function of how

poor the situation in Europe

is, how much it spills over to

China and the rest of the world

and you have to think that the

cash rate is heading back down

to at least the historic low of

3%. That's the official rate.

The retail banks are unlikely

to be so generous. The Federal Government is

tonight considering what to do about Captain Emad, the people

smuggler who smuggled himself

into Australia. His business

and his presence here in

Canberra were exposed by the

ABC's 'Four Corners' last night. Now the Immigration

Department is examining the

story to see whether Captain

Emad should lose his protection

visa. George Roberts reports.

In a public housing estate, a

smuggler's daughter is still

coming to grips with her

father's notoriety. Did you see

the story? I was shocked. I

didn't know anything. I am not

sure whether it is true or not

but I'm not sure. Okay. You

didn't have any knowledge of

your father being involved in

people smuggling? No. I think

it is a lie, that's how I

feel. Sarah Alabbasi says it

has been months since Captain

Emad's been around. No, I don't

have any contact with him. I'm

sorry, I can't help you. Thank

you very much. Thanks. One

neighbour remembers things

differently. Had contact with

him a couple of weeks ago. I

said hi, say hi and then go inside. This was the last most

have seen of the Captain. If

you take a pause Captain Emad, we can have a

conversation. When 'Four

Corners' tracked him down at

his day job. Tell me about the

boat you came to Australia on?

Since that aired, the fallout

has been swift. Federal Police

say they were aware of information contained within

the ABC 'Four Corners' program

but won't confirm or deny who

is or is not subject to ongoing investigations. The obvious

question which occurs is if the

TV stations can find them, why can't the government stop them?

We are talking about serious allegations that must be carefully assessed. The Minister's got his department

investigating. To assess

whether there is a case to

answer for refugee status to be

revoked in any particular

instance. No matter the

failures in process, the

politics of asylum seeker

policy don't change. The

Government's answer to the

likes of Captain Emad is the

Malaysia Solution. The

Opposition's - Nauru. Neither

is willing to budge. They could

open Nauru tomorrow. They have

refused to do so. The

Opposition has rejected working

with the Government to

implement offshore

processing. While that goes on,

the fugitive Emad has paid a

price. His contract as a

trolley collector has just been

torn up. There is more evidence

today that the flying kangaroo

is in deep trouble. Qantas

shares have dived to an

all-time low after the airline

issued a profit warning which

surprised investors and

analysts. It wasn't what many

investors were expecting so

close to the end of the

financial year. Qantas shocked

the market warning that its

full-year profits could slump

by up to 90%. I don't think

anybody expected a good result

this year, but the size of the

downgrade is very, very substantial. Qantas's domestic

business remains profitable,

but the airline expects losses

in its international operations

to more than double thanks to

the weak global economy and

soaring fuel bills. The airline

says there is also a $100

million cost arising from

industrial action. They are

rowing a boat with a hole in

the side of it and it doesn't

matter how hard they row, that

boat is leaking. Qantas is

drowning in a whole host of new

competition on international

routes. The might of the attack

from the Middle East, from the

Asian carriers is just

strengthening continually.

Qantas is by comparison with

those, a tiny player. Some

analysts say the Qantas share

price slump raises the spectre

of a possible private equity takeover. If there was any

interest from private equity or

a bid for Qantas when it was $1.37, there is going to be similar interest today perhaps

at the current price which is

lower. In a statement, Qantas

CEO Alan Joyce says the company

remains focussed on returning

Qantas International to

profitability by 2014. Some

analysts say that goal sounds

ambitious. To finance now, the

Australian dollar jumped

sharply today and the local

share market closed higher as

well as global markets enjoyed

some respite from the gloom of

the past few weeks. Here is

Alan Kohler. First, here is a

chart of Qantas' share price

and the All Ordinaries Index

since that fateful day in May

2007 when the takeover offer

from Airline Partners of

Australia failed to get the 50%

it needed. The Board had

endorsed it but a couple of big

shareholders said it was too

low and campaigned against it.

They looked like heros for six

months but then the bottom fell

out. More for Qantas than the

market. Since May 4, 2007, it

has fallen nearly 80% while the

All Ordinaries is down 45.

