PRESS DIGEST-Australian General News - July 8

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy. THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com) Total dividends paid to Australian shareholders are expected to fall A$7 billion compared with the previous year to around A$41.5 billion for fiscal 2009, according to financial services firm Macquarie Securities. Paul Xiradis, of fund manager Ausbil Dexia, says that the slump in dividend payouts had been compounded by the "uncertainty surrounding the credit markets," forcing Australian companies to raise almost A$90 billion in new capital on the equity markets during the last financial year. Page 1.

--

Australia's lowest paid workers are not going to receive any pay increase this financial year following fears of rising employment. Australian Fair Pay Commission chairman Ian Harper yesterday rejected the Federal Government's call for a "considered rise" of the A$543.78 minimum wage, saying that "this is not the time to risk the jobs of low-paid Australians by increasing minimum wages." However, Workplace Relations Minister Julia Gillard described the ruling as "disappointing," saying the move amounted to a wage reduction in real terms. Page 1.

--

Australia's official cash rate was left unchanged at 3 percent yesterday following better than expected retail figures in May and an unexpected 0.4 percent increase in economic growth in the March quarter. Reserve Bank of Australia governor Glenn Stevens said that "economic conditions in Australia have to date not been as weak as expected a few months ago." However, Mr Stevens signalled that the central bank would reduce the rate further "if needed," saying that further decline in economic output was "likely over the rest of the year." Page 1.

--

Prime Minister Kevin Rudd has outlined his plans for tackling the "second great challenge" facing Australia's economy. Mr Rudd said yesterday that the Government's economic stimulus measures had put increasing pressure on bond yields which when combined with any future rise in interest rates could lead to higher inflation. However, Mr Rudd maintained that any retreat from the stimulus measures must be "timely and maximally co-ordinated to avoid unnecessary economic and financial market dislocations." Page 4.

--

THE AUSTRALIAN (www.theaustralian.news.com.au)