The Australian
leads with news of ASIO’s “terror swoop” on a number of Melbourne homes which were raided after counter-terrorist officers uncovered evidence that Islamic extremists were planning attacks on prominent city landmarks. The Oz also reports that a clique of Melbourne’s business and political elite, who are worried about Melbourne’s decline in national life, have suggested a “proper” Melbourne residence for the PM could be donated by a benefactor – as long as the running costs were paid for by the Commonwealth. And the WA government is investigating several options to solve Perth’s water problems using supplies from the Kimberley – with one option involving a fleet of supertankers carrying 50 billion litres of water down to Perth.

The Sydney Morning Herald is dominated by Sydney’s train dilemma as the paper continues its series on planning for the future of the Sydney CBD. The SMH also reports that after being denied greater access to whales, Japan is now seeking to add to its “scientific research” with an Antarctic seal catch. And the last family detained on Nauru has finally won its freedom, with the Department of Immigration granting it visas on humanitarian grounds – 3½ years after they sought entry to Australia as refugees.

The Age leads with the AFL DNA testing debate, revealing that AFL chief executive Andrew Demetriou has promised immediate laws banning the tests. Also fronting The Age are the revelations of Douglas Wood’s fellow captive, Swedish oil trader Ulf Hjertstrom, who says money was the only reason he and Wood were freed. And trucking magnate Lindsay Fox has bought Melbourne’s iconic Luna Park for about $7 million, vowing to “restore the magic” of the fading fairground.

The Daily Telegraph
splashes with the “ASIO TERROR RAIDS,” revealing that although the Sydney Harbour Bridge and the Opera House were named as targets, sources said the Islamic extremists intended to strike first in Melbourne. Meanwhile Schapelle Corby‘s Indonesian legal team apparently sought $500,000 in “lobbying money” from the federal government, but dropped the request when it was suggested the money would be used for bribes. And Channel Ten’s Big Brother will step in to end some of the housemates’ offensive antics – including behaviour that would form the grounds for a sexual assault charge on the outside – after widespread complaints.

The Herald Sun also goes big on the “ASIO RAIDS ON TERROR” reporting that agents had been ready to swoop for months if cell members moved to buy materials or looked like endangering lives. And Melbourne’s water supplies will be boosted after a $50 million treatment plant is built to purify the undrinkable water of the Tarago Reservoir by 2011.

The Courier-Mail reveals that elective surgical procedures at Bundaberg hospital were given priority based on how much money operations brought in, which encouraged the former director of surgery Dr Jayant Patel to perform procedures outside his and the hospital’s scope. The Advertiser splashes with the 21-year-old soldier hiding in Adelaide after he deserted the Army to escape alleged bullying by senior officers. In Tasmania about 2,000 people gathered on the Devonport foreshore to kick off the Fair Dinkum Food campaign to save the Tasmanian vegetable industry by encouraging people to “buy Australian” vegies, says The Mercury. And The West Australian reveals that Edith Cowan University’s proposal of a “super university” forced Curtin and Murdoch to reveal they were discussing a two-way merger – a plan they were hoping to keep secret for at least another week and a plan that did not include ECU.