In Brief

Generation Australia aims to generate early pathways to meaningful careers

By Leon Gettler >>

WITH THE BUDGET forecasting unemployment to peak at 8 percent in December 2020 and stay at around 6 percent until 2023, because of the coronavirus recession, the timing is perfect for Generation Australia.

Generation Australia is part of a global non-profit organisation, founded by McKinsey in 2015, to help support young people into meaningful careers.

It is now operating in 13 different countries and 100 different cities and was set up in Australia last year.

Erin Brindley, the national programs manager at Generation Australia, said the organisation aimed to disrupt the current approach to vocational training. 

She said Generation Australia’s initial focus was on young people, to tackle youth unemployment, because it is currently so difficult now for young people to access jobs without experience.

“But over the last year or so, we have realised our methodology works for anyone,” Ms Brindley told Talking Business.

“It’s especially relevant this time with COVID and the number of people who have been displaced who are either mid-career or later into their careers as well.”

DEMAND LED PROGRAM

Ms Brindley said Generation Australia’s methodology was demand-led. The organisation does a market-wide analysis to locate the jobs and spends a lot of time with employers to ensure there are jobs there at the end of the program.

“No matter where we are, we conduct what we call activity mapping and market research to look at where the demands are and what issues employers are facing,” Ms Brindley said.

“It might be retention of talent, it might be they are finding people coming into the entry level role without enough knowledge to do the role effectively.

“We take all these things into account and then we work with local partners to strengthen what we do.”

For example, with its disability worker support program, it works with the Cerebral Palsy Alliance and the web developer program works with Academy XI.

FOCUS ON BEHAVIOURAL QUALITIES

Secondly, instead of focusing on technical skills, it looks at behavioural qualities and mindsets of job candidates to identify what it takes to succeed in those roles.

Generation Australia designs behavioural skills and mindsets to address those issues and provides mentoring alongside that.

It assesses every candidate to see whether they would fit in the role. It doesn’t examine skills so much as qualities like motivation, and whether candidates are fit for the role.

Generation Australia will continue to support job candidates for six months after they take on a new role.

With COVID-19, it now delivers its services online with a goal to eventually deliver some face to face when it is appropriate again. People can work in a group or individually with an instructor.

Generation Australia is now running two programs for job candidates. The first is for disability support work, now focused in the greater Sydney region and the Hunter Valley.

It is also running a junior web developer program. There are now 100 students training in that program with another 50-75 coming on board in mid-October.

These have been identified as the growth industries when the economy moves out of recession.

“It’s just expanding for us into any different where we feel we can support students and where it’s been shown that those are the industries and businesses that are going to rebound the quickest after COVID and once the market starts recovering,” Ms Brindley said.

www.australia.generation.org 

www.leongettler.com 

Hear the complete interview and catch up with other topical business news on Leon Gettler’s Talking Business podcast, released every Friday at www.acast.com/talkingbusiness.  

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Accountants call for 'holistic tax reform' to drive recovery

THE Institute of Public Accountants (IPA) chief executive is urging the Federal Government to think more broadly and implement holistic tax reform to drive productivity, innovation, jobs, and economic growth.

“We are expecting that the Federal Budget to be handed down in less than three weeks’ time, to deliver business incentives, tax cuts and other measures to create jobs and assist businesses to climb out of the COVID-19 mire,” IPA chief executive officer, Andrew Conway said.

“While these will be positive steps to begin the road to recovery post-pandemic, Australia desperately needs holistic, genuine and robust tax reform.

“Tax cuts, whilst welcome by most consumers, will lead to sub-optimal results if implemented in isolation and not in the context of holistic reform," he said.

“The IPA has long advocated for a tax system overhaul, having yet again reinforced this message in our pre-Budget submissions and countless others going all the way back to the Henry Review in 2008. 

“Our tax system is not fit for the purpose ahead of recovery from the pandemic, so it is not easy to just make tax changes without considering the broader impact on other aspects of the economy. The various elements are closely intertwined including the tax mix, personal services income, the plethora of inefficient state-based taxes such as payroll tax and stamp duty and other aspects of the economy including our regulatory framework. .

“Holistic reform won’t be easy or without controversy, however, it is essential if we are  to unshackle the restrictions and realise the potential of the economy in a post-COVID-19 environment," Mr Conway said.

“It needs everyone on board, at both Federal and State levels, and working to the one reform agenda. If the pandemic has taught us just one thing, it is the need to work together. National Cabinet has shown what can be achieved.  

“Reform of this nature does not happen overnight but if we are to see a rejuvenated Australian economy, it is now time to start the process,” Mr Conway said.

www.publicaccountants.org.au

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Ombudsman call for super tax cuts instead of employer super rises

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell swants the Federal Government to swap a rise in employer superannuation contributions for a cut in superannuation tax.

