Alleged US kidnapper to appear in court

Two of the three Ohio kidnapping victims have been reunited with their families. Source: AAP

THE former US school bus driver charged with holding three young women in captivity and raping them in a decade-long horror is due to appear in an Ohio court on Thursday, three days after their dramatic rescue.

One of the captives gave birth to a daughter during the years they spent confined in the modest home of Ariel Castro, 52.

They were unable to escape until Monday, when Amanda Berry - the mother of the six-year-old girl - managed to scream for help from a neighbour and kicked through front door screen, then used a neighbour's phone to call emergency services.

Berry, 27, and 23-year-old Gina DeJesus were joyously reunited with their families on Wednesday, while Michelle Knight, 32 continues to receive medical treatment.

Police interrogated their alleged captor and searched another house on the same Cleveland street.

Castro is accused of raping all three, city prosecutor Victor Perez said.

He also faces four counts of kidnapping, related to the three women and Berry's daughter Jocelyn, who was born in captivity.

Castro is due in court Thursday for arraignment.

His two brothers are also scheduled to make a court appearance, but on misdemeanour charges unrelated to the kidnappings and rapes, authorities said.

The women are believed to have only been allowed to leave the home briefly on two occasions, both times to go into the house's garage "in disguise", Deputy Police Chief Ed Tomba told reporters.

"They don't believe they've been outside of the home for the last 10 years," he said.

"They were not in one room, but they did know each other and they did know each other was there."

He confirmed that FBI investigators in protective suits had searched another house on the same street, without providing further details.

Tomba said that a paternity test on Ariel Castro was being done to establish who fathered Berry's child.

The police chief refused to comment on reports that Castro had impregnated Knight at least five times and would punch her in the stomach until she miscarried.

Police Chief Michael McGrath earlier told NBC he was "absolutely" sure police did everything they could to find the women over the years.

He disputed claims by neighbours that officers had been called to the house before for suspicious circumstances.

Castro, a former school bus driver whose family hails from Puerto Rico, has been described as a friendly neighbour who raised few suspicions but who also kept to himself, rarely if ever allowing anyone inside his home.

"Ariel kept everybody at a distance," Tomba said. "He ran the show."

Castro was accused in a 2005 family court filing of beating his ex-wife Grimilda Figueroa, who passed away last year, and of "frequently" abducting their two daughters, but he was never charged.

Castro's two brothers - Pedro, 54, and Onil, 50 - were also detained on Monday because they were with Ariel when he was arrested, but will not be charged in connection with the kidnapping.

Tomba refused to discuss specifics of the evidence discovered in the home, but earlier, city police chief Michael McGrath had said the women were "bound and there were chains and ropes in the hall".

Berry arrived on Wednesday at her sister's home in an SUV escorted by police motorcycles and FBI agents.

The porch was bedecked with balloons and messages of support. Well-wishers - and a media scrum - were waiting.

The crowd broke into applause when her sister Beth Serrano came out and made a brief statement thanking residents and asking for privacy.

Later, DeJesus was escorted into her family home by relatives, sheltering under a yellow hooded top but managing to give a weak wave to supporters, who were chanting "Gina, Gina, Gina."

"She's ecstatic to be home, she's happy. Her face, her smile, the hugging says it all," her mother Nancy Ruiz told reporters.

"It's like a dream," Ruiz added. "My first reaction as I saw my daughter, the only thing I did was grab her and hug her. I didn't want to let go."

In newly-released police audio tapes, an emergency dispatcher notifies officers on Monday that she's just spoken to a woman who "says her name is Amanda Berry and that she had been kidnapped 10 years ago".

An officer on the recorded call says, "This might be for real."

After police arrive at the house, women can be heard crying in the background. Then an officer tells the dispatcher: "We found 'em. We found 'em."

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Rio shareholders want bigger dividend

Rio Tinto has copped a serve from its shareholders for what they see as miserly dividend payout. Source: AAP

RIO Tinto has copped a serve from its shareholders for what they see as miserly dividend payouts from the mining giant.

Richard Giles from the Australian Shareholders Association told Rio Tinto's annual general meeting in Sydney that his members thought the miner should be paying much higher dividends.

"We believe that you should be moving to a more traditional dividend policy whereby you pay out 60, 70 or 80 per cent of the profits you earn every year as opposed to your so-called progressive policy which over the last five years had paid out only 20 per cent of profits as dividends," he said.

