THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell acknowledges the Fair Work Commission’s decision to lift the national minimum wage by 3 percent to $19.49 per hour and backs the independent process that lead to today’s announcement.

“The Fair Work Commission has acted independently with a panel of experts assessing all relevant viewpoints and information available to them," Ms Carnell said.

"The decision handed down by Commission president Iain Ross was in response to key economic indicators including low inflation and a fall in GDP growth.

“It’s critical that this decision-making process remains independent and is kept out of the hands of politicians or those with a vested interest.

“The decision to pay Australia’s 2.2 million award dependent workers an extra $21.60 per week from July 1 fell well short of the $43 per week the Australian Council of Trade Unions lobbied for but was also more than the 2 percent business groups wanted.

“Australia already has one of the highest minimum wages in the world. The increase awarded exceeds inflation and that will impact small businesses, many of which are doing it tough right now.

“But it’s important to respect the independent role of the Fair Work Commission.”

www.asbfeo.org.au

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THE Institute of Public Accountants (IPA) has commended the Federal Government’s announcement to review the retirement income system.

“We were very pleased to hear that the Treasurer, the Hon Josh Frydenberg MP announce that he will commission the review which will include the interfaces of superannuation, government pensions and taxation,” IPA chief executive officer, Andrew Conway said.

“The review is long overdue. The importance of trying to define what a retirement living standard the system should aim for is not well defined.

“There is also the budgetary considerations of funding the age pension and superannuation tax concessions and ensuring that the system is sustainable going forward.

“The need to encourage greater investment in superannuation to facilitate self-funded retirement is critical as Australia will not be able to fund government pensions in the future, especially considering our ageing population.

“Different mechanisms need to be considered given the longevity risk when superannuation members retire.  This includes the development of annuity type products.

“However, there is significant complexity in the system with many competing interests, which must all be given due weight if we are to develop an equitable retirement income system.

“For instance, we cannot ignore the findings of the Productivity Commission report which suggested reforms to benefit members through lower fees and higher investment returns could generate an extra $533,000 for a new job entrant today when they eventually retire.

“An essential element of this review will be to provide access to affordable financial advice, which is what public accountants, as trusted advisers, can deliver,” Mr Conway said.

www.publicaccountants.org.au

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THE Queensland Resources Council has welcomed the Palaszczuk Government’s offer to freeze the rates of royalties on coal and minerals for three years. 

The LNP has already promised to freeze royalty rates until October 2024.

The QRC will now ask its member companies to consider the Government’s offer along with their request for the resources industry to contribute $70 million to a Regional Infrastructure Fund over three years. 

QRC chief executive Ian Macfarlane said increasing royalties would be increasing taxes and an attack on the resources sector that supports one in eight jobs in Queensland – the equivalent of 315,000 full-time jobs.

“The Palaszczuk Government is already on track to receive more than $5 billion in resource royalties this financial year – a record and almost $1 billion more than they expected from their current budget," Mr Macfarlane said.

“Any increase in royalty taxes is a disincentive for investment in regional areas and would mean lost job opportunities for all Queenslanders.

“The industry will respond to the government on its proposal as soon as possible.”

www.qrc.org.au

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QUEENSLAND is strengthening its position as the most reliable supplier of gas on the East Coast after the Palaszczuk Government awarded more than 2700 square kilometres of energy rich land for exploration.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said the economics of supply and demand were simple.

“If demand for gas is strong you need to increase supply to put downward pressure on prices,” Mr Macfarlane said.

“I applaud the Palaszczuk Government and the Resources Minister Dr Anthony Lynham for their continued support of the State’s gas industry. This is an investment into regional Queensland, where all levels of governments and farmers support the gas industry, resulting in massive economic benefits for farmers and rural and regional communities."

Brisbane-based Senex Energy was awarded 153sqkm near Miles under the domestic-only supply mechanism, while a Santos/Shell joint venture, Galilee Energy and Sajawin won the right to explore for gas across more than 2600sqkm between Miles and the border town of Inglewood. 

Mr Macfarlane said Queensland’s neighbours must take a leaf out of our book. New South Wales and Victoria can’t expect Queensland to continue to supply, and subsidise, their own gas users.

“It’s time for both sides of politics to consider rewarding States that do develop their resources, at the expense of those who don’t,” he said.

www.qrc.org.au

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