US, S Korea vow no concessions to North

The leaders of the United States (R) and South Korea (L) have vowed no concessions to North Korea. Source: AAP

THE leaders of the United States and South Korea have vowed no concessions to North Korea after months of high tension, saying the burden is on the communist state to end the crisis.

In a choreographed show of unity, US President Barack Obama and South Korean President Park Geun-hye have pledged to bolster defence cooperation and demanded that North Korea change course on its nuclear program before any new talks.

"The days when North Korea could create a crisis and elicit concessions - those days are over," Obama told a White House media conference with Park, who took office in February as northeast Asia's first woman leader.

Obama said that he and Park agreed in talks that "we are not going to reward provocative behaviour" but kept the door open to eventual talks if North Korea's young leader Kim Jong-un decides to embrace "a peaceful path."

"If Pyongyang thought its recent threats would drive a wedge between South Korea and the United States or somehow garner the North international respect, today is further evidence that North Korea has failed again," Obama said.

Tensions have appeared to subside since earlier this year when North Korea carried out its third atomic test and vowed to prepare for nuclear war against the United States, in remarks shrill even by Pyongyang's standards.

A US defence official said that North Korea has shifted two medium-range Musudan missiles away from a launch site, signalling that - at least for the time being - the regime has no imminent plans to test-fire them.

China, the primary supporter of North Korea, took one of its most concrete measures to date with the state-owned Bank of China closing the account of a North Korean bank accused by Washington of supporting the nuclear program.

Park, while not commenting directly on the bank action, credited China and Russia with enforcing sanctions on North Korea imposed by the UN security council.

"Such constructive efforts on the part of China and Russia are vital to sending a unified message to North Korea that their nuclear weapons will not stand," she said.

Park insisted that North Korea would feel consequences for a showdown that suspended work at Kaesong - a joint industrial park once an emblem of inter-Korean cooperation - and repeated her warning that the military would swiftly respond to any North Korean attack.

If North Korea harms citizens of the South, "we will make them pay," she said. "If North Korea engages in provocation, I will fully trust the judgment of our military."

While North Korea dominated the summit, South Korea has avidly sought a bigger global role both in politics and culture - as witnessed by the phenomenal success of superstar Psy.

Obama made a ready reference to Psy, joking that his daughters had taught him the now world-famous "Gangnam Style" moves.

Park on Wednesday will address a joint meeting of US Congress.

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NSW lawyers warn of crash victim welfare

DRIVERS will end up paying more for their greenslips and car accident victims will be forced onto welfare under the NSW government's overhaul of the system, critics say.

Laws to make the Compulsory Third Party (CTP) insurance scheme "fairer and more affordable" will be introduced to parliament this week.

Finance Minister Greg Pearce says a 'no fault' scheme will give accident victims faster access to benefits, while motorists will pay up to 15 per cent less for their greenslips.

But Opposition Leader John Robertson says motorists in NSW are still going to pay some of the highest premiums in the country.

He's also warned of further hikes, with no-fault schemes in other states having resulted in major deficits.

"I am very worried we are going to see massive blow-outs in premium costs," Mr Robertson said, adding the government couldn't force private insurers to reduce their prices.

He's also concerned that NSW is the only place in the world to implement a no fault scheme privately underwritten by the insurance companies.

Only last year, he said Mr Pearce had increased greenslip premiums by 15 per cent.

"Now he comes out and says we're reducing premiums by 15 per cent ... and bringing them back to where they should have been in the first place.

President of the Law Society of NSW, John Dobson, says the no-fault system is a gimmick and a "front" for cutting off benefits.

"(It) will generate more claims, cost more to administer and pay out less to injured motorists," he said.

Mr Dobson warned injured motorists could be relying on welfare after a few years, with the vast majority of accident victims getting reduced benefits - "drip-fed by insurance companies with no access to significant lump sum payments".

"These benefits will be cut off after a few years, regardless of whether the person is able to return to work.

"If the government wants to deliver political sugar to marginal seats in the form of lower green slip prices, it should not be innocent victims of motor accidents who pay the price."

Greens NSW MP David Shoebridge says the changes sounded appealing but contained some nasty surprises.

"What this means in practice is no consideration of how the injury impacts on your life, drastically reduced benefits for many of the people injured on our roads and no help from your lawyer when negotiating against a well-heeled insurance company," he said.

Under the new scheme only a fraction of those injured on the roads will be fully compensated for their loss, he added.

"Everyone else who falls below the threshold of greater than 10 per cent whole person impairment will get greatly reduced statutory benefits."

