Cop in Milne case biased, court told

Lawyers for Stephen Milne have accused an ex-detective of being prejudice in his investigation. Source: AAP

LAWYERS for Stephen Milne have accused an ex-detective of being prejudiced in his investigation of rape claims against the former AFL player.

Former detective Scott Gladman denies the claims.

Milne, 33, has been charged with four counts of rape over an alleged incident at the Highett home of his former St Kilda teammate Leigh Montagna.

Despite the alleged incident occurring in March 2004, charges were only laid in June after a police review, and chief commissioner Ken Lay has said the initial investigation was inadequate.

At Milne's committal hearing on Thursday, defence barrister Philip Dunn QC said Mr Gladman was a prejudiced and mean-minded investigator.

Mr Dunn told Melbourne Magistrates Court Mr Gladman had wanted to be a "white knight" for the alleged victim.

Mr Gladman rejected that, and any claims of bias.

"Theatre, pure theatre; a complete fantasy," Mr Gladman replied via video link from Panama.

"I resent being called a white knight."

Mr Dunn accused Mr Gladman of ignoring key evidence that tended to exonerate Milne, which Mr Gladman also rejected.

"Absolute and total rubbish," Mr Gladman replied.

He denied making up an allegation that Milne had referred to "footy sluts" as he was being fingerprinted.

Mr Gladman said there was an incorrect perception that he was out to get Milne and had always believed he was guilty.

The hearing has previously been told Milne repeatedly tried to have sex with the woman, despite her objections, and that she initially thought he was Mr Montagna.

The hearing continues.

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Govt refuses call for RBA papers

THE Abbott government has refused to produce documentation about its decision to give $8.8 billion to the RBA's Reserve Fund, saying it would breach cabinet confidentiality.

Labor's Doug Cameron earlier this week called for the production of all documents and communication relating to the one-off grant, which Treasurer Joe Hockey said was needed to buffer the central bank against economic volatility.

But in a letter tabled in the Senate on Thursday, Assistant Treasurer Arthur Sinodinos knocked back the request, in recognition of the public interest in maintaining the confidentiality of the deliberative process of Cabinet.

"The 'decision' referred to in the Order was a decision of the Cabinet, and the various categories of documents listed relate directly to that Cabinet decision," Mr Sinodinos said in the letter.

Labor has accused Mr Hockey of playing politics with the RBA, after the treasurer accused the former government of refusing an RBA request for more funding.

Speaking in parliament, shadow treasurer Chris Bowen asked what Mr Hockey had to hide.

"You say the Reserve Bank asked for $8.8 billion this year. Well, show us the request," Mr Bowen said.

"The Reserve Bank transfer of $8.8 billion, of course, increases this year's deficit by that amount.

"Not only has the Treasurer declined to outlined the reasons for that, he has outright refused to release the documentation in breach of an order of one of the houses of the Australian parliament."

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Vic parly shut down in day of drama

Speaker Ken Smith has suspended the Victorian parliament amid calls for his resignation. Source: AAP

THE Victorian government and opposition are pointing the finger at each other after parliament was shut down in uproar, sitting for just nine minutes.

The drama unfolded when Labor repeatedly questioned Speaker Ken Smith about his support on the floor and Mr Smith accused Labor leader Daniel Andrews of "appalling" behaviour.

Labor wanted a vote to test Mr Smith's support on the floor, but after suspending parliament twice on Thursday, Mr Smith reconvened the house a third time for just a minute, only to shut it down again until the next sitting day on November 26.

Premier Denis Napthine blamed Labor for a deliberate campaign of disruption, saying the stunt cost $1 million in taxpayer funds.

"What we've seen today is parliament at its worst," he told reporters.

"It is a disgrace and Daniel Andrews ought to have a good hard look at himself.

"This was a deliberate tactic of disruption, petulance and absolutely appalling childish behaviour."

But Mr Andrews says the premier is blaming everyone else but his government for parliament shutting down.

"The shrill and angry and frankly desperate attempts of Denis Napthine to blame everyone else just doesn't cut it," Mr Andrews told reporters.

"This government is out of control. This government is an embarrassment."

The Labor opposition has been questioning Mr Smith's authority and called for him to resign, saying he is biased and does not enjoy the confidence of most of the lower house.

