FIVE MAJOR Australian professional bodies – CPA Australia, Chartered Accountants Australia and New Zealand (CA ANZ), SMSF Association (SMSFA), Financial Planning Association (FPA) and Institute of Public Accountants (IPA) – have joined forces to ensure Australians can get the advice they need to understand the Federal Government’s COVID-19 economic packages, including early access to their superannuation.

In a decision handed down by ASIC today, it will be easier for Australians to get assistance from professional accountants and financial planners in making decisions about their financial position in the face of the COVID-19 pandemic.

Registered Tax Agents (RTAs) can now temporarily give advice about early access to superannuation, without having to hold an Australian Financial Services (AFS) licence, and financial planners will have access to simplified advice documents in the place of a long and complex statement of advice.

“There has been an increasing demand for advice around early access to super since the Government announced Australians could access up to two parcels of $10,000 in superannuation tax-free as part of their second stimulus package,” said the joint bodies.

“We have come together and collectively worked with ASIC to help the Australian community and to ensure there are more skilled advisers in the marketplace to address this demand.”

“This move has removed significant red tape and ensured a simple, streamlined process is in place so those facing financial hardship during this time get the right advice.”

CPA Australia CEO Andrew Hunter said that these unprecedented times called for a pragmatic approach to regulation and a commitment from the associations to work together in the public interest.

“Over 600,000 people have registered their interest accessing their super early, so there is great need for support. It’s important that these people and others also considering their options can access professional advice.”

CA ANZ group executive for advocacy and professional standing, Simon Grant said, “As trusted advisers, accountants are well-placed to provide individuals with advice and many already have an existing relationship with their accountant. This is therefore an excellent extension for clients.”

FPA CEO Dante De Gori said, “Australians sleep better at night knowing they have a professional financial planner assisting them in managing their financial position, which is second only to their health in personal importance. This is welcome and timely relief from ASIC to assist our members in supporting as many Australians as possible through the financial crisis caused by this pandemic, and demonstrates ASIC acting on sensible calls from professional associations."

SMSF Association CEO John Maroney said, “The professional bodies have worked together with ASIC to provide regulatory relief for financial advisers and Registered Tax Agents that allow them to provide advice in the most efficient, timely and cost-effective way to individuals in the current environment.

“The decision to access superannuation early is a significant one with a long-term impact on individuals’ retirement savings, so for them to be able to speak to an accountant or adviser for a small fee to get the advice they need without sacrificing safeguards is welcomed.”

IPA CEO Andrew Conway said, “At this time in particular, Australians need access to high quality financial advice. Decisions around superannuation are critical to quality of life. For this reason, a decision to access superannuation early should be based on advice that is easily accessible.”

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THE Maritime Union of Australia (MUA) and the International Transport Workers’ Federation (ITWF) have condemned the "brutal treatment of more than 15,000 international crew from more than 50 nationalities engaged in the cruise ship industry in Australian waters".

Last week, the union and the federation wrote to Prime Minister Scott Morrison asking for "the same level of cooperation that industry unions and government have engaged in across Australia in response to this terrible pandemic".

"We had asked for leadership and a humanitarian response to stranded seafarers drifting around the Australian coast," a union spokesperson said.

"Instead Morrison reverts to type and has ordered all ships to leave Australian waters without any regard for the health, safety, dignity, or for the future safety of 15,000 international workers.

"Ordering flag of convenience ships back to their home ports demonstrates no understanding of the industry and sets a fully crewed flotilla adrift at the worst possible time.

"The Morrison Government’s reckless and heartless treatment of international workers will put the safety of Australian cruise ship workers at risk in other countries."

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INVESTORS showed their optimism for local equities by flocking to Australian equities in March, according to research from Rainmaker Information.

"The March report on the Australian Exchange Traded Products (ETP) market from the ASX clearly demonstrates how investors are reacting to the mayhem COVID-19 has had on world investment markets,” head of investment research at Rainmaker Information, John Dyall said.

The Australian ETP market lost $6.7 billion in market value over the month, ending at around $57 billion.

This is down from $64 billion at the end of February, a loss in percentage terms of around 10 percent.

Despite these losses investors continued to put money into the ETP market with a net inflow of $360 million in the month of March.

A sign of the caution showed by investors is that this was only one quarter of February’s net inflows of $1.5 billion, Mr Dyall said.

However, there was a greater turnover of ETPs, with traded value reported at being two and a half times the size of February’s traded value ($17.8 billion versus $7.2 billion).

The product with the largest net outflows was the Australian High Interest Cash Fund, which lost $257 million or 13 percent of funds under management.

The product with the largest increase in assets under management was ETFS Physical Gold, which increased by $189 million on net inflows of $135 million to the end the month with $1.6 billion.

The product with the highest net inflows was Vanguard Australian Shares Index ETF with net flows of $538 million.

On an asset class basis, Australian equities were popular with net inflows of $1.2 billion, with the largest inflows going into market cap index products.

