THE Joint Committee of Public Accounts and Audit has commenced inquiries into several areas of public sector governance, performance and accountability as part of its examination of Auditor-General’s reports.

Committee chair Senator Dean Smith said the JCPAA scrutinises the governance, performance and accountability of Commonwealth agencies, to examine whether public money is used in an efficient, effective, economical and ethical manner.

“As Parliament’s joint public administration committee, the JCPAA has an important role in holding Commonwealth agencies to account,” Senator Smith said.

The Committee has commenced the following inquiries based on audit reports:

• Commonwealth Financial Statements
• Defence First Principles Review and Naval Construction
• Australian Government Funding — Schools and Indigenous Health
• Australian Government Security Arrangements — Personnel Security and Domestic Passenger Screening
• Mental Health in the Australian Federal Police
• Foreign Investment Obligations in Residential Real Estate

The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

The Committee invites submissions to the inquiries, addressing the terms of reference. Public hearings will be held from August 2018. Further information about the inquiries can be accessed via the Committee’s website.

The Committee’s inquiries are based on the following Auditor-General reports:

Commonwealth Financial Statements

• No. 24 (2017–18), Audits of the Financial Statements of Australian Government Entities for the Period Ended 30 June 2017

Defence First Principles Review and Naval Construction

• No. 34 (2017–18), Defence’s Implementation of the First Principles Review
• No. 39 (2017-18), Naval Construction Programs—Mobilisation

Australian Government Funding—Schools and Indigenous Health

• No. 18 (2017–18), Monitoring the Impact of Australian Government School Funding
• No. 50 (2017-18), Primary Healthcare Grants under Indigenous Australians’ Health Program

Australian Government Security Arrangements—Personnel Security & Domestic Passenger Screening

• No. 38 (2017-18), Mitigating Insider Threats through Personnel Security
• No. 43 (2017-18), Domestic Passenger Screening—Follow-Up

Mental Health in the Australian Federal Police

• No. 31 (2017-18), Managing Mental Health in the Australian Federal Police

Foreign Investment Obligations in Residential Real Estate

• No. 48 (2017-18), Compliance with Foreign Investment Obligations for Residential Real Estate

Interested members of the public may wish to track the Committee via the website.

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THE House of Representatives Standing Committee on Economics will scrutinise the Australian Competition and Consumer Commission (ACCC) as part of its review of the ACCC Annual Report 2017.

The chair of the committee, Sarah Henderson MP, said, "The hearing provides a timely opportunity for the committee to scrutinise the ACCC on its performance and operation."

The ACCC is Australia’s competition regulator and national consumer law champion. This competition role extends across all industries, including the financial services sector.

A significant ACCC achievement for 2017 in the competition sphere has been the successful conclusion of the Harper review on competition policy. There have also been ACCC cartel investigations that have resulted in a number of criminal and civil proceedings. 

Ms Henderson said, "The committee’s examination will include the ACCC’s continuing work on competition compliance and enforcement."

Protecting consumers is another key area of ACCC responsibility. The Government has introduced the Treasury Laws Amendment (2018 Measures No. 3) Bill 2018 to strengthen penalties under Australian Consumer Law (ACL), by aligning them with the maximum penalties under the competition provisions of the Competition and Consumer Act 2010.

Ms Henderson said, "Increasing the ACL maximum penalties will send a strong message that there will be significant consequences for breaches of consumer law."

Public hearing details:

Time: 8.30am to 11am

Date: Friday 29 June 2018

Venue: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at www.aph.gov.au/live

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THE Australian Retailers Association (ARA) islooking forward to seeing further growth for small businesses and increased employment within the industry as the second stage of the penalty rate reduction will take place this weekend.

Russell Zimmerman, executive director of the ARA, said last year’s decision to reduce Sunday penalty rates under the General Retail Industry Award 2010 (GRIA) from double-time (200%) to time-and-a-half (150%) was an incredible outcome for Australian retailers as it will provide long-term benefits for employers and employees in the industry.

“This progressive decision made by the Fair Work Commission will present numerous opportunities and bring further relief for retailers, their staff and consumers,” Mr Zimmerman said.

“We certainly await the 1^st of July, as this next stage in the penalty rates transition will reduce Sunday penalties to 180 percent for permanent staff, and 185 percent for casual employees, alleviating some of the constant cost pressures retailers are facing today.”

Over the last three years, the ARA has been working with the Fair Work Commission (FWC) to adjust Sunday penalty rates as this small reduction delivers long-term employment outcomes for the retail industry and allows retailers to open their doors for longer.

“On average, the retail industry is increasing 2.76 percent year-on-year, therefore, our primary concern is for our members, especially small businesses struggling to open their stores seven days a week,” Mr Zimmerman said.

“With April’s retail figures representing a dismal 2.62 percent year-on-year sales growth – less than the average retail turnover for the last 12 months – these lower wage costs will help small retailers meet their overheads, and open their doors to consumers, stimulating the economy.”

With Labor’s recent moves to block the penalty rates reduction the ARA are concerned that some people have misunderstood the recent changes to penalty rates – or worse, are being misinformed.

“Sunday penalty rates have not been abolished, nor will they be. We have simply reduced the rate from 200 percent to 150 percent as these high penalty rates were deterring employers from giving their staff Sunday shifts, and forcing some retailers to close their doors,” Mr Zimmerman said.

“This next phase in the penalty rates reduction is a small step for the industry but a giant leap for retailers who are currently unable to open their stores on Sundays.”

As the Penalty Rates Decision was made by the FWC, an independent umpire established by the Labor Party, and then upheld by the Federal Court, the ARA trust all sides of politics, including Bill Shorten, will support this revolutionary decision for the industry.

“This now historic decision will be influential in improving overall customer satisfaction, sustaining industry growth and putting Australia’s economy back on track,” Mr Zimmerman said.

“If we don’t have trust in our Federal system and our national workplace relations tribunal - that Labor implemented - how are we ever going to move forward and grow as a country?”

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.

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MASTER BUILDERS Australia is bitterly disappointed with Labor’s pledge to ramp up the tax burden for thousands of small and medium building businesses. 

Denita Wawn, CEO of Master Builders Australia said, “Labor’s decision to abolish tax cuts for SME builders turning over $10-$50 million per year will deal a harsh blow to SME builders, many of them family businesses.” 

“It’s a retrograde step at the expense of local builders and local jobs in local communities around the country,” she said. 

“Building projects are highly capital intensive and the cost of labour, materials and equipment mean that there are many ‘mum and dad’ businesses with an annual turnover of more than $10 million,” Ms Wawn said. 

“This means that the tax cuts which Labor has committed to repealing are particularly important for our members, the people they employ directly and the sub-contractors they engage,” she said. 

“Turnover should not be confused with profit. SME builders typically operate on tight margins and do not take home anything like $10 million,” Denita Wawn said. 

“Labor should understand that there are more SMEs in the building and construction industry than any other sector of the economy,” she said. 

“Our industry employs in 1 in 10 Australians and in the last few years has been one of the most important sources of skilled jobs growth. SME builders are at the forefront of this and employ most of the 1.2 million jobs in the construction industry workforce,” Ms Wawn said.

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