The move came after former Liberal turned independent MP Geoff Shaw, who holds the balance of power in the lower house, sided with Labor to stall government business on Tuesday and express no confidence in the Speaker.

Dr Napthine stood by Mr Smith, saying he understands why he may have taken the decision to suspend parliament.

He also refused to blame Mr Shaw for the affair, only saying by voting against the government business program earlier in the week, he allowed the "childish, immature irresponsible behaviour of the Labor Party to fester".

Dr Napthine said he expected a vote against the business program will not occur again.

But Labor says a lack of confidence in the Speaker will not change.

"Mr Smith has done everything, Mr Napthine has everything, to avoid having that vote because they know the Speaker does not have a majority of support on the floor of the parliament," Mr Andrews said.

The events led to only one of seven bills slated to go before the lower house this week being passed.

Health Minister David Davis has accused Labor of "bastardry" and using political tactics for failing to support five bills before the legislative council on Thursday evening.

The bills were introduced into the upper house late in the day after they did not pass the lower house due to the suspended proceedings.

They were due to go before the legislative council before 6pm but were not passed.

"The government sought to introduce five bills into the legislative council but these were blocked by Labor," Mr Davis said.

"This points directly to their agenda."

Leader of the opposition in the legislative council John Lenders said the premier had lost control of parliament.

"This is a desperate attempt by Denis Napthine to draw attention away from the fact that his government is paralysed," Mr Lenders said.

"No last minute desperate stunts will hide the fact that Denis Napthine has lost control of the parliament."

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Six soldiers booted for demeaning women

DEFENCE has booted out six soldiers for their part in the so-called "Jedi Council", an informal ring that shared offensive material including vision of secretly filmed sex acts.

Another seven may be sacked.

Army chief Lieutenant General David Morrison said their services had been terminated for production or distribution of highly inappropriate material demeaning women - and the message was clear.

"If you engage in misconduct, or you fail to uphold the army's standards, then you will be held to account," he said in a statement.

The "Jedi Council" scandal emerged in June when it was revealed a group of about 100 people, mostly soldiers, had been exchanging offensive material on the Defence computer system and the internet.

The group was allegedly co-founded by a former commando reservist officer who emailed video of himself having sex with a woman to associates on the network.

Up to 60 Defence personnel viewed the imagery, commenting on her appearance and performance.

Police identified several female victims of the "Jedi Council", variously referred to as "married moll number five" or "virgin moll". The group made references to gang-bangs and demands for more images.

Group members also allegedly exchanged images of women accompanied by offensive commentary, digitally altered images and images of naked women.

Of the six now discharged - ranging in rank from sergeant to major and from regular army and reserve units - NSW police are still investigating three who might face civil charges.

Another 11 have been implicated and Defence is considering whether to sack seven. The other four have faced, or will face, internal action.

General Morrison said Defence had concluded investigations into another 172 mostly army members identified as peripheral to the group's email exchanges. They too may face internal action.

"The Australian Army is overwhelmingly an organisation of 44,000 talented and professional men and women, who serve their country with pride and distinction," he said on Thursday.

"The standard of behaviour we expect of our serving members is clear."

He revealed on Thursday that 122 army members had been sacked this year.

That includes 15 officers and 35 soldiers for misconduct or unacceptable behaviour, one officer and 52 soldiers in relation to drugs and 19 soldiers for civilian offences.

"Where any serious case of misconduct or unacceptable behaviour is proven, the Chief of Army is resolved to take every step available to remove the individual responsible from the army," Defence said in a statement.

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New MPs look to history for inspiration

NEW MPs in Australia's 44th parliament have taken inspiration from history as they made their first speeches in the House of Representatives.

New Liberal MP Sarah Henderson, a former ABC television journalist, pointed to lessons from the first women in the House of Representatives, Dame Enid Lyons, while Labor's Jim Chalmers, who was an adviser to former treasurer Wayne Swan, said he was inspired by former prime minister Paul Keating.

A total of 42 new MPs will make their first speeches in the House of Representatives over the coming months.

Ms Henderson, the new Liberal member for the Victorian seat of Corangamite, pledged to be a strong, local voice for her constituents.

She was inspired to study law and eventually enter politics by Lyons, who won a seat in parliament in 1943 and after the death of her husband, former prime minister Joseph Lyons.

