RUSH HOUR: The stories you need to know today
THE suspected Bali Nine mastermind is reportedly enjoying a million-dollar lotto win, as two Australians wait to be executed for drug smuggling.
Good morning, and welcome to our morning news coverage. We will be bringing you the best of what’s happening this morning, so you can get across the news quickly.
9.40am
The Abbott Government seems to have tied itself in knots over its new “competitive evaluation” process to select a new design and builder for Australia’s new submarines.
The contract is Australia’s largest ever defence procurement, estimated to be worth $20 billion to $40 billion. There has been speculation the government has all but decided to buy Japanese Soryu-class submarines, with the vessels built wholly or partly in Japan.
South Australian Liberal senator Sean Edwards has claimed that Tony Abbott promised him there would be a full competitive tender process ahead of the leadership spill motion on Monday.
However, Labor defence spokesman Stephen Conroy said there was no such thing as a competitive evaluation process in the defence procurement manual.
9.30am
The student who leaked scholarship details of the Prime Minister’s daughter, Frances Abbott, has been given a position with The Greens.
According to Buzzfeed, Freya Newman, 21, applied to become an intern with The Greens when the job was listed in November last year.
“Following an extensive application process involving over 160 applicants and two rounds of interviews we offered the position to Freya,” Senator Lee Rihannon said.
9.10am
Treasurer Joe Hockey continues to talk about the challenges of a ‘Labor-controlled Senate’ despite criticism over the accuracy of this description.
Mr Hockey was taken to task over the phrasing during an interview on 7.30 last night but has persisted with the statement this morning on an interview with 3AW.
He said that “despite the challenges in Labor-controlled Senate”, the Federal Government had managed to get 80 per cent of its Budget in place, including getting rid of the carbon and mining tax.
“I think it is fundamentally unfair for us to have a lifestyle today that our children will never have,” Mr Hockey said.
“Someone has to make the right calls for Australia ... we have to live within our means.”
When asked about pensioners living in million dollar properties, Mr Hockey said that the government had taken the view that the value of assets were not taken into account when looking at eligibility for the pension. When asked whether this was under review, he said “no”.
He also confirmed that small business would get a tax cut, while bigger business would “not be paying any more tax than they are today”.
When asked whether there was a date to return the surplus, Mr Hockey said he was “working towards a medium term date”.
9am
UPDATE: Malcolm Turnbull has responded to reports that he was approached to take over the Treasurer’s position last year, saying he has never lobbied for the job.
“I have complete confidence in Joe Hockey,” Mr Turnbull said.
“The Prime Minister has never asked me ... or suggested to me, in any way that he would appoint me Treasurer,” he said.
8.40am
Queenslanders will finally have a new premier, around two weeks after going to the polls.
Governor Paul de Jersey on Tuesday took to Twitter to announce he’d decide whether Liberal National Party leader Lawrence Springborg or Labor leader Annastacia Palaszczuk will lead the state once all seats had been declared.
“I will commission new Premier following #qldvotes polls declaration,” he wrote.
The Electoral Commission Queensland has indicated that will be either on Friday or Saturday - two weeks after polling day.
2/2 I will commission new Premier following #qldvotes polls declaration. PdeJ
â Queensland Governor (@QldGovernor) February 10, 2015
Meanwhile, the ABC is reporting that a record number of informal votes were lodged in the state election.
The latest figures show 56,100 Queenslanders voted informally, a figure that is expected to grow as counting continues.
That compared with 53,797 informal votes lodged in 2012 and 46,908 in 2009.
8.30am
A knife-wielding woman shot dead by police outside a Hungry Jack’s outlet was acting like a “zombie” before police opened fire, a witness has said.
The 22-year-old was shot in the chest about 11.45am after she was seen wandering in and out of traffic brandishing a large knife in the Sydney suburb of West Hoxton about 11.45am yesterday.
A young woman shot dead by police in a fast food carpark. The exclusive video tonight 6pm @ChrisReason7 #WestHoxton pic.twitter.com/pjcpP29WHk
â 7 News Sydney (@7NewsSydney) February 10, 2015
8.20am
Islamic State militants have emailed a graphic photo of an American hostage’s body to her parents as confirmation of her death.
CBS News’ national security correspondent David Martin reports ISIS emailed Carl and Marsha Mueller, the parents of Kayla Jean Mueller, to confirm her death, using the photograph as evidence.
The image, verified by US intelligence, shows she died “recently” but the exact timing is unknown.
8.10am
Prime Minister Tony Abbott has committed to spending a week in an indigenous community later this year during an appearance at the Closing the Gap parliamentary breakfast.
Mr Abbott said after 200 years of neglect, it was not too much to ask that the PM spend one week a year dedicated to indigenous issues. It would force people to think about the country’s indigenous heritage and to think about “our shared future together”.
