CBUS SUPER, the Australian building and construction industry super fund, has announced new investments in innovation and solar technology.

A Cbus spokesperson said Cbus "demonstrates its commitment to the building and construction sector by partnering with Brookfield as a cornerstone investor in built environment innovation, alongside a commitment to sustainability with a global investment in Capital Dynamics’ solar projects".

Through its Brookfield partnership, Cbus will invest in technology-enabled, growth-oriented businesses with a strong connection to the built environment, leveraging Brookfield’s significant industry insight and operating capabilities.

The strategy will seek proven business models to invest in, targeting assets with robust revenue growth, strong management teams and limited technology risk. The commitment will capitalise on key built environment themes that have been accelerated by the pandemic, including the need for increased digital connectivity, health and liveability and sustainability.

Cbus chief investment officer, Kristian Fok said, “The market for emerging technology servicing the built environment is growing rapidly and will accelerate post-COVID, primarily across real estate and construction, transport and logistics, and healthcare.

“The disruption caused by COVID-19 has rapidly changed the way businesses operate, with increased reliance on technology and innovative business models as more people work from home. The Brookfield growth technology initiative will invest in the digital transformation of the built environment – linking technology, innovation and disruption.

“The strategy also supports the broader building and construction industry. The significant investment has a number of benefits, including the opportunity to leverage built environment innovation into Cbus’ assets.”

CAPITAL DYNAMICS

Capital Dynamics, together with Cbus Super and other co-investors, has completed the acquisition of a direct interest in two solar photovoltaic projects from LS Power.

Capital Dynamics’ Clean Energy Infrastructure is one of the largest renewable energy investment managers globally. The portfolio includes a 100 percent interest in Centinela Solar Energy (252 MWdc) located in Imperial County, California and a 30 percent interest in Arlington Valley Solar Energy II (175 MWdc) located in Maricopa County, Arizona.

Kristian Fok said, “This is a significant investment for Cbus, providing our members with strong risk-adjusted returns, underpinned by long-term Power Purchase Agreements with an investment grade counterparty. There is also the opportunity to optimise the assets alongside the deep experience of the Capital Dynamics management team.

“The investment aligns with our commitment to sustainability and reducing emissions, while building on our direct investment strategy to deliver stronger returns for our members.”

ends

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has called for an industry-specific R&D Tax Incentive, saying the current system is hampering investment and growth in the sector.

In a submission to the Federal Government’s Financial Technology Inquiry, the Ombudsman described the R&D Tax Incentive as unsuitable for software development in its current form.

“The R&D Tax Incentive eligibility requirements need to be changed so that it is clear and simple to claim tax incentives under the existing scheme,” Ms Carnell said.

“Alternatively a dedicated software development incentive should be created to promote investment and growth in the sector.

“With 80 percent* of all R&DTI claims made by Australian SMEs, it is clear that many small and family businesses rely on the R&DTI to help fund their research and development.

“About half (48%) of all R&DTI claims come from the software development industry, so a transparent and predictable system is absolutely vital to those businesses.”

The Ombudsman’s recommendations to the government have been echoed by industry peak bodies and private tech sector heavyweights, including Atlassian.

“We welcome submissions supporting my office’s long-held position on this issue, including Atlassian’s reported ‘strong endorsement’ of an interim recommendation to clarify the existing scheme and put a time-limit on any potential clawback action," Ms Carnell said.

“At the end of the day we want small businesses to grow into big businesses such as Atlassian and a fit-for-purpose R&DTI scheme is a key support mechanism.

“Our R&DTI report, released in December 2019, found many small and family businesses were subjected to examination and audit several years after the R&D was undertaken and the R&DTI refund had been spent.

“Often these affected businesses were required by the ATO to repay the R&DTI in full, with a severe penalty applied.

“This has had a devastating impact on the businesses involved, with some discontinuing or scaling down their R&D efforts in Australia and reducing their R&D staff," she said.

“Ultimately for SMEs to continue to invest in innovation and growth, it is critical they are supported in their R&D endeavours.”

www.asbfeo.gov.au

• Department of Industry, Innovation and Science, Annual Report 2017-18.

ends

THE Australian Workers' Union wants Prime Minister Scott Morrison to announce a Royal Commission to investigate emerging evidence that Chinese migrants are living like slaves on Australian farms.

