PRESS DIGEST-Australian General News - July 28

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

--The National Health and Hospital Reform Commission yesterday recommended a long-term overhaul of the medical system which could initially cost taxpayers about A$5.5 billion a year. The report, which stopped short of calling for a federal takeover of public hospital funding, recommended a radical voucher-style health-care scheme that would see private operators competing with governments to manage individual patients' needs. Prime Minister Kevin Rudd deferred the final decision on the commission's recommendations until early next year. Page 1.

--Air carrier Virgin Blue VBA.AX chief executive Brett Godfrey yesterday announced he would step down as the boss of Australia's second-largest airline. The announcement was made as the company prepares to post a net loss of up to A$165 million for the 2009 financial year, a result of the ill-timed launch of its long haul offshoot, V Australia, as well as growing competition and a slump in air travel. Mr Godfrey, who maintains the full support of majority shareholder British billionaire Richard Branson, said he always planned to leave within a decade. Page 1.

--Australian businesses are divided over how much time workers should be allowed to spend on the online social media site Twitter, the communication tool of choice for a growing number of young web users. The site, which enables web surfers to converse in short comments called Tweets, can be used on mobile phones, making it harder for bosses to control and restrict access. In April, Telstra (TLS.AX) publicly launched one of Australia's first corporate policies addressing the responsibilities of employees when posting on social media sites. Page 1.

--The Australian Prudential Regulation Authority has written to local banks telling them it will implement rules, ordered by the Group of 20, which will force banks to set aside more capital and increase disclosure on investments. However, the Australian Bankers' Association (ABA) said that Australia's regulatory arrangements were already strong and that local banks should not be penalised for mistakes made by overseas entities. "Australian banks have weathered the storm very well and we don't see an obvious case to have our regulatory settings significantly overhauled," said ABA chief executive David Bell. Page 1.

THE AUSTRALIAN (www.theaustralian.news.com.au)

--The Australian Federal Government may double compensation for the coal industry to A$1.5 billion in order to protect jobs, under the proposed Carbon Pollution Reduction Scheme (CPRS). According to the latest Newspoll survey 45 percent of Australian voters want the scheme to be finalised by December, but Opposition Leader Malcolm Turnbull is pushing for it to be passed earlier. The Australian Coal Association says it is already making the cuts, while investment bank Morgan Stanley is examining the CPRS' impact on the energy sector. Page 1.

--Western Australia's premier Colin Barnett has proposed allowing Chinese migrants into the state to counter "severe" worker shortages. Whilst the downturn has slowed the resources sector, economic consulting firm Access Economics predicts strong investment with five projects worth A$27 billion. Resources companies Woodside, BHP Billiton, Newmont, Worsley Aluminia, Rio Tinto, and energy players Chevron, ExxonMobil and Shell are all planning investments in the states resources. Page 1.

--The Federal Government's proposed A$3.6 billion scheme to provide all Australians with basic dental services will be funded by a 0.75 percentage point Medicare levy. The National Health and Hospital Reform Commission yesterday recommended the establishment of Denticare Australia -- a commonwealth fund to provide basic dental services, including check-ups, fillings and dentures. However, the Australian Dental Association president Neil Hewson says the proposal should cover more services and "provide long-term dental health." Page 1.

--Federal Minister for Employment Julia Gillard has warned unions that unlawful action will be punished, even if it transpires during changes to the Australian Building & Construction Commission (ABCC) that will temporarily "switch off" its powers. This comes after employers criticised a senate inquiry into the government's proposed restructuring of the ABCC for reducing non-compliance penalties. Gillard says groups can apply to an independent assessor to "switch off" the powers of non-compliant builders. Page 1.

THE SYDNEY MORNING HERALD (www.smh.com.au)

--The surviving members of the Lin family, who were brutally murdered in their North Epping home on July 18, have undergone DNA tests to help identify the victims. After 10 days of intense forensic and detective work, the 18 detectives attached to Strike Force Norburn are yet to identify a motive or suspect for the killings. Dental records and DNA swabs from surviving family members will be used to formally identify the family, who were so severely bashed that visual identification was impossible. Pg 2.

--A musical comedy about veteran cricketer Shane Warne last night won the Helpmann Award for best new Australian work. In an awards ceremony held at the Sydney Opera House last night, Eddie Perfect's show "Shane Warne the Musical" was praised alongside other big winners including the A$12 million musical "Wicked" and the Sydney Theatre Company's eight-hour epic drama "The War of The Roses", both of which won six awards. After a 12-week season in Melbourne, Eddie Perfect's musical had an early closure in Sydney due to disappointing ticket sales. Page 3.

--Full-length swimsuits Jaked 01, Arena X-Glide and Adidas Hydrofoil have assisted swimmers in breaking records at the Rome world championships. "The suit gives you an edge, like say, a 100th of a second," says Auburn Swim Club member Peter Topalidis, a competitor at next month's State Age Championships. SwimmingAustralia has banned the suit for under 18 swimmers in age-specific races, but sports body FINA has allowed them - a move that gives an advantage to sponsored athletes, says Sydney University coach Steve Alderman. Page 5.

THE AGE (www.theage.com.au)

An investigation of 17 Victorian education colleges considered to pose a "high-risk" to international students has revealed allegations of scams, bogus courses and bribery. The audited colleges will have to wait until September to find out if they face temporary or permanent closure. Gautum Gupta, a spokesperson for the Federation of Indian Students of Australia said he believed at least half of the 17 audited colleges would close, putting pressure on already stretched services. Page 1.

--The Victorian State Government has approved a A$500 million redevelopment of the Myer Lonsdale Street site to be called "Emporium Melbourne". The redevelopment is the latest in a battle between major department stores Myer and David Jones for retail space in Melbourne's city centre. However, the chief executive of the National Trust, Martin Purslow, said the decision to give planning approval to demolish the 1934 art deco Lonsdale House was "another nail in the coffin for heritage in the city centre." Page 3. --