Australians are following keenly the entry of mining billionaire Gina Rinehart into Fairfax after she became the biggest shareholder with her purchase of a 14 per cent share. They are even anticipating a clash between Australia's richest woman and Roger Corbett, chairman of the publisher, over major national issues such as the mining tax and carbon tax.

The anticipated clash is because of Mr Corbett's open support for the Gillard government's mining tax proposal which he deems payback for the boom states of Western Australia and Queensland. Ms Rinehart has also publicly opposes the minerals resource rent tax because of its negative impact on the resources sector, particularly driving away billions of dollars of investment.

The clash could be both in the editorial room and board room since Ms Rinehart is expected to seek a board seat in Fairfax Media following her addition of 186 million shares worth $152 million to her Fairfax Media holdings, which includes a 4 per cent stake she has held since 2011.

Mr Corbett admitted he initially had some reservations about the mining tax, but the time has arrived for the two resources-rich states to payback since WA and Queensland had enjoyed for years preferential treatment as developing states under the old income tax redistribution arrangement.

However, Communications Minister Stephen Conroy stressed that Ms Rinehart did not violate any Australian existing media ownership law with her purchase of more Fairfax shares. He said the government could not regulate the buy-in, rather it is the Fairfax board which should make a final decision on the matter whether a stockholder who has less than 15 per cent stake could dictate editorial policy.

Australia's media ownership laws say that one person cannot own more than 15 per cent stake in two of radio, television or newspapers. The law is undergoing a review.

"That comes down, at the end of the day, to the strength of the existing board."

"There would be great concern, I'm sure, if a shareholder who doesn't have 15 per cent suddenly dictated editorial policy. I think that would demonstrate a very weak board but the Fairfax board has demonstrated in the past that it isn't prepared to just go along with a significant shareholder," ABC Radio quoted Mr Conroy.

Long-term fund managers said that would block attempts by Ms Rinehart to become a board member until she exhibits more experience in either the media sector or running a publicly listed firm.

"It has to be the merits that she's person for the job - not simply because she has 10 per cent," The Sydney Morning Herald quotes Orbis Australia Fund Manager Simon Marais.

Speculations are high that the billionaire upped her stake in Fairfax after the publication in the publisher's Good Weekend magazine of Ms Rinehart's profile. However, Mr Conroy opined that Ms Rinehart would likely not push her weight around to influence editorial policy in Fairfax.

"Clearly she is seeking to exert influence, but she's not breaking the law," Mr Conroy added.

It is not only in Fairfax publications such as The Sydney Morning Herald, The Age and The Australian Financial Review but other Australian media companies have also published the Rinehart family's legal battle over money which Ms Rinehart attempted to keep secret through a court order.

The Australian also pointed out that print media's power has declined substantially over the years due to a significant drop in readership and advertising revenue as residents shift to online versions of the newspapers. In the financial year that ended June 30, Fairfax reported a $390.9 million loss.

However, with Ms Rinehart's increased presence in Fairfax, the company's share price initially went up by up to 15 per cent before it closed to 10.1 per cent higher at 81.5 cents which is a three-month high.

Commenting on the buy-in, Western Australian Premier Colin Barnett said Australians should get used to the growing trend of wealthy WA residents buying national companies.

"Little old Westfarmers bought Coles, Kerry Stokes has bough Channel Seven nationally, now maybe Gina Rinehart's going to own Fairfax.... The rest of Australia, get used to it: this is where the money is," Mr Barnett was quoted by The Australian.

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