The first female member of the House of Representatives might have made history but she never made an issue of her gender, Ms Henderson said.

That example should inspire the government and parliament to fight discrimination everywhere.

"Let us ensure that we are a country where equality knows no bounds," she said.

Mr Chalmers was inspired to join the Labor Party when the Keating government was thrown out of office in 1996.

The new Labor MP for the Queensland seat of Rankin said he turned 18 the day Keating lost power.

"I won't claim to remember much about the late evening of 2 March 1996. But I do recall that election being a formative experience," Mr Chalmers said.

"It helped me decide I wanted to be part of a vision like Keating's: bold, progressive and exciting.

"He championed the economic vision, Asian integration, and republicanism that I admired."

Former Senator and now MP for the Sydney seat of Kingsford Smith, Matt Thistlethwaite, used his first speech in the lower house to focus on history, the arrival of the First Fleet and French explorers, and World War One veterans who settled in his beachside electorate.

He then went on to urge Australians to change the constitution to recognise the contribution of Aborigines and Torres Strait Islanders, and to become a republic.

"I despair that my two daughters, or any other Australian child, cannot aspire to one day be our nation's head of state," Mr Thistlethwaite said.

"As a parliament and a nation, we must begin to again discuss our identity and our constitutional arrangements.

"I hope that in my time in this place, we see our nation fully recognise our maturity and become a republic."

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Christine Campbell quits Vic parliament

LABOR'S member for Pascoe Vale, Christine Campbell has announced she will quit state parliament at the next election.

In a statement released on Wednesday, Ms Campbell announced her retirement after 17 years of service.

"It remains my honour to represent the Pascoe Vale electorate in the Victorian Parliament and I have decided that on 28 November, 2014 I will conclude my time as a member of parliament," Ms Campbell said.

"Until the election, my magnificent electorate officers and I will continue to give the party and electorate our total service."

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Kevin Rudd quits parliament

KEVIN Rudd has announced he is quitting parliament.

He said there came a time in every politician's life when their family said "enough is enough".

The former prime minister and foreign minister said he would not be continuing beyond this week.

He said the slings and arrows of parliament "hit home to our families as well".

"For our family, recent statements since the September election have been particularly hurtful," Mr Rudd said.

"As parliamentarians you might say we become inured to all of this, although I doubt it."

He paused several times to compose himself, though at one stage joked he could use some gin, prompting laughs.

First elected as MP for Griffith in 1998, Rudd became prime minister in 2007, defeating John Howard.

But his time as prime minister came to an abrupt end in June 2010 when he was dumped by his party in favour of Julia Gillard.

Rudd reclaimed the job of prime minister in June this year when he defeated Ms Gillard in a party-room showdown.

But he went on to lose the September 7 election to Tony Abbott.

Mr Rudd thanked the "good burghers of Griffith", saying they were a good people and community.

"The decision that I have made has not been taken lightly, particularly given the big attachment I have for the community I proudly represented in this place these past 15 years," he said.

He also thanked the people of Australia for electing him as their prime minister.

"To have served as prime minister of Australia has been a great honour afforded to very few in our country's history," he said.

"For the future I wish the prime minister and this government well. I do that because I wish Australia well.

"The prime ministership of this Commonwealth is not easy; it is the hardest job in the land.

"The expectations of whoever holds the office are infinite while the resources available are finite."

He also wished Opposition Leader Bill Shorten all the best in that role.

He thanked Anthony Albanese for his "extraordinary service" as deputy prime minister, and Chris Bowen for his "great contribution" to the Australian Labor Party.

Mr Rudd said as prime minister he'd navigated Australia through the great financial crisis without a recession or mass unemployment, and maintained the nation's AAA credit rating.

His government had introduced a national curriculum, first ever paid parental leave scheme and a pension increase.

But it was the official apology to indigenous Australians in 2008 that remained the highlight of his political career.

"Nothing has brought me greater joy in political life than the smiles I have seen on the faces of our Aboriginal brothers and sisters, young and old, country and city, as a result of the apology," he said.

"I hope though that what we've archived through some healing of the soul will be the first step, the second of course is closing the gap to achieve a healing of broken bodies as well."