An investigation published by The New Dailyhas revealed shocking testimony from a whistle-blower, known as Mr D, who said people smugglers were charging Chinese nationals up to $50,000 for illegal jobs on a Coffs Harbour fruit and vegetable farm.

The report followed a union funded investigation, published in early December, which detailed how fruit-pickers – including backpackers and bushfire victims – were paid as little as $3 an hour by labour hirers and rogue operators in the area.

AWU national secretary Dan Walton said a hidden culture of wage theft inside Australia’s horticulture industry had created slave-like conditions for some workers, who are initially lured to farms with the promise of high wages.

“The allegations of illegal behaviour in this latest story from Coffs Harbour are simply shocking and demand swift action from authorities. Mr D has bravely exposed how Chinese people are being trafficked to Coffs Harbour and forced to work like slaves, with miniscule wages and dangerous conditions” he said.

"Australia's had inquiry after inquiry highlight these issues over the last 10 years. We’ve explored every form of inquiry available – from academic studies to Federal, State, and Territory investigations. They all have the same findings, yet the industry remains riddled with systemic exploitation. And it's getting worse not better” Mr Walton said.

Mr Walton said the AWU would shortly brief Border Force officials, on confidential evidence his union has obtained from Mr D.

He said the exploitation and illegal activity identified near Coffs Harbour is just the “tip of the iceberg”.

“Migrant workers everywhere are highly vulnerable, and unions are aware that those who speak up about mistreatment are often threatened with deportation – or worse – by the unscrupulous criminals they work for.," Mr Walton said.

I believe a Royal Commission is the only option we’ve got left to stomp out the flagrant wage theft and illegal activity taking place, which has tarnished the reputation of Australian farms. This has become the story that overseas workers tell their friends and families when they return home” he said.

Mr Walton confirmed he had also written to the Prime Minister, offering to work with him and his government on delivering both a Royal Commission, and new reforms to end the underpayment, exploitation and abuse of local and foreign workers across the farm sector.

LINKS

Blue Harvest Report: https://mckellinstitute.org.au/research/reports/blue-harvest/

New Daily story by Cait Kelly: https://thenewdaily.com.au/news/2020/12/07/farm-workers-exploitation/

ends

THE Indigenous Affairs Committee tabled its report on food pricing and food security in remote Indigenous communities on December 7..

The report found that food costs were very high in many remote communities, reinforcing long-held concerns regarding food security for Aboriginal and Torres Strait Islander Australians who are living remotely, however it did not find evidence of systemic price-gouging taking place in remote community stores.

Julian Leeser MP, Chair of the Committee, said, "Food security issues for remote Aboriginal and Torres Strait Islander communities are not new. For many people living remotely, food security is a constant concern. The supply of quality and affordable food is often unstable due to poor infrastructure, seasonal changes, the high costs of living and operating stores remotely.

"However, despite these challenges, the Committee also learned that there is a very good story to be told about what happened in remote communities this year during COVID-19. We have an opportunity to harness some of the lessons of the Supermarket Taskforce and the Food Security Working Group that were established this year in response to this pandemic and can build on the networks and goodwill generated through that process.’

The report recommends several measures to build on the cooperative momentum of 2020 including:

• real-time price monitoring and a disclosure mechanism through a point of sale data system across all remote community stores.
• a national scheme of licensing and inspection of remote community stores.
• support for local food production schemes and enterprises.
• maintaining the Food Security Working Group established during the COVID-19 pandemic.

Mr Leeser noted that while the committee did not find evidence of price-gouging, the persistent disquiet on the matter meant that allegations should be further considered and settled by a body equipped to do a thorough, forensic examination of what is taking place.

"It is important to acknowledge that this is the third time this matter has been examined in recent years and none of those inquiries has resolved the concerns about food prices and security that have been expressed," he said.

"Consequently, complaints concerning food pricing need to be examined by a body that is equipped to do the thorough, forensic examination that will satisfy the public. That is why the Committee is recommending these matters be investigated by the ACCC undertaking an enhanced market study which they have never done in remote communities."

The report also recommended measures to improve governance and oversight of community stores, to develop a national food security and nutrition strategy, and to encourage more competition between remote store management groups.

The report makes 16 recommendations to government and can be accessed and downloaded from the inquiry website.

ends