THE 2022-2023 Federal Budget has delivered on the Fedetal Government’s promise to implement its election commitments, according to the Financial Services Council (FSC).

FSC CEO Blake Briggs said, “The Government’s new Housing Accord delivers on the Government’s commitments and the financial services industry looks forward to the opportunity to take on the historical challenges that have prevented institutional capital from investing in affordable housing. 

“The FSC will work constructively with Government to ensure that any capital deployed is consistent with the legal obligation on superannuation trustees to promote the best financial interests of members.”

The FSC also welcomed additional funding to introduce climate reporting standards for large businesses and financial institutions, in line with international reporting requirements.

“The Government has responded to funds management industry calls for a mandatory, principles-based climate-reporting regime that will support investment in climate reduction and abatement, and we look forward to supporting the Government with this initiative,” Mr Briggs said.

The FSC also welcomed the Government’s Women’s Economic Equality Taskforce, which will advise on the optimal settings for the extension of the Government Paid Parental Leave scheme from 18 to 26 weeks, but urged the Government to go further to promote women’s economic security in retirement.

“It would be a missed opportunity if this taskforce did not recommend paying superannuation contributions on the Government’s paid leave program, which would help close the gender gap in superannuation – women on average have 25 per cent less superannuation than men at retirement," Mr Briggs said.

The FSC was also encouraged to see the Federal Budget contained no adverse changes to superannuation taxation and contribution settings.

“Stability in the superannuation tax and contribution settings ensures consumers have the confidence they need to make financial plans for their future as they battle inflation and plan for an uncertain global outlook," Mr Briggs said.

“Future budgets must continue to honour election commitments to provide stability and certainty in superannuation policy settings, and an enhanced focus on structural reform and economic growth to achieve Budget sustainability – not just increased taxes.”

www.fsc.org.au

About the Financial Services Council

The FSC is a peak body which sets mandatory standards and develops policy for more than 100 member companies in one of Australia’s largest industry sectors, financial services. FSC Full Members represent Australia’s retail and wholesale funds management businesses, superannuation funds, life insurers and financial advice licensees. Supporting Members represent the professional services firms such as ICT, consulting, accounting, legal, recruitment, actuarial and research houses. The financial services industry is responsible for investing $3 trillion on behalf of more than 15.6 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange, and is one of the largest pools of managed funds in the world.

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IN SPITE OF a permanent uplift in demand for lower density housing, new home building starts have dropped again during the June 2022 quarter – the fourth consecutive quarterly reduction – according to the Australian Bureau of Statistics (ABS) Building Activity figures released today.

Master Builders Australia CEO Denita Wawn said while the volume of new detached house starts was still higher now than it had been in the lead up to the pandemic, the phasing out of exceptional fiscal and monetary stimulus propelling new home building starts means today’s figures "are not surprising".

According to the latest ABS figures, there was a 2.7 percent fall in new home building starts during the June 2022 quarter. This included a 3.1 percent reduction in the number of new medium/high-density home commencements, and detached house starts inched down only marginally at 0.2 percent.

“Despite the volume of new home starts dropping over the past year, there were still over 240,000 new homes under construction at the end of June," Ms Wawn said. "This is higher than ever before and is related to the supply bottlenecks in the building pipeline which are slowing the pace at which new homes can be built.

“However, over the next three years, Master Builders forecasts that new home building starts will fall significantly short of 200,000 per year, the volume of output that will be needed to meet demand. Our forecasts indicate this threshold will not be exceeded until 2026.

“Our 2022-26 residential forecasts predict a bumpy road with a downturn over the next few years," she said. "Forecasts will trend upwards as inward migration and interest rates stabilise, and pent-up demand shifts the dial.

“The building and construction industry continues to be frustrated with lengthy delays in approvals for land title, building applications, and occupation certificates. Shortage of land in the right places, high developer charges, and inflexible planning laws also restrict opportunities to meet the housing needs of our future.

“We look to working with the Federal Government to assist with finding and delivering solutions,” Ms Wawn said.

www.masterbuilders.com.au

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THE Joint Standing Committee on Foreign Affairs, Defence and Trade, through the Trade Subcommittee (the committee), has launched an inquiry into Australia’s tourism and international education sectors, with a focus on the operation of both sectors in the post COVID-19 world.

The Chair of the Trade Subcommittee, Senator Deborah O’Neill said, “Both the tourism and international education sectors have contracted substantially since the emergence of COVID-19. The committee looks forward to understanding how both sectors can be best supported so they can be positioned as key contributors to the post COVID-19 recovery of Australia’s economy.”

The committee will also consider the effectiveness of recent tourism campaigns overseas and how Australia can support tourism in the Asia Pacific region. In relation to international education, the committee is interested in hearing about innovations in the delivery of online education to strengthen the sector’s resilience.

“We encourage a broad range of stakeholders in the tourism and international education sectors from across the country to share experiences about transitioning into the post COVID-19 period,” Senator O’Neill said.

Submissions from interested individuals and organisations are invited by Monday, December 12, 2022. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the committee’s inquiry, including the full terms of reference and details on how to lodge a submission is available on the committee’s website.

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IDENTIFYING challenges and opportunities for Australia to capitalise on our abundant natural resources to drive economic growth, create new industries and jobs and become a renewable energy superpower will be the focus of a parliamentary committee.

The Joint Standing Committee on Trade and Investment Growth has launched the inquiry into Australia's transition to a green energy superpower.

Committee Chair, Steve Georganas MP said, “Australia is well on its way to becoming a renewable energy superpower, and I hope this inquiry will be a valuable opportunity to ensure we are doing everything possible to strive further towards a green energy future.

"The committee wants to hear from Australian governments, businesses, and other interested parties from across the community about where trade and investment activities are already having a positive impact; emerging and possible future trends, areas of growth, and how can these be accelerated.”

The committee is seeking submissions from interested individuals, businesses and organisations on the inquiry’s terms of reference by Wednesday, November 30, 2022.

The committee will have particular regard to areas that play to Australia's strengths, including: renewable energy, battery storage, energy supply and infrastructure, electric vehicle industry, infrastructure; advanced manufacturing, and services and technology.

Further information about the inquiry, including published submissions and hearing transcripts, will be available on the inquiry webpage.  

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