THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell is encouraging the community to support the Northern Territory’s 14,000-plus businesses during October Business Month.

“October Business Month is highlight on the business calendar in the Northern Territory, with as many as 9,000 people expected to attend more than 150 events,” Ms Carnell said.

“Tradies are a particular focus of this year’s event, with Tradie Talks a new addition to the program, aimed at the Territory’s micro and small business sector, which accounts for about 95 percent of businesses.

“There’s also a series of workshops teaching practical business skills including management and finance. Take the time to be inspired and expand your network with other entrepreneurs and business professionals. I encourage everyone to get involved," Ms Carnell said.

The Ombudsman said it was a great time to be doing business in the Northern Territory, with the government’s commitment in July to faster payment terms for invoices under $1 million.

“The government reduced invoice payment times from 30 days to 20 days and introduced new reporting requirements to ensure these timelines are met,” Ms Carnell said.

“The effort to pay small businesses on time is welcome, especially given the latest SME Growth Index revealed the extent of cash flow problems experienced by small businesses is getting worse.

“The data revealed just one in 10 SMEs had not experienced cash flow problems, meaning 90 percent have," she said.

“In addition to taking part in October Business Month, I would encourage Northern Territory small businesses to take a look at our free online Business Funding Guide which offers comprehensive information on the range of funding options available on the market, while also assisting small businesses to get ‘finance fit’ to give them the best chance at securing the funding they need.”

www.asbfeo.gov.au

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THE number of commercial building approvals surged during August to record its strongest ever monthly performance, according to Master Builders chief cconomist Shane Garrett said. 

“During August, the value of commercial building jobs receiving approval reached $6.14 billion, easily the strongest-ever monthly performance. This was 89.2 percent higher than in the same month last year,” Mr Garrett said. 

“Commercial building work has been one of the Australian economy’s star performers in the recent past, with activity surpassing previous all-time highs. The environment of low financing costs along with robust employment gains and brisk population growth in some centres has underpinned strong demand in those markets,” Mr Garrett said. 

“The remarkably strong figures for August were driven by big gains in approvals for building work in the health sector as well as for offices. The lion’s share of the growth in commercial building related to publicly funded social infrastructure projects such as hospitals, demonstrating the positive role that can be played by government investment at a time of below par economic growth.

“In contrast to commercial building, the volume of approvals for new homes is close to a seven-year low. Detached house approvals lost 2.6 percent during August, although apartment/unit approvals saw a small increase of 1.5 percent,” Mr Garrett said. 

“As it usually takes at least six months from approval stage to the start of actual building work, today’s figures mean that new home building activity will continue to move lower for the rest of this year and well into 2020,” he said. 

“We are now in a situation where we are building fewer new homes than we need in order to satisfy long-term demand. This risks holding back Australia’s future economic development and making the goal of home ownership even more difficult over the coming years."

www.masterbuilders.com.au

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THE Association of Independent Retirees (AIR) has welcomed the 'Review of the Retirement Income System' announced by the Federal Treasurer last Saturday.

However, AIR has some reservations.

“In conducting the review the association seeks certainty for those in retirement so they will not be adversely affected by any changes made to existing retirement income legislation,” Association of Independent Retirees (AIR) Limited director Terry O’Callaghan said
 
AIR is particularly concerned that retirees who have set in place their retirement investments prior to their retirement, are not subjected to any changes to current legislation that would adversely impact on their retirement income.

“Changing the ‘goal posts’ on legislative arrangements for Australians who have already retired and are partly or fully self-funding their retirement, should not be an option for the Review,” Mr O’Callaghan said.

The objectives of the Review, to ensure that the Retirement Income System gives Australians, including self-funded retirees, adequate retirement incomes, and that the system is fiscally sustainable and provides appropriate incentives for self-provision in retirement, are fully supported by the Association.

“However retirees need certainty in planning for their retirement and AIR seeks an assurance from the government that retirees will not be affected by any proposed changes that adversely impact on their retirement income,” Mr O’Callaghan said.
 
