THE House of Representatives Standing Committee on Economics tabled the report of its Review of the Australian Prudential Regulation Authority (APRA) Annual Report 2017.

The report provides a summary of issues raised at the public hearing with APRA in Canberra on March 28, 2018.

During the hearing, the committee scrutinised APRA on its work on issues of governance, risk management and culture in financial institutions. In particular, the committee examined measures to reinforce sound lending practices and ensure that Australian banks remain prudentially strong.

The chair of the committee, Sarah Henderson MP, said, "While APRA has been working on improving responsible lending practices in the Australian financial sector, there is still a lot of work to be done in this area."

The Government has been taking action in a number to areas to enhance APRA’s prudential oversight tools. Recent measures have included: 

• the Banking Executive Accountability Regime (BEAR)
• introducing new crisis management powers to empower APRA to better address crises in Australia’s financial system, and
• proposed changes to superannuation, which will improve governance and transparency in the industry.

The BEAR will take effect from July 1, 2018, for the major banks. There will be a measured transition for smaller institutions. 

Ms Henderson said, "The BEAR will provide mechanisms to make senior bank executives more accountable and subject to additional oversight by APRA."

"Strengthening accountability measures for senior executives was a key recommendation of the committee's Review of the Four Major Banks.’

The report and hearing transcript are available at: www.aph.gov.au/economics 

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WITH UP TO 15 percent of global Gross Domestic Product (GDP) lost each year to illicit trade, the Australian Retailers Association (ARA) believes more needs to be done to combat such a severe issue.

According to the World Economic Forum, US$2.2 trillion worth of global GDP is lost a year, due to organised crime and corruption.

To counter this serious issue the ARA have been working with various government organisations and associations forming the Australians to Stop Counterfeiting and Piracy (AUCAP) industry group to stop the illegal trade in consumer goods.

The ARA and AUSCAP have been working closely together recently commissioning Chris Clague, managing editor Asia and global editorial lead of trade and globalisation, to develop The Global Illicit Trade Environment Index to evaluate 84 nations around the world and their efforts in combating this scourge on the world’s economy and what we can do better.

Russell Zimmerman, executive director of the ARA, said this progressive report proves Australia is tracking well in its fight against illicit trade due to the country’s strong policy implementation.

“Australia’s approach to tackling illicit trade were highlighted in this latest Index, due to the success of the Government’s policy to tackle the $2 trillion global black market,” Mr Zimmerman said.

“Our recent initiative to combat the illicit tobacco trade, whose global value is some $35 billion annually, means Australia is well placed to support the Asia-Pacific region’s otherwise, frankly, weak performance in areas relating to Government policy.”

Although Australia received the highest score in government policy in the Asia-Pacific region, Mr Clague believes there is much to be done to build a better environment and prevent illicit trade.

“Illicit trade affects businesses, people, nations, and in the present transnational environment, and what the Index shows is that while some nations are striding forward, others are falling behind,” Mr Clague said.

"By taking lessons from the nations that have been successful, approaches to illicit trade can be strengthened, improving the situation from a business and taxation perspective.”

The ARA believes this new report demonstrates that Australia can, and should be keeping its foot on the throat of illicit trade, spreading its experience and lessons learned with international trade partners.

“The Index applauds our domestic accomplishments, but points to a lot more work ahead to build a global, legal trade system that works,” Mr Zimmerman said.

“An Australia that is strong against illicit trade, that supports its region to be the same, is a safer and more prosperous Australia for all.”

Report author, Chris Clague, was in Canberra on Monday 25 June to launch the report at Parliament House and discuss Australia’s role in shaping the progress of illicit trade in the Asia-Pacific region. To access The Global Illicit Trade Environment Index click 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.

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CEDA’s annual two-day State of the Nation Conference continues tonight in Canberra with Victorian and NSW Treasurers to present at the National Gallery of Australia.

Day two will begin with a keynote address from Federal Leader of the Opposition, Bill Shorten.  

To see the full State of the Nation program and speaker times click here.

State Treasurers' Panel at the National Gallery of Australia
Event overview
Delivering policy outcomes for the community across a range of areas requires more effective Commonwealth-State collaboration and healthy budgets. This State of the Nation session will involve a discussion between Victoria and NSW State Treasurers on how governments face up to these challenges across the federation.

Presentation times (AEST) 
7.05pm Welcome by Paul McClintock AO, National Chairman, CEDA
8.00pm Introduction by Damian Graham, Chief Investment Officer, First State Super
8.05pm Facilitated panel discussion 

• Tim Pallas, Treasurer of Victoria
• Dominic Perrottet, Treasurer of NSW  

Day two State of the Nation speakers at the National Convention Centre​

• Gerard Brody, Chief Executive Officer, Consumer Action Law Centre
• Paul Fletcher, Federal Minister for Urban Infrastructure and Cities
• Nicholas Gruen, Chief Executive Officer, Lateral Economics
• Amanda Hagan, Chief Customer Officer and Group Executive Digital, Australian Unity
• Delia Rickard PSM, Deputy Chair, ACCC 
• Bill Shorten, Federal Leader of the Opposition
• Andrew Stevens, Chair, Data Standards Body, Consumer Right Data
• Dan Tehan, Federal Minister for Social Services

Live stream: 
The State of the Nation conference will be live streamed via www.ceda.com.au.

The live stream on day two will begin with Federal Opposition Leader Bill Shorten's address at the following times:
ACT, NSW, QLD, TAS, VIC  8.25am   |    SA, NT  7.55am   |    WA  6.25am 

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THE FEDERAL Government’s proposed one‑off, 12-month amnesty for historical underpayment of Superannuation Guarantee (SG) to complement the sweeping SG integrity package has been passed by the House of Representatives.  It now needs to go through the Senate and Australia needs to get on with it, according to the Institute of Public Accountants (IPA).

“Any non-payment of this worker entitlement represents wage theft; a practice never to be condoned," IPA chief executive officer, Andrew Conway said.

“However, we acknowledge that small businesses can sometimes experience cash flow issues, making them vulnerable when it comes to meeting their SG obligations by the required due date.

“The IPA supports this amnesty period as it incentivises employers to come forward and do the right thing by their employees by paying any unpaid superannuation in full.

“Employers that do not take advantage of the one-off amnesty will face significantly higher penalties if they are subsequently caught (a minimum 50 percent on top of the SG Charge they owe). In addition, throughout the amnesty period the ATO will still continue its usual enforcement activity against employers.

“We are now urging all parties to push this through the Senate and make it happen and for employers to make the most of the situation.

“This one-off amnesty should be supported to allow employers to wipe the slate clean and pay their workers what they're owed, as all Australian workers should be paid their entitlements in full.

“We also want to remind employees to be cognizant of their rights and take personal responsibility for checking to make sure their superannuation payments are being made correctly,” Mr Conway said.

publicaccountants.org.au

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