"I heard a 'whomp'." The body of an unidentified man has been found in a London garden after falling from a plane, & more in News in 5.

— With AAP.

1. “I heard a ‘whomp’.” The body of an unidentified man has been found in a London garden after falling from a plane.

A frozen body discovered in a garden in south London is believed to have fallen from the landing gear compartment of a Kenya Airways flight.

Police are working to identify the individual, believed to be male, after the body was found at a residential address in Clapham on Sunday afternoon (Monday morning AEST).

“At this point, police believe the man was a stowaway and had fallen from the landing gear of an inbound Kenya Airways flight to Heathrow Airport,” Metropolitan Police said in a statement issued on Monday.

“A bag, water and some food were discovered in the landing gear compartment once it landed at the airport.”

The Press Association news agency cited a neighbour as saying the body "landed one metre away from" a man sunbathing in his back garden.

"I heard a 'whomp'. I went upstairs to look out of a window," it quoted the unnamed resident as saying.

"He had all of his clothes on and everything. I had a closer look and saw there was blood all over the walls of the garden.

"His head was not in a good way. I realised immediately that he had fallen," the neighbour said.

A plane spotter arrived at the scene in time to share information with police, after they had been following the aircraft on a flight tracking app and saw the body fall.

Philip Baum, an aviation security consultant and a visiting professor at Coventry University, told The Guardian the case cast a light on airport security in developing countries.

Passengers at Nairobi's Jomo Kenyatta airport must go through three tiers of security before boarding their planes.

"If someone can secrete themselves into the landing gear then it would seem possible that they can put in other things," Baum said.

"But it’s all very well to point the finger at Nairobi, which actually has some stringent security measures in place. I do think that there are other measures that could be taken, such as fitting heat sensors inside the wheel wells to detect the heat from human bodies."

Police said the death is not being treated as suspicious and inquiries are underway to establish the "full circumstances".

In 2015, a body found on the roof of a southwest London business was believed to be that of a stowaway who fell from a British Airways flight from South Africa.

People flying in passenger planes outside the pressurised cabins are subjected to freezing temperatures and a lack of oxygen at the high altitudes at which the aircraft fly.

2. Three men have been arrested for allegedly plotting a terrorist attack in Sydney's CBD.

#BREAKING: Major news developing out of Sydney – a combined national police operation foiling an alleged terror plot. @sophie_walsh9 #9News pic.twitter.com/ju75NhJkOL

— Nine News Australia (@9NewsAUS) July 2, 2019

Three men have been arrested after police uncovered an alleged Islamic State-inspired plot to attack several targets including police stations, consulates and churches in Sydney's CBD.

Federal and NSW counter-terrorism police raided six properties in Sydney's west on Tuesday morning and arrested the three Sydney men aged 20, 23 and 30.

Authorities say the younger men were members of Islamic State.

AFP Assistant Commissioner Ian McCartney said the plot was in the "early stages" of planning and targeted police stations, defence establishments, embassies and consulates, councils, courts and churches in Sydney's CBD.

The 20-year-old man from Greenacre allegedly had discussions about importing firearms and explosives to carry out the attack but hadn't selected a specific target or time, he added.

"We will allege the man has made early-stage preparations and has expressed an intention to carry out a terrorist attack in Australia," Mr McCartney told reporters.

Police allege he also made preparations to fight for IS in Afghanistan and obtained visas and purchased plane tickets.

"He had a plan to purchase a firearm once he arrived in Afghanistan - obviously through these activities he'd sworn allegiance to IS," Mr McCartney said.

The 20-year-old was monitored for the past 12 months since returning to Australia from Lebanon. He was known to Lebanese authorities.

The 23-year-old from Toongabbie was allegedly "prominent in the global online extremist community".

"There are still those people in the community who wish to do us harm," Mr McCartney said.

"They wish to do the community of Australia harm. I want to say they don't represent the Islamic faith."

NSW Police Assistant Commissioner Mick Willing said the three men knew each other through social media and shared a "like-minded philosophy".

Tuesday's raids were conducted in Canada Bay, Chester Hill, Greenacre, Green Valley, Ingleburn and Toongabbie.

Several items were seized and will be subject for further forensic analysis with the searches ongoing.

The three men will likely be charged later on Tuesday.