"I think it's pretty clear from the media that this is what shareholders want."

But chairman Jan Du Plessis said the company had recently reassessed its dividend policy and decided to stay with the one it had had for a number of years.

"We believe that's right and its also the policy of all the major mining companies," he said.

Mr Giles also said Rio Tinto had built up billions in franking credits and could use them to pay its Australian shareholders.

"Because your Australian operations are so successful relative to the rest of the world, there's a huge built-up surplus of franking credits," he said.

"And I believe that a higher dividend policy would contain that but in addition given the size of the surplus I think the company has an obligation to do something about it for Australian shareholders."

But Mr Du Plessis said if the company used its franking credits to pay shareholders, it would not have enough money to reinvest in the company.

He also said the payout would have to be to all shareholders.

"I guess if we sold all our assets and gave it to shareholders we could do that," he said.

"Shareholders need to understood that it is what it is. It doesn't belong to shareholders."

Rio Tinto chief executive Sam Walsh said the company was continuing to work on divesting non-core assets as it strives to save $US5 billion ($A4.94 billion) over the next two years.

He said they were currently reviewing a number of non core assets, in addition to those already targeted for divestment such as Pacific Aluminium and Diamonds.

However, he was quick to point out that the main parts of the business would not be touched.

"It is not a fire sale," he said.

Mr Walsh also said that state and federal governments needed to ensure they had business-friendly policies to maintain Australia's competitive position.

He said the recent decision of the NSW Land and Environmental Court to overturn the approval of its Mount Thorley Warkworth Mine extension was an example of where an Australian business had potentially been compromised.

At 1425 Rio Tinto shares were down 64 cents, or 1.09 per cent, to $58.26.

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East West Link is a con: Vic opposition

The Victorian treasurer says the government won't fund the entire cost of the East West Link road. Source: AAP

VICTORIANS won't be able to use the East West Link tunnel to drive to work for decades, the opposition says.

The state government has pledged almost $300 million for the $6-8 billion East West Link and says the federal government could jeopardise the project if it refuses to contribute $1.5 billion to the toll road.

In his budget reply speech, shadow treasurer Tim Pallas said the government's 2013/14 budget was based on funding of less than four per cent for a toll road.

"Let me tell you something: you don't drive to work on a procurement plan," Mr Pallas told parliament on Thursday.

"And that's all this is - that's the big con in this heartless budget."

Mr Pallas ridiculed the government's plan for the road saying at this rate Victorians won't be able to use the link until 2067.

"That's five years after the Jetsons perfected flying cars," he said.

Mr Pallas said Labor believed in a reliable health system and a strong education system.

Treasurer Michael O'Brien continued to spruik the budget on Thursday, saying the state won't fund the entire cost of the road link because it cannot afford to lose its AAA credit rating.

He said if the state lost its AAA rating, it would increase the cost of borrowing money for other projects and would mean less money is available for yearly spending.

"If it's the old argument of, you've got AAA rating so why don't you borrow your head off, well the fact is if you borrow your head off you won't keep your AAA rating," he told ABC radio.

"And we need to keep that AAA rating because otherwise the interest costs we will be paying on our borrowings will be much higher."

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Bangladesh building death toll passes 750

The death toll from the collapsed Bangladesh factory has passed 750 after more bodies were found. Source: AAP

THE death toll from the collapse of a garment factory complex in Bangladesh has passed 750 after a dozen more bodies were found in the rubble, a fortnight after the disaster.

Army spokesman Lieutenant Mir Rabbi on Wednesday told AFP the "toll now stands at 752" but a general overseeing the operation warned it was likely to rise further.

More than 3000 garment workers were on shift at the Rana Plaza complex at the time of the collapse on the morning of April 24, making clothing for Western retailers such as Britain's Primark and the Spanish label Mango.

Officials overseeing the disaster operation have said a total of 2437 people have been rescued from the ruins of the building which housed a total of five garment factories in the town of Savar, a suburb of the capital Dhaka.

Brigadier General Siddiqul Alam Sikder told AFP the cranes and bulldozers were clearing debris on the third floor and the stench of bodies trapped in the lower floors and under the beams suggest the toll would rise.

"We're expecting to find some bodies because we still haven't reached the bottom. We've finished around 70 per cent of the job," he said.

Fearful that Western brands may turn their backs on Bangladesh, the government has announced a high-level panel to inspect thousands of garment factories for building flaws.

