THE NEWS WRAP: Federal Government set for showdown with the states over mining tax

The Federal Government is set for a showdown with the states over the controversial mining tax.

A key government report into the issue has stated that future royalties paid by miners to the states should be credited back to them, so that they aren’t taxed by both state and Commonwealth governments.

However, the report also concludes that the states shouldn’t be allowed to increase royalties – a stance that the WA and Queensland state governments have both contested.

Ernst & Young charged with fraud

Accountancy firm Ernst & Young has been accused of fraudulently helping Lehman Brothers conceal billions of dollars in debt prior to the bank’s collapse.

The New York attorney general, and governor-elect, Andrew Cuomo, has charged Ernst & Young with fraud over a seven-year period, likening its practices to a “house of cards business model.”

Super-rich are ‘greedy’ – Smith

Australia’s wealthiest business leaders are “appalling and greedy” for refusing to give more money to charitable causes, entrepreneur Dick Smith has claimed.

Smith, founder of the eponymous electrical retailer, said that he wrote to the CEOs of Australia’s ‘big four’ banks, requesting that they give up 20% of their wealth to charity. Only Ralph Norris, CEO of Commonwealth Bank, replied, declining the offer.

Overnight

A series of mergers and acquisitions saw US stocks rise, with the Dow Jones industrial average adding 48.44 points to 11,526.57. The Australian dollar was up to 99.59 US cents.