THE NEWS WRAP: Gillard begins carbon tax sell

Prime minster Julia Gillard has begun the task of selling the government’s carbon pricing to the public after details of the scheme were unveiled yesterday.

More than $15 billion in compensation will be handed to households when the $23-a-tonne price kicks in on 1 July next year.

As expected, fuel has been exempt for individual motorists and small businesses, with SMEs also set to benefit from an extension to the instant asset write-off threshold, from $5,000 to $6,500. Meanwhile, a $10 billion Clean Energy Finance Corporation will fund new clean energy technology.

Gillard said that the plans meant that Australia was “seizing a clean energy future” but opposition leader Tony Abbott has decried the announcement, claiming that it was “socialism masquerading as environmentalism” and that millions of Australians will be worse off.

Murdoch arrives in UK amid hacking storm

Rupert Murdoch has arrived in London to personally tackle the phone hacking scandal that has resulted in the closure of the News of the World, the UK’s highest circulation newspaper.

The media mogul is attempting to secure a $US14 billion deal for the 61% of profitable pay-TV network BSkyB that his company News Corporation doesn’t already own.

The UK government has come under pressure to block the deal in wake of the phone hacking revelations.

Buffett makes further charity donation

US billionaire Warren Buffett has given away a further $1.78 billion of his wealth to several charities.

Buffett has given 23.31 million shares in his investment group Berkshire Hathaway to Bill and Melinda Gates Foundation, a charity set up by the Microsoft founder to tackle poverty in Africa.

Buffett announced in 2006 that he plans to give away 99% of his vast wealth, estimated to total $50 billion.  

Markets

The Dow Jones Industrial Average was down 62.29 points to 12,657.20. The Australian dollar was steady at 107.76 US cents.