The April 24 collapse was the latest in a string of deadly accidents, including a factory fire last November that killed 111 garment workers.

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Stolen Generation art returns to Perth

Artwork by members of the Stolen Generation will be returned to a WA university from New York. Source: AAP

ABORIGINAL artworks created by members of the Stolen Generation are returning home from a New York university which has possessed the historic Australian art for almost 50 years.

Colgate University will transfer to Western Australia's Curtin University 119 indigenous artworks, including drawings and paintings created by Noongar children between 1945 and 1951 at the Carrolup Native School and Settlement in the state's Great Southern region.

The artwork attracted international news coverage in 2005 when it was exhibited in Colgate's Picker Art Gallery.

A painting by Reynold Hart called Hunting was presented to Curtin at a ceremony in Perth on Wednesday to symbolise the future transfer of the full collection.

The art pieces were given to Colgate in 1966 by alumnus Herbert Mayer, a famous New York collector.

He purchased the works from Florence Rutter, a major benefactor to the Carrolup School.

The artwork features native landscape, bush scenes, animals, hunting and traditional Noongar cultural activities.

The collection has been, and will remain, part of a joint study between Curtin and Colgate.

Over the past eight years, many Colgate students have travelled to WA to visit the Mungart Boodja Art Centre and the John Curtin Gallery to learn about Noongar art and culture.

Colgate professor Ellen Percy Kraly initiated the artwork transfer more than a year ago and said the relocation of the art would allow its conservation and exhibition for future generations of Noongar people.

"The work has so much meaning in country that it deserves to be within the hearts, souls, and eyes of the people," she said.

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Gillard to visit PNG

Julia Gillard will meet with her PNG counterpart Peter O'Neill (L) during her visit to Port Moresby. Source: AAP

PRIME Minister Julia Gillard is expected to touch down in Papua New Guinea on Thursday afternoon, marking her first official trip to the Pacific Island nation.

In a visit lasting just under 48 hours, Ms Gillard is expected to meet with her PNG counterpart Peter O'Neill, his cabinet, and the opposition leader Belden Namah.

Ms Gillard and Mr O'Neill are expected to canvass a raft of issues during the visit.

Trade and enhanced defence cooperation will be the topics for the meetings, with PNG expected to raise concerns about visa processing for Papua New Guineans travelling to Australia.

PNG is also expected to seek Australia's help in boosting relations with Asia, as well as seeking Australia's help to host APEC in 2018.

"We are requesting (Australia) to assist us in using their experience when they hosted the meeting in Sydney, Mr O'Neill recently told Radio Australia.

"They would see what sort of issues they had to deal with when they hosted the event, so yes we are communicating with the Australian prime minister on that."

There is about $7 billion in annual trade between the two nations, while Australia also spends roughly $500 million a year in official aid to PNG.

The controversial Australian-run asylum seeker detention centre on Manus Island may also be discussed, with its legality currently before PNG's courts.

Ms Gillard is among a number of recent high-profile international visitors to PNG, which this time last year was crawling out of a political crisis sparked by the surprise elevation of Mr O'Neill to the prime ministership in mid-2011.

The mid-2012 election put the lid on the political turmoil and gave Mr O'Neill a massive parliamentary majority.

Since the polls, PNG has played host to Prince Charles, Thai Prime Minister Yingluck Shinawatra and Fijian dictator Frank Bainimarama, as well as a raft of Australian ministerial visits.

On Friday, Ms Gillard is expected to tour a Port Moresby market and a local primary school, and visit part of the $19 billion Exxon Mobil-led Liquefied Natural Gas project.

She will meet with business leaders while in Port Moresby, and attend a state dinner in the nation's parliament.

On Saturday she will visit Bomana War Cemetery before departing for Australia.

The last serving Australian prime minister to visit PNG was Kevin Rudd, who included Australia's closest neighbour amongst his first overseas trips after being elected in 2007.

Queensland Premier Campbell Newman is expected to visit Port Moresby next week.

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Australia among best places to be a mum

AUSTRALIA is the tenth best country in the world to be a mother, according to a new global survey by Save the Children.

Ahead of Mother's Day on Sunday, the charity listed the best and worst places to be a mother on the planet, based on an assessment of well-being using indicators including maternal health, under-five-years mortality, levels of women's education, income, and political status.

Nordic nations sweep the top spots while countries in sub-Saharan Africa take up each of the bottom ten places in the annual index.

