THE corporate regulator took on the case against Bendigo and Adelaide Bank for unfair terms within small business contracts and the lessons learnt should sound warning bells to others, according to the Institute of Public Accountants (IPA).

“The IPA has been a long-time advocate for leveling the playing field when it comes to unfair contract terms for small business and we commend ASIC for taking this up with Australia’s fifth largest retail bank,” IPA group executive policy and technical, Vicki Stylianou said.

“In the case of the Bendigo and Adelaide Bank, the Federal Court found that the unfair terms in the small business loan contract had caused a major imbalance in the parties’ right and obligations under the contract, and further, the terms would cause detriment to the small businesses involved if the terms were utilised.

“ASIC pursued the case, noting that some of the unfair terms provided the bank with the ability to vary the terms and conditions of the contract without giving the small business borrower due warning, as well as the capability to exit the contract without penalty.

“This case should herald a sharp warning to other financial institutions and corporations, that the insertion of unfair contract terms is potentially breaking the law.

“It is also a telling factor that legislation around unfair contract terms is only as good as the enforcement that prevails as was this case with the bank.

“Small businesses should also be wary in entering contracts, ensuring they understand the terms and conditions and where necessary seek advice from their trusted adviser before signing,” Ms Stylianou said.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants. 

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AN INQUIRY into whether Australia should adopt ‘Magnitsky-style’ laws will hear from world champion chess grandmaster and human rights commentator Gary Kasparov at a teleconference hearing this week.

The inquiry, run by the Joint Standing Committee on Foreign Affairs, Defence and Trade, Human Rights Sub-committee will be led by Sub-Committee chair Kevin Andrews MP, who said the Sub-Committee was looking forward to the opportunity to speak to Mr Kasparov.

"In addition to his career as a professional chess player, Mr Kasparov has become notable in recent years for his advocacy for democratic principles around the world, and for his criticism of elements of the Russian Government," Mr Andrews said.

"Mr Kasparov has been a strong advocate for Magnitsky-style legislation in other jurisdictions, and we are grateful that he has agreed to provide his perspective on such legislation in an Australian context."

Also appearing at the hearing will be retired Australian diplomat Tony Kevin. In contrast with Mr Kasparov, Mr Kevin opposes Magnitsky-style legislation, writing in a submission to the inquiry that in his view such laws violate "international law and commonly accepted international practice".

"While submissions to the inquiry have been overwhelmingly supportive of targeted sanctions, the committee has noted some evidence with differing views," Mr Andrews said.

"This public hearing will give the Sub-Committee the opportunity to interrogate arguments both for and against Magnitsky-style legislation in detail."

More information about this inquiry, including submissions received by the Committee to date, is available on the Committee’s website.

Public hearing details

Date: Thursday 25 June 2020
Time: 3:15pm – 4.45pm
Location: Via teleconference

The hearings will be streamed at aph.gov.au/live.

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THE Queensland Resources Council has welcomed the Federal Government’s $125 million funding extension to Geoscience Australia’s Exploring for the Future (EFTF) Program.

QRC chief executive Ian Macfarlane said the investment would lead to a clearer understanding of the geological structures in Queensland and Australia.

“This is a vote of confidence in the exploration industry from the Morrison Government and I congratulate the Federal Resources Minister Keith Pitt for backing the exploration industry which is hurting from the economic impacts from COVID-19," Mr Macfarlane said. 

“Geoscientific data plays a critical role in framing policy settings from government and this program provides an in-depth understanding of our resource assets which belong to all Queenslanders.”

QRC’s exploration focused member organisation the Queensland Exploration Council (QEC) said this program was a vital tool for the exploration industry. 

“Queensland is blessed with a rich source of minerals and the skilled people to find them. Connecting this to supportive governments will ensure the minerals discovered today are the foundations of tomorrow’s resources industry,” QEC chair Kim Wainwright said.

‘Industry has long understood the return on investment potential of geoscience data and the recent ACIL Allen analysis showed the total potential benefits flowing from the activities in the current EFTF could be between $446 million and $2.5 billion."

The EFTF program has been in operation for four years.  

Link to Geoscience Australia’s Exploring for the Future (EFTF) Program: https://www.ga.gov.au/eftf

Link to ACIL Allen analysis: https://www.acilallen.com.au/projects/program-evaluation/exploring-for-the-future-program-return-on-investment-analysis

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THE NSW Government has launched a new suite of guidance materials to help all types of businesses manage the risk of COVID-19.

Minister for Better Regulation, Kevin Anderson said these new materials had been specifically created for non-customer facing businesses, to ensure everyone has access to industry specific, practical guidance to prevent the spread of the virus.

“About 45,000 businesses have already downloaded the NSW Government’s COVID Safety Plans, and we’ve now created additional resources for offices, construction sites, farms, and manufacturing premises,” Mr Anderson said.

“The materials being made available include practical, inexpensive guidance that will no doubt inspire some innovative strategies as they are put into play.”

For example, in an office environment, a safety plan can be tailored to variables such as numbers of staff, whether the building has lifts, shared amenities or hot desks.

“Common misconceptions for office workers are that hot-desking is banned, and that only one person can ride in a lift at a time. That’s simply not true so long as you clean your desk thoroughly before and after use, and maintain a social distance within the lift,” Mr Anderson said.

“Ultimately we want to focus on getting NSW’s economy back up and running and providing businesses with the right guidance to operate safely and successfully in the current climate.

“I encourage every business to jump online and download these simple yet powerful tools to map out a safe way back to business that puts customers and workers front and centre.”

The new campaign materials including social media tiles, downloadable posters and checklists for all NSW offices are available at www.nsw.gov.au/covid-19/industry-guidelines/office-environment-including-call-centres

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