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Disabled dying in care: NSW Ombudsman

PEOPLE with disabilities are unnecessarily dying in state funded accommodation services or licensed boarding houses, a report has found.

The NSW Ombudsman says 220 disabled people died while in care in 2010 and 2011.

Some of them were preventable even though the risks "could reasonably have been foreseen", the report by NSW Ombudsman Bruce Barbour tabled in parliament on Wednesday found.

Those risks included choking, traffic awareness, smoking and obesity, Mr Barbour said.

"Health and disability services do not always recognise the serious health and safety risks faced by people with disabilities in care," he said in a statement.

Other risks included staff not recognising when people had become critically ill and required urgent medical assistance.

Mr Barbour urged carers to address lifestyle-related health risks such as obesity and poor diet and help minimise resistance to health procedures and medical treatment.

"Our reviews point to the need for a strong, continuing commitment to improve the health outcomes of people with disabilities in care, and to reduce preventable deaths," Mr Barbour said.

Out of the 220 people who died, 97 lived in accommodation operated by Ageing, Disability and Home Care (ADHC) while 98 lived in non-government accommodation funded by ADHC.

Twenty-five of them lived in licensed boarding houses.

The average age at death of the people in state funded disability accommodation services was 30 years younger than the general population, Mr Barbour said.

In licensed boarding houses it was 16 years younger than the general population.

Disability Minister Andrew Constance said any preventable death was a tragedy.

He said ADHC had made significant progress since 2011 but conceded work still needed to be done to ensure that vulnerable people lead long and healthy lives.

"I take this report very seriously, and I have asked ADHC to respond to the recommendations in the report within the timeframes recommended by the ombudsman.

"The report reminds us there will always be more to do in ensuring the health, safety and wellbeing of people with disability in care," he added.

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NSW sex assault teacher charged again

A FORMER teacher jailed over his part in a sexual assault scandal dating back 50 years at two private boarding schools for boys in central western NSW has been charged with more offences.

Detectives arrested the 51-year-old at his Dubbo home on Monday and charged him with four offences relating to the sexual assault of children.

He was granted conditional bail to appear at Bathurst Local Court on June 17.

Strike Force Belle continues to investigate a series of alleged sexual assaults at St Stanislaus' College and All Saints College, both in Bathurst, between 1960 and 1993.

At least 10 men have been charged since 2008.

The man arrested on Monday was sentenced in 2011 to a minimum of 12 months after a jury found him guilty of six child sex offences.

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Indigenous PM on the way: Mundine

MANY Australians don't expect to see an indigenous prime minister in their lifetime but an educational foundation hopes to change that.

About 90 per cent of the students granted scholarships by the Australian Indigenous Education Foundation finish year 12, and the AIEF on Tuesday announced its intention to put another 7,000 students through the program.

To do that, it will be raising $100 million to send those students to boarding schools around Australia.

Year 12 completion is one of the biggest obstacles to educational equality between indigenous and non-indigenous students in Australia, said AIEF CEO Andrew Penfold.

"If indigenous students can complete high school and go on to university and employment, anything is possible," he said.

It's a big ask to move students far from their hometowns to boarding schools on the opposite side of the country, admitted AIEF director and indigenous leader Warren Mundine.

"But if we're going to put them in an environment where success is seen as normal, if you're going to claw your way to the top, to the prime ministership or up the corporate ladder, then you need to step outside your boundaries and have a go," he told AAP.

With help from organisations like the AIEF A future indigenous prime minister isn't far off, Mr Mundine says.

"When I was a kid I never thought I'd see an indigenous doctor, I never thought I'd see Aboriginal lawyers. Never thought I'd see an indigenous judge, but I did," he said.

"I predict that will change in my lifetime."

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Rate cuts due to fiscal policy: Swan

TREASURER Wayne Swan will enjoy the benefit of an interest rate cut as the federal government prepares to make the difficult choices in next week's budget.

But welfare groups have attacked the government for ditching its planned increase to family benefits, while the opposition challenged the treasurer to deliver an honest budget next week after five years of confusion.

The central bank unexpectedly cut the cash rate by 25 basis points to 2.75 per cent at its monthly board meeting on Tuesday, a record low in the cash rate setting era.

"These rates are possible because the government has (had) in place a responsible fiscal policy over the past five and half to six years," Mr Swan told reporters in Canberra.

However, this good news for borrowers came as the government scrapped a planned increase in the Family Tax Benefit Part A.

"This is a difficult decision but a responsible decision given what's happened to revenue," Finance Minister Penny Wong told Sky News.

The rise worth a total of $1.8 billion would have delivered as much as $300 a year for families with one child and $600 for those with two or more children.

