THE Retirement Income Review (RIR) must be used to strengthen and not undermine the policy foundations of Australia’s successful super system, which has given workers a chance at a dignified retirement and eased the tax burden of the aged pension, according to Industry Super Australia chief executive, Bernie Dean.

The RIR report is the first such review of the system in almost 30 years.

Mr Dean said unusually for a review of this nature, a draft was not circulated for stakeholder comment and it has relied on modelling using data not available to the public or external experts.

"The community knows that government faces a tough task, but we can't have this review remaining hidden or used as part of a secret plan for super to create a system where there are those that can have a dignified retirement and those that can't," Mr Dean said.

“Super is already a great economic leveller for most Australians but we need to do more to avoid us ending up as a divided nation, with millions of women and low-income earners scraping by just on the aged pension.

“The government needs to keep policy stable and stick with the legislated increases in super. That’s the proven and best way to get workers savings and the economy growing again," he said.

“The community know that they’ll end up carrying the can for any more policy shocks by having to work for longer to make up lost ground or paying higher taxes to support higher pension payments.”

In the interests of transparency, he said it was critical this report be immediately released to the public so its findings can be tested and verified.

The report has an opportunity to build on the successful super system with sensible evidence-based reform that helps provide members with a dignified retirement, addresses entrenched inequalities and tackles under performance while strengthening the default system, he said

If used as a stalking horse to erode the policies that underpin the system - compulsion, preservation, universality and a strong default system – workers’ retirement savings and the economy will suffer, according to Mr Dean.

He said the only way to deliver a dignified retirement is to stick to the legislated increase to the super rate to 12 percent. The increases are more important than ever after balances were hit through the government’s early release of super scheme and the Coronavirus downturn.  

Cut the rate and Industry Super Australia analysis shows more than 8 million Australians could be worse off, Mr Dean said.

For an average 30-year-old couple working full time, cutting the super guarantee increase would deprive them of up to $200,000 in super by the time they retire. During retirement they would lose up to 20 per cent of their income or between $7,000 to $10,000 a year.

Mr Dean said breaking the government’s repeated promises to stick to the legislated increase will not only force workers to either retire with less or work longer - it will undermine super funds’ investment plans to help Australian businesses and build new job creating infrastructure and property projects.  

In the last six months the landscape has dramatically shifted but the need for to go to 12 percent has become greater.

More than 2.5 million Australians have accessed the government’s early release of super scheme and at least 560,000 Australian have emptied their super accounts forcing them to start saving for retirement again.

This will dramatically change the trajectory of their super savings and a panel seriously reviewing the long-term adequacy of the system must take this into account. The review’s findings on adequacy risk lacking credibility if it ignores the impacts of the early release scheme and Coronavirus downturn on retirement savings. 

In addition to the need for a 12 per cent super rate ISA also recommends:

• Abolishing the $450 monthly threshold on super – this will be critical during and after the downturn as more Australians will likely end up in casual work, have hours reduced or will work multiple jobs.
• Better protect members' interests by removing underperforming funds from the system, and by APRA applying robust performance benchmarks to all MySuper and Choice products
• Expand workplace default coverage and strengthen the default system through merit-based selection
• Lower the Age Pension taper rate to $2 to remove a disincentive to save for middle-income Australians
• Examine tax concessions to ensure they are being targeted at those that need them the most
• Pay super on Commonwealth paid parental leave
• Increase the Low-Income Superannuation Tax Offset (LISTO)
• No change beyond the legislated age pension age
• Make super payable on pay day.

Mr Dean said the RIR panel must reject dangerous proposals that allow low-income earners to opt-out of super which would only leave them paying more tax now to then have nothing saved for their future.   

As too should attempts to raid super to pay for house deposits or mortgages – which would only erode retirement savings and increase house prices – pushing the dream of home ownership further away.  

