THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson said insurance premiums would be more affordable for small businesses in Northern Australia, under a new Federal Government scheme to launch next year.

Mr Billson welcomed plans for a reinsurance pool to be backed by a $10 billion Federal Government guarantee to cover cyclone and flood damage across Norther Australia from July 1, 2022.

He said the scheme, which is broadly in line with a recommendation in ASBFEO’s Insurance Inquiry, will make a significant difference.

“This is certainly a welcome step in the right direction when it comes to ensuring essential insurance coverage is accessible to small businesses,” Mr Billson said.

“Our Insurance Inquiry revealed that small businesses have been crippled by rising insurance costs and some can’t get it at all. A reinsurance pool will go some way to addressing this key barrier for small businesses in Northern Australia.”

Mr Billson said he also recognised barriers still exist for SME insurance coverage in other parts of Australia.  

“In the course of our Insurance Inquiry, we spoke to over 800 small businesses – about 12 percent of those were from Northern Australia,” Mr Billson said.

“That means there are still many small businesses out there experiencing difficulties with accessing necessary insurance coverage.

“My office is ready and willing to work collaboratively with the government, relevant agencies and the insurance industry towards making essential insurance products affordable and accessible for small businesses across the country.

“Ultimately insurance is a necessity for small businesses to operate, which is why it is vital these products are accessible so they are protected when things go wrong.”

www.asbfeo.gov.au

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THE Parliament’s Intelligence and Security Committee will hold a public hearing tomorrow as part of its Review of the Intelligence Oversight and Other Legislation Amendment (Integrity Measures) Bill 2020.

The Committee will hear from Dr Kieran Hardy, Professor George Williams AO, the Law Council of Australia, the Inspector-General of Intelligence and Security, the Commonwealth Ombudsman, the Attorney-General’s Department and the Department of Home Affairs.

Further information on the inquiry can be obtained from the Committee’s website.

Public hearing details:

Thursday, 6 May 2021
10am - 3pm
Committee Room 2R1, Parliament House, Canberra

A program for the hearing can be found here and the hearing will be broadcast live on the Parliament of Australia website

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THE Queensland Resources Council (QRC) has welcomed the Federal Government’s announcement of a $100 million, four-year renewal of its Junior Minerals Exploration Incentive (JMEI).

“This is great news for Queensland explorers who are bringing amazing new technology like remote sensing, machine learning, and bio-indicators to the field,” QRC chief executive Ian Macfarlane said.

“The program will give eligible exploration companies access to tax incentives to attract new investors into the sector and potentially benefit 500-plus mineral exploration companies currently operating across Queensland.”

Mr Macfarlane said around 70 percent of exploration companies in Queensland have a market capitalisation value of less than $500 million, meaning they’re eligible to apply for tax incentives under the renewed JMEI program.

“Exploration is like the research and development of the minerals industry - it’s how we uncover new geological knowledge – so it’s great to see the Federal Government recognise the importance of exploration by renewing this program for another four years,” he said.

“The renewed funding will place Queensland mineral explorers in a stronger position to find that next big discovery.

“The last major minerals discovery in Queensland was almost 30 years ago, when Glencore’s Ernest Henry copper mine was discovered near Cloncurry in 1993, so we’re well overdue.”

Mr Macfarlane said the announcement of new federal funding, coupled with the Queensland Government’s Collaborative Exploration Initiative, provided explorers with much-needed financial incentives to keep exploring and developing potential new pipelines of opportunity for Queensland.

He congratulated the national peak body for exploration AMEC for the leading role it had played in securing additional exploration funding.

“This announcement also fits in well with the $125 million in federal funding announced last year through the Exploring for the Future initiative which focussed on exploration for the Barkly-Isa-Georgetown project,” Mr Macfarlane said.

Mr Macfarlane said Queensland had an abundance of minerals in high demand that have the potential to supply Australia and trading partners such as Canada, India, Japan and the EU with the critical minerals of the future.

“Explorers are currently looking for minerals such as cobalt, indium and Rare Earth Elements as well as metals like copper and gold which are all crucial components in renewable energy technology and are used in everyday devices such as smartphones and batteries,” he said.

www.qrc.org.au

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INVESTMENT properties often contain tens of thousands of dollars worth of tax deductions that only a trained eye would detect, according to Australian provider of tax depreciation schedules, BMT Tax Depreciation.

Tax depreciation is the natural wear and tear of property and assets. It is one of the highest tax deductions available to property investors who can claim it for up to 40 years.

BMT Tax Depreciation CEO, Bradley Beer, said tax deductions could be concealed behind walls, in ceilings, under floors and on roofs. The combined value of these deductions can reach tens of thousands of dollars over their lifetimes and make a significant difference to a property investor’s bottom line.

Mr Beer said underfloor heating was an unseen depreciable asset that is quite often overlooked.

“It would be reasonable to expect a depreciation deduction of around $10,000 for underfloor heating for an average-sized house,” Mr Beer said.

The re-stumping of a home is a way to rectify settled stumps due to soil movement or damaged wood.

“Re-stumping is usually required for older properties and typically produces a depreciation deduction in the vicinity of $13,000,” Mr Beer said.

“Inconspicuous re-wiring and re-plumbing may also be required for an older property, or when a property has been damaged. These items could produce a total depreciation deduction of $16,000.

“It’s hidden deductions such as these that can produce valuable deductions in older properties. Even if the improvements were completed by a previous owner, the current owner can still claim them.

“There are also extra deductions for solar pool heating that’s usually tucked away on the roof. Solar pool heating typically produces a total depreciation deduction of around $7,000,” Mr Beer said.

It is also common for a rural property to have its own sewerage treatment assets and tanks, but these can easily go unnoticed as they are ‘out of sight, out of mind’.

“Underground sewerage treatment tanks and piping can produce a total depreciation deduction of $11,600,” he said.

Mr Beer explained that BMT’s expert staff complete physical site inspections to accurately identify both the obvious and obscure depreciable items.

“Almost every inch of a property is depreciable,” Mr Beer said. “But with such a large range, comes numerous complexities. We need to look at the property size and type, unique features, construction dates and the legislative requirements to ensure depreciation is claimed accurately. This is why a site inspection is so important.

“My key message to investors is to never rule out depreciation. Throw out the idea that your property might be too old or your haven’t owned it for long enough – these are simply myths. And as we can see, thousands of deductions can be found where you can’t see them.”

bmtqs.com.au

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