AUSTRLALIAN resources and energy exports have hit a record high of $310 billion in 2020-21 – almost a third of a trillion dollars – according to the latest Resources and Energy Quarterly (REQ) update. 

Resource export earnings are estimated to be almost seven percent higher than the record set last financial year, with earnings expected to rise even further to $334 billion in 2021–22. 

Queensland Resources Council (QRC) chief executive Ian Macfarlane said Queensland’s major commodities of coal, LNG, bauxite and zinc are helping drive the strong growth outlook.

"The resources sector underpins our state and national economy, which is why it’s been so important to keep resources companies operating safely during COVID-19,” he said. 

“It’s also why the QRC is working so closely with the State Government to work out the best way to keep our FIFO and DIDO workers safe, as well as protect the communities in which they work and live.” 

This week the QRC renewed its offer for Queensland’s resources sector to assist the State Government with vaccine transport and by providing regional facilities and health staff to support vaccination hubs if needed. 

Mr Macfarlane said the latest outlook for resource exports shows the world economy is bouncing back from the impact of the COVID-19 pandemic. 

“Metallurgical coal companies are benefiting from a surge in world steel production, with Australian export volumes expected to increase by around 10 percent to 2023,” Mr Macfarlane said. 

“The price for metallurgical coal is also set to increase, with the Chief Economist reporting prices have regained all of the losses incurred due to China’s informal ban in Australia’s coal imports. 

“There’s also good news for thermal coal producers, with the Japanese thermal coal contract reference price now finalised and set to increase by 60 percent on the previous year.” 

Queensland’s other powerhouse commodities are also in line for significant growth, notably zinc, with New Century Resources’ Century Mine in North-West Queensland expected to boost plant throughput by 20 percent. 

MMG’s Dugald River increased its output of zinc by 38 percent year-on-year in the March quarter 2021. 

Mr Macfarlane said strong demand for LNG from emerging Asian economies is expected to increase by 44 percent due to declining local domestic gas production, the expansion of gas-fired power generation and new LNG infrastructure developments. 

He said increasing demand for aluminium was behind a 22 percent rise in prices in the first half of 2021. 

“World demand for aluminium is expected to remain strong in the second half of 2021 and likely to push prices to an average US$2,130/tonne, which is up 25 percent from 2020,” he said. 

“The positive forecast for resources exports is great news for our sector and great news for Queensland, because it means more money flowing through the state economy, more jobs and increased prosperity for the businesses that provide goods and services to the resources sector.” 

* The REQ contains the Office of the Chief Economist’s forecasts for the value, volume and price of Australia’s major resources and energy commodity exports. Click here for the June report. 

www.qrc.org.au

ends

MORE THAN 6.7 million Australians will benefit from a boost to their nest egg from July as the super rate increases to 10 percent, with young workers and low to middle-income earners the big winners acording to Insdustry Super Australia.

From July 1 an extra $233 a year will flow into the super accounts of the average worker. This super boost may be small, but it will make a big difference at retirement – with a 30-year-old on the median wage expected to have an extra $19,000 at retirement, a couple will have an extra $38,000, according to  Industry Super Australia chief executive Bernie Dean.

In total Australians will get an extra $1.5 billion paid in super in the next 12 months, he said.

"Even though the increases are only small now, they'll add up to make huge positive difference for millions of Australians when they retire," Mr Dean said. “These increases will give women more financial independence and that means a better shot at a dignified life in retirement, not one marked by poverty.

“Young people will be the big winners from these increases and help those that raided their super last year, during the downturn, make up some of the lost ground. “This is the first of a number of increases the government has promised and locked in law for the coming few years.” 

Half of the extra super payments – about $784 million will go to those under 40 – and more people in their 20s will get a super boost than any other age bracket (see tables below). The extra contributions will help young workers recoup the savings they lost after they were encouraged to raid their super to support themselves through the Coronavirus downturn.

Industry Super Australia analysis of tax file data shows that more women than men will receive the July 1 super boost – 3.41 million women compared with 3.36 million men.

Around 63 percent of those who will benefit from the Superannuation Guaranteee (SG) increase are on wages less than $70,000 – many of these 4.3 million workers are in line for a five-figure boost to their retirement savings – which will improve their quality of life at retirement dramatically.   

The super rate is legislated to rise from 9.5 percent to 12 percent by 2025 by annual 0.5 percent increases. In the Budget this year the Federal Government re-committed to its election pledge to stick to the legislated schedule. This commitment to 12 percent super will deliver an extra $85,000 to the typical workers’ retirement savings.

Mr Dean said the increase to 12 percent will also:  Add $170,000 to the retirement nest egg of the average 30-year-old couple; save $33 billion in Age Pension costs over coming decades; Inoculate retirees from future adverse changes to the Age Pension; Add $12 billion to Australia’s GDP, create 10,000 jobs and increase real wages, according to research from independent consultants ACIL Allen.  

The SG is a critical response to the ageing population and improves retirement incomes of working people in a fiscally sustainable manner. Although still maturing, annual superannuation retirement benefit payments are already double age pension expenditures.

 Table 1: Super guarantee increase winners by state

Source:  ISA analysis of 2018-19 2% tax file.

