Business News Releases

Adani mine challenge from Environmental Defenders Office

THE Commonwealth Environment Minister’s assessment of Adani’s essential water infrastructure for the controversial Carmichael coal mine is under a legal cloud again today, with the Environmental Defenders Office (EDO) filing proceedings in the Federal Court on behalf of its client, the Australian Conservation Foundation.

The Minister, whose original decision was overturned by the Federal Court on different grounds, has yet again determined that the water trigger does not apply to the North Galilee Water Scheme Infrastructure (NGWS). The NGWS provides essential water to the Carmichael coal mine, but the Minister’s determination means its impacts on water resources will not be subject to assessment.

That decision is now the subject of the ACF’s application for judicial review.

Contained in the Federal Government’s key environmental legislation, the water trigger is designed to ensure that actions involving large coal mining and coal seam gas developments, which are likely to have a significant impact on a water resource, undergo a thorough assessment by the Independent Expert Scientific Committee on Coal Seam Gas and Large Coal Mining Development.

The NGWS will see up to 12.5 billion litres of water pumped from the Suttor River in central Queensland to the Adani mine, where it will be used primarily to wash coal and suppress dust.

“Our client ACF argues that the Environment Minister made an error of law by failing to apply the ‘water trigger’ in Australia’s environmental law to Adani’s North Galilee Water Scheme," EDO CEO David Morris said.

“The Minister has determined that, despite the Carmichael coal mine operation’s reliance on the proposed infrastructure, the NGWS is not a ‘coal mining activity’ and therefore not subject to the water trigger. ACF’s case is that that is a misconstruction of the term ‘coal mining activity’ and the decision must be overturned.

“Legal challenges are never taken lightly by us or our client," Mr Morris said. “In this case the project involves the use of water for coal mining on an enormous scale and it’s vitally important that these impacts be subject to the thorough assessment we say is required by law. There is enormous public interest in this process, evidenced by the more than 7,000 submissions made during the public comment period.”

ACF took similar legal action with EDO in December 2018. During that case it became clear the government had failed to properly consider some of the thousands of public submissions it received. In June 2019 the government acknowledged that error and conceded the case, leaving unaddressed the question of whether it failed to correctly apply the water trigger.

www.edo.org.au

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January marked the beginning of international visitor nosedive - ATEC

JANUARY's bushfires marked the beginning of Australia’s international visitor nosedive which has culminated in an effective flat-lining of our export tourism industry with no end in sight.

While many businesses are now coming to terms with the impacts of the COVID-19 prevention initiatives, Australia’s tourism businesses are into their third month of concerning decline.

“Our industry has borne the brunt of two exceptional setbacks and the international visitor numbers for January,  released by the Australian Bureau of Statistics (ABS) today, only provide a glimpse of where our industry is falling from,” ATEC managing director Peter Shelley said.

Mr Shelley said Australia’s International visitor income has soared in recent years, growing from just over $20 billion in 2015 to well over $45bn in 2019. Today’s ABS arrivals data revealed a negligible increase on last year's figures - what appears to be the lowest growth rate for many years.

“With yesterday’s announcement of isolation measures for all new arrivals to Australia, our inbound tourism industry has effectively been shut down," Mr shelley said.

“No international visitors means all travel distributors, and many tourism suppliers, have no business and are unlikely to have any business in the near future.  This comes right on the back of a massive decline in our industry that came as a result of January's bushfires.

“The damage to our inbound tourism sector across Australia will deliver a significant blow to Australia’s economy and, with more than 600,000 people employed in tourism jobs, that will have a dramatic flow on to employment.

“Australia’s tourism industry is falling from a great high - a high that has been a big part of our economic success over the past 10 years.

“We know the government is aware of our predicament and that tourism is not alone in the crisis but what we need to do is ensure the businesses at the heart of our industry can survive the next few months and help Australia get back on its feet," Mr Shelley said.

“Crucial to this will be the government’s support in helping our inbound travel distributors to keep their business afloat, as this will be critical to maintaining Australia’s tourism ecosystem, without which our export tourism markets will struggle to recover.”\

www.tourismdrivesgrowth.com.au

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Industry superfunds can withstand the market’s coronavirus shock    

INDUSTRY superfunds long-term investment outlook means they are well-placed to deal with the decline to Australian and global share markets caused by the coronavirus, according to Industry Super Australia CEO Bernie Dean.

