Police say they now believe that bones found beside an outback highway in South Australia were those of a little girl, aged between two and four-years-old.

AN Australian diver was killed by sharks in south Australia on Thursday, police said, in only the second fatal shark attack in Australian waters in more than two years.

One person was killed and two more were missing and feared dead today after a blast totally destroyed an explosives factory in southern Australia, police said.

Police divers in Australia were today searching a dam where human remains were found, amid speculation they may belong to missing British backpacker Peter Falconio.