Reserve Bank governor Glenn Stevens warned Australian homeowners and home buyers today to prepare for higher interest rates from the current "emergency" lows, as the economy starts to strengthen, The Australian reported. The central bank chief said the global economy was starting to improve, but there were still potential risks which could damage the recovery both in Australia and offshore.

The author of an editorial linking Rio Tinto Group’s actions in China to 700 billion yuan ($102 billion) in excess charges for the steel industry said the article was his own opinion and used previously published data, Bloomberg reported. Jiang Ruqin, an employee with the Jiangsu Province Administration for the Protection of State Secrets, said he has no involvement in a legal case against four Rio employees detained last month, and that no “leaders” assigned him to write the essay or reviewed the piece before publication.

Qantas Airways Ltd. Chief Executive Alan Joyce said he doesn't expect Australia's national carrier to merge with another airline for at least a decade, The Wall Street Journal reported. Mr. Joyce also predicted that at least one competitor will drop out of the cramped Pacific route between Australia and the U.S, and confirmed that Qantas has suspended plans to list its frequent flyer business indefinitely. Merger talks between Qantas and British Airways PLC. fell through last year and Qantas has also held merger discussions with Singapore Airlines Ltd.

The number of companies forced into liquidation jumped by 20 per cent in the 12 months to May, driven by the end of mining and property booms in Queensland and Western Australia, a report shows. The report by insolvency practitioners SV Partners based on Australian Securities and Investments Commission (ASIC) data shows there were 2934 court-ordered liquidations in the year to May 30, up from 2428 in the year to May 2008, The Australian reported on an AAP story.

National Australia Bank Ltd. plans to raise up to 2.75 billion Australian dollars (US$2.24 billion) in fresh capital to help shore up its balance sheet as loans continue to sour, The Wall Street Journal reported. Melbourne-based NAB said that total charges for bad and doubtful debts were A$1.064 billion for the three months ended June 30, as asset quality continued to deteriorate. Bad and doubtful debts for the six months to March 31 came to $A1.8 billion. NAB joins Australia's other major banks in bolstering its capital position as a buffer against deteriorating economic conditions.

Australia's trade minister said on Monday China's detention of Rio Tinto employees would not hurt economic relations if handled properly, but said the case was a signal to everyone looking to invest in China, Reuters reported.

A large dairy in south-east South Australia has gone into receivership with debts of more than A$12 million, ABC News reported. The Carilla dairy in Tintinara operates about 3,000 head of cattle and employs about 18 staff. There is another $2 million that is owed to a group of unsecured creditors. The receiver of the dairy, Martin Lewis, has taken over the property - he said plummeting milk prices have contributed to the collapse. Read more.

A unit of National Australia Bank Ltd. said Thursday it could face a tax bill of up to NZ$654 million plus possible penalties after the nation's High Court ruled against it in relation to a long-running tax dispute. Bank of New Zealand said it is likely to appeal the decision, which relates to amended tax assessments for six structured finance transactions with offshore parties between 1998 and 2005. The amount of tax in dispute totaled NZ$416 million. The bank could also be liable for interest of NZ$238 million as of June 30.

Acting Australia Prime Minister Julia Gillard has condemned the Fair Pay Commission's minimum wage freeze as a “disappointing” decision that will cut real wages for the nation's lowest-paid workers, The Australian reported. The minimum wage remains $564.78 a week, despite unions pushing for a $21 rise. Business groups successfully argued for no rise for 1.3 million low-paid workers, warning it would cost jobs. Ms Gillard said although the Government believed minimum wages should be set by an independent umpire, this time the commission had failed to strike the right balance.

New Zealand-born workers in Australia are among the worst hit by job losses as the global financial crisis bites, new research shows. Research published in The Australian newspaper said the number of New Zealanders employed in Australia's workforce had dropped by 20,800 to 304,100 in the year to May. Full-time New Zealand-born workers across the Tasman dropped by 11,000 to 236,700, while part-time workers dropped by 9800 to 67,400. It increased the rate of unemployed New Zealanders in Australia to 7 percent, up 2.8 percent in the year to May.