CHIEF EXECUTIVE of the Queensland Resources Council (QRC),  Ian Macfarlane has welcomed 50 extra resources-related construction jobs created by Senex Energy in its new $30 million Roma North expansion announced today.

“This announcement couldn’t have come at a better time,” Mr Macfarlane said. “Senex’s decision to increase its gas production near Roma in south-west Queensland by 50 percent is just the sort of investment confidence Queensland needs to bolster the economy as it recovers from the COVID-19 induced downturn.

“I congratulate Senex on its latest announcement, which adds to the 250 construction jobs and $400 million investment committed to completing its Atlas and Roma North projects in the Surat Basin over the past 18 months, benefiting more than 50 businesses in the region,” he said.

“The resources sector has kept Queensland afloat during the COVID emergency contributing $74 billion over the past year to the State Budget and $56.5 billion – or almost 80 percent – of Queensland’s total exports.

“And making that possible are the 372,000 hard-working men and women employed in Queensland’s resources sector whose families and communities benefit every day from the financial security and job opportunities our sector provides.”

www.qrc.org.au

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LIFE SCIENCE companies are losing millions of dollars in investment that is instead allocated to software because investors misunderstand the benefits of investing in the sector, a prominent venture capital fund said today.

Stoic Venture Capital partner, Geoff Waring said private investors were wrongly deterred from pursuing life science companies and this was leading to millions of dollars-worth of lost opportunities for the industry. 

Software start-ups attract around 70 percent of venture capital investments, compared with life science which attracts around 15 percent and other categories such as hardware, clean energy and advanced manufacturing which attract even less, Dr Waring estimated.

“Investors tend to prefer software companies over life science because of an erroneous belief that life science requires more capital per product so the returns will be more attractive,” he said.

“Offsetting this is the ability of life science discoveries to be platform technologies. One successful clinical trial can make it easier to launch other products derived from the underlying technology.” 

Mesoblast, a listed cell therapy company is an example, Dr Waring said. If one application is approved by regulators, it will be easier to get approval for the wide range of diseases treatable by their stem cell therapy platform.

Similarly, a life science drug that enhances immunity would be able to both prevent and treat multiple diseases.

Dr Waring said there were many new health companies springing up that would become ever-more critical to communities because of Australia's ageing population.

“More people are living longer, with one or more chronic or complex health conditions,” Dr Waring said. 

“Health technology has huge potential to improve patient experience, outcomes and quality of life and this makes it very valuable for all stakeholders.”

Dr Waring said the multiple stages of clinical trials for gaining regulatory approval were milestones for evaluating health tech companies.

Too many investors were deterred by erroneous assumptions, he said, including that there were few exit opportunities in a pathway to market for a drug or treatment that could take 10 years to reach that market.

“A preference for faster returns is a key reason why investors shy away from health technology,” Dr Waring said. “People believe it will be a decade before they get their money back.

“But there is a common exit opportunity at the end of phase 2 trials, before any revenue is generated, which can be as low as a three-year holding period. A software company might wait seven years to get their revenue to a level where it is acquired.

“If investors manage the risk of individual technologies by diversifying across companies, health care is less affected by downturns, has very strong patent protection and scalable production that present valuable solutions for both communities and investors.”

www.stoicvc.com.au

About Stoic Venture Capital

Stoic Venture Capital provides financing for early-stage companies, particularly those arising from university research. Stoic is unconditionally registered as an Early Stage Venture Capital Limited Partnership (ESVCLP) and takes a collaborative approach to investing in the highest potential companies. Atlas Advisors Australia AFOF is the major limited partner for the fund. 

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THE Queensland resources industry has continued to deliver its 80 percent share of the state’s export earnings over the past 12 months despite the disruptions to international markets and commodity prices, according to new trade data.

QRC chief executive Ian Macfarlane said over the 12 months to August 2020, the 372,000 Queensland men and women working in resources helped deliver $56.5 billion -- or 79.25 percent -- of the state’s total export earnings of $71.3 billion.

“Queensland export earnings have been impacted by COVID-19, with total export earnings down by $16 billion compared to the previous 12 months, but we’ve still contributed 80 percent of total exports ,” Mr Macfarlane said.

