Labor is waging a new battle with the states, overriding health budget decisions by directly funding hospitals.
Deal breaker: JULIA Gillard has threatened to abandon her own landmark health reforms before the federal election, escalating a row with the conservative states as they seek more funding for public hospitals from the commonwealth.
Dennis Shanahan writes: THE blame game is back, big time.
Political IED: LABOR is seeking to set a budget time bomb for Tony Abbott by forcing an audit of all parties' policy cost estimates within 30 days after the next election, stepping up the fight over the budget as the government mulls over deep cuts to pay for its promises.
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Cousin Joe: Capital Circle suggests David Speers offer a disclosure every time he interviews Joe Hockey, as it turns out they're related. They'd always suspected they might be distant cousins, due to a substantial Speers limb in the Hockey family tree. Further research revealed their great grandfathers were brothers, sons of one Alexander Samuel Speers, born in Glasgow in 1838. Speers says he won't be going easy on the shadow treasurer even if he is part of the family.
It's on: The newly svelte Hockey has delivered what's believed to be the first political baby kiss of the extended election campaign. And no, we're assured the infant didn't cry. It was Millicent Lane's first outing since being born three weeks ago. Hockey was campaigning in Penrith with candidate Fiona Scott, who hopes to wrest the key western Sydney seat from Assistant Treasurer David Bradbury.
Tough talk: This year's AWU lovefest on the Gold Coast has dragged on longer than Labor's last national conference, and has generated as many headlines. The union's leader Paul Howes has been in a punchy mood, yesterday attacking the "gutless pricks" leaking against the Prime Minister. Thank God the Gillard camp doesn't leak. PS. Call me!
Fact finding: Agrarian Socialist Warren Truss has visited China as a guest of the Chinese Communist Party. The Nationals Leader declared the trip in the register of members' interests. The December 2012 trip was sponsored by the International Department of the Central Committee.
Buck stops here: Here's another Kevin '07 video from the Capital Circle vault that seemed appropriate today. Remember this? Oh, bring him back.
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Today: Julia Gillard is in Melbourne where she'll address the Australian Education Union national conference this afternoon.
Tony Abbott is in Sydney. He has no public events scheduled.
Reserve Bank governor Glenn Stevens will appear before House Economics Committee.
Wayne Swan has spoken at an Australian business economists' breakfast.
NBN CEO Mike Quigley will address an American Chamber of Commerce lunch, in Sydney.
Defence Materiel Organisation chief Warren King will deliver a speech on the organisation's role in supporting the ADF, at the University of Canberra.
The Committee for Economic Development of Australia hosts its annual economic and political overview in Melbourne, with ANZ chief economist Warren Hogan, Sky News political editor David Speers and the Australian Financial Review's Melbourne bureau chief Mathew Dunckley.
The Senate Community Affairs Committee is holding a public hearing in Hobart on the National Disability Insurance Scheme.
The Joint Select Committee on Gambling Reform is holding a public hearing in Canberra on proposed poker machine reforms.
Right-wing Dutch politician Geert Wilders will speak in Sydney.
Chinese labour activists will appear before the Joint Standing Committee on Foreign Affairs, in Sydney.
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Last ditch switch: DISAFFECTED caucus members are pinning their hopes on drafting Kevin Rudd to the Labor leadership as late as June, despite a blistering attack from union boss Paul Howes demanding an end to the internal unrest.
Human shield: AUSTRALIAN Workers Union leader Paul Howes has attacked ALP figures leaking against Julia Gillard, labelling them "gutless pricks".
Friends: The SMH reports the signature Gonski school education package of the Prime Minister, Julia Gillard, is the latest reform area to fall victim to the underperforming mining tax, with the Greens threatening to change a key element unless the tax is fixed.
Data: THE stoush between the federal government and the states was sparked after the Australian Bureau of Statistics changed the way it counted Australian residents.
Free speech: RELIGIOUS organisations running schools, health and aged-care services face losing key exemptions to Labor's new anti-discrimination laws.
Revoked: A COAL company that entered a joint venture with former NSW Labor powerbroker Eddie Obeid and his family looks likely to lose mining rights worth $500 million as a result of sensational evidence presented to the Independent Commission Against Corruption.
Aborted: The Canberra Times reports the ACT trial of precommitment technology for poker machines appears all but dead after ACT clubs voted against starting the pilot until after the September 14 poll date.
Late: The AFR reports labour shortages and poor hiring practices are impacting the construction of Labor's $37.4 billion national broadband network, as the contractors building the network rush to meet crucial rollout targets.
Greenlight for Guy: The Herald Sun reports the president of the Victorian Parliament's Legislative Council has been advised there is no constitutional barrier to a premier being a member of the Upper House.
Cha ching: The Daily Telegraph reports parties are in line for a $28.6 million taxpayer windfall under proposed electoral reforms that will deliver them one dollar for every vote they rack up in a federal poll.
Misery: THE Java-Christmas Island people-smuggling trade is ramping up again, with 452 passengers arriving so far this month and at least another 140 people likely to be on the way.
Can do: The Courier Mail reports Queensland households are set to be stung by a massive double-digit electricity price hike, the biggest increase in years.
Unhappy: The Canberra Times reports Canberra's biggest Liberal Party fund-raiser has been denied a vote in Saturday's federal preselection.
Challenge: CONSTITUTIONAL law experts say the Gillard government's decision to bypass Victoria and directly provide funding to the state's hospitals may end up being tested in the High Court.
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Sean Parnell writes: Labor's agreement with the states was never strong enough to take the politics out of our most emotive public policy issue.
Graham Richardson writes: Julia Gillard should go for the party's sake.
Simon Benson writes: IT'S not easy being the Greens. It's even harder being their friends.
Arthur Sinodinos writes: Wayne Swan is the Mad Hatter of Australian politics and the Red Queen should let him go.
Waleed Aly writes: Australian voters don't know what Labor stands for anymore, and they are giving up on it.
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