LEADING advocates for financial industry reform, Maurice Blackburn Lawyers has welcomed ASIC’s announcement it will heed the recommendation of the Hayne Royal Commission to ban cold call telephone sales of life insurance and consumer credit insurance.

Maurice Blackburn principal, Josh Mennen said the Royal Commission revealed many people have been taken advantage of by unsolicited telephone calls from financial companies pushing unsuitable products.

“This is an important step by ASIC in faithfully implementing Commissioner Hayne’s recommendations and will help protect the vulnerable members of our community from unscrupulous product spruiking by banks and insurers eager to sell their own in-house products.

“However, the hawking prohibitions apply only to unsolicited telephone calls and meetings, and do not apply to other unsolicited communications,” Mr Mennen said.

“More work needs to be done to address digital-era communications, such as email spamming, brochures or digitally-targeted media advertisements.

“There is also a need for more robust requirements on financial institutions to report to customers and the regulator as to how they obtain and use personal information,” Mr Mennen said.

“Over the years, Maurice Blackburn has seen how banks and large wealth managers have systematically targeted existing customers through unsolicited approaches in an effort to cross-sell their insurance and other financial services.  

“As shown by the Royal Commission, this has too often resulted in consumers, including many of our clients, taking out inappropriate or unnecessary cover at significant personal cost,” Mr Mennen said.

“Ridding the industry of this type of underhanded practice will be a key step in stopping the exploitation of people’s understandable desire to protect their financial future.”

The ASIC ban on unsolicited insurance telephone sales will take effect from mid-January next year.

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AFTER 60 years of the Antarctic Treaty, the future of the region is the focus of an international assembly to manage the issues affecting the global asset for the future.

The Chair of Parliament’s Joint Standing Committee on the National Capital and External Territories, Keith Pitt MP, along with committee member, Warren Snowdon MP, are representing the committee at the first ever Antarctic Parliamentarians Assembly in London.

The event has brought together parliamentarians from across the 54 signatories to the Treaty.

Mr Pitt said the Assembly was an important opportunity for Parliamentarians to discuss how challenges facing Antarctica could be addressed.

“Some of the topics to be discussed include whether Antarctica can be future proofed, as well as tourism in Antarctica, and whether the presence of people can support environmental protection,” Mr Pitt said.

“Australia was one of the 12 original signatories of the Antarctic Treaty and just this week the Australian Government has announced a $58.8 million commitment to strengthen our scientific and environmental leadership in Antarctica.”

Parliamentarians from Australia, Belgium, Brazil, Canada, China, France, Italy, New Zealand, Norway, Sweden, Turkey, United Kingdom and Ukraine attended the Assembly.

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AUSTRALIA'S ECONOMY expanded by just 0.4 percent during the September 2019 quarter with growth hit by continued delays in the activation of new infrastructure projects -- and that is a real concenr, according to Master Builders chief economist Shane Garrett. 

“The three parts of the economy which shrank during the quarter were engineering construction, residential building and private business investment. Slow conditions in construction are not helpful from the point of view of encouraging businesses to invest,” Mr Garrett said.

“Clearly, the pace at the construction of new infrastructure is being commenced is holding back not just construction activity but the entire economy.

“The key ABS data released today show that the annual pace of GDP growth was 1.7 percent over the year to September, well short of the economy’s 3 percent trend rate of growth,” Mr Garrett said. 

“At a time when infrastructure should be one of the economy’s highlights, the volume of engineering construction work done actually dipped to its lowest level since early 2008 - having shrunk by another 5.9 percent during the last quarter. 

“The weakness of construction activity is clearly hurting growth in other areas of the economy too.

“With household spending having stagnated, growth in our economy is now almost completely reliant on day-to-day government spending and demand for our exports from overseas,” Mr Garrett said. 

“Master Builders calls all levels of government to do more to accelerate the construction of infrastructure projects. While mega-projects take time to activate, there are many opportunities to fast track smaller projects outside Sydney and Melbourne, including in regional Australia. Many of these can be delivered by smaller and local construction contractors which helps to multiply the economic benefits,” he said. 

“Construction activity is unique in its visibility and its capacity to restore confidence amongst consumers and businesses. We need to seize this opportunity."

www.masterbuilders.com.au

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A 33-year-old Sydney man has been sentenced at the Mt Druitt Local Court today after pretending to be a tax agent and charging several people a fee to lodge their tax returns, only to then steal their refunds.

As a result of his actions, Mr Cox received a two and a half year prison sentence to be served in the community by way of an Intensive Corrections Order. He was also ordered to pay over $13,000 in compensation to the ATO and his victims, and has had $22,000 worth of his assets seized.

Mr Benjamin Cox pretended to be a tax agent to more than 1,000 people, charging $100 for his services and using their myGov login details to submit income tax returns on their behalf. He also stole $12,866.62 worth of refunds by having them directed to his personal account.

Mr Cox advertised his services through Facebook and Gumtree, targeting vulnerable people in the community who were unfamiliar with the Australian tax system.

The ATO and TPB are working closely to identify and put a stop to unregistered preparers. People pretending to be tax agents often promise refunds that are too good to be true or provide discounted services much cheaper than legitimate registered tax agents.

Another tell-tale sign to look out for is that unregistered preparers often use a taxpayer’s personal login details to access their ATO Online account through myGov to lodge tax returns. A legitimate tax practitioner will never ask for your myGov credentials – they use dedicated ATO Online services to lodge returns for their clients.

The ATO, the Tax Practitioners Board (TPB) and NSW Police received complaints about Mr Cox and he was promptly arrested after a joint investigation into his activities.

Assistant Commissioner Adam Kendrick welcomed the sentence handed down today, saying that Mr Cox’s actions risked damaging the integrity of the tax system and the tax profession.

“Not only was Mr Cox pretending to be a tax agent and providing services without a registration, he was stealing from his clients," Mr Kendrick said.

“These unregistered preparers pose a threat to vulnerable taxpayers and risk the reputation of registered tax agents.

“They pretend to offer legitimate services to the community, but in reality they pose a serious threat not only to the people that use them, but to the broader community and the tax system as a whole.

“Your tax agent has access to your personal identifying information like your Tax File Number. Giving information like this to an untrustworthy person can end badly, as shown in this case. You can protect yourself by checking that your tax agent is registered and never sharing your myGov login details and password with anyone, including your tax agent.

“We have a shared interest with registered agents, the TPB and tax professional associations to protect the community and the integrity of Australia’s tax and super systems,” Mr Kendrick said.

Taxpayers can check if their tax practitioner is registered on the Tax Practitioners Board website at tpb.gov.au

ato.gov.au/tipoff

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