“One would have expected fixed interest products to be popular in this period, but the reported dislocation in fixed interest markets seemed to have an effect,” Mr Dyall said.

Fixed interest had the highest net outflows, losing $770 million, a significant turnaround from the $488 million it gained in February.

Only one fixed income product, the Vanguard Australian Government Bond Index, had net inflows of any value, and that was only $11 million.

“From a quality and default perspective, this would be one of the safest investments in the Australian ETP market," Mr Dyall said.

International equities experienced a slight outflow of $56 million over February, although they lost $2 billion in assets.

The most notable action was the repositioning of portfolios away from currency unhedged products towards currency hedged products.

Over March the Australian dollar fell 5 percent against the US dollar and has fallen 13 percent since the start of the year.

The iShares Core S&P 500 ETF had the largest net outflows of $156 million, while its hedged counterpart iShares Core S&P 500 AUD Hedged ETF had the second highest net inflows of $115 million.

In fact, the top seven international equities net inflow products were all currency hedged.

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THE United Services Union has commended the NSW Government for securing the future of council-run childcare services with an $82 million funding boost, saying the move has provided certainty for parents and staff during the current health crisis.

Local government is the largest provider of childcare services in NSW, but the exclusion of councils from the Federal Government’s $1,500 per fortnight JobKeeper payment threatened to cause the closure of hundreds of centres due to a major funding shortfall.

The NSW Government’s funding package for local councils will ensure these centres can remain open to provide care for the children of essential workers during the coronavirus pandemic.

The USU, which represents local government employees in NSW, commended Local Government Minister Shelley Hancock for genuinely listening to the concerns of the sector and providing urgent funding to keep centres operating.

“When the Federal Government announced their childcare package, it quickly became clear that the decision to exclude local government from the JobKeeper component left a massive budget hole that would force hundreds of childcare centres to close their doors,” USU general secretary Graeme Kelly said.

“The Minister for Local Government listened to those concerns, met with the industry unions and Local Government Association NSW, and took immediate action to fund this shortfall, ensuring council-run facilities will receive the same level of support as private providers.

“The ongoing provision of safe, high-quality childcare by local government is vitally important, allowing families with young children to keep our hospitals, schools, supermarkets, and supply chains operating during this crisis.

“As the largest provider of childcare services in NSW, councils are playing a vital role in supporting local communities through the current health crisis.”

But Mr Kelly warned that other essential services provided by local government remained at risk, highlighting the need for the Federal Government to provide a stimulus package to the sector.

“While the future of childcare has been secured, many other essential services provided by councils remain at risk in the current crisis, which is why the Federal Government needs to urgently develop a stimulus package for local government,” he said.

“This should include a review of the decision to leave councils out of the JobKeeper arrangements, along with financial assistance to enable councils to support their communities by preserving jobs.

“These steps should be combined with a direction to local councils to retain all current full-time, part time and casual employees, with training and redeployment allowing them to provide essential community services during the current pandemic.”

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AMID TIGHTER restrictions with the COVID-19 response, half of the 800 job vacancies in Queensland’s resources and energy sector were listed in the last fortnight on employment website Seek. 

Queensland Resources Council chief executive Ian Macfarlane said while the resources sector was working tirelessly with government, its suppliers and communities to slow the spread of COVID-19, companies were still hiring. 

“Before COVID-19, one in seven Queensland jobs – or 372,000 full-time equivalent jobs – were supported by the resources sector,” Mr Macfarlane said. 

“COVID-19 and the restrictions have caused widespread job losses and underemployment. The resource sector is hiring and those job vacancies are across the State.” 

There are 799 job vacancies in the Queensland resources, mining and energy sector advertised on Seek, with 420 of those positions advertised in the last fortnight. 

The vacant positions are advertised in the following regions:

• 25 in Cairns and Far North
• 41 in Townsville
• 48 in Mount Isa
• 52 in Western Queensland
• 305 in Mackay and Coalfields
• 75 in Rockhampton and Capricorn Coast
• 177 in Gladstone and Central Queensland
• 11 in Toowoomba and Darling Downs
• 141 in Brisbane

Some job vacancies are advertised in multiple regions.

www.qrc.org.au

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SMALL BUSINESSES struggling to cope with the COVID-19 crisis do not have to suffer alone, with the new and improved My Business Health offering dedicated holistic support to employers and sole traders.

The Australian Small Business and Family Enterprise Ombudsman Kate Carnell said the My Business Health web portal had been re-designed to walk small business owners and sole traders through the practical steps they need to take to keep their businesses afloat.

My Business Health also takes a tailored approach – in partnership with leading mental health organisation Beyond Blue –to support small business owners through this very difficult period.

“Small businesses are under enormous pressure right now, with many forced to close their doors and others unsure how they will survive the coming months,” Ms Carnell said.