Australia’s super system is among the best in the world, with sensible evidence-based reform we can further unlock its potential to deliver even more for Australian workers, Mr Dean said.

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AUSTRALIAN company EMVision Medical Devices (ASX: EMV) has successfully closed a $9million capital raising via a share placement at $1.42 led by Bell Potter Securities.

There was strong demand from both domestic and offshore institutions and wholesale investors, with bids covering the proposed placement amount multiple times. EMVision has become one of the top-performing ASX IPOs in recent years.

The funds will bolster EMVision’s balance sheet to advance development of their potentially life-saving brain scanner. The compact and transportable device aims to allow for rapid detection and monitoring of stroke in hospitals. Future generations of the device plan to provide ultra-early stroke type detection in ambulances. 

Earlier this week, EMVision released preliminary images from its ongoing clinical trial showing the device can successfully detect haemorrhagic (bleeds), and in a small patient cohort, distinguish between the two stroke types (clots and bleeds). 

EMVision managing director and CEO Ron Weinberger said, "While these results are preliminary and subject to further testing, they provide validation of the fundamental principles of the technology. We have now shown the ability to identify both stroke types, and importantly, distinguish between them. In the future our technology could greatly assist clinicians with earlier interventions and treatment choices.”

Treating stroke is time-critical. Treatment cannot begin until the type of stroke is diagnosed, with patients requiring transport to CT or MRI imaging to confirm the stroke type, meaning many patients are not diagnosed in time to receive the most effective treatment. 

EMVision’s solution is to bring stroke imaging to the patient, wherever they are located, and to help enable treatments and interventions as early as possible. The company’s first commercial device aims to offer bedside monitoring for stroke patients, a solution that does not exist today but could dramatically improve patient outcomes and lower healthcare costs. 

“The first-generation device intends to monitor progression of stroke at the bedside, detect complications or secondary bleeding and track response to treatments. Our clinical trial has also shown that the device integrates well into the hospital environment and is not invasive.” Dr Weinberger said.

Future versions of the device are also expected to provide rapid stroke decision support and triage in ambulances. This is a goal also shared by the Australian Stroke Alliance, of which EMVision is a commercial partner. Instead of transporting patients to hospital, the Australian Stroke Alliance intends to drive or fly Australian-designed, life-saving brain scanning equipment to patients, transforming their chances of survival and recovery.  

“Our vision, as a partner of the Australian Stroke Alliance, is to ensure that anyone who suffers a stroke in Australia can receive the urgent care they need, regardless of their location. And we plan to help make this vision a reality.” Dr Weinberger said.

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A FITNESS Australia report has found more than 60 percent of businesses would last less than a month without financial support.

INDUSTRY body Fitness Australia recently released an Impact of Extending the JobKeeper Payment for the Fitness Industry Report highlighting the critical role JobKeeper has played in supporting an industry that’s designed to support Australians.

Worryingly, without JobKeeper the report found more than 60 percent of businesses, sole traders and individuals reported they would remain viable for less than a month; and 86.8 percent for less than three months.

The survey of more than 1,700 respondents represents more than 27 percent of the industry and included both businesses (including clubs, gyms and studios), and individuals (including sole traders, personal trainers and group fitness instructors) for a fair representation.

Fitness Australia CEO Barrie Elvish said the report laid bare the the impact of COVID-19, and the salvation provided by JobKeeper for businesses and exercise professionals.

“As a result of COVID-19, the sector has already faced, and will continue to face, unprecedented challenges. The introduction of JobKeeper has allowed many in the industry to stay employed, while ensuring continued access to important services for the broader community,” Mr Elvish said.

“Australia’s fitness industry plays a critical role for the Australian economy as a source of jobs, investment, spend and innovation. It also positively impacts individual’s physical and mental health, consequently supporting greater productivity and happiness across the nation.”

