EXTRA >> EMPLOYMENT Minister Eric Abetz has welcomed a reform that will see businesses save more than $1 million a year which, he said, is better reinvested in workplace health and safety and jobs.

The Safety, Rehabilitation and Compensation Commission has extended the initial two-year licence period to up to eight years, and the four-year ongoing licence period also to up to eight years for licences under the Safety, Rehabilitation and Compensation Act. 

“This change means companies that self-insure through Comcare will have their licence periods extended and will therefore need to apply for licence extensions less frequently,” Senator Abetz said.

“This measure will cut the financial and red-tape burden for those self-insuring through Comcare by a total of $1.26 million a year.

“Businesses that self-insure in Comcare estimate that it costs between $80,000 and $100,000 to prepare a licence-extension application.

“Increasing the length of time that businesses hold their licences will save them time, effort and money.”

Companies successfully signing up to Comcare for the first time will be granted an eight-year rather than a two-year licence, and those seeking to extend existing arrangements will be granted an eight-year licence instead of a four-year one.

This reform will reduce the regulatory burden, remove the cost of licence extensions in years two and four, and push back the costs of audit until year eight as well as ensure safer workplaces.

www.comcare.gov.au

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EXTRA >>

THE Senate Standing Committee on Economics heard damning criticisms of the Australian Securities and Investments Commission (ASIC) and Taxpayers Australia is highlighting ASIC’s poor handling of how multinational corporations represent themselves in Australia.

Senator Christine Milne’s probing of ASIC’s ‘check-and-rein’ protocols in October has produced worrying insights, according to Taxpayers Australia, which also submitted to the enquiry “at worst, the government regulator has an ineffectual standing among multinational corporations, who are playing fast and loose with basic compliance and self-determination processes”.

Taxpayers Australia’s head of tax, Mark Chapman said ASIC’s primary misstep — highlighted by Sen. Milne in session — was best summarised as “an inability to regulate Australian subsidiaries operating as part of larger, overseas parent companies”. 

ASIC’s current Class Orders only require large organisations and large Australian-based groups to submit financial statements. 

“The rub is this:  businesses self-determine their size, and thus their eligibility to report to ASIC,” Mr Chapman said. “Self-determination requires an honour-based compliance standard. 

“Therefore less-than-honourable businesses can dodge regulation by determining themselves ‘small’ with little apparent fear of ASIC validation.”

Taxpayers Australia claims Facebook Australia “looks to have done this, being an Australian subsidiary of a larger overseas parent company”.

“Given the size of the Facebook global empire, questions need to be asked about Facebook Australia’s ‘small company’ self-determination,” Mr Chapman said. “Its practices are sobering proof an overhaul is needed.”

In a submission to the Senate Standing Committee on Economics, Taxpayers Australia has sought to tackle the legislative grey area Facebook Australia – and Facebook US, being the parent – may be operating in.

“The fact remains, ASIC has not defined large multinational group disclosure arrangements,” Mr Chapman said. “Taxpayers Australia notes that under current law, ASIC’s existing Class Orders do not require multinational corporations to submit financial statements in respect of their Australian subsidiaries.

“Therein lies the worrying likelihood of ASIC missing out on critical financial information.”

Mr Chapman said Taxpayers Australia advocated it essential that not only ASIC follow the law in relation to self-determination, but that the law was appropriate in the first place.

“And clearly it isn’t,” Mr Chapman said. “We’re not calling for over-regulation but clearly when the parent company of one of the world’s largest corporations is able to legitimately describe itself as small – with all the implications that carries for the amount of scrutiny it will receive by ASIC and later the Tax Office – there is something very wrong with the rules.”
Taxpayers Australia said its understanding was that the Australian Taxation Office (ATO) can request financial statements from relevant subsidiaries of foreign multinationals, but ASIC’s laws do not support any such procedures. 

“The two bodies should work in tandem,” Mr Chapman said. “As it is right now, any financial statements provided independently to the Tax Office would not be legally subject to audits by an independent third party, nor would they be need to be prepared in accordance with Chapter 2M of the Corporations Act 2001 (Cth).”

