Business News Releases

A more active Australian corporate bond market could enhance investment and venture capital

THE House of Representatives Standing Committee on Tax and Revenue has today (Monday) presented its report titled The Development of the Australian Corporate Bond Market: A Way Forward.

Corporate bonds are a type of debt security, issued by entities to finance their business operations. In its report, the committee makes 12 recommendations to support the development of a more active corporate bond market in Australia.  

The committee’s recommendations aim to remove barriers to the issuing of corporate bonds as well as raise awareness about the benefits of corporate bonds, both for investors and issuers. Specifically, the committee’s recommendations include ensuring that investors have access to timely and useful information about corporate bonds, lowering the minimum investment parcel to $1,000 for corporate bonds, to improve accessibility to more investors, reviewing the licensing regime for credit rating agencies to minimise access barriers, and streamlining disclosure requirements for the issuing of simple corporate bonds. 

The committee’s recommendations also include proposed amendments to the relevant regulations to allow for the early redemption of simple corporate bonds, as well as a review of Chapter 2L of the Corporations Act 2001 (Cth) with the aim of increasing the availability of trustees for the retail bond market.

Further, the committee recommends a review of the regulatory reforms implemented in New Zealand’s corporate bond market to further develop and make more liquid Australia’s corporate bond market.

Committee chair, Jason Falinski MP, advocated for regulatory changes in this space.

"It is the hope of this committee that the government will commence implementing recommendations as soon as possible as each recommendation will result in unleashing the considerable power of the corporate bond market in Australia," Mr Falinski said.

A full copy of the committee’s report can be found on the inquiry’s website.

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Referendums inquiry to hear from Electoral Commission

ON TUESDAY the House Standing Committee on Social Policy and Legal Affairs will hold the third public hearing for its inquiry into constitutional reform and referendums.

The Committee will speak with the Australian Electoral Commission (AEC) to learn about its role in public education about referendums and the operational aspects of referendum delivery.

Chair of the committee, Andrew Wallace MP said it was necessary to inquire into the mechanics of referendums and whether the current legislation and processes were fit for purpose.

"The committee has heard from other government agencies about the policy environment for constitutional reform. The AEC will be able to provide information on the delivery and mechanics of a referendum and how it engages and educates the public about these processes," Mr Wallace said.

Further information about the inquiry, including the terms of reference and a program for the committee’s hearing, is available on the inquiry webpage at: www.aph.gov.au/constitutionalreform.

Public hearing details

Date: Tuesday, 26 October 2021
Time: 4.30pm to 5.30pm (AEDT)

Due to Covid-19 restrictions, committee proceedings held in Parliament House are not currently open to the public. The hearing will be broadcast live at aph.gov.au/live.

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Industry welcomes Qantas expansion of services

 THE RECENT announcement that Qantas will speed up its timetable for the resumption of flights to a number of markets over the next three months is a further positive sign for Australia’s tourism industry, according to the Australian Toruism Export Council (ATEC).

“This is another strong sign that Australia is on the path to reopening, giving hope to thousands of tourism businesses who have been left without an income since March 2020,” ATEC managing director Peter Shelley said.

Flights from Sydney to Singapore, Bangkok, Phuket, Johannesburg and Fiji will resume ahead of schedule from as early as November 23 for Singapore, and throughout December and January for the other destinations.  Also very encouraging was the announcement from the Prime Minister that there could also be a quarantine-free Singapore travel bubble opening up very soon, Mr Shelley said.

“While this move is about getting Australians back home and families back together, it will also help the industry to open up and fine tune services for the resumption of full-scale travel," he said.

“We congratulate Qantas on their leadership and the Australian community on their uptake in vaccinations which has helped to get us to this point earlier than expected and look forward to announcements by the Federal Government on the date we can welcome back international travellers."

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It’s a long runway to recovery for Australia’s travel agents

WHILE THE NEWS fully vaccinated Australians can soon travel internationally without having to quarantine is very welcome, it’s unfortunately a long runway to recovery for Australia’s travel agents and businesses.

Australia’s travel agents and businesses have been in hard lockdown for more than 600 days. This hard lockdown will continue until international travel returns to normal levels with pre-COVID flight volumes, seat capacity and the removal of the current requirement that non-Australians even if fully vaccinated must hotel quarantine
 
Life for Australia’s travel agents only returns to normal after international travel is back in full swing. This is because travel agents only receive the bulk of payments generated from bookings AFTER travel takes place. 
 
