Business News Releases

Perth and Adelaide public hearings announced for franking credits inquiry

THE House of Representatives Standing Committee on Economics will hold public hearings in Carlisle and Guildford, Western Australia, and Norwood, South Australia, for its inquiry into the implications of removing refundable franking credits.

The chair of the committee, Tim Wilson MP, said, "The committee continues to gather evidence about how the removal of refundable franking credits would affect investors, particularly senior Australians whose financial security could be compromised."

The SMSF Association, who will appear in Adelaide, have called the ALP’s franking credits policy ‘flawed’ because it "proposes that refunds from dividend imputation are appropriate for almost all investors except for SMSF investors and those shareholders with low taxable incomes".

Also appearing in Adelaide, National Seniors Australia said in its submission that many self-funded retirees "feel they are being penalised for doing the right thing by saving for their retirement and not being a burden on the taxpayer by relying on the age pension".

Mr Wilson said, "These hearings will provide an opportunity for Australians impacted by a change to refundable franking credits to address the committee directly with a three minute statement, and we welcome their contributions and participation."

Public hearing details:

Carlisle, 9.30am to 11am, Community statements, Monday, 25 February 2019, Harold Hawthorne Community Centre, 2 Memorial Ave, Carlisle, Western Australia.

Guildford, 1:30pm to 3pm, Community statements, Monday, 25 February 2019, Guildford Town Hall, 97-99 James St, Guildford, Western Australia

Adelaide, 9.30am to 12pm, Tuesday, 26 February 2019, Osmond Terrace Function Centre, 97 The Parade, Norwood, South Australia: 9.30am to 10am, SMSF Association; 10am to 10.30am, National Seniors Australia; 10.30am to 12pm, community statements.

Further public hearings will be announced as the inquiry progresses. The hearings will be webcast live (audio only).

A number of submissions have been received and are available on the committee’s webpage at: www.aph.gov.au/economics. A number of submissions are currently being processed and will be published over the coming months. Submissions can be made online or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

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ARA: Parliament plays games with casual employees  

THE Australian Retailers Association (ARA) today condemned the use of dirty tricks by the opposition parties in the Senate to prevent regulations that protect casual employees from taking effect.

The Fair Work Amendment (Casual Loading Offset) Regulations 2018 (Regulations) were made by the Government in December to address uncertainties created by a case in the Federal Court during 2018 regarding casual employee entitlements. However, the Australian Labor Party (ALP) is using tactics in the Senate to play games with casual employment, threatening their job security and costing retailers millions in false entitlement claims, according to the ARA.

The ARA said while casual employees were already compensated with a casual loading in their ordinary wages for the absence of annual leave and sick pay entitlements, the Federal Court’s Decision in the Workpac v Skene Case last August potentially gave casual employees the opportunity to pursue back-pay claims for annual leave and sick pay entitlements. The Regulations made by the Government in December 2018 were intended to address the issue by clarifying these entitlements.

Russell Zimmerman, executive director of the ARA, said that if the ALP was successful in coercing the independents on the Senate’s crossbench to overturn the Regulations on April 2, retailers could be liable for millions of dollars in back-pay to casuals who were never entitled to annual leave or sick pay.

“These Regulations are crucial to providing certainty to retailers and their casual employees, and without them, the confusion around entitlements will only get worse and small and family-run retailers will be crippled by the financial cost. The ALP will destroy casual employment by making it completely insecure, with businesses being forced to cut shifts or shut their doors entirely,” Mr Zimmerman said.

“Retailers really care about their casual employees and want to provide them with the best opportunities that they can. However, constantly shifting the goalposts and adding millions of dollars to the industry’s wage bill means many retailers may have to make the heartbreaking decision to say goodbye to casual employees who rely on their jobs.”

As the retail industry employs over 10 percent of the Australian working population and many small to medium enterprises employ this populous, this manoeuvre brought forward by the ALP will have a direct impact on the retail industry. To protect the future of retail employees and the industry, the ARA will continue to advocate on behalf of its members on key policy and advocacy issues, Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,700 independent and national retail members throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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Labor Franking Credit policy severely disadvantages self-funded retirees, says AIR

"THE LABOR Party policy to cease Franking Credit refunds severely disadvantages retirees who miss out on qualifying for a part age pension,” said Association of Independent Retirees acting president, Wayne Strandquist.

He said in the lead up to the Federal Election, there would be strong advocacy to the Australian electorate by the Association of Independent Retirees (AIR) on behalf of partly or fully self-funded retirees who have low to moderate retirement income.

