APPLICATIONS open today for Community Sector Banking’s 2018 Social Investment Grants Program, building resilience and capability for people who are experiencing homelessness or domestic abuse. Not-for-profits can apply for grants totalling $300,000.

The program was launched yesterday at the Queen Victoria Women’s Centre in Melbourne, where past recipients Youth Project and the Melbourne Homelessness Collective, and social commentator Van Badham spoke about the issues of homelessness and domestic abuse.

This year’s Social Investment Grant Program has increased by $100,000.

“The impressive growth in our annual Social Investment Grant funding pool speaks to the strength of the grants program – which is financed by contributions from Social Investment Deposit Account holders, along with 50% of our net profits from that product,” said Andrew Cairns, Community Sector Banking CEO.

“It’s a fantastic example of the power for good that everyday banking can have in strengthening not-for-profits, and in turn, communities that benefit from their services.”

Not-for-profits can apply for grants of $25,000 or $50,000 to build resilience and capability in people experiencing homelessness or domestic abuse.

Cairns acknowledged that the theme for the 2018 grants – homelessness and domestic abuse – is the same as the 2017 program.

“We received an overwhelming number of applications to last year’s program, highlighting the huge need in the community and the sector for addressing these issues. We’re proud to be continuing and increasing our support,” said Mr Cairns.

“We recognised that homelessness and domestic abuse remain the greatest crises Australian communities currently face, and that long-term support and solutions are key to properly address them,” said Cairns.

Find out more about the Social Investment Grants Program at: communitysectorbanking.com.au/grants

About Community Sector Banking

Community Sector Banking is the not-for-profit banking specialist for more than 13,000 organisations; it’s a joint venture between Bendigo Bank and the Community 21 consortium of not-for-profit organisations, established 15 years ago.

About the Social Investment Grant Program

Community Sector Banking’s annual Social Investment Grants Program shows the power for good that everyday banking can have in the community. The grants program is funded by Community Sector Banking contributing 50 percent of the net profit earned on all Social Investment Deposit Accounts. Account holders can also choose to contribute 50 percent or 100 percent of the interest earned on their account. It’s administered in conjunction with the Community Enterprise Foundation.

Community Sector Banking selects the grants’ theme each year through assessing need and determining the areas in which they will generate the most impact. Find out more about the Social Investment Grants Program at: communitysectorbanking.com.au/grants

Key dates for the 2018 Social Investment Grants Program:

• 1 May 2018 - grant applications open today
• 31 May 2018 - grant applications close 5pm AEST

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THERE appears to be a disconnect between ASIC’s ability to raise revenue for government coffers and its capacity to do its actual job; that of regulation and enforcement, according to the Institute of Public Accountants (IPA). 

“The IPA has long advocated for ASIC to be appropriately resourced to do its job,” said IPA chief executive officer, Andrew Conway.

“However, it would appear that ASIC is doing a much better job of raising revenue for government than what it is doing in terms of enforcement.

In its submission to the Treasury in December 2017 on the ASIC fees-for-service industry funding model, the IPA noted that the consultation paper referred to the government’s ‘Charging Framework’ which requires an alignment between the expenses of the regulatory activity and the revenue; and which states that there must not be systematic over- or under-recovery of costs over time.  

In 2016-17 ASIC raised $920.24 million for the Commonwealth in fees and charges, an increase of 5% from the previous year.  (Annual Report 2016-17, p26).  

Also in 2016-17, ASIC received approximately $349 million in appropriation revenue.  ASIC’s expenses were $392.46 million, leaving a deficit of over $43.5 million (Annual Report 2016-17 p26). 

“In other words, even though ASIC is making significant income for government, it is not even able to cover its own costs from the budget it receives from government," Mr Conway said. " This also means that ASIC is raising substantially more revenue than its operational costs, which appears to go against the government’s own Charging Framework. . 

“In order to justify the huge increase in proposed fees for industry then government would need to make the case that the genuine operational costs (as indicated by a fees-for-service model) are much higher than the current stated operational costs.  This is simply not the case.      

 “If the aim of the game is revenue, it may explain why ASIC sought a proposed one-off fee increase from $107 to $3,429 for new auditors of SMSFs, which we argued was exorbitant.  

“While the new proposed fee has been reduced to $1,927, it is still far too high and will only deter new entrants into the SMSF auditor market, which is already in decline.

