THE House of Representatives Standing Committee on Economics will scrutinise the superannuation sector over two days of hearings in Canberra on November 21 and 22, 2019, as part of its ongoing review of the four major banks and other financial institutions.

The chair of the committee, Tim Wilson MP, said, "These hearings are an important part of the committee’s scrutiny of the financial sector.

"As the superannuation system is a significant mechanism enabling Australians to support themselves in retirement, it is crucial that the superannuation sector is operating effectively, fairly and to the benefit of fund members," Mr Wilson said.

The committee’s examination of the groups will include monitoring the sector’s progress on implementing relevant recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Public hearing details

Date: Thursday, 21 November 2019
Time: 9.15am to 5pm
Location: Committee Room 2R1, Parliament House, Canberra

9.15am – AustralianSuper
10.45am – Break
11am – IOOF
12.30pm – Break
1.30pm – Suncorp
2.15pm – Q Super
3pm – Nulis Nominees Australia
4pm – REST and Host-Plus
5pm – Adjournment

Date: Friday, 22 November 2019
Time: 9.15am to 3.30pm
Location: Committee Room 2R1, Parliament House, Canberra

9.15am – Industry Super Australia
10.30am – Break
10.45am – IFM Investors 
12pm – Break
1pm – Association of Superannuation Funds of Australia
2pm – AMP Super (AMP Group)
3.30pm – Adjournment

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

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LAST WEEK, Australian small businesses with 19 employees or less, were required by law to report using the new digital Single Touch Payroll (STP) reporting system - however around a third of small employers are yet to start reporting or notify the ATO they need more time to start.

STP requires employers to electronically send payroll information including wages, salary payments and superannuation to the Australian Taxation Office (ATO), at the same time as their usual pay run.

Many businesses can report from their existing accounting software if it’s STP-enabled but if it is not, then with some preparation employers can implement the new payroll scheme with minimal interruption.

Chartered Accountants Australia and New Zealand (CA ANZ) wants to remind small businesses to make the switch to avoid any unwanted calls from the ATO.

“According to the ATO, almost 400,000 small businesses have signed up to STP and around 100,000 have applied for quarterly reporting, been granted additional time to start reporting or are covered by the one year extension for closely held employees,” CA ANZ tax leader Michael Croker said.

“Given there are around 750,000 small businesses in Australia that employ people, many are yet to make the move.

“Small business employers who haven’t signed up for STP, or have not obtained a deferral or concession, can expect to be contacted by the ATO.

"The ATO won’t just go from nice guy to tough guy, but the dial will move in a way that triggers more direct engagement. 

"There is power in the legislation to penalise businesses who don’t make the switch which the ATO can use but currently the ATO is identifying and working with businesses to help them adopt STP.”

The intention of STP is to create transparency and guarantee employers are meeting their payroll obligations – particularly in relation to superannuation. 

“This scheme gives the ATO access to businesses real-time payments, meaning any underpaid entitlements, such as superannuation, will be identified,” Mr Croker said.

“Business who haven’t been meeting their employer payroll responsibilities can be identified and should expect to be contacted by the ATO.”

Businesses that have made innocent errors in their STP reporting can expect a light touch in this first year of reporting as the ATO has indicated that penalties will not be applied

“If your current payroll software hasn't been STP- enabled, or you don't use a payroll software, it’s a good idea to talk to your local Chartered Accountant about options that would best suit your business needs,” Mr Croker said.

https://www.ato.gov.au/Business/Single-Touch-Payroll/

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BUILDING activity shrank by 5.5 percent during the June 2019 quarter to record its weakest result in two years with both resident and commercial activity moving lower, according to Master Builders Australia’s chief economist Shane Garrett.                                                  

“Today’s figures from the ABS show that the volume of residential building dropped by 4.5 percent during the June 2019 quarter with commercial building contracting by 7.2 percdent over the same period. However, the forward-looking approvals data published last week suggest that the short-term prospects for commercial building are still quite favourable,” Mr Garrett said. 

“Up until recent times, commercial building had been one of the economy’s strong performers but today’s figures indicate activity here too has started to falter,” Mr Garrett said. 

“Economic growth has been hurt by the decline in residential building activity which has been underway since late 2016. 

“Domestic demand in the economy is lacking in energy at the current time which is why the onus lies so heavily on government to get things moving,” Mr Garrett said. 

“Speeding up the roll out of already-committed infrastructure projects is the most obvious way to kick start demand in the economy. All levels of government need to work more closely together to help achieve this,” he said. 

“Once new infrastructure is in place, it can spark off activity in other parts of the economy by enhancing the economic viability of potential residential and commercial building projects. 

“Faster infrastructure delivery is the key to unlocking recovery in our building industry,” Mr Garrett said. 

www.masterbuilders.com.au

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has urged small business owners to take a moment to consider their wellbeing ahead of World Mental Health Day 2019 tomorrow.

“This year’s World Mental Health Day focus is on suicide prevention, with someone in the world sadly taking their own life every 40 seconds,” Ms Carnell said.

“Organisers have asked everyone to take 40 seconds of action to raise awareness about mental health.

“Mental health is a serious issue for Australia’s small business community, with a new MYOB report revealing 56 percent of small business owners admit that running their business has directly brought on feelings of anxiety or depression," Ms Carnell said.

“48 percent of those small business owners reported their anxiety was largely caused by financial and cash flow concerns.

“Many small business owners may not be aware that the very worries that are keeping them up at night – such as cash flow, customer demands or paying suppliers – can actually cause high levels of psychological distress and have serious impacts on their mental and physical health," she said.

“It makes good business sense to invest in a mentally healthy workplace. Research by Pricewaterhouse Coopers has shown that every dollar spent on creating a mentally healthy workplace results on a positive return on investment of $2.30.”

www.asbfeo.gov.au

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