THE Queensland Resources Council has commended Queensland Rail (QR) on today's (April 29) opening of the vital economic rail link between Mount Isa and Townsville after it was severely damaged by the north Queensland floods. 

QRC chief executive Ian Macfarlane said QR CEO Nick Easy and his team "worked tirelessly to not only repair the rail but lifted its end of run times". 

“I personally thank Nick and the 400-person QR team who were immediately tasked to rebuild the rail and carry out widespread improvements from remote temporary accommodation camps,” Mr Macfarlane said. 

“As a result of the 11-week operation the opening is ahead of schedule and will result in reduced transport times by around 50 minutes.

“This rail line is a key transport corridor for Queensland’s metals industry which contributed $9.3 billion to the state’s economy last financial year, supported more than 50,000 full-time jobs and paid $1.3 billion in wages.

“Additionally, the metals industry pays royalty taxes to the Queensland Government which are on target to reach a new record of $5.2 billion this year which pay for schools, hospitals and roads." 

QR said the record monsoonal event damaged 200 sites across the 300km  track including repairs to 38 bridge abutments, the replacement of 47 km of rail and 120,000 tonnes of ballast. 

The Queensland resources sector provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses and community organisations across the state all from 0.1 percent of Queensland’s land mass, according to the QRC.

www.qrc.org.au

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THE Queensland Resources Council has welcomed Federal Labor’s commitment to new resource discoveries as a boost for the state’s mining industry, but it has urged Labor to be clear on its position for the future role of coal.

QRC chief executive Ian Macfarlane said Queensland had a huge potential, particularly through the North West Minerals Province, to develop the new economy minerals so essential for the global growth in renewable energy technology, electric vehicles and battery storage.

“Prior to the election, the QRC urged the Coalition and Labor to embrace this opportunity, and we welcome the announcement by Opposition Leader Bill Shorten today,” he said.

“Any investment in additional investigation for resources, like $75 million for a road map for a new generation of mines, will help deliver new discoveries, new investment, new exports and new jobs for Queensland.”

Mr Macfarlane said in 2017-18, metals contributed $9.3 billion to Queensland’s gross regional product and supported more than 50,000 full-time equivalent jobs or the equivalent of 2 percent of Queensland’s workforce. The metals sector also contributed $370 million in royalties.

“Through policy and infrastructure – and fittingly the Townsville to Mount Isa rail line that is so important to that region reopens today after devastating floods earlier this year – we can grow that contribution to Queensland and Queenslanders,” he said.

Mr Macfarlane said he welcomed the role of CSIRO and Geoscience Survey in Federal Labor’s commitment, and he hoped there would be a prominent role for the State Government’s Queensland Geological Survey.

“CSIRO and Geoscience Australia are internationally renowned, so I welcome their planned role in Labor’s initiative. It dispels some of the criticism of their role in assessing the Carmichael Coal project’s Groundwater Management and Monitoring and Groundwater plan,” he said. 

Mr Macfarlane said the contribution of metals continued to be dwarfed by the role of coal in the Queensland economy – coal contributed $43.4 billion to the Queensland economy and more than 215,000 full-time equivalent jobs or 9 percent of the state’s workforce.  Coal royalties paid to the Queensland Government were $3.8 billion in 2017-18 and are expected to exceed $4 billion this financial year.

“During this Federal election campaign, where winning Queensland seats is so crucial, no Party should be vague about their commitment to coal,” he said. 

“All parties, vying for Queensland support, should be clear on their own support for the development of new coal mines, particularly in the Galilee Basin, and the continuation of existing mines producing both thermal and metallurgical coal.”

www.qrc.org.au

QRC report on 2017-18 economic contribution of metals: https://www.qrc.org.au/wp-content/uploads/2018/11/2018_Metals_Contributions.pdf

QRC report on 2017-18 economic contribution of coal https://www.qrc.org.au/wp-content/uploads/2018/11/2018_Coal_Contributions.pdf

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INDUSTRY super fund, Vision Super, announced today they have hit $10 billion in funds under management.

Vision Super CEO Stephen Rowe said that while it was nice to achieve milestones, the number wasn’t really the focus.

“We’ve doubled our funds under management, from $5 billion to $10 billion in just five years, through organic growth and strong returns,” Mr Rowe said. “We’ve achieved this at the same time as paying out $1.25 billion worth of lifetime pensions and defined benefit lump sums to our retiring members.

“Hitting $10 billion is testament to the hard work and principled approach of our Investment team and our growth team, but it’s really just another number – what we’re focused on is returns for Vision Super’s members.

“Our default Balanced growth option has top quartile returns over the medium-term and has beaten the median over one, three, five and seven years – those are the really important numbers that mean more money in members’ accounts when they retire.

“Our members trust us to with the incredibly important role of looking after their retirement savings – and that trust is reflected in strong contributions and roll ins, which have contributed to us achieving $10 billion.

"We’re looking to grow significantly over the next few years - $10 billion is a nice milestone, but I’m hoping we hit some even bigger ones in the near future.”

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“THE PROPOSAL by the Labor Party to increase capital gains tax by 50 percent is an unjustified slug on retirees who have invested in growth assets to fund their living expenses,” said Mr Strandquist, acting president of the Association of Independent Retirees.

“Self-funded retirees rely solely on returns from their investments to provide income to live. These returns can come from interest, share dividends, franking credits, property rents and the sale of investment assets,” said Mr Strandquist.

He said when retirees sell shares or other growth assets, the discounted net capital gains are added to their income for the year in which they sold the investment. They pay tax on this income for the year even though the capital growth of the assets may have been realised over 20 years or more.

“The Labor Party’s proposal to increase tax on capital gains by 50 percent will mean a substantial reduction in the investment returns for retirees who have saved their entire working lives so that they don’t have to rely solely on the government aged pension,” Mr Strandquist said.

The purchase and sale of assets is an important process for retirees, he said, as most investment strategies rely on adjusting portfolios to minimise risk and maximise the growth of investments. In addition, during the retirement years, it is necessary to sell down assets such as shares and property to provide income for living expenses and to fund aged care accommodation.

“Unlike the loss of franking credit refunds, there will be no pensioner exemption for the 50 percent hike in capital gains tax. All individual investors who purchase investment assets like shares and property after January 1, 2020 will pay 50 percent more tax on their future capital gains,” Mr Strandquist said.

“Together with the loss of franking credits refunds, no negative gearing for pre-owned properties and other proposed tax changes, it is clear that the Labor Party thinks retirees are a soft target. But, with the increase in capital gains tax, retirees won’t be the only group funding the many spending initiatives the Labor Party has announced,” Mr Strandquist said.

www.independentretirees.com.au

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