PRESS DIGEST-Australian Business News - July 1

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)

Oil and gas group Woodside Petroleum (WPL.AX) yesterday announced that Lawrie Tremaine would become chief financial officer when Mark Chatterji leaves the role at the end of this year.

Woodside chief executive Don Voelte had praised Mr Chatterji for helping Woodside secure A$3.3 billion of debt in the midst of the global financial crisis, and his replacement comes from within the company's successful financing team. Page 17.

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Michael Luscombe, chief executive of supermarket chain Woolworths (WOW.AX), yesterday called for the Federal Government to create a ministry charged with overseeing Australia's long term food production supply chain.

Mr Luscombe said that although Australia has traditionally been a food exporter, population growth and climate change meant that this could not be taken for granted. Page 18.

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The New South Wales Court of Appeal yesterday overturned the criminal conviction of former Chameleon Mining (CHM.AX) chairman and managing director, Greg Barnes.

Mr Barnes had been found guilty on two charges of providing false and misleading information to the Australian Securities Exchange, and was sentenced to nine months jail in December.

The court yesterday found that "the evidence at the trial did not provide a foundation for the conviction." Page 18.

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The Federal Court yesterday rejected an appeal by the Australian Taxation Office (ATO) against a previous ruling in favour of a A$1.5 billion capital loss claim by media group News Limited .

The capital loss was generated in 2005 through a complex asset shuffle which the ATO claimed "made no sense" and was a tax avoidance scheme. The court found that the scheme had primarily been set up to achieve a "commercial purpose." Page 19.

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

Broking firm Stonebridge Futures was yesterday fined A$165,000 by the Australian Securities and Investments Commission on four counts of serious misconduct.

Among the violations, the commission found that in 2008, when the firm was known as Tricom Equities, a former trader had allowed three clients to avoid margin calls by moving their positions to the firm's suspense account. Page 23.

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The Australian Competition Tribunal yesterday ruled that mining companies BHP Billiton (BHP.AX) and Rio Tinto (RIO.AX) would not have to allow third-party access to their busiest iron ore railways in Western Australia.

The tribunal found that Rio's Hamersley and BHP's Mount Newman private railways were already heavily used, and that allowing access would be against the public interest.

The decision is a blow to Andrew Forrest's Fortescue Metals Group (FMG.AX), which is expected to appeal the ruling. Page 23.

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Senior executives from construction and engineering group Valemus yesterday returned from a global investor roadshow, where they sought support for the group's proposed A$1.2 billion-plus initial public offering.

Chief executive Peter Brecht said that despite "market headwinds," interest in the float had been strong. An institutional bookbuild, which should determine the float's final price, is due to take place next week. Page 23.

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John Borghetti, chief executive of airline group Virgin Blue VBA.AX, yesterday announced a number of changes to the group's structure and management.

The group's loss-making, long-haul international arm, V Australia, will be integrated within the main group, overseen by a new group executive of operations, Andrew David.

Mr Borghetti was appointed chief executive in March this year. Page 25.

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THE SYDNEY MORNING HERALD (www.smh.com.au) Gerry McGowan, the former managing director of Impulse Airlines, has since moved to a more fuel-efficient business, renewable energy.

Mr McGowan is now managing director of CBD Energy (CBD.AX), which yesterday announced that its first wind project had successfully replaced two diesel generators on New Zealand's Chatham Islands.

CBD is hoping to commission a wind farm near Gundagai, New South Wales, next year. Page 2.

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Financial advisory firm Deloitte yesterday released its Corporate Finance IPO Survey for the financial year, finding that there were 67 floats during the 12 months to June 30, compared with 28 in the previous year.

However, Deloitte said that following a recovery in float activity during the first half of the year, concerns about the strength of the global economic recovery had seen float numbers suffer during the second half. Page 2.

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Figures from property research group RP Data yesterday showed that Sydney's median house price had risen 0.7 percent in May to A$602,250, taking the growth rate for the past twelve months to 11.4 percent.

However, property analysts say there are signs that rising interest rates are starting to slow price growth, with auction clearance rates last weekend falling below 60 percent. Page 3.

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Changes to corporate law passed by the Federal Parliament will make it easier for companies to pay dividends, and reduce the number of companies using June 30 as their end of financial year, according to analysts.

The new laws mean that companies will now only have to show that they are solvent before paying a dividend, whereas previous rules had hampered even some cash-rich businesses from making payments. Page 4.

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THE AGE (www.theage.com.au)

The Australian Chamber of Commerce and Industry yesterday called for the Federal Government to uphold A$3 billion of promised tax relief to business and small employers.

Business groups are concerned that a negotiated deal with mining companies over the controversial resource super profits tax may see the government abandon promises to use revenue from the tax to fund measures including a cut to the corporate tax rate. Page B1.

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Seven days of losses on the Australian sharemarket have cut more than 5 percent from superannuation fund returns, with median return forecasts for the past financial year falling from 15 percent in April to 9.6 percent.

Research firm SuperRatings managing director Jeff Bresnahan said people needed to focus on the long-term benefits of the market, rather than short-term volatility. Page B3.

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Federal Financial Services Minister Chris Bowen yesterday launched the Government's Standard Business Reporting program.

Mr Bowen said the program would allow businesses to lodge forms, such as Business Activity Statements, directly from their own accounting system using the AUSkey secure sign-on system.

The program is intended to save Australian businesses A$800 million a year. Page B3.

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Surfwear company Billabong International (BBG.AX) yesterday announced that it would take over Canadian skate and snowboarding clothing retailer West 49 WXX.TO in a A$110.4 million deal.

Billabong chief executive Derek O'Neill said the acquisition would provide the company with North American retail expertise.

Billabong had blamed a 15 percent fall in first-half profits on poor North American sales. Page B5.

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