There hasn't been a dividend

since March 2009. Shareholders

will be hoping those idiots who

knocked back the takeover are

homeless buskers. Today markets

- the banks did the best while

resources were strong. Seek

jumped 4.5% while Fairfax

slumped to below 60 cents for

the first time. Seek, real

estate and car sales are

together worth fire times the

value of Fairfax. As happened

yesterday, all the action on

the share market was in the

first few minutes following on

from a late afternoon rally on

Wall Street so it wasn't really

about the rate cut in

Australia. The dollar went up

by more than a cent to 97.75

and once again it was already

going up when the rate cut was

announced, although at 2:30

exactly, there was wild seismic

activity on the chart. The

dollar had been going up since

3a.m. when the S&P 500 on Wall

Street bottomed. The US market

finished steady but Asian

markets rally continuing the

risk on trade that started in

New York at lunch time there.

That's finance. Vandals have

attacked a predator-proof fence

which protects bettongs. Anti-culling protesters were

trying to let the kangaroos out

but scientists fear it would

let foxes and other predator s

in. A search has revealed all

the bettongs are still live. It

was an anxious search for

Tasmanian bettongs dead or

alive. Deep, deep. 17 of the

rare marsupials were released at the Mulligans Flat

Sanctuary, last night for the

second night running advantage

dals cut holes in a $1.3

million boundary fence which

keeps feral animals out. I am

heart broken. This is three

years of work we put into

building the sanctuary and

getting it fox-free. Rangers

and researchers working at the

sanctuary say they have been

the victims of attacks. The

protesters' vehicles blocked

the sanctuary gate and wouldn't

let them out. They Jess chured

to them like "We are going to

cut your throat" and swore at

them. Anti-culling groups say

the threats are the threats are justified. It

is more direct speaking. Kangaroo Coalition

says its members didn't cut the

fence but they sympathise with

the vandals. I don't think anything damages our

cause. People have a right to

protest, people have a right to

make their points of view heard

but there is proper ways to do

that. Police are calling for

anyone with information to come

forward. The ACT and forward. The ACT and parts of

southern and central NSW have

officially joined the digital

age. At 9 this morning, the

analogue signal for the region

was switched off, but most

people should have avoided

their screens fading to black.

The survey found 99% were aware

it was happening. Recycling

centres around Canberra are now

busy collecting the obsolete technology. He says he wasn't

pushed but it is time to make

way for new leadership. The

long-time chief executive of

Australian rugby league David

Gallop stood down today four months into a new

contract. After a decade in the

top job, David Gallop worked

his last day in charge of the

game of rugby league. Can I say

at the outset I love the game

and I wish it well. The job has

been a great privilege and I

have loved watching the game's

resurgence over the last 10

years. Several months after the

formation of the ARL commigs

Commission, that same body

announced it had reached a mute

you'll decision for Gallop to

stand down. These situations

are not easy. If the situation

is not right, you have to

change it. Gallop says he

wasn't pushed but acknowledged

the game needed to charter a

different course. You do things

in a different way when you

have been doing it a long time.

It is time for a fresh

approach. The 46-year-old

leaves at the time when the NRL

is on the verge of an estimated

billion-dollar TV rights deal

which will carry the game into

the future. The game has seen

highs and lows under his

leadership. Growth in the

sport's fan base but salary cap

rorting and ongoing issues

concerning player behaviour and

the game's image. It has been

challenging days but we have

stepped up to the plate and met

the challenges and that's why

the game is well regarded in

Australian sport, on and off

the field. Gallop's shock

resignation overshadowed the

Queensland Origin team

announced with Mal Meninga

naming an unchanged line-up.

Anthony Watmough has declared

his fitness for game two after

having treatment for an ongoing

neck injury. Jarry Hayne was

back to his best last night.

Clear the runway, the Hayne

plane is back tonight. Scoring

a double in the Eels upset

29-20 win over the Sharks. Another Olympic selection

decision is headed for appeal

after the Beijing triathlon

gold medalest Emma Snowsill was

left out of the team for

London. Snowsill was one of

four women vying for three

places on the team, but in the

past year her form has dromed

away. Selectors decided to name

Emma Jackson who will make up

the squad with Emma Moffatt and

Erin Densham. Some argue

Snowsill deserves the chance to

defend her Olympic trielt

trielt. Surely you would go

with the big performer. Emma Snowsill, you couldn't go past

her for that. An appeal is

likely to be heard next week.

