THE Australian non-alcoholic drinks industry has launched an ambitious post-coronavirus recovery agenda to complement the Australian Government’s pro-growth and pro-jobs policies, identifying nine key areas for positive change, to help business and the wider economy get back on their feet quickly.

Underpinned by a commitment to support widespread economic rebuilding and recovery, the report compiled by KPMG Australia details a number of proposals that have broad appeal beyond the drinks industry, including harmonisation of Container Deposit Schemes [CDS], incentivising key groups to meet sustainability goals, increasing recycling infrastructure, reforming the tax system, simplifying the industrial relations system and improving energy policy.

"As the drinks manufacturing and supply industry continues to adapt to the challenges caused by the coronavirus, the industry will continue to be focussed on more efficient use of resources through more sustainable practices and by minimising its environmental footprint," Australian Beverages Council chief executive officer, Geoff Parker said.

"This will be achieved in partnership with governments through targeted action. As a priority, governments must ramp up the harmonisation of CDS and fast-track the development of reprocessing and remanufacturing infrastructure to handle post-consumer beverage containers and other waste here in Australia to close the domestic loop," Mr Parker said.

The KPMG policy report identifies the potential in extending CDS to all sectors that use and generate recyclable waste that would lead not only to higher job creation, but contribute to a more efficient and well-functioning national recycling industry in Australia.

"Where possible, steps should be taken to increase the efficiency of existing and planned infrastructure, including CDS that is found in, or planned, for every State and Territory," Mr Parker said.

"The drinks industry supports the Australian Government’s focus on creating incentives and infrastructure at every step of the waste supply chain," Mr Parker said.

The KPMG report also highlights high and volatile energy costs borne by businesses across the country, which negatively affects the manufacturing sector, reduces the competitiveness of Australian industry and makes sectors particularly vulnerable during times of crisis.

"There is broad recognition by the industry of the government’s efforts to transition towards renewable energy, but there is also a need for increased incentives to adopt sustainable energy and co-generation schemes that focus on reliability and efficiency of energy supply as highlighted in the KPMG report," Mr Parker said.

The Australian Government is supporting the non-alcoholic drinks industry’s initiative in proposing key reforms and commitment to minimise its environmental footprint even further while investing in infrastructure that provides economic, environmental and social benefits to communities across the nation.

"This report is very welcome and timely, and more industries should be thinking about the many opportunities that exist to capitalise on the Morrison Government’s strong commitment to supporting the circular economy," Assistant Minister for Waste Reduction and Environmental Management, Trevor Evans said.

"The partnership between industry and the Morrison Government is a clear sign that collaborative solutions are available to support economic recovery while meeting sustainability objectives."

The Australian Beverages Council said it would continue to consult widely with a range of industry and government stakeholders to increase understanding of the proposed reforms.

"The non-alcoholic drinks industry welcomes other sectors to join the Australian Beverages Council in supporting long-term reform and commitment to the economic recovery of Australia following the pandemic," Mr Parker said..

The full policy report can be found here.

ends

PEAK lodging Industry body, the Accommodation Association, has welcomed the Victorian Government’s announcement of a $3 billion support package of cash grants, tax relief and cashflow support as a much needed step in the right direction.

The Association has also thanked the Victorian Government for acknowledging the fact that Victoria’s hospitality businesses were “the bedrock of our economy, but right now, many are going through a tough time” and thanked them for the establishment of a $251 million dedicated Licence Venue Fund with additional relief via the waiving of liquor licence fees for 2021.

Accommodation Association CEO Dean Long said, “Our member hotels, motels and accommodation providers have been incredibly hard hit by COVID travel restrictions, border closures and the Victorian lockdown provisions. While we are still to work our way through the detail of today’s announcement, the Premier’s acknowledgement of the importance of our sector and the perilous reality we are now find ourselves in through no fault of our own is very welcome indeed..

“Fixed costs are driving hotels, motels and accommodation providers and  businesses right around Australia to the wall and we need relief there too.

“Our people, particularly those people and properties on the frontline supporting the government’s mandatory isolation program, are doing it incredibly tough and I know from the calls and emails received today that they too are very grateful for the acknowledgement," Mr Long said.

“We look forward to continuing to work closely with government to find the way forward that strikes the best balance between protecting people’s health while also protecting their jobs and businesses.”

ends

WELD AUSTRALIA has partnered with Gotcha4Life to help build the mental fitness of Australia’s welders.