Mr Rudd said it was a privilege to be asked to return to the prime ministership this year, and that they'd been able to "save the furniture" in the election.

"In fact I think do considerably better than that," he said, to cheers of "hear hear" from the opposition frontbench.

"I'm glad that all you folk in the frontbench were returned in one piece as well, and that we return Labor as a fighting force for the next election."

He said the internal reforms made to the ALP this year were a "great experience for the party", but should only be the first step.

"In the meantime I look forward to a full democratic preselection process for all local party members to elect our next candidate for Griffith," he said.

MORE TO COME

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Debt laws pass, but face Senate changes

The Australian Greens will side with Labor to stymie a plan to increase the debt ceiling by $200b. Source: AAP

THE federal government has succeeded in rushing through laws to increase Australia's national debt ceiling by $200 billion, with the government ignoring Labor's push for a smaller increase.

However, Treasurer Joe Hockey faces a more difficult task in getting his laws through the Senate, where Labor and the Greens have the numbers to force amendments to halve the increase.

The laws that cleared the lower house on Wednesday allow the government to increase the debt ceiling, or allowable value of government bonds on issue, to $500 billion, up from the old $300 billion limit.

Treasury's pre-election budget update said the $300 limit would be reached by December this year, and would rise to around $370 billion by July 2016.

The higher debt ceiling laws were the first bill passed by the new parliament, with Mr Hockey blaming the previous Labor government for running up massive debt and for forcing parliament to extend Australia's national credit card limit.

"It is Labor's debt, there is no excuse," Mr Hockey said.

"The previous government recognised that ultimately whoever was elected after the election would have to deal with this issue."

The treasurer noted the debt ceiling was never increased under the former Howard coalition government because "we paid off the debt".

The Commonwealth Inscribed Stock Amendment Bill 2013 passed, a win for the federal government that wanted them passed by the lower house by the end of the day.

The Senate will start debate the debt limit on Thursday in what is shaping up as the first test of the new government's ability to pass its legislative program.

Shadow Treasurer Chris Bowen said the opposition was happy to increase the limit to $400 billion, but the government had come "nowhere near close" to justifying the amount it wanted.

He accused Mr Hockey of hypocrisy, and said the coalition in the Senate had voted against similar moves when Labor increased the debt limit to $300 billion in May 2012.

"We will not tolerate for one second the member for North Sydney (Mr Hockey) lecturing us about why we must vote to increases in the debt cap when he did not vote for one, instructing his senators not to vote for one just a little over 12 months ago," Mr Bowen said.

Shadow assistant treasurer Andrew Leigh noted the lower house had allowed just 70 minutes of debate for a $200 billion measure - or $47 million per second.

"Every second of this debate that elapses, the debt limit will rise $2 for every single Australian," he said.

But Prime Minister Tony Abbott told ABC television Labor's proposed amendments would not provide enough of a buffer to cover the existing debt forecasts, adding that former treasurer Wayne Swan had previously urged parliament to provide a buffer of up to $60 billion.

"This is Labor's debt. We have always been critical of Labor's addiction to debt and deficit," he said, adding the government wanted to make sure it never had to ask for another increase," he said.

Mr Abbott offered a confidential briefing for Opposition Leader Bill Shorten with Treasury Secretary Martin Parkinson, but said update budget figures would not be released until the mid-year budget review, due in mid December.

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Migration Tribunal case load increases

SRI Lankans asylum seekers had the highest rate of applications to the Refugee Review Tribunal in the last financial year.

The Migration Review Tribunal (MRT) annual report was tabled in the Senate on Tuesday.

The report said the Refugee arm of the tribunal received 4229 applications - 1518 from asylum seekers who arrived by boat.

The bulk of applicants among boat arrival asylum seekers were from Sri Lanka, Afghanistan, Iran and Pakistan.

Chinese asylum seekers were heavily represented in the non-boat arrival category.

Overall, the Migration Review Tribunal completed 19,347 reviews in 2012/13, up from 10,815 the previous year.

Skilled visas, students visas and partner visa cases made up the majority of cases.

The MRT and Refugee Review Tribunal conduct merit reviews of visa and visa-related decisions made by the Department of Immigration and Border Protection.

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16,000 Australians a week fly to Bali

AUSTRALIANS are still flocking to the Indonesian island of Bali at the rate of more than 16,000 a week - making up more than quarter of the visitors to the holiday idyll every year.

