The Australian

leads with the news that ASIO’s new counter-espionage unit is boosting
surveillance of foreign agents spying on Australia’s military secrets.
Meanwhile, one of the country’s most closely guarded secrets has
finally been revealed with the naming of the Tattersall’s beneficiaries, who have grown rich on the proceeds of the gaming empire, reports The Oz. And the airport workers’ union has revealed that 20% of the security screeners at Sydney airport can bypass the usual strict security clearances by using temporary passes handed out to casual workers.

The Sydney Morning Herald

leads with the biological attack on the Indonesian embassy in Canberra
yesterday, which prompted the prime minister to immediately apologise
to Jakarta. “The populist hysteria over Corby’s sentencing which looked
like a simple case of the media indulging wilful ignorance in pursuit
of ratings,” writes Peter Hartcher, “has turned into a serious national incident.”

The Daily Telegraph also splashes with the Indonesian embassy attack and reports that the letter
containing powder was mailed to Indonesian Ambassador Imran Cotan from
Victoria and accompanied by a note written in Indonesian. Meanwhile The Tele has learnt that sleepy judge Ian Dodd has had his driver’s licence suspended due to his alleged tendency to fall asleep during cases.

The Age

leads with the attack on the Indonesian embassy and also reports that
Premier Steve Bracks has claimed the head of the Defence Materiel
Organisation, which procured the ship-building contract, had links with the winning bidder, South Australia’s ASC, as its former chief executive.

The Herald Sun also splashes with the embassy attack and subsequent lock-down, pushing the report on star patient Kylie Minogue
back to page three. The paper reports that an unnamed doctor at
Melbourne’s Cabrini hospital has revealed that Minogue was allocated
eight of the hospital’s 18 cardio rooms, severely inconveniencing
elderly patients awaiting heart surgery.

In other medical news, The Courier-Mail
reports that Queensland Health was so desperate for a surgeon at
Bundaberg Hospital that it employed “Dr Death” Jayant Patel after only
reviewing his resume. The West Australian
has obtained an internal safety report from BHP Billiton that reveals
the company has recorded 32 potentially-fatal incidents at its booming
Pilbara iron ore operations since three workers were killed there last
year.

The Mercury
wuotes Incat boss Robert Clifford as saying that the Derwent River
could be transformed into a commuter and tourist hub similar to Sydney
Harbour with just $5 million for new jetties and pontoons. The Advertiser
reports that last-minute psychiatric evidence has been presented to the
Kapunda Road Royal Commission by Eugene McGee’s lawyer revealing McGee
was in a disassociated state after his vehicle struck cyclist Ian
Humphrey. And The Canberra Times
also has an account of the Indonesian embassy attack, attributed to the
sharp escalation of the backlash over the jailing of Schapelle Corby.