Skip to main content

Business News Releases

Industry superfunds can withstand the market’s coronavirus shock    

INDUSTRY superfunds long-term investment outlook means they are well-placed to deal with the decline to Australian and global share markets caused by the coronavirus, according to Industry Super Australia CEO Bernie Dean.

“It is understandable that people are concerned about the impact coronavirus is having on the economy and their super balance, but it is important to remember that super is a long-term game and the market recovers," Mr Dean said.

“A way to lose money in super after a downturn is to make changes that crystallise your losses. People avoid selling their house during a property market slump because they are worried about making a loss, the same principle should be applied to changing your super fund or investment option immediately after a market drop.”

The impact COVID-19 will have on global economies is still largely unknown, and it is not clear how long the market volatility will last, he said.

But due to the diversity of assets in super funds’ portfolios the losses are likely to be far more muted than the headline-grabbing share market plunges seen on the evening news.

No one can predict the future, but as with previous downturns the market will rebound and because super is a long-term investment the short-term market dips are smoothed out overtime, he said.

Mr Dean said funds would continue their important role in the Australian economy investing in infrastructure, property and shares which provides stability to the local financial market.

"When it comes to super often the best course of action, is no action. Individuals can crystallise their losses missing out on the rebound if they switch their super to cash or other defensive assets after a downturn," Mr Dean said.

"At the last major market decline – during the Global Financial Crisis (GFC) – savers who moved their money from an average balanced industry fund into cash were $4,000 worse off after three months, $13,800 after a year, $34,800 worse off after five years and after seven years would have lost a whopping $46,000 of potential retirement savings.

"Industry SuperFunds are particularly well-equipped to deal with short-term shocks to world equity markets because of their investments in infrastructure, property, cash, and other unlisted assets."

After the GFC most super funds recovered quicker than global stock markets, and the diversified asset base means funds are once again able to bounce back from this market drop.

"If members think about their investment in the long-term what has happened this week will not make much difference to super balances in the 20 years or longer when they start to think about retiring," Mr Dean said. 

"Those planning to access their super soon may not have time to ride out the market volatility and should seek advice on how to limit any losses."

www.industrysuper.com

 

ends

  • Created on .

Parliament goes west to speak to traditional owners

AS PART of a Federal Parliament inquiry into economic engagement with Traditional Owners, Members of Parliament are travelling to Western Australia next week.

The Northern Australia Committee is holding public hearings in Broome, Karratha, Newman, Port Hedland and Perth, and will hear evidence from Land Councils, Native Title holders, Indigenous business leaders, mining companies and other stakeholders.

Committee Chair Warren Entsch said, "The northern Australia policy that we have will not succeed unless we bring the Indigenous population with us on this journey of economic empowerment.

"We've realised, as part of this Committee, that the one area where we are failing absolutely is in bringing the major landholders, our Indigenous population, with us on this journey," Mr Entsch said.

In its submission, the Kimberley Land Council stated, "The economic development in Northern Australia must place Indigenous people at its centre rather than on the periphery waiting for 'trickle down' benefits."

"Past experience proves that, when engaged by government and industry in good faith, Traditional Owners are empowered to identify commercial opportunities which use resources sustainably, thus protecting Indigenous-held core values of country and culture whilst building strong communities and capability."

The Government of Western Australia statment read: "An impediment to economic development opportunities for Traditional Owners is tenure options that allow for divestment and resulting economic development opportunities, without extinguishing native title.

"Appropriate tenure can be an enabler of new opportunities, but many communities hesitate to agree to native title being extinguished to enable the granting of new tenure."

he WA Government‘is exploring innovative ways of minimising the impact of tenure reform on the exercise of native title rights and interests, while enabling economic development opportunities.

The Committee will hold public hearings in Broome, Karratha, Newman, Port Hedland and Perth. Programs are available on the Committee’s website.

Public hearing details

Date: Monday, 16 March 2020
Time: 8:30am to 2pm
Location: Broome Chamber of Commerce and Industry, Level 1, Unit 7 Woody’s Arcade, 15-17 Dampier Terrace’ Broome
Witnesses include: Kimberley Land Council, True Kimberley Tours, Nyamba Buru Yawuru, Djarindjin Aboriginal Corporation, NAAKPA, KALACC, Kimberley Development Commission.

Date: Tuesday, 17 March 2020
Time: 9am to 12pm
Location: Council Chambers Karratha, Lot 1083 Welcome Road, Karratha
Witnesses include: Yara Pilbara, Murujuga Aboriginal Corporation, Pilbara Development Commission, Ngarluma Yindjibarndi Foundation.

Date: Wednesday, 18 March 2020
Time: 8:30am to 9:30am
Location: Newman House, 15 Iron Ore Pde, Newman
Witnesses include: Kanyirninpa Jukurrpa.

Date: Wednesday, 18 March 2020
Time: 2pm to 3pm
Location: WEB Business Hub – Collaboration Space, 18 Edgar Street, Port Hedland
Witnesses include: IBN.

Date: Thursday, 19 March 2020
Time: 9am to 5pm
Location: Committee Room One, Legislative Council Committee Offices, 18-32 Parliament Place, Perth
Witnesses include: Government of Western Australia, Rio Tinto, Gumula Enterprises Pty Ltd, Vimy Resources Limited, Sheffield Resources Limited, Roy Hill, Desert Support Services, Fortescue Metals Group Ltd, Regional Implementation Committee, Western Desert Land Aboriginal Corporation RNTBC.

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

Further details of the inquiry, including expanded terms of reference, can be found on the Committee’s website

ends

  • Created on .