The 20-year-old is expected to be charged with preparing for a terrorist act and preparing to enter a foreign country for the purpose of engaging in hostile activities. He could be jailed for life if found guilty.

The 23-year-old is expected to be charged with being a member of a terrorist organisation. He could be jailed for 10 years.

The 30-year-old - an associate of the other men - is expected to be charged with obtaining financial benefit by deception through fraudulently claiming unemployment benefits. He too faces 10 years behind bars.

"There is no immediate threat to the safety of the community as a result of this activity," a NSW Police spokeswoman said earlier on Tuesday.

3. "I was too scared." John Jarratt's accuser explains why she didn't report the alleged rape until now.

A woman who says actor John Jarratt raped her in the 1970s while they were housemates has told a jury she didn't report him to police for four decades because she didn't think she would be believed.

She said she initially took no action because she didn't want to damage his marriage, but "had no idea" why she didn't go to police after Jarratt and his wife split about eight years later.

"There is no rhyme or reason, however I didn't think the police would believe me," she said on Tuesday in the NSW District Court.

"I was too scared to go to the police."

She was being cross-examined by Greg James QC, barrister for the actor who has pleaded not guilty to raping her in the Sydney house they shared with his wife Rosa Miano and another woman.

Jarratt says the sex was consensual.

The woman has testified she was woken about 3am one night when Jarratt ripped off her covers and underwear, unzipped his fly, pinned her down, covered her mouth with his hand and raped her.

Under cross-examination, she said she remained silent because she wanted to protect Ms Miano's marriage but when she heard of their split she visited her a few years later and told her about the rape.

"I wanted to make her feel better about the fact she left him," she said.

The woman denied telling Ms Miano it was "a one-night stand".

Mr James asked why, given she no longer needed to preserve the marriage, she didn't go to police until November 2017, after she had spoken to two journalists and a sex-abuse survivor.

The woman said that through Sarah Monahan - who was on the TV show Hey Dad! with Robert Hughes, who was later convicted of sexually assaulting her - she spoke to journalists Tracey Spicer and Lucy Cormack.

She denied the QC's suggestion she then expected to receive publicity and notoriety after giving Ms Monahan "the salacious details" and thought she could manipulate police into charging the actor.

Mr James suggested Ms Monahan was involved in "some sort of press crusade" where she was inviting "one and all" to come forward with accounts of sexual misdemeanours by famous film figures.

"I don't believe they had to be famous," the woman replied

Ms Miano told the jury she was married to Jarratt from 1973 to 1986 and remarried him in 2016, after the actor wed two other women in between.

Their marriage was rocky before their divorce and in one discussion her husband confessed to having slept with their housemate when Ms Miano was asleep in the house.

He told her he had gone to the bathroom and the woman called him into her room, asked questions about his evening and "one thing led to another and they ended up having sex".

Jarratt told her the encounter was consensual, saying "that she was wanting sex and he obliged her".

Ms Miano said around 1990, the woman phoned and "out of the blue" said "John had cheated on me with her".

"After that point, I thought I could not have any further contact with her," she said.

The trial continues.

4. Major banks respond to the latest Reserve Bank cuts of an historic one per cent.

After cutting interest rates to a record low, the Reserve Bank's governor Philip Lowe issued a pretty blunt call on the Government to do some extra lifting on the economy #auspol #interestrates pic.twitter.com/HqjZv2hXwD

— News Breakfast (@BreakfastNews) July 2, 2019

All four big banks have promised to pass on the latest Reserve Bank interest rate cut, but only one of them in full.

ANZ was widely criticised last month when it passed on just 0.18 percentage points of the Reserve Bank of Australia's 0.25 percentage-point cut, so this time the bank is passing on the full amount.

The Commonwealth Bank later announced it was passing on the RBA's rate in full for its interest-only standard variable rate home loan, but will only cut its principal and interest variable rate home loans by 0.19 percentage points.

Meanwhile the NAB announced it would make a 0.18 percentage-point cut to its home loan interest rates.

The NAB and the CBA passed on June's RBA rate cut in full.

Westpac will reduce most variable home loan rates, including those for owner-occupier mortgages, by 0.2 percentage points, although interest-only investors will get a reduction of 30 basis points, after making a similar move in June.

The Reserve Bank's two consecutive cuts have taken its cash rate to a record low of one per cent.