In Britain, four days of

Diamond Jubilee celebrations

draw to a close today. With a

glittering procession and a

service of Thanksgiving. The

ABC's Lisa Millar is outside St

Paul's Cathedral. The Queen

has marked many special

occasions here at St Paul's Cathedral including her Silver

Jubilee but it will be the

carriage procession from Westminster to Buckingham

Palace this afternoon where the

crowds will have one last

chance to cheer her on. She

will stand on the balcony and

wave to them as an Air Force

Fly Past officially ends these

festivities. Last night at the

Palace, it was a more informal

event as music from the decades

of her reign rang out. Phillip

Williams reports. They came in

their hundreds of thousands.

Stretching way down The Mall. A

musical tribute witnessed close

up by the lucky few in front of

the Palace. (Sings) # Let me

entertain you #. Entertain they

did. The early acts sang more

at teens than Queens. And some

sounds and sights the Queen

probably hasn't experienced at

one her garden parties. Kylie

Minogue was flying the

Australian flag. So too

Gurrumul Yunupingu singing part

of a Commonwealth song but it

was the old stagers who got the

biggest cheers. Stevie Wonder

adapted his lyrics for the

occasion. # We are celebrating

the Diamond Jubilee #. Shirley

Bassey, with her signature song

for a Diamond occasion. It

seems Tom Jones is forever too

as everyone sang along with

every word. # My, my, my Delilah #. The night was

rounded off by Sir Paul

McCartney. That love delivered

personally from a future king

to his Queen. Your

to his Queen. Your Majesty,

mummy ... (APPLAUSE). The only

sad thing about this evening is

that my father couldn't be here

with us. Because,

unfortunately, he has taken

unwell. But, ladies and

gentlemen, if we shout loud

enough, he might just hear us

in hospital and get

in hospital and get better. (Cheering). The chant

'Phillip, Phillip' resonate ed

all the way down marl The Mall,

as the Queen lit the beacon,

one of thousands set ablaze

over the Commonwealth, and in Australia, where the Prime

Minister paid her tribute to

our Queen. # I am, you are, we are Australian

are Australian #. Outside

Buckingham Palace, six decades

of service were celebrated in

the universal language of

music. No doubting what these

loyal subjects think of her.

The Palace, hr home, the

platform for a spectacular

finale. The size of the crowds

and their high spirits is a

sign of just how important this

Jubilee has been to a country

suffering from tough times. The

only disappointing note, of

course, is the absence of

Prince Philip who remains in

hospital as a precautionary

measure. Let me give you an

update on the weather. As this

Jubilee began, so it will end,

with the forecast of rain. That

means the Royals will probably

travel to Buckingham Palace in

a covered carriage gifted to

them by Australia. On to our

local weather and today's

conditions were pretty foul,

let's be honest. Very windy, 14

mm or so of rain overnight and

another 5mm today. Winds gusted

up to 60km/h this afternoon.

It has been pretty cloudy

right through the ACT region

with at times heavy rain and

squally winds. The low-pressure trough off the coast has

brought that ugly weather but

it is expected to move quickly

away from the coast tomorrow

allowing a high-pressure system

to restore fine, cold and sunny

weather.

Most of the rain was restricted to the south and central coasts of NSW.

Tomorrow, the coast will see

some odd showers again but the

worst of the weather is moving

well north of our region. But

the winds will be strong,

particularly on northern parts

of the coast.

That's the news for now, but

stay with us for '7:30' with

Leigh Sales. Thanks for your

company. Goodnight. Closed Captions by CSI This Program is Captioned

Live. Welcome to 7:30, I'm

Leigh Sales. Tonight, hit and

miss despite hundreds of people

smuggling arrests is Australia

catching the ring leaders? No,

we're not, the real criminal activity that's going on in

these cases are the organisers. We're getting the wrong

people. A lot of these people

are only rice cookers or deck

hands. And the legend of Albert

Namatjira the man who opened

white Australia's eyes to the

outback. Maybe he could paint that country that nobody

sees. We're trying to create

this legacy where this becomes

quite intergenerational. His

name will always live on

forever.

People smugglers posing as refugees operating on

Australian soil, thousands of

dollars paid through agents in

Sydney, Melbourne and Canberra