The Democratic Republic of the Congo (DRC) is the world's toughest place to be a mother - and Finland the best.

Australia ranks tenth, New Zealand 17th - down from fourth last year - the UK 23rd and the United States 30th, behind the likes of Belarus and Israel.

Justin Forsyth, chief executive of Save the Children, said two major global challenges faced mothers - newborn health and malnutrition.

"We can end child and maternal mortality in our generation by using tried and tested interventions to stop mothers and babies being lost from what should be simple preventable causes," Mr Forsyth said.

According to the statistics, women in the UK are at a higher risk of dying during pregnancy or childbirth than women in Slovakia, Montenegro and Lithuania.

And a newborn in Somalia, the most risky country to be born, is 40 times more likely to die on its first day than a child born in Luxembourg, the safest place to come into the world.

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Vic govt to rein in spending for surpluses

Victoria is expecting a budget surplus of $224.5m in 2013/14, growing to about $2.55bn in 2016/17. Source: AAP

VICTORIA'S forecast of growing budget surpluses over the next four financial years will be based upon a tight rein on spending.

The Napthine government says the budget surpluses will enable it to fund major infrastructure projects such as the East West road link in Melbourne without blowing out the state's debt.

The Napthine government expects a budget surplus of $224.5 million in 2013/14, growing to about $2.55 billion in 2016/17.

In its budget papers released on Tuesday, the government said expenditure growth over the next four financial years would average 2.7 per cent each year compared to forecast revenue growth averaging 4.1 per cent each year.

The government expects to keep growth in employee expenses, which will account for 41 per cent of annual government expenses in 2013/14, at 2.4 per cent in 2013/14 and at an average of 3.0 per cent over the following three years.

Among the initiatives to save money, the state government will redirect the first home owner grant to new homes only and cap gas and electricity concessions.

The government will spend $6.1 billion on infrastructure in 2013/14 and average $4.7 billion on infrastructure spending over the next three years.

Infrastructure investment is expected to be fully funded from the surpluses by 2015/16.

Delivering his first budget, Victorian Treasurer Michael O'Brien says the budget is building for growth amid difficult economic conditions around the nation.

He says state governments and the federal government are bleeding red ink, piling up massive deficits and letting spending get out of control.

"That is not the story of the Victorian budget," Mr O'Brien said.

"4.1 per cent average revenue growth, 2.7 per cent average expenditure growth - that's how you manage your budget."

Mr O'Brien said the budget was based upon a growing economy, falling unemployment, growing surpluses and major new infrastructure for Victoria.

Growth in state revenues was not expected to return to levels seen before the global financial crisis, so growth estimates over the next four years were conservative.

State taxation revenue was expected to grow by 5.3 per cent in 2013/14, driven by growth in payroll tax generated by higher employment, and more land transfer duty generated by an improvement in the Victorian property market.

Mr O'Brien said state revenues had been affected by lower GST (goods and services tax) from the federal government, and GST revenue was projected to grow by 2.5 per cent in 2013/14.

But it was projected to increase by an average of 6.5 per cent per year over the following three years.

Victoria's net debt is forecast to be at 6.4 per cent of gross state product in 2013/14, falling to 5.4 per cent by 2016/17.

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Lies and phone tapes at the ICAC

Former union boss John Maitland had a bad start to his day before the ICAC after being caught lying. Source: AAP

FORMER union boss John Maitland had a shaky first day at a NSW corruption inquiry being grilled about his allegedly close ties with a former mining minister and being caught lying about what he'd told another associate.

The former head of the Construction Forestry Mining and Energy Union (CFMEU) admitted he'd been caught out when a secret phone recording was played at Tuesday's hearing of the Independent Commission Against Corruption inquiry (ICAC).

In it, he is heard talking to his friend Archibald Tudehope about a private examination by ICAC.

Before the tape was played, the one-time mining union heavyweight was asked repeatedly whether he had ever lied to the inquiry and if he understood he must not discuss private evidence with others.

He said each time he had always been truthful.

"You were telling him in some detail what had been raised with you by me in that examination," ICAC lawyer Peter Braham said.

"It certainly appears so," Mr Maitland said.

"And you've lied about that fact this morning, haven't you?" Mr Braham asked.

Mr Maitland replied: "It appears so."

ICAC is probing a coal exploration licence at Doyles Creek in the Hunter Valley granted by then NSW mining minister Ian Macdonald to Mr Maitland and his associates in December 2008 without a competitive tender.