According to Ms Carnell, the government could take some financial pressure off small businesses without adversely impacting workers, by deferring superannuation guarantee increases and cutting taxes on superannuation payments. 

In a letter to the Treasurer, Ms Carnell has proposed a two-year deferral on legislated superannuation guarantee increases, while also cutting the 15 percent tax on compulsory employer superannuation guarantee contributions to 7.5 percent during that time.

Ms Carnell said the combined measures offset each other, to ensure workers end up with a similar superannuation amount as they would have under the scheduled increase.

“We have to get the balance right by ensuring small businesses aren’t hit with rising costs and workers are no worse off,” Ms Carnell said.

“Many small businesses are already struggling to stay afloat as a result of the COVID-induced recession and cannot afford to pay higher costs.

“These increased costs would put small business owners under even more financial strain, placing jobs and businesses at risk. It is equally important to safeguard the long-term financial future of Australians through superannuation," she said.

“Our modelling shows our proposed tax cut would cost the government no more than $6 billion per year and would also support struggling small businesses and help the millions of Australians who used the early access to superannuation program to start restoring their long-term super balance.     

“Ultimately, by implementing this proposal, the Federal Government would be supporting small businesses and all Australians who deserve a dignified retirement.”

 

New awards recognise 'internal talent' excellence

THE Internal Talent Awards, affectionately known as the ITAs, will be held virtually on Thursday November 19, 2020.

At the inaugural event, the ITAs will recognise and celebrate excellence in Internal Talent across individuals, teams and organisations. The concept of the ITAs came from TaPod co-hosts Lauren Sharp and Craig Watson, who inspire and entertain listeners during their weekly podcast which, they said, "shines a light, and a laugh, on the Australian Talent Acquisition (TA) community".

In a bid to see how their listenership were navigating their roles mid-pandemic, the duo circulated a survey to understand how TA would emerge post-Covid crisis. 

"Over 63 percent of respondents indicated that the role of Talent Acquisition will have increased responsibilities after the pandemic," director of Recstra and TaPod co-host, Craig Watson said. "And the industry deserves a platform to explore, embrace and celebrate these responsibilities."

Sharp People director and TaPod co-host, Lauren Sharp said, "The Internal Talent industry is filled with unheralded superstars. We are in the business of changing people’s lives with little fanfare or recognition.

"It’s time for us to acknowledge the star performers in our industry and highlight the initiatives that bring success to the Talent function."

The ITAs independent judging panel includes HR Tech Market director Rachel Hill, Avature ANZ director Adam Walker and major sponsor TQ Solutions director Gareth Flynn.

Nominations are open and will close on October 16.

TQ Solutions is the major sponsor for 2020 and other award sponsors include Talent Table, Oncore Services, CV Check, Alcami Interactive, Matchd and TaPod.

The ITAs will bestow the following awards at a Gala Virtual Ceremony on Thursday, November 19:

  • Talent Team of the Year.
  • Talent Professional of the Year.
  • Talent Leader of the Year.
  • Excellence in Candidate Experience.
  • Excellence in Diversity & Inclusion.
  • Excellence in Corporate Social Responsibility.
  • Excellence in Employer Branding.

Further information on the nomination process and how to secure a ticket to the Gala Virtual Ceremony can be found at www.internaltalentawards.com

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Small business 'procurement panel' called for by Ombudsman

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell is calling on the Federal Government to establish a small business procurement panel. She said it will acce;lerate the way small businesses will play a critical role in the post COVID economic recovery,

The panel, proposed in ASBFEO’s COVID-19 Recovery Plan, would require Federal Government contracts, with a value of up to $10 million, to be offered through the small business panel as part of the tender process, before being opened to the wider market.

“The government has a golden opportunity to improve its procurement process to support the creation of jobs in the small business sector,” Ms Carnell said..

“The total number of Commonwealth Government contracts awarded to SMEs in 2018/19 was 26 percent. However 94 percent of government contracts are valued under $1 million with 59 percent below $80,000. It is clear small businesses could have a larger share of that pie.

“Unfortunately current government procurement processes preference large businesses. 

“A procurement system that discourages small business participation, won’t necessarily get the best value and also denies small businesses the opportunity to innovate, employ and grow," Ms Carnell said.

“I was encouraged to see Federal Industry Minister Karen Andrews’ commitment to speak with the Prime Minister about the importance of using government procurement as a lever to building Australian capability and to bolster supply chains in the tech sector.

“Minister Andrews is absolutely correct. In fact, we believe this should be extended beyond the tech sector to small businesses more broadly, including manufacturing," Ms Carnell said.

“Small businesses still face significant barriers when participating in government procurement. It can be a costly exercise and small businesses don’t have the resources to complete overly complex tender documentation. The challenges of getting on to a panel in the existing system are onerous.