Many of these retirees just missed qualifying for a part government age pension and will not receive Franking Credit refunds under the Labor policy.

Retirees who planned their finances, according to the rules at the time they retired, invested in Australian shares that attract Franking Credits.

"Now the Labor Party wants to “shift the goalposts” leaving self-funded retirees with no ability to make up the income they will lose if Franking Credit cash refunds cease," Mr Strandquist said.

As well as not supporting the removal of Franking Credit refunds, AIR will be advocating against other policies that impact on retirees such as restrictions on Negative Gearing and increases in the Capital Gains Tax.

“To support the advocacy leading up to the Federal election, AIR has adopted a new look logo that reflects the importance of the 'independence' to members of our organisation that represents partly and fully self-funded retirees," Mr Strandquist said.

“Today, more than ever independence matters for retirees – independence in the approach to retirement income and investments, independence in lifestyle and housing options, independence in health and aged care choices," Mr Strandquist said.

To strengthen advocacy for its membership, AIR joined the Alliance for a Fairer Retirement System in March 2018. AIR has made many submissions at a national, branch and member level to the House of Representatives Inquiry into the implications of removing refundable Franking Credits. AIR representatives have also made statements at public hearings held by the Inquiry.

“Over the past few years, successive governments have amended legislation for superannuation and retirement savings that have adversely impacted on retirement income which could not have been anticipated when financial plans were made for retirement. Whilst grandfathering has been a principle we recommend be applied to legislation changes, it has not always been used by governments in amending rules that affect fully and partly self-funded retirees,” Mr Strandquist said.

www.independentretirees.com.au

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Two new inquiries for the Public Works Committee

THE Parliamentary Standing Committee on Public Works announced that it will scrutinise two new proposals from the National Museum of Australia and CSIRO.

These projects include a consolidation of CSIRO’s presence in Sydney and a major redevelopment of the galleries at the National Museum of Australia.

It is anticipated that the Committee will conduct public and in-camera hearings for the inquiries later in 2019.

Details of the projects:

  • Commonwealth Scientific and Industrial Research Organisation Sydney Consolidation Project - $113.7 million – Sydney, New South Wales; and
  • National Museum of Australia Proposed Gallery Redevelopment Stage 1: Life in Australia - $20.5 million – Canberra, Australian Capital Territory.

The Committee would like to hear from all individuals or organisations interested in the inquiries. Submissions will be accepted until March 14, 2019.

The Parliamentary Standing Committee on Public Works is not involved in the tendering process, the awarding of contracts or details of the proposed works. Enquiries on those matters should be addressed to CSIRO and the National Museum of Australia.

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ATO committed to mental health support for small business

THE ATO has said it understands that the pressure of meeting tax and super obligations can contribute to mental health issues for small business owners and is now offering a range of support to struggling businesses.

Deputy Commissioner Deborah Jenkins attended the Small Business Mental Health roundtable chaired by Senator Michaelia Cash, Minister for Small and Family Business, Skills and Vocational Education at Parliament House yesterday. Ms Jenkins said the ATO was committed to working with government and community organisations to address the issue.

“More and more small businesses are telling us that they are under stress. We understand that long hours, cash flow pressures, endless paperwork, staff issues and the blurring boundaries between work and family life can take a toll on mental health,” Ms Jenkins said.

“That’s why we are working together with organisations such as Beyond Blue, ASBFEO, small businesses and their associations as well as tax practitioners to develop initiatives to better support small business owners with their tax and super obligations when they are experiencing mental health issues.”

"We have rolled out training for all of our frontline staff to assist them to better understand mental health issues and show empathy for taxpayers who are struggling. Nearly 6,000 staff have already undertaken the training.

"We also offer a range of services aimed at helping businesses stay on track.

"Because we know that managing debt can be a big contributor of stress for small businesses, we have been making it easier for small businesses to negotiate and enter into payment plans if they need them. In 2017–18, we negotiated 790,000 payment plans with small businesses.

“Payment plans allow small businesses to manage their tax debts and take the pressure off when other bills are due. But our primary focus in 2019 will be on early engagement and support before debts are due,” Ms Jenkins said.

The ATO has a small business live chat service and an after-hours call back service available from Monday to Thursday. Small business owners can also subscribe to the Small Business Newsroom to get all the latest information and alerts.

The ATO's website has more information for people running small business experiencing mental health issues - ato.gov.au/smallbizmentalhealth

Resources available for small business owners on the website: ato.gov.au/SBsupport.

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