New figures from Indonesia's Central Statistics Agency reveal that of the near 2.5 million arrivals in Bali from January to September this year, more than 600,000 came from Australia.

That is despite increasing warnings of potential illness amongst travellers, with at least seven Australians recently catching measles while holidaying on the island, and a dramatic increase in other infectious diseases caught while there in recent years.

Local tourism bosses in Bali are upbeat that the number of Australian visitors will continue to grow as infrastructure improves and the number of direct flights increases.

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Combet joins SA manufacturing group

FORMER federal Labor minister Greg Combet has been appointed to South Australia's Advanced Manufacturing Council.

Mr Combet was industry and innovation minister from December 2011 to July 2013 and retired from politics at the September federal election.

He previously held a number of trade union positions, including secretary of the ACTU from 1999-2007.

South Australian Manufacturing and Trade Minister Tom Kenyon said Mr Combet would bring a wealth of experience to the manufacturing council.

"Mr Combet has extensive experience in developing and implementing industry and innovation policy at a national level which positions him to make a significant contribution to the council's work and to SA more broadly," Mr Kenyon said in a statement on Tuesday.

Mr Combet takes up his position immediately and will serve until June 30, 2015.

The Advanced Manufacturing Council steers development and implementation of policies and programs to support the growth and international competitiveness of South Australia's manufacturing sector.

It meets every two months.

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Measles fear for Bali-bound Aussies

Health authorities are urging travellers to Bali to check they're vaccinated against measles. Source: AAP

AUSSIE schoolies have been told to check they're vaccinated after 27 Australians caught measles while holidaying in Bali recently.

Health authorities have told travellers, especially young school leavers, to the Indonesian island to ensure they are vaccinated against the highly infectious disease before they leave.

There have been 27 cases of measles connected to travel to Indonesia, particularly Bali, across Australia in recent weeks, NSW Health says.

There have been 29 measles cases in NSW this year, 20 of which were acquired overseas or interstate or were closely linked to these cases.

More than a quarter of these have been linked to those in Bali.

Five Victorians, who were not vaccinated, contracted measles in Indonesia in a five-week period.

Victoria's acting chief health officer Michael Ackland said the health department had tracked three additional cases back to the five travellers since their return.

Queensland health authorities detected three cases of measles in the state's southeast in October in males who had recently returned from Bali.

Queensland Health spokesman Craig Brown said two were confirmed to have been infected in Bali.

NSW Health's Dr Vicky Sheppeard has urged people travelling to Bali for schoolies to ensure they're up to date with their vaccinations.

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Ex-Sydney priest among Philippines dead

An Australian man, believed to be a former priest, has been killed by a typhoon in the Philippines. Source: AAP

A FORMER Sydney priest who secretly married a woman he met in the Philippines is among the hundreds killed in the typhoon that has devastated the archipelago nation.

Kevin Lee, a whistleblower on child sex abuse in the Catholic church, was defrocked last year after he went public about his 2011 marriage and admitted to having had girlfriends during his 20 years as a priest.

Mr Lee founded the Padre Pio parish in Glenmore Park, in western Sydney, but moved to the Philippines after leaving the ministry.

It's been reported he went swimming as part of a religious ritual, as Super Typhoon Haiyan lashed the Philippines with winds of around 315km/h.

On Sunday the Bishop of Parramatta, Anthony Fisher, paid tribute to the late father and husband.

"I extend my deepest sympathy to his widow Josefina and her children during this time of personal tragedy for them and devastation for the people of the Philippines in the aftermath of Typhoon Haiyan," he said.

Gillard regrets failed refugee policy

JULIA Gillard has opened up about some of her regrets in high office, including her government's handling of asylum seeker policy.

Sarah's mum rallies for justice

GRIEVING mum Noelle Dickson has marked the first anniversary of her daughter Sarah Cafferkey's murder with a protest march through Melbourne.

He also expressed his condolences to Mr Lee's parents and family in Australia and paid tribute to the work Mr Lee did for his parish.

"Last year, Kevin left his ministry as a Catholic priest in very public circumstances and was recently 'laicised' at his request," Bishop Fisher said.

"He had made a new life with Josefina and they recently celebrated the birth of a daughter.