On the pulse: getting a taste of sustainable farming

GRAIN, legume growers and food and wine producers from South Australia will have the chance to speak with federal parliamentarians this week about the success of sustainable farming practices, as part of the inquiry into regional Australia.

House of Representatives Select Committee on Regional Australia chair Tony Pasin MP said his home state is full of innovative people making the most of the regions.

"I’m proud to bring the Committee to my home state to see and hear these stories first hand," Mr Pasin said. 

"We’ll bring together the stories and experiences of how regional economies are diversifying, how regional industries are finding their way, and how regional communities are boosting their resilience and working together to secure their future,” he said.

"Among others, we’ll be meeting with the people from Pangkarra Foods in Rochester to learn more about businesses that grow and process their own products, and Myora Farm to witness first-hand the use of advanced technology in pig farming.

"After some site visits with primary producers, we’ll be bringing everyone together for roundtable discussions to really flesh out what’s working in regional South Australia," Mr Pasin said.

Community members are also encouraged to attend and speak to the Committee as part of the roundtable discussions, and can contact the secretariat for more information.

Information on the Committee’s work, including submissions and public hearing programs, may be found on the Committee’s webpage.

Roundtables

Date: Wednesday 18 March, 2pm (Food and Wine) 3pm (Regional Community)
Location: Novotel Barossa Valley , Shiraz Room A, 42 Pioneer Avenue via Golflinks Rd, Rowland Flat, Barossa Valley, SA

Public Hearing

Date: Thursday 19 March, 2pm
Location: The Barn - Oak Tree Room, 747 Glenelg River Rd, Mount Gambier, SA

The roundtable discussions will be broadcast live at aph.gov.au/live.

ends

  • Created on .

New South Wales throws down the gauntlet with new net zero plan

ENERGY efficiency experts say the NSW Government’s plan for meeting its new 2030 climate target is comprehensive, credible and achievable, and sets a new benchmark for action from other states.

The NSW Government has announced a target of reducing statewide emissions by 35 percent by 2030, and released a net zero plan setting out the detailed actions that will get them there.

Council CEO Luke Menzel said NSW Energy and Environment Minister Matt Kean has thrown down the gauntlet to his ministerial colleagues around the country.

“Every Australian state has set a goal of hitting net zero emissions by 2050. However the NSW Government is the first with a detailed plan for what they are going to do, right now, to begin driving this economic transformation," Mr Menzel said.

Mr. Menzel said the NSW Government’s plan did two crucial things.

“In the short term, it scales up deployment of cost effective technology that immediately cuts carbon and energy costs for families and businesses,” he said. “However it also has an eye to the future, supporting industry to gain experience with new ways of operating – like electrifying manufacturing processes – that will become crucial to emissions reduction efforts later this decade.”

The NSW plan:

  • includes new funding for an expanded Energy Efficiency Program that will ramp up the NSW Government’s existing support for smart energy use across the state;
  • commits $450 million over 10 years to an Emissions Intensity Reduction Program, which assist the rollout of cutting edge low carbon technologies in sectors where it is harder to reduce emissions;
  • includes a range of other measures, including strategic investments in hydrogen, expanding building rating programs and reducing embodied carbon in building products.

Mr. Menzel said that NSW’s leadership position on emissions reduction was smart.

“This isn’t just an environmental policy, its an economic one,” Mr Menzel said.

“It is a blueprint for cutting the emissions of existing industries, and capturing the opportunities of a net zero economy.”

About the EEC

The Energy Efficiency Council is a not-for-profit membership association for businesses, universities, governments and NGOs. Founded in 2009, the Council’s members are diverse, but are united by a common cause: building a sophisticated market for energy management products and services that delivers: Healthy, comfortable buildings; productive, competitive businesses; and an affordable, reliable and sustainable energy system for Australia.

ends

  • Created on .

Builders back well targeted stimulus

THE Federal  Government’s $17.6 billion stimulus package should bolster economic resilience in the face of the current challenge according to Master Builders Australia.

"In times of crisis people look to their leaders to respond and the government through this stimulus package has done that,” Denita Wawn, CEO of Master Builders Australia said.

"Right now what our industry most needs is confidence and this clear signal from the government that they are determined and committed to doing whatever it takes is extremely welcome,

"There are more than 380,000 small building businesses and tradies in our industry, more than any other sector of the economy, that will benefit from the Government’s strong focus on backing small businesses,” Ms Wawn said.

“We strongly back the moves to back businesses, particularly small businesses, to keep workers and apprentices employed. The danger with economic shocks is that the labour market recovers slower than the rest of the economy so moves to offset employers shrinking their workforce is very well targeted.

“Builders and tradies around the country will respond favourably to the huge boost in the instant tax write-off threshold from $30,000 to $150,000 and expansion of its eligibility to businesses with turnover under $500 million (up from $50 million),” Ms Wawn said.

"Incentives to invest in business assets are also well targeted to our industry. There is no doubt builders and tradies will be encouraged to invest in new plant and equipment.

"However, if there is a major contraction in building activity then the benefit of these measures will be blunted. The government must take a strong leadership role in ensuring that construction of government projects currently underway continue and that projects scheduled to commence are not delayed or withdrawn,” Ms Wawn said.

"The government could also bring forward expenditure on existing projects. Accelerating construction of current projects and bringing forward construction of shovel ready projects, big and small, would provide an immediate strong impetus for building firms to take up tax write off and investment incentive measures.

"Our industry also remains nervous about how protracted the inevitable shortage and delayed delivery of imported building products will be. This is a hit to our industry that is looming over the next few months and additional measures and extensions of some of stimulus measures may be required to help the industry weather that storm,” Ms Wawn said.

www.masterbuilders.com.au

ends

  • Created on .