“It is understandable that people are concerned about the impact coronavirus is having on the economy and their super balance, but it is important to remember that super is a long-term game and the market recovers," Mr Dean said.

“A way to lose money in super after a downturn is to make changes that crystallise your losses. People avoid selling their house during a property market slump because they are worried about making a loss, the same principle should be applied to changing your super fund or investment option immediately after a market drop.”

The impact COVID-19 will have on global economies is still largely unknown, and it is not clear how long the market volatility will last, he said.

But due to the diversity of assets in super funds’ portfolios the losses are likely to be far more muted than the headline-grabbing share market plunges seen on the evening news.

No one can predict the future, but as with previous downturns the market will rebound and because super is a long-term investment the short-term market dips are smoothed out overtime, he said.

Mr Dean said funds would continue their important role in the Australian economy investing in infrastructure, property and shares which provides stability to the local financial market.

"When it comes to super often the best course of action, is no action. Individuals can crystallise their losses missing out on the rebound if they switch their super to cash or other defensive assets after a downturn," Mr Dean said.

"At the last major market decline – during the Global Financial Crisis (GFC) – savers who moved their money from an average balanced industry fund into cash were $4,000 worse off after three months, $13,800 after a year, $34,800 worse off after five years and after seven years would have lost a whopping $46,000 of potential retirement savings.

"Industry SuperFunds are particularly well-equipped to deal with short-term shocks to world equity markets because of their investments in infrastructure, property, cash, and other unlisted assets."

After the GFC most super funds recovered quicker than global stock markets, and the diversified asset base means funds are once again able to bounce back from this market drop.

"If members think about their investment in the long-term what has happened this week will not make much difference to super balances in the 20 years or longer when they start to think about retiring," Mr Dean said. 

"Those planning to access their super soon may not have time to ride out the market volatility and should seek advice on how to limit any losses."

www.industrysuper.com

 

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Parliament goes west to speak to traditional owners

AS PART of a Federal Parliament inquiry into economic engagement with Traditional Owners, Members of Parliament are travelling to Western Australia next week.

The Northern Australia Committee is holding public hearings in Broome, Karratha, Newman, Port Hedland and Perth, and will hear evidence from Land Councils, Native Title holders, Indigenous business leaders, mining companies and other stakeholders.

Committee Chair Warren Entsch said, "The northern Australia policy that we have will not succeed unless we bring the Indigenous population with us on this journey of economic empowerment.

"We've realised, as part of this Committee, that the one area where we are failing absolutely is in bringing the major landholders, our Indigenous population, with us on this journey," Mr Entsch said.

In its submission, the Kimberley Land Council stated, "The economic development in Northern Australia must place Indigenous people at its centre rather than on the periphery waiting for 'trickle down' benefits."

"Past experience proves that, when engaged by government and industry in good faith, Traditional Owners are empowered to identify commercial opportunities which use resources sustainably, thus protecting Indigenous-held core values of country and culture whilst building strong communities and capability."

The Government of Western Australia statment read: "An impediment to economic development opportunities for Traditional Owners is tenure options that allow for divestment and resulting economic development opportunities, without extinguishing native title.

"Appropriate tenure can be an enabler of new opportunities, but many communities hesitate to agree to native title being extinguished to enable the granting of new tenure."

he WA Government‘is exploring innovative ways of minimising the impact of tenure reform on the exercise of native title rights and interests, while enabling economic development opportunities.

The Committee will hold public hearings in Broome, Karratha, Newman, Port Hedland and Perth. Programs are available on the Committee’s website.

Public hearing details

Date: Monday, 16 March 2020
Time: 8:30am to 2pm
Location: Broome Chamber of Commerce and Industry, Level 1, Unit 7 Woody’s Arcade, 15-17 Dampier Terrace’ Broome
Witnesses include: Kimberley Land Council, True Kimberley Tours, Nyamba Buru Yawuru, Djarindjin Aboriginal Corporation, NAAKPA, KALACC, Kimberley Development Commission.

Date: Tuesday, 17 March 2020
Time: 9am to 12pm
Location: Council Chambers Karratha, Lot 1083 Welcome Road, Karratha
Witnesses include: Yara Pilbara, Murujuga Aboriginal Corporation, Pilbara Development Commission, Ngarluma Yindjibarndi Foundation.