Suicide is the leading cause of death for Australians between 15 and 44 years of age, and men are three times more likely to die by suicide than women. Workers in construction and other trades - including welding - are even more at risk. Tradies are 70 percent more likely to die by suicide than their behind-the-desk counterparts. This means that every second day an Australian tradie takes their own life.

Despite these alarming statistics, mental health definitely isn’t something that tradies talk about at smoko or after knocking off. Weld Australia and Gotcha4Life believe that, together, they can strengthen the emotional muscle to help build strong social connections, which in turn develops the resilience required to deal better with the challenges that life throws at us.

Gotcha4Life’s founder, Gus Worland, said, “Gotcha4Life’s vision is focused on a society where people are open, honest and supportive in their relationships and comfortable to express themselves when they are not ok. A society in which everyone has a Gotcha4Life mate who they can open up to and rely on no matter what.”

“Weld Australia's commitment to building this mental fitness amongst their members ties in perfectly with our aspirations and we’re so excited to be partnering."

According to Weld Australia’s chief executive officer, Geoff Crittenden, Weld Australia has made supporting the mental health and wellbeing of its members and the wider welding community a priority, particularly in the wake of the COVID-19 pandemic—partnering with Gotcha4Life was a natural extension of this.

“Weld Australia is proud to partner with Gotcha4Life," Mr Crittenden said. "Mental fitness is a complex issue and there is no one simple solution. However, it’s clear that Australian tradies, including welders, need more support. The statistics around suicide and tradies are frightening, and we recognise how important it is for us to take a leadership role in helping to spread awareness and education in the welding community.

“It’s vital that we work together, that we back one another, and that we remove the stigma associated with mental health issues. Remember: it’s okay not to be okay,” he said.

Gotcha4Life is a not-for-profit foundation that believes in the concept of 'prevention through connection' and raises awareness of the importance of identifying a close friend in life, someone you can speak openly and honestly to when times are tough.

Gotcha4Life enables this connection by funding educational workshops and training programs that build mental fitness in individuals and communities across Australia, to enable strong, open and binding relationships.

To do this, Gotcha4Life partners with programs such as Tomorrow Man and Tomorrow Woman, Man Anchor and Rural Outreach Counselling to help build emotional muscle in communities across the country. 

Lifeline has 24 hour crisis support available on 13 11 14. 

ends

WHILE it has impacted Australian lives dramatically, one silver lining of the coronavirus pandemic is the opportunity it is now offering owner-occupiers, particularly first homebuyers.

RiskWise Property Research CEO Doron Peleg said COVID-19 had helped strengthen ‘work from home’ opportunities meaning owner-occupiers could take advantage of ‘lifestyle’ prospects instead of being tied to employment hubs.

“While there’s nothing new about mobile professionals, the onset of COVID-19 changed the way we work as a nation with vastly increasing numbers working from home - and it’s here to stay,” Mr Peleg said.

Pete Wargent, co-founder of Buyers Buyers, a national marketplace offering affordable buyer’s agency services to all Australians, said lifestyle buyers were out in force.

“Those who work in a stable corporate environment, but do so remotely, are now taking advantage of great buying opportunities in NSW, Victoria and South East Queensland," Mr Wargent said.

“Before COVID-19 hit, there was already a strong trend of sea- and tree-change homebuyers looking for the best of all worlds – lifestyle, accessibility to employment hubs and affordable housing” he said.

RiskWise Property Research has summarised the key locations experiencing this trend.

Mr Peleg of RiskWise said, “These include areas of South East Queensland such as the Sunshine Coast and the Gold Coast, just over the NSW border in Byron Bay and further south on the Central Coast, in areas such as North Avoca, Terrigal and Wamberal. Then there’s also sought-after locations such as the Hunter Valley, Wollongong and the South Coast, and in Victoria, the Mornington Peninsula, Geelong and Ballarat.”

Mr Peleg said beachside suburbs especially outperformed the market as they offered such fantastic lifestyle opportunities.

As RiskWise reported in November 2019, there is a clear trend regarding their popularity and potential for capital growth as outlined in research it undertook on the Top 10 Suburbs to Retire and Build Equity.

He said even in Sydney, for example, despite COVID-19, and previous events such as the credit restrictions by APRA, scrutinising of loan applications as a result of the Royal Commission and material price reductions until the election results in May 2019, houses simply enjoyed strong demand with the chronic undersupply ensuring solid capital growth.

