The Australian
leads with revelations that transport minister John Anderson was warned by Sydney airport chief Max Moore-Wilton about ongoing security concerns as recently as last month. The Oz also reports that a national system for apprenticeships is on the agenda at the COAG meeting in Canberra as the states prepare for a clash with the PM over industrial relations. And an internal memo has revealed staff looking after Cornelia Rau believed she might be an Australian and advised the Department of Immigration to contact police, one month into her detention at Baxter.

The Sydney Morning Herald leads with the prime minister’s claim that Australian diplomats overseas face possible retaliatory action after the Indonesian embassy letter scare. And the SMH reports that the Property Council of Australia predicts Sydney will need to build 7,000 extra apartment blocks to house the million-plus new people expected by 2030, and warns that the city’s planning laws and design codes need reviving.

The Age also leads with the PM’s warning of a backlash against Australians abroad following the “reckless and evil” attempt to terrorise Indonesian embassy staff. And the paper asks whether Victoria’s school assessment authority is defying gravity after it was revealed that year 12 physics students will be instructed to use ten rather than 9.8 metres a second squared as the value for acceleration in their VCE exams, because of gravity at the earth’s surface.

The Daily Telegraph
splashes with Tax Commissioner Michael Carmody’s claim that workers will have their 1 July tax cuts delayed for a year unless Labor agrees it will not block new tax schedules. The Tele also reports that police in Indonesia are bracing for a backlash against Australian diplomatic missions following the letter attack on the Indonesian Embassy in Canberra. And some of the Bali Nine suspects have refused to help police in a re-enactment of their alleged crime in a move the courts do not look kindly on, says The Tele.

The Herald Sun also leads with the Tax Commissioner’s warnings on Kim Beazley’s opposition to the government’s tax plan. And following yesterday’s Kylie exposé the Hun claims that Cabrini Hospital was on ambulance bypass, refusing to take emergency patients, while Kylie Minogue was in her wing of eight rooms.

The Courier-Mail reports that Schapelle Corby’s entrepreneurial backer Ron Bakir could be in trouble following the collapse of another company linked to him – the second company associated with Bakir to be placed in control of liquidators in as many months. The Mercury reports that about 70 Tasmanians stand to inherit shares worth $515 million when Tattersall’s floats in July. The Advertiser reports the SA Opposition claims extra funding for the DPP would be “eaten up with overheads” charged by the Attorney-General’s department. And the NT News reports that a mobile phone system that could bring coverage to bush locations by bouncing signals from handset to handset is being developed in Alice Springs.