That licence allegedly turned Mr Maitland's $165,000 investment into about $15 million when it was sold.

Mr Maitland's rough start in the witness box came after he'd spent more than an hour denying that he had been close friends with the disgraced minister.

He said Labor MPs Luke Foley, Doug Cameron and former NSW Premier Nathan Rees were all wrong to suggest to the inquiry he and Mr Macdonald had shared a close friendship since the 1990s.

"We had a good working relationship," Mr Maitland said.

But when the subject of his retirement dinner, which Mr Macdonald was supposed to host, was raised at the hearing, Mr Maitland said the then minister never showed up.

"If he was me mate, he would have showed up," he said.

In the last few minutes of the day's hearing, Mr Maitland admitted Mr Macdonald had supported his idea of a training mine before any details of the proposal was provided.

"His support was of the idea," he said.

The proposed training mine was used for commercial proposes and made the investors millions.

The hearing also heard about a meal the pair had at Sydney's high-end Prime restaurant in which Mr Maitland admitted lobbying the minister for the licence but once again denied using his friendship with the minister.

The hearing, before Commissioner David Ipp, continues.

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MRRT should be scrapped: coalition

New calculations on the mining tax say it will raise $5 billion less than the government predicted. Source: AAP

A COALITION-LED parliamentary committee recommends the mining tax be scrapped and blames Prime Minister Julia Gillard and Treasurer Wayne Swan for the poor design of the impost.

But a dissenting report from Labor senators says the inquiry into the first six months' operation of the minerals resource rent tax (MRRT) was done in haste and the final report read like a submission from the Minerals Council of Australia (MCA).

The Senate Economics References Committee released on Monday its report on the development and operation of the MRRT, with four coalition members out of nine slamming the government for the tax.

"The overwhelming evidence received by this inquiry confirms that the prime minister and the treasurer have only got themselves to blame for the mining tax fiasco in general and the massive budget black hole from the MRRT in particular," committee chair and Liberal senator David Bushby said.

Senator Bushby said the committee's considered view was Labor knew it had overestimated revenue from the tax and underestimated the impact of concessions during negotiations with big miners BHP Billiton, Rio Tinto and Xstrata in 2010.

The design of the MRRT was mainly to blame for the huge revenue shortfall against the estimates of Treasury, he added.

The Parliamentary Budget Office on Monday projected the MRRT would raise $800 million in 2012/13 - less than half the $2 billion forecast by Treasury and after the impost produced just $126 million in its first six months.

"The committee remains strongly of the view that the MRRT is beyond repair and should be scrapped," Senator Bushby said.

Deputy chair Mark Bishop said the majority report was an intensely political document and it did not reflect the facts presented to the committee.

"The majority report was designed in haste, drafted in isolation, inconsistent with the evidence, flawed in approach and unhelpful to any serious players in the mining industry," the West Australian Liberal senator said.

NSW Labor senator Doug Cameron said the coalition senators had accepted with little scrutiny the submissions of the Minerals Council and mining companies.

The Australian Greens in their dissenting report called for the government to raise the tax rate to 40 per cent, from 30 per cent, plug loopholes and expand it to all minerals, rather than just iron ore and coal.

If that was done, the PBO estimates the tax would raise $26.2 billion between 2013/14 and 2016/17.

The softer forecast puts another dent in Mr Swan's revenues, which are already under pressure from the high Australian dollar and lower company tax takings, ahead of the May 14 budget.

"The treasurer will update all forecasts on budget night in the usual way," Mr Swan's spokeswoman told AAP.

Minerals Council of Australia chief Mitch Hooke wasn't surprised by the PBO estimates because of the impact of the high dollar and lower commodity prices.

"As for the Greens' position, well I'm getting a bit jack of this," he told ABC radio.

"You can't get tax out of profits if the profits aren't there."

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Tabcorp, Tatts say pokies levy too much

Tatts Group says the Victorian government is charging them on poker machines they no longer operate. Source: AAP

GAMBLING firms Tatts Group and Tabcorp say the Victorian government is charging them an exorbitant levy on poker machines that they no longer operate.

Tatts said on Monday that it had received a letter from the Victorian Treasurer advising it that it must pay a health benefit levy of $42.6 million in respect of gaming operations conducted by Tatts in Victoria over the 2012/13 financial year.