“The average holding period of houses in Sydney, that in 75.9 percent of cases belong to owner-occupiers, is 12.2 years. This means owner-occupiers with secure jobs and no serviceability issues are not impacted by short-term market movements, unless they need to re-finance,” Mr Peleg said.

He said the Sydney property market, had delivered solid capital growth of 22 percent in the past five years and houses in popular areas delivered much stronger capital growth during that period. For example, houses in Paddington experienced price increase of 56 percent and in St Peters houses saw capital growth of 51 percent during that period.

“Home buyers with long-term holding strategies were well positioned to negotiate aggressively to purchase high-quality houses that usually enjoyed very strong demand,” he said.

While Sydney is a good case study, houses in Greater Melbourne delivered even stronger capital growth of 38 percent during the past five years.  

Strong demand for houses has also resulted in strong capital growth in the Sunshine Coast and the Gold Coast with 28.4 percent and 26 percent, respectively.

Working remotely an accelerating phenomenon

In 2016 the Australian Bureau of Statistics reported almost a third (3.5 million) of all employed Australians regularly worked from home. Since the onset of COVID-19, this number has skyrocketed.

In March a Gartner survey showed 88 percent of Australian organisations have adopted working from home as part of their coronavirus response many to cut costs during the pandemic by focusing on “effective use of technology (cited by 70 percent of respondents) and freezing new hiring”.

“While many organisations were using remote working to improve productivity and the attractiveness of workplaces to entice the best talent, reduce office costs and reduce international and intrastate travel prior to the onset of COVID-19, it has now become an accelerated phenomenon with offices across large cities trying to minimise face-to-face meetings that required commuting," the Gartner report said.

“Interestingly, since COVID-19 and the increase in remote working there has actually been an improvement in productivity.”

The Gartner survey said 49 percent of respondents said they had been more productive during the time they would normally spend commuting to work, 36 percent were less stressed and 32 percent were better able to concentrate as they were not distracted by colleagues.

Office vacancy rates are a clear sign of how the pandemic has affected employment. According to the latest Property Council of Australia's Office Market Report, Sydney’s has almost doubled from 3.9 percent to 5.6 percent for the six months to the end of July while in the Melbourne CBD it rose from 3.2 percent to 5.9 percent.

“While there was definitely uncertainty during the first wave of the pandemic, the second wave shows us quite clearly these new work practices are here to say most likely until end of 2020 and well into 2021,” the report said.

“Therefore, the demand for regional areas offering great lifestyle choices is likely to further increase among those with stable incomes.”

There are also several other incentives that put home buyers and especially first home buyers in an enviable position. These include Federal Government programs such as the First Home Buyers Deposit Scheme whereby a deposit of just a 5 percent deposit can be used to enter the property market and the avoidance of Lenders Mortgage Insurance (LMI), as well as stamp duty exemptions.

“Lower interest rates also materially improve housing affordability in terms of serviceability ratio, i.e. the monthly repayments for any price point are simply lower,” Mr Peleg said.

“What this all means is now is the time to buy if you are a first home buyer or an owner-occupier as this current slowdown in the property market is only temporary, with houses in popular areas likely to experience solid capital growth in the medium to long term.

“Once the COVID-19 issue is resolved, most likely in 2021, the traditional connection between low interest rates and increase in dwelling prices is likely to take place.”

He stressed, however, that investors buying rental apartments unsuitable for families were taking an enormous gamble, with both equity and cash flow risk expected to materially increase. Serviceability is also a major factor for investors who rely on a stable rental income to cover the costs associated with property and particularly the mortgage.

Pete Wargent of Buyers Buyers said navigating the current market conditions was challenging but understanding the nuances of the local market and negotiating accordingly on price and terms was the key.

“If you negotiate well, you can secure a very good property and manage the risk of lower prices in the short term by simply paying less,” he said.

Rich Harvey, Buyers Agent and CEO of propertybuyer.com.au said the pre-spring and spring market would supply a range of opportunities for buyers to consider getting a better foothold in the market as listing volumes started to rise.

“With the onset of COVID-19, areas such as the Sutherland Shire, Inner West and Inner South West, that were showing good promise have paused their strong growth trajectory and now represent good value for buyers,” he said.

“The traditionally strong markets of Eastern suburbs, Northern Beaches and North Shore are also giving buyers the chance to get in for lower prices than last year.”

ends