Date: Wednesday, 18 March 2020
Time: 8:30am to 9:30am
Location: Newman House, 15 Iron Ore Pde, Newman
Witnesses include: Kanyirninpa Jukurrpa.

Date: Wednesday, 18 March 2020
Time: 2pm to 3pm
Location: WEB Business Hub – Collaboration Space, 18 Edgar Street, Port Hedland
Witnesses include: IBN.

Date: Thursday, 19 March 2020
Time: 9am to 5pm
Location: Committee Room One, Legislative Council Committee Offices, 18-32 Parliament Place, Perth
Witnesses include: Government of Western Australia, Rio Tinto, Gumula Enterprises Pty Ltd, Vimy Resources Limited, Sheffield Resources Limited, Roy Hill, Desert Support Services, Fortescue Metals Group Ltd, Regional Implementation Committee, Western Desert Land Aboriginal Corporation RNTBC.

The hearings will be broadcast live at aph.gov.au/live.

Further details of the inquiry, including expanded terms of reference, can be found on the Committee’s website

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ATEC ready to support Australia’s tourism industry

THE Australian Tourism Export Council (ATEC) has welcomed the Federal Government’s stimulus package of funding to address the impacts of the coronavirus on the Australian economy.

“ATEC is pleased the government is making a solid commitment to sustaining the tourism industry in the wake of the COVID-19 outbreak,” ATEC managing director Peter Shelley said.

"We have been greatly concerned by the impact the contraction in international travel will have on tourism’s future - we just can't afford to lose the important distribution channels currently in place.  We are particularly happy with the commitment to support businesses where there has been a supply-chain breakdown as a result of the virus outbreak.

“Despite the bushfires and subsequent COVID-19 crisis, the industry has been doing what it can to keep the doors open - this is a dire time and the industry needs every bit of support it can get."

Mr Shelley said money for Austrade to explore alternative export markets aligns with ATEC’s focus on training and development and small business grants along with wage subsidies and BAS deferral will help to keep the wheels turning and maintain positive trade relationships. Business grants similar to EMDG would go a long way to encouraging capable tourism exporters to invest in new markets.

ATEC stands poised to ramp up support programs for the industry, using its already successful learning and development platform to deliver meaningful benefits for export tourism businesses across the country.  Many of ATECs programs are available via an online learning platform and can reach regional businesses. Training programs available for immediate action include:

  • Industry training programs designed to arm businesses with an understanding of the China, Japan and India markets with a focus on distribution, experience and product development;
  • Virtual Trade Shows to allow businesses to continue building relationships in order to re engage trade quickly post COVID-19;
  • International Ready training to move domestic tourism product towards export which can be driven throughout the tourism regions.

“Now is the time for action and ATEC looks forward to working with the Government in quickly delivering programs to Australia’s tourism industry which can help to put it back on its feet.”

www.tourismdrivesgrowth.com.au

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On the pulse: getting a taste of sustainable farming

GRAIN, legume growers and food and wine producers from South Australia will have the chance to speak with federal parliamentarians this week about the success of sustainable farming practices, as part of the inquiry into regional Australia.

House of Representatives Select Committee on Regional Australia chair Tony Pasin MP said his home state is full of innovative people making the most of the regions.

"I’m proud to bring the Committee to my home state to see and hear these stories first hand," Mr Pasin said. 

"We’ll bring together the stories and experiences of how regional economies are diversifying, how regional industries are finding their way, and how regional communities are boosting their resilience and working together to secure their future,” he said.

"Among others, we’ll be meeting with the people from Pangkarra Foods in Rochester to learn more about businesses that grow and process their own products, and Myora Farm to witness first-hand the use of advanced technology in pig farming.

"After some site visits with primary producers, we’ll be bringing everyone together for roundtable discussions to really flesh out what’s working in regional South Australia," Mr Pasin said.

Community members are also encouraged to attend and speak to the Committee as part of the roundtable discussions, and can contact the secretariat for more information.

Information on the Committee’s work, including submissions and public hearing programs, may be found on the Committee’s webpage.

Roundtables

Date: Wednesday 18 March, 2pm (Food and Wine) 3pm (Regional Community)
Location: Novotel Barossa Valley , Shiraz Room A, 42 Pioneer Avenue via Golflinks Rd, Rowland Flat, Barossa Valley, SA

Public Hearing

Date: Thursday 19 March, 2pm
Location: The Barn - Oak Tree Room, 747 Glenelg River Rd, Mount Gambier, SA

The roundtable discussions will be broadcast live at aph.gov.au/live.