Australian Council of Social Services (ACOSS) CEO Cassandra Goldie slammed the decision, saying the government should instead focus on other measures such as the Baby Bonus.

"We understand the current pressures on the budget but quite frankly there are other more important areas where savings can be found rather than going back on a promise that would greatly assist around a million of our nation's lowest earning families," she said.

Australian Greens Leader Christine Milne agreed.

"Why is it that you would protect the mining bosses, the big miners of Australia and not support the most vulnerable and needy in our community?" she said.

The increased benefit was meant to be paid out from revenue from the government's mining tax, but the impost is expected to raise less than half what was forecast in its first year, and is likely to miss annual targets over the forward estimates.

Opposition Leader Tony Abbott said this "rock solid" commitment made in last year's budget had been used as stick to "beat the opposition mercilessly" over family welfare.

"So it didn't survive from one budget to the next, even though it was supposed to be the absolute product of the mining boom, which no longer exists in the same form, thanks in part to the policies of this government," he told reporters in Melbourne.

The family payment boost was promoted by Labor as "spreading the benefits of the mining boom".

Senator Wong also confirmed the revenue drop for this financial year "looks to be in the order of $17 billion", from the forecast in last year's budget.

Shadow treasurer Joe Hockey told a conference in Sydney whatever Mr Swan said on budget night would be "meaningless", given previous forecasts had been wrong and promises made in past budgets had not been met.

"I know I am setting him a ridiculous benchmark but I think we expect honesty," Mr Hockey said.

"Forecasts of revenue and spending must be soundly based and ... there must be no more money shuffling, no more raiding of dividends."

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Abbott rejects Lib attack on leave scheme

The federal opposition is facing questions over its policy on parental leave and workplace reform. Source: AAP

FEDERAL Opposition Leader Tony Abbott won't consider dropping his paid parental leave plan, despite critics in Liberal ranks saying it doesn't give business a fair go.

If the coalition wins government in September, Mr Abbott plans to tax big firms to give mothers six months' parental leave paid at their full salary in his first term.

But two Liberal MPs, Alex Hawke and Dennis Jensen, broke ranks on Monday, saying the proposed 1.5 per cent levy on more than 3000 companies earning net profits of more than $5 million should be dropped.

"The feedback from business groups, from women in the community and from colleagues is that now would be a very good time to revisit this policy with a view to scrapping it before the next election, so we can go to the election without this albatross around the neck of the party," Mr Hawke told ABC radio.

Dr Jensen said the policy should be dumped before the election.

"In my view, yes," the West Australian MP told ABC radio.

"The economic situation at the moment doesn't warrant policies that are going to have potentially negative impacts."

Dr Jensen said it would be a "burden" on business, and some firms could reconsider putting on more workers.

Mr Abbott said Mr Hawke, a NSW MP, was entitled to write his article but the policy would remain.

"It's a very important sign that we get it when it comes to the modern family," he told BayFM radio in Geelong.

Families Minister Jenny Macklin believes the opposition could be laying the groundwork to dump the plan after last week agreeing to back Labor's Medicare levy increase to support disability care.

"Tony Abbott's colleagues are openly admitting that his plan is unfair," she said.

"They know it rewards high-flying bank executives and lawyers."

Ms Macklin also warned Mr Abbott's commitment to dump Labor's annual schoolkids bonus if he became prime minister in September would hurt lower-paid mothers.

Opposition frontbencher Malcolm Turnbull admitted there were differing views within the coalition about the parental leave plan, but the policy would stand.

"Tony is very committed to it," he told ABC Radio.

Senior Liberal MP Jamie Briggs, who holds the family support portfolio, told AAP: "Alex is a good guy, but he is wrong on this."

But former Liberal MP and now independent Peter Slipper, who witnessed the initial heated party room debate on the plan in March 2010, told AAP: "I think Alex is spot on."

Under the coalition plan, a new mum earning $150,000 a year would get six months' replacement salary of $75,000, while low-paid mothers would get 26 weeks' of their more humble earnings.

Labor's scheme, which began in 2011, pays a baby's primary carer the minimum wage, currently $606.50 a week, for 18 weeks.

Australian Chamber of Commerce and Industry chief economist Greg Evans said the chamber had issues with its funding.

"We would prefer to not see a tax impost on business," Mr Evans said.

But feminist Eva Cox supports Mr Abbott's plan.

"It's better than the government's one," she told Sky News.

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NSW developers don't support donations

A GROUP representing developers has distanced itself from suggestions the NSW government could allow them to make political donations again.

