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tomorrow morning.

The budget leads our news, Nat.

Good morning.

Treasurer Joe Hockey is warning tonight's Federal Budget will be tough and that all Australians will share the burden of cuts.

Seven News political reporter Tim Lester joins us now from Canberra.

Tim, what can we expect from Joe Hockey?

Morning, Nat, well, we Morning, Nat, well, we can expect a budget where the nasties are so widely spread, pretty nobody in the country escapes their pain.

That said, you would think by now that most of those nasties would be public.

You would expect on budget day, there would be an upside surprise for us, one or two.

One new measure canvassed this morning, a possible $10,000 payment for businesses that employ over 50s and keep them in a job for two years or more but the pain, we can expect that GP co-payment for every bulk billed visit to the doctor.

Expect $36 billion in four years from savings to the public sector, welfare.

Asset sales in the public sector, 76 agencies likely to be scrapped or merged and that plans to Tran iGS retirement to the age of 70 as well of course, the much discussed deficit levy, putting a 2% tax on incomes probably over $180,000.

OK, we will wait until 7.

30 tonight.

Thank you, Tim.

A woman has given evidence at the child sex trial of Rolf Harris, saying he assaulted her while his own daughter slept in the same room.

The entertainer arrived at the London court with his wife and daughter.

Inside, the woman, who is now 49, said Harris appeared to get a thrill out of risky behaviour.

Harris admits to having an affair with the woman, who can't be named, but insists it was consensual.

The witness says she was 13 the first time she was assaulted by Harris.

The terrorist group behind the kidnapping of more than 200 Nigerian schoolgirls, has released a video of the girls wearing Islamic dress and praying.

CNN reporter Vladimir Duthiers joins us now from Nigeria's capital Abuja.

What has the reaction been there to this new video?

30 tonight.

Thank you, Tim.

Wait Morning, Nat, well, we know that this video as you said, purports to show these girls who were kidnapped on 13 April by their Islamist terrorist group, in the video, appears the man claiming to be the leader.

He doesn't appear with the girls on camera.

He appears in a separate part of the video in that video he makes a startling proposition.

He offers to - he says that he will release the girls if there is some kind of deal made to release his brothers that are in Nigerian prisons.

This offer, negotiators, is something that hasn't been presented before with regards to this kidnapping.

Today, we actually asked several people in the government what they make of that.

They told us that everything is on the table when it comes to securing the release of these girls.

So in other words, they would be willing to negotiate if the conditions were right.

Other news, we spoke today to the United Nations states department and to Pentagon officials and they tell us for the moment, most of the military and law enforcement officials that have arrived in Nigeria are in the embassy.

They are assessing the situation, talking to the Nigerian counterparts before they make a move.

So there may be discussion.

Thank you for clearing that up for us.

Former federal environment Minister Peter Garrett will take the stand at the royal commission into the Rudd Government's insulation scheme today.

Sunrise correspondent Michelle Tapper joins us now from the Brisbane Magistrates' Court.

Michelle, what did the inquiry hear yesterday?

Well, basically, former senator, Mark abib laid all Mark abib laid all the blame at Peter Garrett's feet.

He was in charge of overseeing the $2.

8 billion roll out of the home installation scheme but Arbib says he was only involved in the financial details, not the safety.

He says all of that was Peter Garrett's responsibility.

Shortly after the roll out in 2009, things went horribly wrong.

Three men died within several months and another man died the following year all installing these pink bats.

Arbib said that he had no knowledge of a previous scope that was unveiled in New Zealand where there had been three similar deaths.

Garrett will take the stand today and have a chance to defend himself.

It will be a very heated session no doubt and Kevin Rudd will face cross-examination tomorrow.

OK, thank you Michelle.

A car has crashed through a wall and into a Melbourne house, just metres from where two children were sleeping.

The force of the crash sent bricks flying through windows into the Ringwood home.

Five people were inside at the time but no-one was injured.

Police are continuing to investigate the cause of the crash.

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