“Equally small businesses are often overlooked on the ‘value for money’ criteria. Just because they might not be able to offer the lowest price, doesn’t mean they are not competitive overall.

“Lowest cost is not always the best value for money. There’s a strong argument that prioritising Australian small businesses pays dividends to the entire economy.”

www.asbfeo.gov.au

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Financial Services Council develops plan to invigorate Australia's economic recovery

THE Financial Services Council (FSC) has developed a report - Accelerating Australia’s Economic Recovery - which offers new policy ideas as well as solutions to older, intractable problems, to assist economic growth, and also help people manage their own financial challenges during the current economic downturn.

FSC CEO Sally Loane said the centrepiece of the FSC’s report is an initiative to fully utilise Australia’s $2.7 trillion pool of retirement savings – new investment vehicles to expand and democratise investment in critical domestic infrastructure, making these projects accessible and attractive to every Australian with money in superannuation.

She said FSC saw that after steering Australia successfully through its most serious health crisis in a century, the National Cabinet faced the daunting challenge of creating jobs and getting Australia back to work and "the financial services sector must be part of this critical recovery operation". 

“The new Australian Superannuation Infrastructure Investment Vehicles (ASIIVs), will unlock a large chunk of funds - around $1.7 trillion in choice and Self-Managed Superannuation Funds (SMSFs) - for infrastructure projects from investors who today have limited access to them,” Ms Loane said.

“ASIIVs will allow National Cabinet to turbocharge asset recycling programs by selling assets into a common vehicle to finance new job-creating infrastructure projects. They will also enable the creation of tailored vehicles for greenfield projects, such as community housing.”

Accelerating Australia’s Economic Recovery also recommended that the National Cabinet:

  • Abolish stamp duties on life insurance products and property transactions. Stamp duties on life insurance cost Australians $644 million each year and erode superannuation savings by $235 million each year through their application to group insurance policies;
  • Align the company tax rate to 25 percent for all companies. The cut in the company tax rate for small businesses has had a positive impact on employment and investment, and the same incentives to invest should exist for all Australian companies;
  • Establish a co-contribution scheme for Australians who have accessed the ‘early release’ hardship scheme and need to top up their superannuation. The Federal Government would contribute $1 for every $5 a member contributes, up to a maximum $10,000 in member contributions;
  • Older Australians be offered a once-off higher superannuation cap of $50,000, to be ‘carried forward’ if unused;
  • Encourage business investment to modernise outdated financial products through a specialised tribunal, aimed at lowering the cost of financial advice for Australians;
  • Accelerate the Significant Investor Visa (SIV) program to support migration and build on the $11 billion it has already contributed to direct investment; and
  • Remove legislative barriers so life insurers can fund medical treatment to help injured Australians get back to work.

“The FSC and its members want to help drive Australia’s long-term economic recovery," Ms Loane said.

"By implementing the reforms raised in this report, the National Cabinet and Commonwealth Government can get the best bang for the nation’s buck and get Australia back up on its feet.”

A copy of the full report can be found on the FSC website.

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JobKeeper to help small businesses survive coronavirus crisis - Ombudsman

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed legislation passed by the Federal Government overnight, that will see thousands of small businesses receive the JobKeeper payment from early May.

The flat payment of $1,500 per fortnight per eligible employee will be delivered by the Australian Taxation Office (ATO), assisting small businesses pay their staff that continue to work as well as staff that have been stood down since March 1, 2020.

Small businesses, including sole traders, which have an annual turnover of less than $1 billion and estimate their turnover has fallen or will fall by 30 percent or more are eligible for the subsidy. 

“The government’s $130 billion JobKeeper scheme is the biggest financial lifeline Australia has ever seen and I congratulate parliament for passing the legislation with bipartisan support,” Ms Carnell said.

“The JobKeeper payment is critical to the survival of small businesses that have been impacted by the COVID-19 crisis.

“Crucially it will allow small businesses to continue operating and paying their staff. It will also keep small businesses connected to their staff, who have been stood down, so they can re-engage their team when the time comes to ramp up," Ms Carnell said.

“There has been a lot of confusion out there about eligibility for JobKeeper, but the intent of this policy is to be inclusive of small and micro-businesses under financial strain in this difficult time. That includes sole traders, partnerships, contractors, freelancers and trusts.

“My message to small businesses is – if you think you might be eligible, visit the ATO website and express your interest. You just need your ABN and contact details. The ATO will get back to you," she said.

“Importantly, small businesses that have signed up for JobKeeper will need to make the payments now before they are reimbursed by the ATO in May.

“Above all, we know that there’s never been a tougher time to be in business, but the JobKeeper package provides the practical financial support and the hope small businesses need as we wait for this health crisis to pass.”

www.asbfeo.gov.au

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