“Export sales to overseas customers are critical to our prosperity at home in Queensland.  As a result of the men and women working in resources following COVID-safe practices, our industry is keeping the Queensland economy strong and continuing to contribute to a resources-led COVID recovery.

“The world needs what Queensland has, but we also need to have long-term, stable policy and royalty settings to ensure the resources industry can continue to invest, employ and export at the level we currently do, and on which our state economy depends.”

Queensland’s resource exports across key commodities over the 12 months to August 2020 are led by metallurgical and thermal coal at $33.2 billion, liquefied natural gas at $13.8 billion and minerals at $9.5 billion.

Link to Queensland Treasury export data update.

www.qrc.org.au

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has urged struggling small business owners to reach out for help on World Mental Health Day, October 10.

“This year, the World Mental Health Day focus is to campaign for greater investment in mental health services as the COVID crisis takes a heavy toll on wellbeing globally,” Ms Carnell said.

“The enormity of the lockdowns and the psychological distress this has caused for small business owners cannot be underestimated.

“Given small business loans are often secured against the family home, it means if the business goes bust they can lose their home. This is a key factor impacting small business owners’ mental health right now.

“The good news is that Australian governments at all levels have recognised and substantially boosted mental health support in the wake of increased demand over the course of this pandemic.

“Just this week, the Federal Government committed $4.3 million in the Budget to rolling out a new mental health program for small business owners, called NewAccess for Small Business.

“This new program has formed part of the government’s $5.7 billion commitment to mental health, including $100 million to double the number of Medicare-subsidised sessions with a psychologist from 10 to 20 per year," Ms Carnell said.

“The NewAccess service, to begin early next year, will provide small business owners with access to free one-on-one telehealth sessions with specially-trained mental health coaches.

“Crucially, the NewAccess coaches providing support to small business owners on strategies to manage stress, actually have experience in small business themselves. This approach will make a real difference," she said.

“My office will be working in partnership with Beyond Blue to promote NewAccess and connect small business owners with the service via our call centre and assistance team.

“Finally, my message to small business owners on World Mental Health Day is this: You are not alone," Ms Carnell said.

“It’s vital to seek help if you need it. Our My Business Health web portal provides free practical resources to help with running your business and also links to leading mental health organisations such as Beyond Blue.”

Watch Kate Carnell’s World Mental Health Day video here.

www.asbfeo.gov.au

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THE Bureau of Meteorology has released its Severe Weather Outlook for October to April, showing an increased risk of flooding for eastern Australia and tropical cyclones in the north, with roughly average potential for heatwaves and severe thunderstorms.

The current La Niña is likely to bring more rain to eastern and northern Australia, with some drought affected areas already seeing rainfall deficiencies ease and water storage levels increase.

La Niña also suggests an earlier than normal arrival for the first rains of this year's northern wet season and an earlier monsoon onset for Darwin.

While recent decades have seen a decline in the number of tropical cyclones in our region, Bureau climatologist, Greg Browning, said this summer was likely to buck that trend.

"On average Australia sees 9-11 tropical cyclones each year, with four crossing the coast. With La Niña this year we are expecting to see slightly more tropical cyclones than average, and the first one may arrive earlier than normal," Mr Browning said.

"Every northern wet season has had at least one tropical cyclone cross the Australian coast, so we can never be complacent. We know that cyclones can develop at any time throughout the tropical cyclone season, which runs from November to April," he said.

"This means that communities right across northern Australia need to stay be prepared now, and stay informed from the very start of the tropical cyclone season in October, right though until April."

After the catastrophic fires of last summer, it's a very different bushfire outlook this season, with average fire potential for most parts.

"This fire season we're expecting wetter than average conditions in eastern and northern Australia, so long running large bushfires are less likely, however a wetter spring can lead to abundant grass growth, which could increase fire danger as it naturally dries during summer.

"Meanwhile, if dry conditions continue in southwest Western Australia as forecast, the potential for more fire weather days there could increase."

