THE Financial Services Council (FSC) has welcomed the Federal Government’s announcement of a review of the retirement income system and the members appointed to conduct the Review. 

FSC CEO Sally Loane said the FSC would work closely with the Review to ensure continuing improvements to Australia’s retirement income system, particularly through our unique superannuation system.

“Superannuation consumers receive significant benefits from competition and choice, and this will be an important focus of the FSC’s approach to the Review,” Ms Loane said. 

“However, this review should not delay important reforms that the Government has already committed to that will significantly improve consumer outcomes in superannuation.

“These include the introduction of a ‘default once’ framework to prevent unintended multiple accounts, as recommended by both Commissioner Kenneth Hayne and the recent Productivity Commission review of superannuation, and legislating an obligation for trustees to consider the retirement needs of their members.”

The FSC will also suggest to the Review that:

• the Government should retain its policy of increasing the Superannuation Guarantee to 12 per cent;
• superannuation laws should be simplified, and red tape in the sector should be removed including barriers to rationalising legacy products; and
• there is no need for further tax increases on superannuation, because our system, as measured against OECD standards, is not unfairly beneficial to higher income earners.

“The FSC looks forward to advocating strongly for these positions during the Review process over the coming year,” Ms Loane said.

www.fsc.org.au

ends

“THE amount of engineering construction work done is well down on a year ago with the building and construction industry still waiting for the green light on key infrastructure projects,” Master Builders Australia chief economist  Shane Garrett has warned.  

“During the June 2019 quarter, the volume of engineering construction work done slipped by 0.9 percent and was 15.4 percent lower than the same period in 2018,” he said. 

“Master Builders continues to call for the construction of infrastructure projects to be fast-tracked.

“The heavy volume of new infrastructure project announcements over recent times is very welcome, but today’s figures confirm that there are significant blockages in the way of getting project work started on the ground which must be addressed," Mr Garrett said.

“Tackling the blockages and obstacles in the way of infrastructure projects is an issue which must be prioritised by all levels of government.

“With the pace of economic growth at its weakest in a decade, the prompt delivery of new infrastructure is vital for getting us all moving in the right direction,” Mr Garrett said. 

During the June 2019 quarter, the largest decline in engineering construction work done affected the ACT (-13.1%) followed by Tasmania (-12.7%) and the Northern Territory (-11.6%). There were also falls in South Australia (-5.8%), Queensland (-5.1%) and Victoria (-4.8%). 

Over the same period, both Western Australia (+10.3%) and New South Wales (+3.2%) saw gains in the volume of engineering construction work done.

www.masterbuilders.com.au

ends

THE Law Council of Australia has welcomed the release of detailed reporting entity guidance measures for the Modern Slavery Act 2018, which will assist organisations with compliance. 

The guidance, released by the Department of Home Affairs today, further establishes Australia as a world-leader in combatting modern slavery practices. It follows a period of close consultation with key stakeholders, including the Law Council.

Law Council President, Arthur Moses SC, said given the widespread global nature of modern slavery, the guidance should be a “living document”, reviewed and regularly updated to remain relevant, accessible and informative. 

“Too often we are tempted to think of slavery as a relic of the past, but the truth is it’s a problem alive and well,” Mr Moses SC said. 

“The United Nations has estimated there are more than 40 million victims of modern slavery worldwide. Around 25 million are estimated to be exploited through global supply chains.  

“More than half of all modern slavery victims are estimated to live in the Asia-Pacific region, where the supply chains of many large Australian businesses are concentrated. This means the risk of exposure to modern slavery is a very real and current problem for businesses.  

“Modern slavery in supply chains also distorts global markets, undercuts responsible businesses, and poses significant legal and reputational risks for companies. 

“The Law Council commends the Federal Government for the steps it is taking to stamp out this insidious practice, which represents a false economy based on human misery.” 

The Law Council believes the guidance is useful and comprehensive. 

As the legislation moves into its second year the guidance could usefully be expanded and the Law Council looks forward to ongoing consultation with the department. 

ends

THE Queensland Resources Council (QRC) has welcomed the action by Australia Pacific LNG (APLNG) to supply 61 petajoules (PJ) of gas to the Australian domestic market which is the equivalent yearly demand of around 1.5 million households.

“I applaud APLNG for helping to put downward pressure on energy prices by increasing supply into the domestic market through this new agreement with Origin Energy. It’s another sign of the Queensland gas industry leading the nation with a proactive approach to developing its gas reserves,” Mr Macfarlane said.

“Our southern neighbours must take a leaf out of our book, instead of relying on our State to meet the gap caused by their failure to develop their own gas industries. Gas exploration has stalled in New South Wales and Victoria, despite the fact all jurisdictions have their own reserves in the ground.

“Queensland’s gas industry is doing its part to ensure domestic gas users have access to affordable and reliable gas supplies.”

APLNG said the new contract increases the company’s total domestic contracted supply commitment to over 340 PJ for 2020 and 2021 which is over 30 percent of total east coast domestic demand for each year.

Mr Macfarlane said people wanted industry and Government to work together with communities and wider society to promote effective, constructive, and mutually beneficial relationships.

“Queensland’s resources industry has a proven track record of attracting new investment and creating new jobs because of the clear and stable regulatory environment in which it operates. It is essential that we have stable and reliable regulation for our resources sector to continue to attract the investment that builds our State and delivers for every Queenslander.”

www.qrc.org.au