"Difficult as was the mode of his departure, we honour the work Kevin did as the founding parish priest of Padre Pio Parish, Glenmore Park, and his ministry as a chaplain with NSW Police."

Ray King, who as a former Fairfield police commander was once a colleague of Mr Lee's and, more recently, beat him to a Liberal party pre-selection for a tilt at federal MP Chris Bowen's seat of McMahon, has described his death as a shock.

But he said it was "fairly reckless" for Mr Lee to go swimming during the storm, ABC Radio reports.

"Kevin had a choice when he went into the surf," he told the broadcaster.

The Department of Foreign Affairs and Trade has confirmed the death of a 50-year-old NSW man in the typhoon but declined to name him.

"Consular officials are providing assistance to his family," a DFAT spokesperson said.

Officials fear the death toll in the Philippines could reach 10,000 people after Haiyan tore into the eastern islands of Leyte and Samar on Friday.

The Abbott government has pledged nearly $400,000 worth of emergency aid to devastated communities and says it stands ready to do more.

DFAT says Australians concerned for the welfare of family and friends in the region should first attempt to contact them directly.

If unsuccessful, they should call DFAT's 24-hour Consular Emergency Centre on 1300 555 135 or +612 6261 3305.

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Four die in SA in weekend crashes

A SWISS national and a pedestrian are among four people killed in crashes on South Australia's roads this weekend.

A Victorian woman has been charged over one of the crashes which killed a Swiss woman and injured two others on Saturday.

A sedan and four-wheel drive crashed head-on at Langhorne Creek, south of Adelaide just after 4pm (CDT).

The sedan driver, a 56-year-old woman from Switzerland, died at the scene.

Another passenger and the driver of the other vehicle were airlifted to the Flinders Medical Centre with serious injuries.

Both are in a stable condition.

Police arrested and charged a 61-year-old woman from Victoria with aggravated careless driving.

Meanwhile, a young man died when a car veered onto the wrong side of the road and hit a taxi and then a tree at Clearview, north of Adelaide, just before 6am (CDT) on Sunday.

Gillard regrets failed refugee policy

JULIA Gillard has opened up about some of her regrets in high office, including her government's handling of asylum seeker policy.

Sarah's mum rallies for justice

GRIEVING mum Noelle Dickson has marked the first anniversary of her daughter Sarah Cafferkey's murder with a protest march through Melbourne.

Police said a passenger of the car, believed to be a 23-year-old male, was killed while six others from both cars were taken to hospital with serious injuries.

Another young man was killed in a separate hit-and-run collision south of Adelaide.

Police say the 21-year-old was struck by a car as he walked along Hermitage Drive, Angle Vale, early Sunday morning.

Police have arrested an 18-year-old man from Angle Vale after he presented himself to police following reports of a fatal hit-and-run.

He is being interviewed.

In a separate collision, one person was killed and five others hospitalised after a head-on crash between two cars at Northfield, in Adelaide's northern suburbs.

The cause of the crash is yet to be determined.

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No Iran nuclear deal in Geneva

Diplomats in Geneva say world powers have failed to agree on an initial nuclear deal with Iran. Source: AAP

IRAN and world powers have failed to clinch a long-sought deal on Tehran's nuclear program despite marathon talks in Geneva but kept hopes alive by agreeing to meet here again on November 20.

In Tehran, Iranian President Hassan Rouhani pleaded for parliament's backing in the negotiations while insisting that Iran would not abandon its nuclear rights, including uranium enrichment.

Diplomats said significant progress had been made in three days of intense negotiations aimed at reaching agreement in the decade-long standoff.

Hopes had soared for an impending deal after top world diplomats rushed to Geneva to join the talks, but faded after cracks began to show among world powers when France raised concerns.

Emerging in the early hours of Sunday from a last-ditch negotiating session, EU diplomatic chief Catherine Ashton and Iranian Foreign Minister Mohammad Javad Zarif said the two sides had not been able to come together on a deal.

Gillard regrets failed refugee policy

JULIA Gillard has opened up about some of her regrets in high office, including her government's handling of asylum seeker policy.

Sarah's mum rallies for justice

GRIEVING mum Noelle Dickson has marked the first anniversary of her daughter Sarah Cafferkey's murder with a protest march through Melbourne.