The Bureau's general manager of Decision Support Services, Sandy Whight, said the lower fire risk across much of Australia was no reason for complacency.

"Southern Australia is one of the most bushfire prone places in the world in any summer and it's important to remember that, right across Australia, even short periods of hot and windy weather will raise the fire risk, so communities need to have their bushfire plans ready.

"La Niña also brings more rain and increased humidity, which can mean fewer extreme heat days. But while heatwaves may not be as severe, the Bureau's advice is that in southern areas they may last longer and be more humid – both of which can increase the risk to human health. Be sure to monitor the Bureau's heatwave service, which provides information about the location and severity of heatwaves."

"The Bureau is committed to keeping Australians safe. We support emergency partners and the community to prepare for the impacts of severe weather through regular forecasts, warnings, monitoring and advice. 

"Now, more than ever, it's vital to heed the Bureau's warning to Know your weather. Know your risk."

REGIONAL SNAPSHOTS

QUEENSLAND

• La Niña is likely to bring more rain than usual, with an increased risk of widespread flooding.
• Likely to see more tropical lows and cyclones than normal.
• Earlier start to the wet season across the north.
• Average numbers of severe thunderstorms.

NORTHERN TERRITORY

• La Niña is likely to bring more (and earlier) rain than usual.
• La Niña typically means earlier onset of the monsoon, higher likelihood for more tropical lows and cyclones than usual.

WESTERN AUSTRALIA

• La Niña's impacts are not as marked in northern WA as they are in eastern Australia.
• Expect an earlier onset of the monsoon and increased risk of a pre-Christmas tropical cyclone off northwest WA.
• Increased risk of widespread flooding in the north.
• A dry spring could increase fire potential in the south.

SOUTH AUSTRALIA

• More grass growth in spring could raise the risk of grass fires in summer.
• During La Niña, heatwaves may last longer and be more humid, though there may be fewer days of extreme heat compared an average season.
• La Niña is likely to bring more rain than usual through what is usually a very dry period in SA.

TASMANIA

• Normal bushfire potential, but more grass could provide more fuel in summer.
• Extreme heat days are more likely every season, due to the impacts of climate change.
• La Niña is likely to bring an increased risk of widespread flooding for eastern Tasmania.

VICTORIA

• Increased risk of widespread flooding.
• Fewer extreme heat days but heatwaves may last longer and be more humid.
• Long running bushfires are less likely, but more grass could provide more fuel in summer.

NEW SOUTH WALES

• La Niña is likely to bring more rain than usual with an increased risk of widespread flooding.
• Heatwaves could be more humid and last for longer, especially in southern NSW.
• Normal bushfire potential, but more grass could provide more fuel in summer.

AUSTRALIAN CAPITAL TERRITORY

• La Niña is likely to bring more rain than usual with an increased risk of flooding.
• The ACT has normal bushfire potential, but people in rural areas and on the urban edge of Canberra are advised to plan for the potential of fast-moving grassfires.

The Bureau's severe weather outlook page: www.bom.gov.au/knowyourweather

The Bureau's Tropical Cyclone Season Outlook: www.bom.gov.au/climate/cyclones/australia/

More information on La Niña impacts is at: http://media.bom.gov.au/social/blog/2440/explainer-what-is-a-la-nia/
 
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THE Tax Practitioners Board (TPB) has terminated the company registration of Sydney based agent TLL Tax Pty Ltd (TLL) for misconduct and banned them for two years.

The TPB determined TLL breached the Code of Professional Conduct in the Tax Agent Services Act 2009 relating to competency, honesty and integrity and noted TLL attempted to rort the COVID-19 stimulus Cash Flow Boost for over $20,000.

The investigation into the case focused on two clients and highlighted that TLL had breached the TPB’s Code of Professional Conduct in the following ways:

• TLL had changed the bank account details of its clients to those of the agents company director, Liying Tong, without authority.
• Lodged income tax returns and business activity statements on behalf of one client who was no longer trading, without their knowledge or authorisation, which included false amounts.
• When confronted by the first client TLL subsequently lodged unauthorised amendments to the client’s tax returns and business activity statements.
• Lodged a further business activity statement for the second client, reporting an amount that the client was not aware of and which could not be substantiated.