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Committee to review telecommunications International Production Orders Bill

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has commenced a review into the effectiveness of the Telecommunications Legislation Amendment (International Production Orders) Bill 2020.

The bill review was requested by the Minister for Home Affairs in a letter to the Committee available here.

The Telecommunications Legislation Amendment (International Production Orders) Bill 2020 is drafted to amend the Telecommunications (Interception and Access) Act 1979 to:

  • provide a framework for Australian agencies to obtain independently-authorised international production orders for interception, stored communications and telecommunications data directly to designated communications providers in foreign countries with which Australia has a designated international agreement;
  • amend the regulatory framework to allow Australian communications providers to intercept and disclose electronic information in response to an incoming order or request from a foreign country with which Australia has an agreement;
  • make amendments contingent on the commencement of the proposed Federal Circuit and Family Court of Australia Act 2020; and
  • remove the ability for nominated Administrative Appeals Tribunal members to issue certain warrants.

The Bill intends to provide for the legislative framework for Australia to give effect to future bilateral and multilateral agreements for cross-border access to electronic information and communications data, such as that being negotiated with the United States for the purposes of the US Clarifying Lawful Overseas Use of Data Act (CLOUD Act).

The Committee requests submissions to the inquiry by Thursday 9 April 2020

Prospective submitters are advised that any submission to the Committee’s inquiry must be prepared solely for the inquiry and should not be published prior to being accepted by the Committee.

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

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New South Wales throws down the gauntlet with new net zero plan

ENERGY efficiency experts say the NSW Government’s plan for meeting its new 2030 climate target is comprehensive, credible and achievable, and sets a new benchmark for action from other states.

The NSW Government has announced a target of reducing statewide emissions by 35 percent by 2030, and released a net zero plan setting out the detailed actions that will get them there.

Council CEO Luke Menzel said NSW Energy and Environment Minister Matt Kean has thrown down the gauntlet to his ministerial colleagues around the country.

“Every Australian state has set a goal of hitting net zero emissions by 2050. However the NSW Government is the first with a detailed plan for what they are going to do, right now, to begin driving this economic transformation," Mr Menzel said.

Mr. Menzel said the NSW Government’s plan did two crucial things.

“In the short term, it scales up deployment of cost effective technology that immediately cuts carbon and energy costs for families and businesses,” he said. “However it also has an eye to the future, supporting industry to gain experience with new ways of operating – like electrifying manufacturing processes – that will become crucial to emissions reduction efforts later this decade.”

The NSW plan:

  • includes new funding for an expanded Energy Efficiency Program that will ramp up the NSW Government’s existing support for smart energy use across the state;
  • commits $450 million over 10 years to an Emissions Intensity Reduction Program, which assist the rollout of cutting edge low carbon technologies in sectors where it is harder to reduce emissions;
  • includes a range of other measures, including strategic investments in hydrogen, expanding building rating programs and reducing embodied carbon in building products.

Mr. Menzel said that NSW’s leadership position on emissions reduction was smart.

“This isn’t just an environmental policy, its an economic one,” Mr Menzel said.

“It is a blueprint for cutting the emissions of existing industries, and capturing the opportunities of a net zero economy.”

About the EEC

The Energy Efficiency Council is a not-for-profit membership association for businesses, universities, governments and NGOs. Founded in 2009, the Council’s members are diverse, but are united by a common cause: building a sophisticated market for energy management products and services that delivers: Healthy, comfortable buildings; productive, competitive businesses; and an affordable, reliable and sustainable energy system for Australia.

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Have your say on Indigenous opportunity

THE Indigenous Affairs Committee in the Federal Parliament has launched a new survey seeking your feedback on ways to make employment and business ownership easier to access for Indigenous Australians.

This survey forms part of the committee’s current Inquiry into Pathways and Participation Opportunities for Indigenous Australians in Employment and Business. Committee Chair Julian Leeser said it makes having your say to the Parliament easier and faster than ever before.

"A focus of this inquiry is removing barriers, and what better way to start than by removing barriers to participating in the inquiry?" Mr Leeser said.

"You can fill out the survey in only five minutes, and if there’s something you’d like to raise with the Committee in more detail you can still make a longer written submission to the inquiry and be considered as a possible witness at a future public hearing."