Treasurer Josh Frydenberg said the banks must fall in line.

"The government expects all banks to pass on the benefits of sustained reductions in funding costs," he said in a statement on Tuesday.

Two of the four big banks didn't pass on the full rate cut to customers in June, and product comparison site Canstar says they've only passed on half of the full rate cuts since 2011.

Rival site Mozo estimates the big four banks have pocketed $3.96 billion in extra revenue since 2016 because they've held onto some of the rate cuts.

Mr Frydenberg rejected Labor's suggestion the cut showed the economy was struggling under the coalition.

"The RBA has made clear that it expects the economy to grow at around trend," he said.

Reserve Bank Governor Philip Lowe said the cut would drive jobs growth and stimulate a flagging economy.

"Consumption growth has been subdued, weighed down by a protracted period of low income growth and declining housing prices," he said in a statement.

"Conditions in most housing markets remain soft, although there are some tentative signs that prices are now stabilising in Sydney and Melbourne."

Labor leader Anthony Albanese said the rate cut was a "cry for help" from the Reserve Bank.

Labor wants a planned 2022 change to the 32.5 per cent tax threshold - from $90,000 a year to $120,000 - brought forward, while also putting off further changes planned for 2024.

"If that's good policy in 2022, let me tell you, today's decision by the Reserve Bank screams that that's good policy in 2019," Mr Albanese told Sky News.

But Mr Frydenberg says the five years worth of tax cuts must be "passed in full".

Labor's shadow treasurer Jim Chalmers said the rate cut showed a lack of confidence in the economy.

"A treasurer that looks at a cash rate of one per cent and tries to pretend everything is hunky dory is a rubbish treasurer," he told reporters.

Commonwealth Bank senior economist Belinda Allen said the tax cuts would be worth as much to the economy as two rate cuts.

"If passed this week, we could begin to see the impact on consumer spending from July," she said.

5. Australians one step closer to tax cuts.

Australians are a step closer to income tax cuts, with the Morrison government's plan now headed for the Senate.

Labor will try to convince Senate crossbenchers on Thursday to support its amendments to the tax package, which includes moving the second stage forward and removing the third.

The opposition failed to secure the amendment on Tuesday night, with the $158 billion package passing the lower house.

"This bill lowers taxes for hard working Australians, it puts more money in their pockets," Treasurer Josh Frydenberg told the chamber.

"It strengthens the economy, it rewards aspiration and it should be supported by this parliament."

He slammed the opposition for standing in the way of the tax cuts, which he said would benefit millions of Australian low- and middle-income earners.

"It means someone with an average taxable income of around $60,000 would be more than $15,000 worse off over the decade."

Labor argued the third stage of the plan - set for 2024/25 - is too far off for the parliament to decide on now.

"This is a very significant change being proposed by the government, it is more than half-a-decade off into the future and they say we've got to vote on it this week," Labor leader Anthony Albanese said.

"Well I say to them, that's all about politics, not about good sound economic policy."

But the government appears to be moving closer to a deal which would see the whole package passed before parliament rises.

This could result in Australians earning up to $90,000 look set to get an extra $1000 back in tax within weeks.

The coalition needs the support of four out of six crossbenchers to succeed.

Centre Alliance MP Rebekha Sharkie supported the bill in the lower house, but said her two senate colleagues were still negotiating with the government on ways to reduce gas prices.

Centre Alliance senator Rex Patrick said the minor party was working through the finer details of a deal to make sure extra money in taxpayers' pockets doesn't get swallowed up by higher power bills.

Former Liberal Cory Bernardi also backs the tax relief package, leaving the government just one vote short.

Returning Tasmanian senator Jacqui Lambie is likely to be the deal maker or breaker, but she's yet to declare her hand.

Senator Lambie told reporters she hadn't come to a position yet, saying her staff only started work on Monday and she hadn't had enough information from the government.

The first stage of the plan will deliver up to $1080 to low and middle-income earners when they lodge their tax returns in coming months.

The second stage will top up a low-income tax offset, which means more people - earning up to $45,000 instead of $41,000 - will get a 19 per cent tax rate.

The final stage flattens the tax rate from 32.5 per cent to 30 per cent for people earning between $45,000 and $200,000 from mid-2024.