In the investigation, it was found that two days after the falsified refund had been received, Ms Tong had contacted the first client and made an offer to purchase the client’s business, which the client declined.

Following this Ms Tong offered to apply for COVID-19 related stimulus funds in return for a commission, despite knowing that the client was ineligible to receive the stimulus benefits as it had not been trading.

With the second client, TLL had reported false turnover amounts, to dishonestly qualify them to receive a Cash Flow Boost payment, which it was not eligible to receive.

Unjustified Cash Flow Boost and GST claims of over $20,000 were subsequently paid into a bank account held by the company’s director, Ms Tong.

This payment was retained by the agent and transferred to another of their accounts and not passed onto the client. 

TPB chair Ian Klug said the misconduct of TLL and the company’s director, Liying Tong was of grave concern to the TPB.

"To fraudulently claim COVID-19 stimulus payments affects the entire Australian community and takes advantage of the pandemic situation we are all living under," Mr Klug said.

"Ms Liying Tong was in a position of trust, operating in an uncertain environment, and she abused that trust."

The TPB is asking that if people become aware that an agent is attempting to make a fraudulent claim against the COVID-19 stimulus measures that they contact the TPB immediately.

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THE Financial Services Council (FSC) has today launched a new fund manager resource and Guidance Note to help improve gender balance in investment management teams.

FSC CEO Sally Loane said, “We know women are underrepresented in financial services generally, and in a variety of investment management related roles in particular, which is why we are proud to launch this guidance note today.

“The benefits of diversity within organisations are well known - extensive research shows that diversity in teams and leadership improves decision making, innovation and financial performance,” Ms Loane said.

“Our gender diversity Guidance Note for our fund and asset manager members is timely and practical as we all look for ways to support women entering and progressing in the workforce. Firms are constantly looking to improve the way they go about business, and we know that diversity can and does play a critical role in enhancing business outcomes.”

A 2017 Women Matter A Time to Accelerate paper by McKinsey and Company, reported a strong correlation between women in top management teams and better financial results. McKinsey found companies that had the most women in executive committees had “a difference in return on equity of 47 percent between the companies with the most women on their executive committees and those with none, and a 55 percent difference in operating results".

The Diversity Working Group was established last year and developed a gender diversity resource library - which has a particular focus on gender diversity in funds management - the Guidance Note is the second key initiative which has been under development since last year.

Guidance Note 38 provides policy recommendations, processes, and approaches that organisations can consider across a range of important areas including:

• recruitment and talent management;
• the value of internal sponsorship over external mentorship to help elevate staff within business; and
• the inclusion of case studies which provide practical tips on approaches member firms have incorporated and found useful.

“This is an invaluable fund manager resource which can benefit investment management teams as well as organisations more broadly,” Ms Loane said.

A copy of Guidance Note 38: Improving Gender Balance in Investment Teams is available here.

www.fsc.org.au

About the Financial Services Council

The Financial Services Council (FSC) has more than100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $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 the fourth largest pool of managed funds in the world.

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said Labor’s alternative Budget plan to make childcare cheaper, would deliver essential support to women in small business.

Ms Carnell's comments follow Labor Leader Anthony Albanese’s Budget reply speech, during which he pledged $6.2 billion over three years to increase rebates on childcare fees for all families.

“About 38 percent of small businesses are owned and operated by women, many of whom have been hit hard by the COVID crisis and rely on childcare as they work to get their businesses back up and running again,” Ms Carnell said.

“Right now childcare is unaffordable for many women in small businesses, particularly those who have businesses that have been severely impacted by COVID restrictions.

“We know this recession has had a disproportionate impact on women and with childcare fees remaining unaffordable, mothers – more often than not – need to spend more time at home to look after their kids. It’s bad for small business and even worse for the economy.

“There is an overwhelming economic case for affordable childcare, with many credible economists arguing it would boost the participation rate and deliver significant productivity gains.

“Crucially, affordable childcare would allow more women to work on growing their businesses – an important contribution to Australia’s economic recovery.”

www.asbfeo.gov.au

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