The Treasury Department reached a deal late Thursday to take a stake of 30 to 40 percent in Citigroup as part of a third bailout of the embattled bank, according to several people close to the deal.

Manufacturer Pacific Brands may be about to get millions of dollars in Federal Government grants, just days after it axed 1,800 jobs across Australia.

The majority of the job losses are in Victoria, Queensland and New South Wales.

It has been revealed the company might be entitled to a refund for money it has already spent on research and development, and on manufacturing equipment.

Julia Gillard has defended her department spending almost $1 million on three "happiness" conferences for public servants and teachers last month.

Opposition frontbencher Tony Abbott has branded Kevin Rudd "the worst parliamentary performer as Prime Minister since Billy McMahon" as the Government and Opposition continue to spar over their respective performances in Federal Parliament.

Speaking to Sky News this morning, Mr Abbott was on the attack over Mr Rudd's parliamentary style.

"The guy is a toxic bore in the Parliament, and thank God you [Labor] have got [Julia] Gillard there," he said.