THE NEWS WRAP: Julia Gillard rejects suggestions the GST should increase from 10%

Fears that Australians are taking on too much debt have been eased with evidence that the housing market is cooling.

The Reserve Bank of Australia said there are “welcome signs” that the property market was softening, relieving concerns that houses are overpriced.

An overheating housing market is one of the main worries for businesses hoping for a steady economic recovery following the recent downturn.

No GST change

Julia Gillard has rejected a suggestion that the good and services tax should increase from 10%.

The federal opposition agrees with the Prime Minister that GST should be left as it is, despite an International Monetary Fund proposal to raise it.

More woe for Hoges and ex-DJs boss

Paul Hogan may have untangled himself from his row with the tax office, but the Crocodile Dundee star is now facing allegations that money due to investors for the film was diverted to a company that was secretly controlled by him and co-producer John Cornell. 

Another high-profile figure toiling in the public gaze is ex-David Jones CEO Mark McInnes. Documents released by the federal court reveal that McInnes pleaded for “mercy” from Kristy Fraser-Kirk, the former David Jones publicist who has lodged a $47 million sexual harassment claim against him.

Overnight

Wall Street notched up its best quarter of the year, with the S&P and Nasdaq enjoying the biggest gains since April 2009.

News wasn’t quite as good for the Australian dollar, which slipped from an aboveUS97 cent high to US96.69 cents overnight.