Until international travel normalises which the Prime Minister has said won’t happen before March 2022, travel agents and businesses need ongoing support.

“With Singapore coming on line soon, and multiple destinations opening up for Australians, we are all looking forward to getting those passports out and getting travelling again," AFTA CEO Dean Long said.

“Travel expertise to navigate the complexities of COVID-travel is needed now more than ever and as events and tourism begin to ramp up again, travel agents will be essential. Our members are easy to find and everywhere from on-line to on the high street and proud to be using our travel expertise to support Australians through COVID travel and beyond.

“However, Australia’s travel agents and businesses have been in hard lockdown for more than 600 days and until airlines and cruise capacity return to normal levels, which won’t be before the second quarter of 2022, we need support," Mr Long said.
 
“The 30,000 Australians who work in Australia’s travel sector and the 3,000 agencies and businesses who employ them urgently need ongoing Government help so we can keep providing the expert support travellers need as tourism gets back on track and recovers.”

Prior to COVID, the industry has experienced year on year growth of 11 percent and maintained growth of 7.25 percent over the past five years. In 2018-19, Australians spent more than $46 billion on international travel, representing the largest import sector of the Australian economy.

About 70% of this international travel was booked through Australian travel agents. Each year travel agents collect taxes worth $1 billion and contribute $28 Billion nationally to the economy.

 

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Public meeting on future of public integrity agencies

As the SA Government guts its anti-corruption commission, and a NSW Premier falls, what are the lessons for integrity bodies in Australia?

This question will be explored at the second of a new Flinders University ‘Crime in the City’ lecture series, by a panel including the former Independent Commission Against Corruption (ICAC) commissioner the Hon Bruce Lander QC at public lecture on Tuesday (26 October, 4.30pm-6.30pm, at 182 Victoria Square, Adelaide.)

“The role of anti-corruption commissions across Australia is forefront in the news,” says Professor Andrew Goldsmith, director of the Centre for Crime Policy and Research at Flinders University which is hosting the debate with Transparency International Australia.

“The public needs to be reassured that the agencies we set up to uphold public integrity have the right focus and capacity to undertake their role competently and impartially. The current picture in Australia is not entirely reassuring,” Professor Goldsmith says.

While former NSW Premier Gladys Berejiklian resigned in order to front the NSW ICAC, Labor MP Luke Donnellan has resigned ahead of the inquiry by the Victorian Independent Broad-Based Anti-Corruption Commission (IBAC). The NSW ICAC is celebrated for exposing corruption across politics, including the now-convicted former Labor ministers Eddie Obeid and Ian Macdonald

At a federal level, the Independent Senator Heather Haines is increasing pressure on the government with her Australian Federal Integrity Commission Bill.   

“While there’s been a profusion of anti-corruption agencies set up in the states and territories in the past 30 years, we have nothing yet at the federal level despite years of discussion and proposals,” Professor Goldsmith says.

“And at the state level, we are seeing some significant changes in jurisdiction and powers of our integrity agencies, some of which suggest a rolling back of capacity.

“The recent changes to the SA ICAC system have drawn considerable criticism, not least of which being is the haste with which the changes passed through Parliament.

“Members of the public are entitled to understand why this has happened, and whether or not the revised arrangements are fit for purpose,” he says.

Recent changes to the SA ICAC system have drawn considerable criticism, “not least of which being is the haste with which the changes passed through Parliament”, he says.

Chaired by SA Commissioner for Public Sector Employment Ms Erma Ranieri, other panellists for the Flinders University University ‘Crime in the City’ lecture will be Griffith University Professor A J Brown, also a member of Transparency International Australia, and SA Ombudsman Mr Wayne Lines.

 

The Flinders University Centre for Crime Policy and Research has launched the Crime in the City lecture series to bring experts and members of the public together to examine issues of current policy concern in the fields of crime, security and public safety.

 

Watch the first discussion, ‘Ransomware: The New Transnational Crime Threat’ online https://youtu.be/QDnyULWObpU

  

The ‘Tackling Corruption and the Future of Public Integrity Institutions’ lecture is open to the public – Level 2, Flinders University building, 182 Victoria Square, Adelaide – or online via livestream. Please register via Eventbrite

via Eventbrite

  

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