Property developers, along with tobacco, gambling and alcohol company directors, were banned from making donations to political parties under laws brought in by Labor before the last NSW election.

A draft report from the government-dominated electoral matters committee reportedly recommends reversing the ban.

The Urban Taskforce, which represents property developers and financiers, says it objects to being put in the same camp as tobacco, gambling and alcohol companies.

"For many years the Urban Taskforce has been against the potential for developers to donate to political parties as this can lead to the appearance of undue influence," Chris Johnson, chief executive of Urban Taskforce, said in a statement on Monday.

Opposition Leader John Robertson described the move as a sneaky attempt to reintroduce donations from developers.

"We need to make sure that the system for donations in this state gives people confidence in the political process," Mr Robertson told reporters on Monday.

"Developers are in a very unique position because a lot of times individuals who are developers benefit from decisions."

Premier Barry O'Farrell said he would wait to see the committee's final report but accused the Labor leader of hypocrisy.

"John Robertson comes to this with dirty hands," he told the ABC.

"(His party) voted against our decision to restrict donations to individuals."

Mr O'Farrell's donation laws in 2011 limited political donations to individuals, in a move widely seen as targeting union donations to the ALP.

Earlier on Monday, Greens MP John Kaye said any reversal on the company director and property developer ban would return NSW to the "bad old days" of policies determined by cash gifts.

The draft report is expected to be released later this week.

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US bill to tax online sales

FOR online shoppers in the US the days of tax-free internet shopping may soon be at an end.

The US Senate is scheduled to vote on Monday on a bill that would empower states to collect sales taxes for purchases made over the internet. The measure is expected to pass because it has already survived three procedural votes. But it faces opposition in the House, where some Republicans regard it as a tax increase. A broad coalition of retailers is lobbying in favour of it.

Under current law, states can only require retailers to collect sales taxes if the store has a physical presence in the state.

That means big retailers with stores all over the country like Walmart, Best Buy and Target collect sales taxes when they sell goods over the internet. But online retailers like eBay and Amazon don't have to collect sales taxes, except in states where they have offices or distribution centres.

As a result, many online sales are tax-free, giving internet retailers an advantage over brick-and-mortar stores.

The bill would empower states to require businesses to collect taxes for products they sell on the internet, in catalogues and through radio and TV ads. Under the legislation, the sales taxes would be sent to the states where a shopper lives.

The measure pits brick-and-mortar stores against online services.

As internet sales have grown, "It's putting pressure on the brick-and-mortar competitors and it's putting pressure on state and local sales tax revenues," said David French, senior vice-president of government relations for the National Retail Federation. "It's time for Congress to create a level playing field so that all retailers are treated fairly."

On the other side, eBay says the bill doesn't do enough to protect small businesses. Businesses with less than $US1 million in online sales would be exempt. EBay wants to exempt businesses with up to $US10 million in sales or fewer than 50 employees.

"Complying and living under the tax laws of 50 states is a major undertaking because the process of complying with tax law goes far beyond just filling out the right forms," said Brian Bieron, eBay's senior director of global public policy.

Supporters say the bill makes it relatively easy for internet retailers to comply. States must provide free computer software to help retailers calculate sales taxes, based on where shoppers live. States must also establish a single entity to receive internet sales tax revenue, so retailers don't have to send them to individual counties or cities.

Opponents say online businesses would still have to use resources to account for the taxes they collect and to periodically send the money to each state.

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US soccer referee punched by player dies

AN amateur league soccer referee who was in a coma after being punched by a teenage player during a game in the US has died.

Ricardo Portillo, 46, died in hospital following the assault during a soccer game in the US state of Utah last weekend, police spokesman Justin Hoyal said.

Police have accused a 17-year-old player of punching Portillo after the referee called a foul on him and issued him a yellow card.

"The suspect was close to Portillo and punched him once in the face as a result of the call," Hoyal said in a press release.

The teen has been booked into juvenile detention on suspicion of aggravated assault.

Hoyal said authorities will consider additional charges since Portillo has died.

The victim's family, who spoke publicly of Portillo's plight last week, has asked for privacy as they deal with his loss, Hoyal said.

Last week, Johana Portillo, 26, spoke about her father's condition. She said she wasn't at the April 27 game, but said she's been told by witnesses and detectives the player hit her father in the side of the head after he issued the yellow card.

"When he was writing down his notes, he just came out of nowhere and punched him," she said.

His friends who were there told Johana her father seemed fine at first, but then asked to be held because he felt dizzy.

They sat him down and he started vomiting blood, prompting his friend to call an ambulance.

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