Tabcorp has received a letter asking for $42.0 million. However, the racing industry will be charged 25 per cent of that because Tabcorp operated its gaming machines as a joint venture with the racing industry.

The health benefit levy was introduced by the Victorian government in July 2000 and applied to poker machines operated in Victoria, to help fund hospitals and charities.

But both Tatts and Tabcorp lost their duopoly to operate poker machines operated outside of Melbourne's Crown casino, on August 15, 2012.

Tatts and Tabcorp said that as a result of the expiry of their Victorian gaming operator's licence on August 15, their gaming operations in Victoria were limited to 46 days.

During this period, Tatts' gaming operations under the licence generated earnings before interest, tax and depreciation of about $29 million - much less than the amount of the levy sought by the Victorian government.

"Tatts strongly disputes the reasonableness of the determination made by the Treasurer and its legal sustainability," Tatts said in a statement on Monday.

The company said it would also rely on an indemnity granted by Victoria in 2009 in consideration of Tatts consenting to an extension of its licence (from April 14, 2012 to August 15, 2012).

"Tatts would like to think that a dialogue with the Victorian government will result in a common sense outcome in relation to this matter, however in the absence of this will take all steps necessary to protect its legal position," Tatts said.

Tabcorp said on Monday the amount that it had ben asked for was contrary to its expectations.

The company said the Victorian government's 2012/13 budget papers had included an amount in line with a pro rata calculation referable to 46 days of poker machine operations.

"The levy has not been applied pro rata and it does not reflect that Tabcorp ceased to operate gaming machines on August 15, 2012 when its gaming licence expired," Tabcorp said.

"Tabcorp is considering whether to commence legal proceedings to ensure the levy is applied on a pro rata basis."

A spokesperson for Victorian Treasurer Michael O'Brien was not immediately available for comment.

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Challenge to Aust plain package tobacco

CUBA has become the latest country to launch a legal attack on Australia's landmark plain packaging rules for tobacco at the World Trade Organisation, the global body says.

The WTO said that Cuba had requested consultations with Australia on law requiring tobacco products to be sold in identical, olive-brown boxes bearing the same typeface and health warnings with graphic images of diseased smokers.

Under the 159-nation WTO's rules, requesting consultations is the first step in an often complex trade dispute settlement process which can last for several years.

Given that the legislation covers all tobacco products, not just cigarettes, it has already been challenged at the WTO by Cuba's fellow cigar-producing nations Honduras and the Dominican Republic.

In addition, Ukraine has filed a suit at the Geneva-based body, which oversees its member nations' respect for the rules of global commerce.

All the plaintiff countries maintain that Australia's packaging law breaches international trade rules and intellectual property rights.

In the event that the WTO's disputes settlement body finds in their favour, it would have the power to authorise retaliatory trade measures against Australia if the country failed to fall into line.

The dispute with Australia marks the first-ever challenge by Cuba against a fellow member since it joined the global body in April 1995, four months after the WTO was founded in its current form.

Australia's pioneering legislation - passed in 2011 and brought into force last December - has won wide praise from health organisations which are trying to curb smoking.

The Australian government has faced a string of court challenges from tobacco firms.

Besides trade and intellectual property concerns, tobacco companies say there is no proof that plain packaging reduces smoking and have warned that the law sets a precedent that could spread to products such as alcohol.

New Zealand has announced plans to bring in its own plain packaging law this year, making it only the second country in the world to do so.

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Israeli warplanes strike Syria

ISRAEL has carried out a rocket attack on the Jamraya scientific research centre in Damascus, the official Syrian news agency SANA says.

The agency did not say whether there were any wounded or dead.

A newsflash on Syria's state satellite channel said: "The latest Israeli attack is an attempt to raise the morale of the terrorist groups, which are tottering before the blows of our heroic army on Syrian territory."

Doha-based satellite channel Al-Jazeera reported that the explosion in the suburb of Jimrayya hit camps of the elite Fourth Division and Republican Guard as well as the research institute.

The opposition Syrian Observatory for Human Rights said: "Citizens in the suburb of Qudsaya have confirmed that they saw aeroplanes at the time of the explosions that shook the scientific research centre and munitions depots in the Jimrayya and al-Hammeh districts."

The Republican Guard and Fourth Division are key loyalist forces that have long been concentrated in positions around the capital to protect the regime against potential coups.

