THE NEWS WRAP: Joe Hockey warns community to prepare for budget cuts

Federal Treasurer Joe Hockey has warned the entire community will have to accept government spending cuts as Australia heads for an economic trough as the budget deficit deepens and federal debt on track to hit $667 billion.

Hockey says harsh measures will be needed to prevent deficits from continuing for a decade, The Australian reports.

“Every area of government expenditure is being examined, not just for its immediate impact, but for its sustainability as well. I think that is a key issue,” Hockey said.

Holden workers to hear assistance package

Prime Minister Tony Abbott is expected to announce an assistance package for Holden workers who face losing their jobs as the car maker prepares to stop production in Australia in 2017, the ABC reports.

It says Abbott has indicated he wants to help workers move into new jobs by focusing on the existing strengths of communities affected by the closure.

The aim will be to reskill and retrain the workers with a view to keeping them in the sector, the ABC reports.

Holden’s decision to quit manufacturing in Australia will see 2900 workers lose their jobs in South Australia and Victoria.

Saputo raises offer for Warrnambool Cheese & Butter

Canadian dairy giant Saputo has raised its offer for takeover target Warrnambool Cheese & Butter, taking the company’s value to as much as $538 million.

The move came after the Takeovers Panel said the offer put in place arrangements that were complex, created uncertainty and “were most undesirable”.

As a result, Saputo added a condition whereby investors would receive $9.40 per share, on the provision it won acceptances of 75%, and $9.60 per share with 90% approval, The Australian reports.

The Dow Jones Industrial Average is down 0.1% at 15,875.26 points while the Australian dollar is at 89 US cents.