“Members of AIR look forward to the Review independent panel considering ways of improving the efficiency and competitiveness of superannuation and encouraging a greater percentage of the working population to partly or fully fund their retirement."

The outcomes of the Review need to ensure that sufficient incentives apply to encourage more Australians to provide for their retirement through superannuation and private savings to assist reduce pressure on the Federal Budget that is being stretched to cover the escalating cost of the Age Pension, increasing longevity of retirees and escalating health and age care costs, according to AIR.
 
Mr O'Callaghan said AIR noted that a consultation paper will be released in November this year and AIR looks forward to raising a number of issues that should be addressed in the final report including:  

• retirees having an adequate level of income that provides for at least the standard of living experienced prior to retirement;
• retention of investment incentives that are considered fair, including superannuation concessions, franking credits on Australian equities, negative gearing on investment properties, and the current 50 percent discount on capital gains tax;
• allowing workers who were self employed or has no superannuation, to sell privately held assets exempt of capital gains tax up to a defined cap, and purchase a tax-free retirement income stream product;
• improving information that assists retirees benchmark their superannuation performance and private investment yield;
• providing assistance with alternative low risk investment opportunities in times of low fixed interest such as being currently experienced;
• broadening the current age based percentage drawdowns for account based income stream pensions with a broadening of the age ranges and a lowering of the minimum drawdown percentages once a retiree has reached 75 years of age;
• adjusting deeming rules to better relate to a low investment environment.

Mr O'Callaghan said it was important that the Review established a fact base of the current retirement income system covering the age pension, compulsory superannuation and private retirement investment to ensure that there is informed public debate on recommendations proposed by the Review panel.

“Any new  legislation concerning the three pillars of Australia’s retirement income system resulting from the Review, should be based on fairness, transparency and certainty,” Mr O’Callaghan said.

For further information or for Media Comments please contact:
Terry O’Callaghan AM -  0408 143 392
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
AIR website: www.independentretirees.com.au

THE Queensland Resources Council (QRC) says Queensland is missing out on a multi-billion dollar addition to our resources and energy industry which would also lower global emissions, because of bans on uranium mining.

QRC chief executive Ian Macfarlane today told the House of Representatives inquiry into the prerequisites for nuclear energy in Australia that Queensland uranium could be mined sustainability and economically.  The most recent valuation estimated Queensland’s uranium deposits to be worth about $10 billion. 

“Queensland is literally sitting on billions of dollars of value to our local communities and our economy.  But the ban on uranium mining prevents us from reaping the benefit of regional jobs, investment and royalty taxes,” Mr Macfarlane said.

“Queensland’s uranium reserves are not only a valuable export, but they also have a role to play in delivering reliable and low-emissions power.

“Both the BP Energy Outlook 2019 and the International Energy Agency recognise that nuclear energy has a role to play in making significant reductions to global greenhouse gas emissions. Under the advanced emissions reductions scenarios modelling in both reports, nuclear energy use will grow between 2.3 percent to 7 percent each year through to 2040," Mr Macfarlane said.

“Even accounting for less aggressive emissions reductions models, nuclear energy will be an important option for countries that want to ensure reliable, low-emissions power in the decades ahead.

“There are already more than 316,000 jobs associated with the Queensland resources industry, and more than 70 percent of them are in regional Queensland.

“Uranium mining would provide an opportunity to add to those jobs and support new jobs in other industries such as refining and manufacturing," he said.

“A growing uranium industry will also support the State’s North West Minerals Province.  An increase in uranium exploration or development will increase the state of knowledge of Queensland’s resource endowment.

“This may well lead to the discovery of important new deposits of uranium as well as other elements and resources. 

“Queensland can develop its uranium industry in a sustainable way. Queensland has some of the highest environmental standards in the world and all resources projects undergo a rigorous assessment process. Uranium mines in Queensland would be subject to the same high standards.

“Queensland has an abundance of energy options, including coal, gas, solar and uranium for nuclear energy.

“It is sensible for this review to take place to look at the long-term options for uranium exports, and in the longer-term, nuclear energy generation.”

www.qrc.org.au

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