If confirmed, the attack would be Israel's second this week against Syria. US media reports say Israel targeted a weapons shipment to the militant group Hezbollah in neighbouring Lebanon overnight Thursday to Friday, but the Jewish state has refused to confirm or deny the bombing.

A diplomatic source in Lebanon told AFP the operation destroyed surface-to-air missiles recently delivered by Russia that were being stored at Damascus airport.

Israel implicitly confirmed it staged an air strike on Syria in late January as President Bashar al-Assad accused the Jewish state of trying to further destabilise his war-torn country.

That air strike targeted surface-to-air missiles and an adjacent military complex believed to house chemical agents, a US official said at the time.

Damascus threatened to retaliate, further fuelling fears of a regional spillover of a civil war the UN says has left at least 70,000 people dead since March 2011.

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Majority back disability levy - and Abbott

MORE than 50 per cent of Australians support increasing the Medicare levy to pay for the government's disability care reforms.

But in a blow to Prime Minister Julia Gillard, a Seven News/ReachTEL poll has found about 41 per cent are less likely to vote Labor because of the announcement.

A day after Victoria became the fourth state to sign up to the scheme, Ms Gillard said her government would "keep working hard" to make DisabilityCare Australia truly national.

"I think the momentum is with us now to get this as the national scheme and I'll keep talking to the premiers of Queensland and Western Australia, and of course the chief minister in the Northern Territory ... to try and get agreement around the nation," Ms Gillard told ABC television.

The Seven News poll released on Sunday night revealed 52.5 per cent backed increasing the levy by half a percentage point, with 33.5 per cent opposed and 14 per cent undecided.

Of the 2856 people polled, 26.4 said the announcement made them more likely to vote Labor, while 41.2 said it would make them less likely to back the government.

And despite her key role in pushing through the reforms, only 42.7 per cent said they trusted Ms Gillard to best deliver the disability scheme.

Opposition Leader Tony Abbott had the trust of 57.3 per cent.

Ms Gillard last week announced an increase in the Medicare levy to two per cent, to raise $3.2 billion of the $8 billion needed each year for the reforms.

On Sunday she said the levy increase should be permanent, and not scrapped when the budget returned to surplus.

"I think this needs to be there as a funding source for all of time," she told ABC television.

"I think it is fair to say to Australians that you will be asked for a little bit more in order to fund something that we all benefit from."

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Vic budget boost for Frankston train line

Victorian Premier Denis Napthine will announce a cash injection for the Frankston train line. Source: AAP

THE Victorian government has announced a $100 million boost to Melbourne's busiest rail services while warning the upcoming state budget will be a tough one.

Premier Denis Napthine announced the cash injection for the southeastern Frankston line, which carries about 60,000 people every weekday, as part of Tuesday's 2013-14 state budget.

He said the government was building for growth despite falling GST revenues from the federal government.

"We are managing the budget in difficult, challenging times, in times where we have a reduction in GST revenues," he told reporters.

"But at the same time doing it in a responsible, economic manner and that's what you'll see in the budget on Tuesday."

The extra money announced on Sunday would pay for track, signalling and power upgrades and allow the line to accommodate the newer X'Trapolis trains, Dr Napthine said.

He brushed off suggestions the boost was aimed at politically important seats on the line.

"Investing $100 million in the Frankston line will certainly show we care about people along the Frankston line," he said.

"Everybody who uses the metro rail system is important to us as a government."

Poor service on the Frankston line was a key issue in the 2010 election, with a swathe of seats along the line, including Bentleigh, Mordialloc and Carrum, switching from Labor to the coalition.

Dr Napthine also announced a funding injection of $224 million for disability support in the budget, which will take annual disability funding to $1.6 billion.

The funding provides $107 million for 720 new Individual Support Packages for people with high support needs, which will be partly funded by increased lodging fees for government-run disability accommodation.

The announcement comes after Victoria became the fourth state to sign up to the national disability care scheme on Saturday, agreeing to a statewide disability care program by the end of the decade.

The state government also announced budget funding on Sunday to buy land for a new primary school in Melbourne's south.

Education Minister Martin Dixon said the Ferrars Street school in South Melbourne would cater to the area's fast-growing population.

A spokesman for Mr Dixon said the government had not released the funding amount as negotiations were continuing over the sale.

The money comes on top of $11.5 million announced on Saturday for the first stage of a high school in Melbourne's outer north.

Last week the government announced three new schools would be built in growth areas in the city's west.

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