The Impact of Extending the JobKeeper Payment for the Fitness Industry Report found:

Gyms, clubs and studios

• · 93.4% of are relying on JobKeeper to stay afloat and keep people employed through this unprecedented time
• · 95.9% of have seen more than 20% decrease in revenue as a result of COVID-19
• · 72.9% of all those surveyed reported more than 40% decrease in revenue
• · 76.6% have lost more than 30% of their members.

Sole traders, personal trainers and fitness professionals

• · 82.5% are relying on JobKeeper to stay afloat and keep people employed through this unprecedented time
• · 90.5% of respondents have seen more than 20% decrease in revenue as a result of COVID-19
• · 78.1% of all those surveyed reported more than 40% decrease in revenue
• · 89.49% have lost more than 30% of their clients
• · 71.39% have lost more than 50% of their clients.

Mr Elvish said a continuation of JobKeeper will support a stronger Australia, fiscally, mentally and physically.

“Supporting Australia’s fitness industry by extending JobKeeper will ensure the sector can continue to be a key employer to support thousands of Australians with jobs; while supporting the broader population with improved physical and mental health outcomes,” Mr Elvish said.

www.fitness.com.au

TODAY'S economic and fiscal update paints a sobering picture of the state of the Australian and global economy. The huge levels of government support could unfortunately only limit the negative fallout from the pandemic, not keep Australia out of recession.

CPA Australia executive general manager of policy and advocacy, Gary Pflugrath said, “The government’s support spending has allowed Australia to escape the worst of the economic impacts of COVID-19, however the negative consequences on jobs and business are likely to be felt for many years, regardless of when Australia begins to regrow.”

CPA Australia highlighted that the support the government had injected into the economy had so far saved many Australian jobs, however this was "no time to rest on our laurels". While the economy may return to growth soon, consumer spending and business investment was likely to remain subdued over the longer term, impacting jobs.

“While the extension of the JobKeeper scheme has removed the imminent threat of a September ‘cliff’, it does not mean that businesses in distress can bury their heads in the sand," Dr Pflugrath said. "They need to access professional advice to help them make the best decisions for the future of their business, themselves and their staff. With many businesses remaining in distress, government can encourage them to access that much needed advice through funding a business advice voucher.

“COVID-19 continues to pose a risk to the survival of many businesses, especially small businesses. Widespread failure or closure of such businesses would adversely impact local economies, potentially slowing the national recovery and future job creation.

“In other words, a large and disorderly spike in corporate insolvencies can create a serious problem for the economy and jobs and needs closer management,” Dr Pflugrath said.

Much still needs to be done to build the economy of the future so that the nation just doesn’t exit this crisis and return to ‘business as usual’.

“Even before this current crisis and the bushfires and floods, Australia was faced with anaemic levels of growth,” Dr Pflugrath said.  "We need an economy that is different, more dynamic and resilient; and one that considers and adapts to the needs of an environmentally sustainable world.

“Such reimaging of the economy will be critical to jobs creation, enhancing the small business sector and hastening the return to stronger GDP growth. 

“The nature of the economic recovery that follows the COVID-19 crisis will depend in part on not only on the survival of small businesses, but on whether significantly more digitally-capable small businesses emerge. This requires much higher government investment in building the digital capability of small business owners and the workforce,” Dr Pflugrath said.

Governments at all levels have done a very good job at implementing what was considered unconventional policies at the start of the crisis given the circumstance; however, the crisis should remain front and centre in future policy considerations.

“Policy options that may have been dismissed as complex, need to be revisited. There are many people of goodwill in the community that want to work with government to overcome these obstacles for the good of the nation and jobs,” Dr Pflugrath said.

About CPA Australia

CPA Australia is one of the world's largest accounting bodies, with more than 165,000 members working in 100 countries and regions and supported by 19 offices globally. Core services to members include education, training, technical support and advocacy. Employees and members work together with local and international bodies to represent the views and concerns of the profession to governments, regulators, industries, academia and the community. Visit cpaaustralia.com.au

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