DNA blunder forced the abandonment of double murder "cold case" in Victoria; Treasury chief urges cuts in company taxes and capital gains taxes; false media reports over health of Prince Phillip.
The Australian reports Treasury chief Ken Henry has dropped whats described as a political time bomb by presenting a case for slashing company and capital gains taxes.
In The Age: police in Victoria have begun searching thousands of crime files for possible contamination of evidence after an embarrassing DNA blunder forced the abandonment of a double murder "cold case".
The Sydney Morning Herald leads with problems in the Education sector with one expert claiming that most students can complete 13 years of school without having to demonstrate basic literacy and numeracy skills.
In celebrity spotting: Sunday Rose Kidman Urban flew into Sydney on Wednesday night, alongside her equally famous parents.
The Independent says two Britons have been arrested for displaying Free Tibet banners close to the Olympics stadium in Beijing.
The Guardian says soaring food costs are fuelling inflation, with food rising 9.5% in price in July.
And The Times says Buckingham Palace has complained after false media reports that Prince Phillip, the husband of the Queen, has been diagnosed with prostate cancer.
The United States
The New York Times reports oil prices have touched a three month low, sending stocks soaring, while the Federal Reserve has decided to keep its key rate steady.
The Washington Post has more on the story of a leading scientist who was about to be arrested over causing an anthrax scare. The scientist committed suicide last week.
The South China Morning Post has a number of Olympic stories, including an improvement to storm conditions in Hong Kong and the Olympic flame beginning the final leg of its journey to Beijing.
Cathay Pacific Airways, Asia's No.3 carrier, has reported a net loss for the first-half year, as soaring fuel prices and a one-off fine detracted from robust passenger growth.