(AAP) NSW Premier Nathan Rees has been warned against raising business taxes and ditching a massive rail project as he grapples with a projected $1 billion deficit.

(AAP) Telstra has launched federal court action against unions in the ongoing pay dispute involving its wholesale and service division.

(AAP) A man saved his three-year-old daughter after she was dragged 70 metres through a stormwater drain during severe weather that has claimed eight lives in Britain.

(AAP) A straight sets exit from the AFL finals for the Western Bulldogs would mean their season had been worthless, according to coach Rodney Eade.

(AAP) NSW Premier Nathan Rees' new ministers had barely been sworn into cabinet before industry groups were pressing them to tackle urgent problems.

(AAP) St George Bank has recommended an improved $17 billion bid from Westpac Banking Corp that will give the happy dragon's shareholders a higher dividend payout.

(AAP) Federal Nationals leader Warren Truss has swatted away questions about maverick Queensland senator Barnaby Joyce's leadership ambitions, saying he does not feel threatened.

(AAP) A Bali court has ruled that an Indonesian man who stabbed Australian Heidi Murphy 37 times did not intend to murder her, instead jailing him for violent burglary.

(AAP) A 51-year-old surfer has survived a close encounter with a large shark, which became tangled in his leg rope and dragged him like a "powerful jet ski" off the NSW north coast.

(AAP) West Australian Opposition Leader Colin Barnett has made his pitch for the Nationals' support to form government, saying he now accepts their "regions for royalties" plan.