“Not only is ASIC overcharging, but the government is double-dipping. The ATO currently already collects $259 from each SMSF to finance the SMSF monitoring role the ATO conducts on behalf of ASIC. Whilst this levy was a mere $45 in 2008 it now equates to approximately $142.5million to monitor the sector including SMSF auditors.

“We have a much bigger concern if a new funding model is only focused on government revenue without equipping the corporate regulator to do its job adequately,” said Mr Conway.

www.publicaccountants.org.au

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AURIZON must resume its normal rail maintenance program for the Central Queensland Coal Network immediately and withdraw its threat of economic damage to the State, Queensland Resources Council Chief Executive Ian Macfarlane said.

Mr Macfarlane said the decision by Aurizon to refer the Queensland Competition Authority’s draft future management arrangements for the Central Queensland Coal Network to the Supreme Court highlighted the need for Aurizon to resume normal maintenance practices.

Mr Macfarlane said Aurizon had shown no regard for the independent QCA process when, in February, it announced new maintenance measures to stop the movement of 20 million tonnes of coal each year – cutting Queensland trade revenue by $4 billion and blowing a $500 million hole in the State Budget due on 12 June.

“If it fails to resume normal maintenance arrangements for the Central Queensland Coal Network immediately, Aurizon is not only pre-empting the Queensland Competition Authority but the Supreme Court of Queensland,” Mr Macfarlane said.

“Aurizon might not have regard for the Queensland Competition Authority, but it should care about the Supreme Court.

“Aurizon should also care about the economic damage it is doing to Queensland and to Queenslanders.

“A $500 million cut to royalties is a $100 cut for every man, woman and child living in Queensland in the next State Budget.

“The Queensland Resources Council and its members have respected the independent QCA process. We have provided the information the Authority has needed. Aurizon has sought to delay and prevaricate on QCA requests for information.”

Mr Macfarlane said when the QCA draft decision for the Central Queensland Coal Network was released in December, Aurizon claimed QCA had made “fundamental errors and miscalculations” and “material anomalies”. 

“That does not seem to be the rationale for Aurizon referring it to the Supreme Court," Mr Macfarlane said.

“When the QCA inquires into Aurizon’s own decision to change maintenance arrangements and cut the movement of coal, Aurizon takes its bat and ball to the Supreme Court.

“If Aurizon wants to shows good faith, it should resume normal maintenance arrangements until both the Supreme Court and QCA processes are complete. To not do so, shows contempt for both institutions and frankly, contempt for the Government and the people of Queensland.”

Mr Macfarlane said Aurizon must answer two simple questions about its actions today:

• Why not wait for the QCA’s final decision?
• Why not wait for the QCA’s investigation into Aurizon’s maintenance practices?

Link to the map of the coal networks.

www.qrc.org.au

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THE FEDERAL Government has announced as part of its commitment to improving consumer outcomes in the financial services sector it will consult business leaders and the public on the Australian Securities and Investment Commission (ASIC) industry funding model.

Federal Revenue and Financial Services Minister Kelly O'Dwyer said an ASIC industry funding model was an important element in the government’s plan to deliver on this commitment.

She said under the ASIC Industry Funding Model, the costs of regulation are borne by those that have created the need for it, rather than the Australian public.

"Industry funding increases transparency, makes industry more accountable for its behaviour and makes ASIC a stronger regulator," Ms O'Dwyer said.

"The industry funding model delivers on a key recommendation of the 2014 Murray Financial System Inquiry, as well as the 2013 Senate Inquiry into ASIC’s performance.

"The first phase of industry funding commenced on 1 July 2017 with the introduction of industry levies."

The government last week released draft regulations to make technical amendments to the levies in the industry funding framework to ensure they operate as intended. The amendments include:

• Establishing new industry subsectors to reflect the recently introduced licencing schemes for crowd‑sourced funding intermediaries and financial benchmark administrators;
• Creating separate industry subsectors for small and large credit rating agencies; and
• Simplifying the operation of the large securities exchange participants industry subsector.

Comments on the draft Regulations close on May 14, 2018.

"The Government appreciates industry’s continued engagement throughout the development of the industry funding model and stakeholders are invited to provide their feedback on the draft regulations on the Treasury website."

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