Business News Releases

Economics Committee to inquire into the implications of removing refundable franking credits

THE House of Representatives Standing Committee on Economics has announced an inquiry into the implications of removing refundable franking credits.

The chair of the committee, Tim Wilson MP, said " The ability for investors, including individuals and superannuation funds, to claim their full credits is an established feature of our tax system and is core to the financial security of retirees."

Mr Wilson remarked, "There has been legitimate community concern about proposals to remove cash refunds for their full allocation of credits for individuals and superannuation funds, and that it amounts to a tax on the savings of retirees.

"The committee is examining what impacts the removal of refundable franking credits would have, particularly on retirees who have made long term retirement saving decisions based on their ability to claim refunds on their franking credits and whether it will compromise their financial security," Mr Wilson said.

The Terms of Reference for the inquiry are for the committee to inquire into and report on the use of refundable franking credits, their benefits and the implications of their removal, including:

  • analysis of who receives refundable franking credits, the opportunities it provides to offer alternative savings and investment vehicles to low and middle income earners, and the impact it has on lowering tax bills
  • consideration of how refundable franking credits support tax principles, particularly implications for tax neutrality, removal of double taxation and fairness
  • if refundable franking credits are removed; who it would impact and how and the implications from expected behavioural change by investors, including for
    • increased dependence on the pension
    • stress and complexity it will cause for Australians, including older Australians to adjust their investments
    • if there are carve outs applied, what this might mean for additional complexity, uncertainty and fairness
    • reduced incentives to save and distortions to which asset classes are invested in and funds are used, and
    • the reliability of providing a sustainable revenue base over the longer term.

Submissions are being sought by Friday, November 2, 2018 although submissions will be received throughout the inquiry. Submissions can be made online or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it..

For information about the inquiry visit the committee’s webpage at: www.aph.gov.au/economics

Inquiry updates, submissions and public hearing transcripts will be published as the inquiry progresses.

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ABS 2021 Census digital services request for tender

THE Australian Bureau of Statistics (ABS) has approached the market to engage an external supplier to provide a secure, fast and simple digital service for the 2021 Census. 

ABS general manager Census and Statistical Services Division, Chris Libreri said the ABS was seeking highly experienced suppliers to provide the Census digital service.

“The ABS will work closely with interested suppliers to confirm proposed solutions can deliver high standards of security, reliability and capacity required for the 2021 Census," Mr Libreri said.

“The need to keep all Census information secure and confidential is, as always, a primary and paramount factor in designing the digital Census. The ABS is actively managing risks (including cyber) for the 2021 Census and is engaging independent experts to provide assurance on the solution, including the Digital Transformation Agency and the Australian Cyber Security Centre.

“The aim is to design an online service that is simple and safe to use for all Australians. People who want or need paper forms will also have easy access to them,” Mr Libreri said.

Notwithstanding the regrettable period of outage of the online form in 2016, those who used it found it quick and easy, reducing the time taken by households to complete the Census by 70 percent compared with paper, and at all times data remained secure, he said.

ABS chief information officer Steve Hamilton said the ABS has a strong preference for the Census Digital Service to be hosted in a cloud environment, in line with both the Australian Government’s cloud-first policy and the Digital Transformation Agency’s Secure Cloud Policy.

“We are seeking to provide an engaging and secure service hosted on cost effective and proven cloud infrastructure that delivers the experience, performance and resilience expected by all Australians when transacting online," Mr Hamilton said.

Any cloud services would be Australian Government accredited through an Information Security Registered Assessor’s Program (IRAP) assessment and any services that handle sensitive data will operate within Australia. This type of service was successfully used for the Australian Marriage Law Postal Survey in 2017.

Tenders are due in October 2018 with an industry briefing to follow, and a supplier to be announced in mid-2019.

The Tender Data Pack (including detailed Statement of Requirement) will only be released to potential tendering organisation that meet the requirements outlined on Austender.

For further information regarding the Census visit http://www.abs.gov.au/census.

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Are you a Retail Realm finalist?

WITH the 2018 eftpos Australian Retailers Association (ARA) Australian Retail Awards just around the corner, the ARA has announced the finalists of this year’s prestigious Awards breakfast.  

This year’s Awards themed, The Retail Realm: Thinking outside the shop, encompasses every element of the retail sphere, including customer experience, technology, payments, sustainability, supply chain, growth, employee development and corporate social responsibility.

With 13 awards up for grabs, the ARA has revitalised the awards process, working with a panel of expert judges and industry leaders to determine what constitutes the ‘best in retail’ across three categories in the Retail Realm.

Reimagining the Awards evaluation process, the ARA’s panel of esteemed judges conducted the first awards analysis, reviewing all nominations over a two-week period and scoring each submission out of five. Each retailer was then ranked alongside their award category counterparts, with the highest-ranking retailers making the finals.

The two most sought-after retail awards, the 2018 National Retailer of the Year Award and the Excellence in Customer Experience Award, will undertake further analysis by The Realise Group, a customer experience measurement agency, to determine the winner amongst the top three finalists.

Russell Zimmerman, ARA executive director, said this revised methodology, coupled with mystery shopping initiatives and field agency surveys, ensures the highest-standard of credibility and integrity in presenting these prestigious awards.

“The Australian retail industry continues to evolve, and with new technologies entering the retail realm and changing customer expectations, we need to recognise the proactive retailers pushing the industry forward,” Mr Zimmerman said.

“As online and global markets continue to challenge the retail industry, the variety of small, medium and large retailers making it to the finals showcases the diverse and extraordinary talent we have in Australian retail,” Mr Zimmerman said.