8am
BREAKING: Two Sydney men have been arrested in connection with an alleged terror plot amid suspicions a public beheading was planned.
The Daily Telegraph has been told that two men were arrested yesterday and a hunting knife, flag and other items were seized.
7.40am
Prime Minister Tony Abbott has vowed to sack any staff member who backgrounds against MPs and cabinet ministers.
It is the first time Mr Abbott has pledged to act against members of his office, who are alleged to have backgrounded against the Prime Minister’s rivals.
According to The Daily Telegraph, in yesterday’s joint party room meeting, West Australian MP Don Randall, who seconded Monday’s leadership spill motion, asked Mr Abbott: “Would you sack anyone from the Prime Minister’s office backgrounding against colleagues?” Mr Abbott said: “That is a sacking offence.”
But the leaks have continued today, with Fairfaxreporting that Malcolm Turnbull was sounded out by colleagues, before December’s ministerial reshuffle, on whether he would accept the Treasury portfolio.
Mr Turnbull was believed to have indicated he was interested but a formal approach never eventuated. The approach is believed to have come from persons linked to the PM’s office.
7.30am
Here’s another reason to love Taylor Swift. The Shake it Off singer delivered the best response to a comment at the Grammys that she would be going home with “lots of men”.
Entertainment Tonight reporter Nancy O’Dell interviewed Swift at the awards show and commented about her “amazing” outfit, saying: “You’re going to walk home with more than maybe just a trophy tonight, I think lots of men”.
To which Swift replied: “I’m not going to walk home with any men tonight ... I’m going to go hang out with my friends and then I go home to the cats.”
7.20am
Dominique Strauss-Kahn has denied knowing the women he had orgies with were prostitutes and said paying for sex would be too great a risk for a man who was busy “saving the world”.
The former International Monetary Fund chief took the stand for the first time on charges of “aggravated pimping” in an alleged prostitution ring, in a day of high drama as a former sex worker described her tears and pain when he committed an act “against nature”.
7am
It seems Kanye’s rant at the Grammys may have helped Beck’s album Morning Phase to rocket up the charts.
According to The Independent, sales of Morning Phase have risen by a massive 1342 per cent on Amazon’s albums chart, compared to the night’s biggest winner Sam Smith, whose album In The Lonely Hour, tripled after he won four awards.
6.35am
The Federal Government has achieved its first budget win for the year, gaining Senate approval for a $1.4 billion cut to research tax incentives for large companies.
The measure was originally proposed by Labor in last year’s budget but then opposed following the change of government.
According to The Australian, Finance Minister Mathias Cormann secured the support of six crossbench senators for the bill, which caps the amount of research and development spending that can be claimed by big companies to $100 million. Under the incentive scheme the government foots 40 per cent of the bill.
The $1.4bn savings over the next four years will come from about 25 large companies.
6.25am
Australia has been given the green light to join Europe and compete in the grand final of Eurovision to an audience of 195 million people.
“This year as Australia is an official competitor, the Australian public will be eligible to vote in the contest for the very first time,” reads the announcement from SBS.
“This, along with a preselected Australian jury, will help determine the 2015 Eurovision Song Contest winner.”
SBS are yet to release details of Australia’s pick to perform but say “our song and artist will be revealed very shortly”.
6.15am
French court on Tuesday ordered a private clinic in Cannes to pay 400,000 euros ($450,000) each to two 20-year-old girls accidentally switched at birth — part of a 1.88 million-euro ($2.1 million) settlement with both their families.
The clinic’s lawyer, Sophie Chas, said the court also ordered the Clinica Jourdan and an insurance company to pay 300,000 euros ($340,000) to each of three parents involved in the case and 60,000 euros ($68,000) each for three brothers and sisters involved.
When Sophie Serrano gave birth in July 1994, her baby girl was put into an incubator at the clinic. A nurse’s assistant accidentally handed that baby to the wrong mother, and the baby girl in the adjacent incubator was given to Serrano.
Sophie Serrano’s companion left her after village rumours spread that he may have not been the father because his daughter did not look like him. In 2004, DNA tests showed that Manon was not the daughter of either of them.
5.50am
A man that police suspect was the mastermind of the Bali Nine drug syndicate has been enjoying a lavish lifestyle after winning a multimillion-dollar lottery payout around the time two Australians were being sentenced to death for smuggling heroin.
According to Fairfax, the man is believed to have stopped his criminal activities after he won the jackpot.
His windfall happened after two junior members of his syndicate Andrew Chan and Myuran Sukumaran were arrested and sentenced to death. They now await the firing squad in Bali.
The pair have never revealed who they are working for, saying they fear for the safety of their families back in Australia, and it’s possible they did not know who the mastermind was. Police have never arrested the suppliers, main organisers and financiers of the operation.