28 June – Three suspects in a 2002 gang rape in Hurstville finally arrested in dawn raids in New South Wales. 29 June – Rain brings drought relief and flooding across New South Wales. New South Wales Supreme Court finds no evidence of neglect against Westmead Hospital in the Rhiannon Richards brain damage suit, leaving her family to pay both sides' legal costs. New South Wales health authorities warn parents of an outbreak of whooping cough across the state, urging parents to immunise their children. Former Federal Labor Opposition Leader, Mark Latham's autobiography is released, causing uproar in the Australian Labor Party. July 1 July – Controversial tax cuts, intended to boost family budgets, come into effect as the Federal Government officially takes control of the Senate. A statewide two-hour teachers' strike takes place in New South Wales to protest proposed changes to Federal industrial relations laws. 14 July – Following the release of the Palmer Inquiry report, Prime Minister John Howard and Immigration Minister Amanda Vanstone apologise to Cornelia Rau, who was mistakenly held in detention for 10 months, and to Vivian Solon, who was deported to the Philippines. The 200-page report identified systemic weaknesses in the Department of Immigration which contributed to Ms Rau's detention, the failure to establish her identity, and to meet her mental health needs. The report says that those same mistakes were made in Vivian Solon's case. 23 July – Victorian Premier Steve Bracks outlines plans for a summit involving every regional mayor in Victoria, as well as announcing a new deal for a sustainable abalone industry. 26 July – Prime Minister John Howard meets with Iraqi Prime Minister Ibrahim Jaafari and was told that the Iraqi military no longer needs help from Australian troops as they begin to take over. 27 July – After ten years in power, Bob Carr resigns as Premier of New South Wales. He is replaced by Morris Iemma on 3 August. August 21 August – Michelle Leslie is arrested in Bali after being found with two ecstasy pills in her handbag at an open-air dance party just outside Kuta. She is found guilty, and sentenced to three months in prison on 18 November, but is released on 20 November as she had already served her sentence. 29 August – After describing Bob Carr's wife Helena as a "mail-order bride", NSW Opposition Leader John Brogden resigns. He attempts suicide