"A lot of concrete progress has been achieved but some issues remain," Ashton said.

"Our objective is to reach a conclusion and that's what we'll come back to try to do."

Zarif said he was not discouraged by the failure of the talks, saying the meetings had taken place in a positive atmosphere and that he hoped to reach an agreement at the next talks.

French Foreign Minister Laurent Fabius was the first to reveal that the deal had failed, pre-empting the official announcement after the talks broke up.

Fabius had earlier raised concerns that the proposal did not go far enough to curb Iran's nuclear ambitions.

He insisted that France wanted an agreement, despite claims from some officials that Paris had stymied efforts to reach a deal.

US Secretary of State John Kerry, who had cut short a Middle East tour to join the talks, said "significant progress" had been made.

"There's no question in my mind that we are closer now as we leave Geneva," he said, adding that Washington remained intent on ensuring that Iran does not obtain a nuclear weapon.

"We came to Geneva determined to make certain that Iran does not acquire a nuclear weapon. That remains our goal," Kerry said.

The talks involved the P5+1 group, which includes the five permanent members of the UN Security Council - Britain, China, France, Russia and the United States - plus Germany.

The draft deal said to be on the table could have seen Iran freeze parts of its nuclear program in exchange for the easing of some of the sanctions that have battered its economy.

The world powers in the talks suspect Iran's program is aimed at developing nuclear weapons, despite Tehran's repeated denials.

Rouhani - whose election is widely credited with kick-starting the nuclear talks - earlier urged world powers to seize what he called "an exceptional opportunity" for a deal.

Reports said the proposed deal could have seen Iran stop enriching uranium to 20 per cent, which is just a few technical steps from weapons-grade, reduce existing stockpiles and agree not to activate its plutonium reactor at Arak.

Global powers would have in exchange taken limited and "reversible" measures to ease sanctions, such as unfreezing some Iranian funds in foreign accounts.

Iran is anxious for relief from crippling US and European Union economic sanctions that have cut oil revenues by more than half, caused the value of its currency to plunge and pushed inflation above 40 per cent.

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Aussie cleared by Dubai court on fraud

AN Australian businessman's five-year legal nightmare in the Middle East appears over, with a Dubai court upholding his acquittal.

Marcus Lee, 44, was cleared on fraud-related charges in Dubai in May but the Dubai Public Prosecutor appealed his acquittal, dashing his and his wife Julie's hopes of returning home soon after.

But on Sunday, after more than 50 court hearings over almost five years, the Dubai Court of Appeal dismissed the appeal.

After the verdict, Mr Lee and Mrs Lee said the outcome was all they could ever have hoped for.

"This is the correct result and we thank the Dubai Appeal Court judges for their verdict," they said in a statement.

"We simply hope that we will now be allowed to return to our families in Australia and resume our lives after almost five years of constant anxiety, stress and hardship.

Gillard regrets failed refugee policy

JULIA Gillard has opened up about some of her regrets in high office, including her government's handling of asylum seeker policy.

Sarah's mum rallies for justice

GRIEVING mum Noelle Dickson has marked the first anniversary of her daughter Sarah Cafferkey's murder with a protest march through Melbourne.

"Julie and I desperately want to be able to see our families again."

The Lees feared that the lodging of the appeal meant they were likely to be trapped in the UAE for another year.

Mr Lee said he hopes Australian officials will now lobby on his behalf to ensure no further appeals are lodged.

Mr Lee and fellow Australian businessman Matthew Joyce were arrested in January 2009 over fraud allegations brought by Gold Coast property developer Sunland, after a land deal collapsed during the global financial crisis.

They spent nine months in prison, followed by more than three-and-a-half years under effective house arrest.

The court in May this year sentenced Mr Joyce to ten years in prison and a $25 million fine. It also convicted Melbourne businessman Angus Reed in absentia.

They were found guilty of duping Sunland into giving them $12 million, but both maintain their innocence.

But the court cleared Mr Lee of wrongdoing, and even Sunland itself believed Mr Lee did nothing wrong.

Mr Lee's Brisbane-based lawyer, John Sneddon, said any further appeals would be devastating and urged Dubai authorities to allow the Lees to come home.

"They are sick, they are tired and they have lost everything they ever owned," he said.

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