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Wed 06 Nov, 2013

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Julie Bishop to return to Indonesia to face more spying questions

Foreign Minister Julie Bishop will return to Indonesia today, where she is expected to face more questions about reports of espionage.

Ms Bishop is attending the Bali Democracy Forum, but her third visit to the country since September is being overshadowed by Indonesia's frustration that Australia will not provide answers about its intelligence-gathering activities.

After failing to secure answers from the Australian and US governments, Indonesian foreign minister Marty Natalegawa has suggested co-operation and information-sharing in areas like people smuggling would be reviewed.

But at least one analyst says the Indonesian government is merely playing to a domestic audience.

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The Drum

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So much for our closer relationship with Indonesia

For a time it might have appeared that Australia at long last had allayed lingering suspicions in the region that it was merely an interloper, a pawn in the geo-political domination of the global South by the global North.

But thanks to revelations about clandestine eavesdropping, Australia is once again viewed with suspicion by its Asian neighbours and our plan to stop the boats has hit a rock.

There is not much room for Tony Abbott to manoeuvre now. Diplomatic reassurances that Australia is a genuine team player in the region will be met with wry smiles in the neighbourhood.

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Just In

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David Hicks lodges appeal to overturn terrorism conviction

Lawyers for former Guantanamo Bay detainee David Hicks have filed an appeal to overturn his conviction for providing material support for terrorism.

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World

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Nazi-looted art trove contains lost works by Matisse, Dix and Chagall

Previously unknown paintings by Henri Matisse, Otto Dix and Marc Chagall were among a vast trove of Nazi-looted art found in a Munich apartment.

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Business

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Reserve Bank leaves interest rates on hold at 2.5 pc

The Reserve Bank has left Australia's official interest rate steady at the historic low of 2.5 per cent.

The RBA's decision to hold its fire on Melbourne Cup day was widely tipped by economists, given recent signs of a pick up in the housing sector and employment.

Governor Glenn Stevens said the economy was likely to keep growing at a slightly slower than average pace in the short term as it adjusts to "lower levels of mining investment".

Mr Stevens also described the exchange rate as still too high.

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Politics

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Joe Hockey to take axe to Labor's tax announcements

Treasurer Joe Hockey is expected to announce this morning that the Federal Government is ditching a range of Labor's proposed tax changes.

The Government has set itself a December deadline to resolve uncertainty over tax and superannuation policies dating back to 2001.

Of dozens of unlegislated proposals, Mr Hockey is expected to announce that the Government will keep 18 and consult on whether to ditch the rest.

Seven policies will definitely be dumped, including Labor's proposed fringe benefits tax changes for the car industry, tax on superannuation pensions and changes to thin capitalisation.

It is understood the Coalition is planning to keep Labor's planned slug on cigarettes in a hike that will see an increase to excise not just once, but four times over the next four years.

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Sport

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Fiorente wins Melbourne Cup

Gai Waterhouse became the first female Australian trainer to win the Melbourne Cup as Fiorente finished ahead of Red Cadeaux.

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Science and Technology

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India's mission to Mars blasts off

India has successfully launched its first mission to Mars as the country aims to become the only Asian nation to reach the red planet.

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Environment

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No big savings from repeal of carbon tax, group warns

One of Australia's largest business groups says consumers may not see a big difference in the price of many products when the carbon tax is removed.

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