“In addition to providing small businesses and sole traders with a very simple guide to what assistance is available to them, My Business Health also links to Beyond Blue’s new dedicated coronavirus mental health support service."

Minister for Employment, Skills, Small and Family Business, Senator Michaelia Cash, said the Morrison Government was committed to ensuring support to small businesses during this challenging time.

“There’s no question Australians are doing it tough right now, and on top of the financial assistance available to small businesses, we want to make sure the small business operators have the necessary mental health support as well,” Senator Cash said.

Ms Carnell encouraged the Australian small business community to take stock this Easter long weekend.

“This is a very difficult and uncertain time, but I want small businesses and sole traders to know that they are not alone. There is help at hand for those that need it," she said.

“Now is the time to focus on looking after yourself, because your business ultimately depends on you. Visiting My Business Health is an excellent starting point.”

Beyond Blue’s Coronavirus Mental Wellbeing Support Service is now live at coronavirus.beyondblue.org.au

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ON BEHALF OF the Australian Government, the Australian Renewable Energy Agency (ARENA) has announced $480,000 in funding over the next 12 months to EnergyLab Australia Pty Ltd (EnergyLab) to support the Australian startup acceleration program designed to assist clean energy entrepreneurs.

Since 2017, EnergyLab has supported more than 80 Australian energy startups through its programs. This includes the innovative energy retailer Amber Electric that allows customers to reduce their energy costs via access to wholesale electricity prices. Amber Electric recently closed a $2.5 million funding round. 

Recruitment of entrepreneurs and startups for the Scale Up program is underway now, with chosen applicants to be announced later in 2020.

ARENA CEO Darren Miller said the project would help Australia’s brightest clean energy entrepreneurs turn their ideas into reality.

“Startups and entrepreneurs play an important role in accelerating the uptake of clean energy solutions, however, they can also face challenges in reaching scale and aren’t equipped to overcome hurdles such as high capital requirements, geographic constraints and revenue delay," Mr Miller said.

“EnergyLab, through mentoring and supporting startups, will help us to see an increase in expertise, skills and capacity in the renewable energy technology sector and identify pathways to commercialisation to keep Australia at the forefront of renewable energy innovation,” he said.

EnergyLab CEO James Tilbury said, “ARENA’s support will enable us to do even more to support Australia’s leading clean energy entrepreneurs. 

“In particular, this funding allows us to launch a Scale Up Program to provide the best late-stage energy startups with the support they need to reach their full potential.”

EnergyLab, a start-up accelerator program, has four core programs: 

• Pre-Acceleration – helping entrepreneurs with an idea to test its commercial viability.

• Acceleration – EnergyLab’s flagship program helping the most promising energy startups launch a product into the market, secure first customers and raise a seed funding round. 

• Scale Up – providing late-stage energy startups with introductions to decision-makers at Australia’s most innovative energy utilities, mentorship from Australia’s most successful energy-sector founders, and advice from Australia’s most active energy-sector investors. 

• Women in Clean Energy Fellowship – equipping women interested in energy entrepreneurship with the skills, knowledge and support they need to start a company. 


EnergyLab is also supported by a number of energy industry stakeholders such as Origin Energy, APA Group, Powerlink, The University of Technology Sydney, Ausnet Services, Climate-KIC, KPMG, Aperion Law, and the Clean Energy Finance Corporation.

www.arena.gov.au

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THE Federal Government’s JobKeeper bills that received Royal Assent and are now law will enable the delivery of critical financial relief for the hundreds of thousands of businesses and millions of workers impacted by the COVID-19 pandemic, and help will speed up the nation’s economic recovery.

CPA Australia spokesperson Paul Drum said this was a moment that will go down in history as one of the most important suites of legislation and associated instruments this century for the benefit of businesses, workers and their families,  and the economic security of the nation.

“In these unprecedented times, the legislation introduces wide ranging powers for both the Treasurer and the Tax Commissioner," Mr Drum said.

"The Treasurer now has the power to determine amounts, recipients and thresholds for the scheme, and to subdelegate the power to issue legislative or administrative instruments to the Commissioner until 31 December 2020. Importantly, this will enable nuances to be fixed and for calibration where necessary.

“It is important to acknowledge and commend the bi-partisan approach taken by the major parties to enable the speedy passage of this critical legislation,” he said.

"We look forward to working with the Treasurer, the ATO and other relevant government agencies as we now move into the delivery phase of the fiscal stimulus and survival measures."

More information can be found on these links:

CPA Australia COVID-19 resources

Coronavirus Economic Response Package (Payments and Benefits) Bill 2020

Treasury

ATO COVID-19 site

About CPA Australia

CPA Australia is one of the world's largest accounting bodies, with more than 165,000 members working in 100 countries and regions and supported by 19 offices globally. Our core services to members include education, training, technical support and advocacy. Employees and members work together with local and international bodies to represent the views and concerns of the profession to governments, regulators, industries, academia and the community.  cpaaustralia.com.au

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