Table 2: Super guarantee increase winners by income

Source:  ISA analysis of 2018-19 2% tax file.

 Table 3: Super guarantee increase winners by age

Source:  ISA analysis of 2018-19 2% tax file.

ends

SUNCORP has been recognised as ‘Bank of the Year’ for the fourth consecutive year in the 17th Consumer Finance Awards, published by Money magazine.

The annual awards help Australians find the top performers in each category so they can bank, borrow and invest with the best. The awards recognise the leading financial institutions across 21 categories.

Notable award winners were Suncorp (Bank and Business Bank of the Year), Budget Direct (Insurer of the Year), ME Bank (Money Minder of the Year) and Bendigo Bank (Home Lender of the Year).

Suncorp, Budget Direct, ME Bank, Police Bank, La Trobe Financial, Greater Bank, Move Bank, Bank First and Freedom Lend all retained their awards from 2020.

The winners are recognised for their competitive pricing for Australians and consistent focus on the markets they serve.

The collection of winners and finalists are selected after a rigorous data-driven analysis assisted by research leaders Rainmaker Information and data provider InfoChoice.

"With COVID-19 hitting our bank balances hard, your choice of finance provider could make the difference between shaving years of your loan or wearing those mortgage boots for longer," said Michelle Baltazar, editor-in-chief of Money magazine.

"We congratulate our winners for giving more Aussies the chance to fulfil their dreams, whether it's buying property for the first time or financing a small business, through better banking deals."

Julia Newbould, managing editor of Money magazine, congratulated the winners by saying, “it was good to see a lot of winners from previous years still performing at the top of our lists - it shows that they are committed to continuing to look after their members' best interests. It was also great to see new players emerge in these competitive categories. A competitive market is always going to be a win for consumers.”

The full results of the Consumer Finance Awards are published in the July issue of Money magazine, on sale from Thursday, July 1, 2021.

Also in the July issue of Money is Good Debt, Bad Debt, looking at how borrowing money can have a positive effect on your financial future.

And Paul Clitheroe writes a special feature on spotting frauds: 'If it sounds too good to be true, it probably is'.

ends

WORKERS at the Victoria International Container Terminal (VICT) at Melbourne’s Webb Dock have won significant improvements to job security, working hours, and rates of pay following a three year industrial campaign.

The Maritime Union of Australia said the agreement would deliver immediate benefits to the workforce, with 75 percent of casual roles being converted to permanent jobs, along with pay increases of between 14.5 and 46.5 percent over four years, depending on employment classifications.

The MUA has now finalised agreements with VICT, DP World Australia, Hutchison, and have reached in-principle agreement with Flinders Adelaide Container Terminal, leaving Patrick as the only container terminal operator in the country where the union has been unable to successfully conclude negotiations.

The VICT enterprise agreement contains significant family-friendly provisions, including new rosters that reduce hours of work at the terminal, less reliance on overtime, vastly improved long service leave provisions, and the introduction of income protection insurance.

Job security provisions will also prevent VICT from outsourcing, offshoring, or contracting out work covered by the agreement, while workers will have input prior to any forced redundancies.

VICT and the MUA have also settled several long-running legal disputes, with both sides agreeing to terminate the matter to ensure a functional industrial relationship going forward.

MUA assistant national secretary Adrian Evans said the agreement was formally signed today following the unanimous endorsement of VICT workers yesterday.

“This is the one of the most significant agreements ever struck in the maritime industry, bringing the wages and conditions of VICT workers up to industry standards,” Mr Evans said.

“While it delivers valuable wage rises that will see the pay packets of some workers increase by 46.5 percent over the life of the agreement, the most significant provisions are around job security and the creation of 61 permanent jobs at the terminal.

“The agreement delivers provisions that protect workers from having their jobs outsourced, sent overseas, or contracted out, along with genuine negotiations before any forced redundancies take place.

“VICT’s reliance on casual labour and excessive overtime were the most significant issues for workers, which is why they took legally protected industrial action to further their campaign for permanent jobs that would provide economic security for their families.

“Without their united voice and commitment to collective action, this agreement with VICT could never have been achieved.”

Mr Evans said the agreement with VICT, which is owned by the Philippine-based global stevedoring company ICTSI, would deliver certainty for Australian business and the general community.

“This agreement follows the finalisation of enterprise agreements with almost all of Australia’s container terminal operators, including DP World Australia, Hutchison, and an in-principle deal with Flinders Adelaide Container Terminal,” he said.

“We have achieved fair agreements that properly compensate workers for delivering record productivity on the waterfront, while also providing certainty for importers, exporters, and the Australian public.

“There is now only one container terminal operator in the country, Patrick, where the union has been unable to reach a reasonable outcome, despite long-running negotiations.

“MUA members at Patrick have never worked harder than during the COVID crisis, putting in place the safety measures that have kept vital supply chains operating, guaranteeing the delivery of medical supplies and ensuring supermarket shelves remain stocked.

“While Patrick has been reaping increased profits on the back of these efforts, along with pocketing congestion and port access charges, they have refused to follow the lead of other container terminal operators and finalise a fair agreement for their workforce.”

ends