Leon and Garry discuss a massive week in business news with the release of the Government’s plans to implement the Henry review into taxation. Radical measures include the 40% resources profit tax, an increase in the compulsory superannuation guarantee from 9% to 12% and replacing state taxes like payroll tax with broad based tax on business cash. Miners have reacted strongly to it and it is fast becoming a political issue. The RBA has lifted interest rates to 4.5%, driven by house prices which rose 20%. Retailers continue to struggle with problems for Fantastic Furniture and Clive Peeters. Manufacturing continues to expand at its best rate in eight years. Orica plans to spin off Dulux and News Corporation reports stronger profits, driven largely by the spectacular success of Avatar.