I have found if you go to http://smh.com.au and try and do a search for "RSS Channels" the link doesn't appear in the first page of results ... so they don't advertise the RSS feed very well and I haven't found the ubiquitous RSS logo on the frontpage either.

The instructions:

Open the SMH list of RSS channels http://www.smh.com.au/rsschannels/. You will see links as shown in the following graphic. Click on a Category that excites your interest.

By Default Firefox will display an Subscribe Now button. Click it.

All you have to do then is click OK on the Add Live Bookmark dialog.

If the RSS feature is turned off (perhaps because you use another RSS reader by default) you may have to add a "Live Bookmark".

• Go to this page http://www.smh.com.au/rsschannels/
• Right click on which ever news feed you want to add and then from the context menu that appears click "Copy Link Location" to save the link to your clipboard.
• From the Firefox main window open the Bookmark Manager by clicking "Bookmarks" and then "Manage Bookmarks..." from the menu.
  A bookmark manager window will open
• Select the folder you want to add the bookmark to from the folder tree in the left hand pane. For example, if you want to add it to your "Bookmarks Toolbar Folder", select it.
• Click "File" ==> "New Live Bookmark" and add which ever feed link you want i.e put "SMH - Top Stories" as the Name and http://feeds.smh.com.au/rssheadlines/top.rss as the Feed Location

Note: You may need to be a registered SMH user to connect to the links provided by RSS