While a record number of entries were received by the ARA this year, the 2018 eftpos ARA Australian Retail Awards finalists shone the brightest in the Retail Realm.

The 2018 eftpos ARA Australian Retail Awards breakfast will be held Thursday October 18 at the Myer Mural Hall in Melbourne. To secure your seat for the 2018 eftpos ARA Australian Retail Awards head to The Retail Realm to purchase tickets.

About the eftpos ARA Australian Retail Awards:

First held in the 1970s, the eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, recognising and rewarding outstanding retail businesses, innovations, and individuals across all sectors of retail. Relaunched in 2008, the annual 2018 eftpos ARA Australian Retail Awards breakfast will commence on Thursday 18 October at the Myer Mural Hall in Melbourne. To secure your seat for the 2018 eftpos ARA Australian Retail Awards buy tickets here.

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 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

Finalists:

 

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Queensland ideally placed to deliver Resources 2030 recommendations

THE Queensland Resources Council (QRC) has welcomed the report from the Resources 2030 Taskforce and in particular its focus on a long-term future for the resources industry.

QRC chief executive Ian Macfarlane said the 29 recommendations covered the range of areas needed to build further prosperity for the sector.

“The Taskforce has put forward a blueprint across key areas including new investment, building stronger communities, improving environmental performance and enhancing workforce and skills,” Mr Macfarlane said.

“Queensland’s resources sector already ticks those boxes and we are ideally placed to use the Taskforce recommendations to further consolidate our strengths and set a guide for other states.

“We deliver the strong communities prioritised by the Taskforce. Queensland’s world-class resources sector employs almost 300,000 Queenslanders and delivers one in every six dollars for our state economy. We inject more than $4.3 billion in royalties and invest in more than 16,000 businesses from Cairns to Coolangatta.

“We have been able to do so because of ongoing investment especially in the coal and gas industries. While other states flounder, Queensland flourishes.

“Expansions and new developments in the Surat Basin, Bowen Basin and Galilee Basin will further strengthen the resources sector to the benefit of all Queenslanders," Mr Macfarlane said.

“The QRC hopes this Taskforce report will be a catalyst for other states to lift their bans and go-slow developments of gas projects.

“Our state’s resources sector is also delivering on the objective of providing Indigenous Australians with career pathways, not just a job. Our sector is one of the few industries with genuine representation of Indigenous employees. Resources employs four percent of Indigenous workers which reflects the representation of Indigenous Queenslanders.

“We support the Taskforce’s recommendation for the expansion of Exploring for the Future and UNCOVER initiatives to deliver on the next wave of resources discoveries.

“The QRC also welcomes the recommendations to map the skills needed for the sector in 2030 and beyond. We are well advanced in developing the skills pipeline for future industry workers through the Queensland Minerals and Energy Academy. We would welcome the opportunity to work with both the Federal and State Governments to further develop the skills needed for the future.

“We hope to see the Government progress the recommendations for streamlining regulatory frameworks. And as a former Resources Minister I am particularly pleased to see recommendations to further strengthen the representation of the resources sector around the COAG Energy Council table. Energy and resources are deeply linked, and a close connection between both policies will be essential to deliver affordable and reliable power.

“I look forward to the Government’s full consideration of this report and the release of Minister Matt Canavan’s Resources Statement in the coming months.”

Queensland was well represented on the Resources 2030 Taskforce, through chair Andrew Cripps, Mount Isa Mayor Joyce McCulloch and Mackay-based Resource Industry Network general manager Adrienne Rourke.

www.qrc.org.au

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CEDA: Parliament needs to catch up with community expectations on Newstart

INCREASING Newstart is an immediate reform that could begin to significantly reduce poverty and disadvantage in Australia and CEDA research shows it is in line with community expectations, according to CEDA chief executive, Melinda Cilento.

In support of the ACOSS Raise the Rate campaign and new economic analysis out today from Deloitte Access Economics in support of this campaign, Ms Cilento said CEDA’s June Community Pulse report and nation-wide poll showed 79 per cent believe the gap between the richest and poorest is unacceptable.

“Ensuring the benefits from Australia’s record run of economic growth are extended across the community is vital to Australia’s future prosperity,” she said.

“After 27 years of uninterrupted economic growth, a record among developed economies, around one in 10 Australians are still living in poverty, that is unacceptable.

“CEDA has supported increasing Newstart since 2015 and again called for an increase to payments following our April 2018 report, How unequal? Insights on inequality.

“Our community has an expectation that the benefits of growth should be fairly distributed and that we have appropriate safety nets. Action by the Federal Parliament on Newstart is overdue.

“Punitive social safety nets make it harder for people to get back into work, which is a poor outcome for the person concerned, for the economy and for our society.

“At just $278 a week, or around $40 per day, Newstart has not increased in real terms for over 24 years with recipients struggling to cover the basics like rent, utilities, health and transport costs.  

“While the gap between the Pension and Newstart payments was relatively narrow in the 90s, the gap widened through the 2000s and Newstart today is only 61 percent of the Pension, or approximately $175 less per week.

“Inadequate Newstart payments entrench poverty and the cycle of disadvantage.

“It is evident that the current Newstart payments do not provide a reasonable standard of living.

“Increasing the payment would dramatically change the lives of more than 750,000 Australians – more than the combined populations of Canberra and Hobart.

“Raising the Newstart payment would ensure the payment scheme delivers on its purpose, rather than being an entry point into disadvantage.”

www.ceda.com.au

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