Taxpayers Australia is calling on the Senate Committee to clarify the extent to which ASIC consults with the ATO and other powers when formulating Class Orders. 

“The partnership of ASIC and the ATO, with respect to multinational compliance, must be seen to deliver clear legislative strength,” Taxpayers Australia said in a statement. “If it does not, the government must act to strengthen the law covering the  verification of self-determination processes.

“Proof the Tax Office is receiving quality information from foreign multinationals to aid ongoing compliance must be given, and ASIC must address glaring holes in Class Orders stipulating company self-determination criteria.”

www.taxpayer.com.au

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EXTRA >>

NEW INVESTMENT attraction for Australia is the impetus behind expansion of schemes to attract wealthy migrants – and their capital – by the Australian Government.

Mullins Lawyers partner and registered migration agent, Tony Hogarth said the Premium Investor Visa (PIV) would be introduced from July 1, 2015. The PIV will allow an applicant to become a permanent resident in just 12 months by investing $15 million into complying investments – and importantly there will be no permanent residency requirement under the scheme.

This is a significant move, as is the increased involvement of Austrade in determining the investment eligibility criteria for both PIVs and Significant Investor Visas (SIVs), Mr Hogarth said.

“In addition to States and Territory governments, Austrade will play a more prominent role in SIVs through the nomination of SIV applicants,” Mr Hogarth said. “For PIV applicants, Austrade will become the sole nominating entity.”

The visa schemes are expected to link back to the Federal Government’s recently released the Industry Innovation and Competitiveness Agenda.

The SIV scheme was released in November 2012 by the previous Labor Government. It required migrants to invest $5 million into complying investments in Australia for a minimum period of four years. With the new provisions, the Coalition Government appeared to be strengthening the program, while dealing with anomalies.

“In order to attract more high net worth individuals, improvements in the exiting SIV will be made by streamlining the processing time, strengthening its integrity measures and further promoting the program globally,” Mr Hogarth said.

“With the implementation of the new PIV, Australia will be able to better compete with other countries and to maintain its position as one of the leading destinations for wealthy migrants.”

Mr Hogarth said the government also proposed to implement changes to the 457 Visa regime to make it easier for employers to engage skilled overseas workers, and specifics were expected to come through in coming months.

www.mullinslawyers.com.au

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AUSTRALIA now has its own national identity theft support service, known as iDcare, officially launched this week by Federal Justice Minister, Michael Keenan.

The service has been boosted to meet the rapidly threats to business and society of identity crime.

Mr Keenan said iDcare was “one of a kind”.

“It offers a toll-free national anonymous telephone service that works with members of the community without charge to develop tailored and practical response plans to get people back on track following an event that threatens their personal information,” Mr Keenan said at the launch event attended by members of parliament, business and government leaders.

“It’s a great pleasure to be here today, and to be invited to help officially launch iDcare, the national support centre for victims of identity crime.”

He said iDcare was in a unique position “to understand not only the experiences of victims – but also how well prepared government agencies and businesses are to assist and support victims on the road to recovery”.

“In this way, iDcare is perfectly positioned to play a strong advocacy role in promoting best practice for responding to victims – and raising awareness of the need to maintain strong protections over personal information,” the Minister said.

The managing director of iDcare, David Lacey, said, “To have one provider, that cuts across all levels of government and industries, that works with individuals to build a tailored response to their circumstances is very unique.”

Dr Lacey said iDcare was a not-for-profit established as a joint national public-private sector initiative. It is located on Queensland’s Sunshine Coast. Its case management centre is specifically tailored to deal with minor through to complex identity theft and misuse events. 

“We respond to clients from Cairns to Esperance, of all ages, and respond to all forms of identity theft, online and physical.” Dr Lacey said.

“A measure of our success is the ability to cut down the complexity of how our clients need to respond, to share critical knowledge, and get them feeling back in control.”

The iDcare support line operates from 8am to 6pm (AEDT) Monday to Friday: 1300 432 273 (1300 IDCARE).

Dr Lacey said iDcare does not collect personal details, nor does it charge for its service.

www.idcare.org

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