The Committee plans to announce hearings around regional Australia in the coming weeks as part of the inquiry.

You can find more information about the inquiry on the Committee’s website.

The survey can be accessed at this link.

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Builders back well targeted stimulus

THE Federal  Government’s $17.6 billion stimulus package should bolster economic resilience in the face of the current challenge according to Master Builders Australia.

"In times of crisis people look to their leaders to respond and the government through this stimulus package has done that,” Denita Wawn, CEO of Master Builders Australia said.

"Right now what our industry most needs is confidence and this clear signal from the government that they are determined and committed to doing whatever it takes is extremely welcome,

"There are more than 380,000 small building businesses and tradies in our industry, more than any other sector of the economy, that will benefit from the Government’s strong focus on backing small businesses,” Ms Wawn said.

“We strongly back the moves to back businesses, particularly small businesses, to keep workers and apprentices employed. The danger with economic shocks is that the labour market recovers slower than the rest of the economy so moves to offset employers shrinking their workforce is very well targeted.

“Builders and tradies around the country will respond favourably to the huge boost in the instant tax write-off threshold from $30,000 to $150,000 and expansion of its eligibility to businesses with turnover under $500 million (up from $50 million),” Ms Wawn said.

"Incentives to invest in business assets are also well targeted to our industry. There is no doubt builders and tradies will be encouraged to invest in new plant and equipment.

"However, if there is a major contraction in building activity then the benefit of these measures will be blunted. The government must take a strong leadership role in ensuring that construction of government projects currently underway continue and that projects scheduled to commence are not delayed or withdrawn,” Ms Wawn said.

"The government could also bring forward expenditure on existing projects. Accelerating construction of current projects and bringing forward construction of shovel ready projects, big and small, would provide an immediate strong impetus for building firms to take up tax write off and investment incentive measures.

"Our industry also remains nervous about how protracted the inevitable shortage and delayed delivery of imported building products will be. This is a hit to our industry that is looming over the next few months and additional measures and extensions of some of stimulus measures may be required to help the industry weather that storm,” Ms Wawn said.

www.masterbuilders.com.au

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ATO support measures to assist those affected by COVID-19

THE Australian Taxation Office (ATO) will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the COVID-19 outbreak.

Commissioner of Taxation Chris Jordan is encouraging businesses impacted by the coronavirus to get in touch with the ATO to discuss relief options.

“We know that many businesses and communities are being heavily affected by the challenging economic conditions created by the outbreak of COVID-19,” Mr Jordan said.

“The ATO will work shoulder-to-shoulder with businesses to assist them through this difficult period and do what we can to ease the pressure. Once you contact us, we’ll tailor a support plan for your needs and circumstances.

“Support measures could include deferral of some payments, quicker access to GST refunds, and options to enter low interest payment plans for existing or future tax debts.

"We understand this is a time of significant uncertainty and that we will need to be flexible in how we help businesses," he said.

Options available to assist businesses impacted by COVID-19 include:

  • Deferring by up to four months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, fringe benefits tax assessments and excise.
  • Allow businesses on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds they may be entitled to.
  • Allowing businesses to vary Pay As You Go (PAYG) instalment amounts to zero for the April 2020 quarter. Businesses that vary their PAYG instalment to zero can also claim a refund for any instalments made for the September 2019 and December 2019 quarters.
  • Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
  • Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

Employers will still need to meet their ongoing super guarantee obligations for their employees, Mr Jordan said.

"To make it easier for people to apply for relief we will be increasing our presence in the areas of highest impact," Mr Jordan said.

"A temporary shopfront with staff specialising in assisting small business will be established in Cairns within the next few weeks. In addition, we will consider ways to enhance our presence in other significantly affected regions, making it easier for people to apply for relief. Additional temporary shopfronts and face-to-face options are currently under consideration.

"We will also continue to work with the tax profession, other government agencies and local organisations to make sure other impacted communities are also supported during this time. We will ensure our services are tailored to the needs of the community and will work with taxpayers and their tax agents to tailor support to their individual circumstances," Mr Jordan said.

"Outside of business, the ATO will also work with individuals experiencing financial hardship, and their tax agents, and will apply appropriate tax relief measures for serious and exceptional circumstances, such as where people cannot pay for food or accommodation.

"Unlike the bushfire relief measures, which applied automatically to particular geographic areas, assistance measures for those impacted by COVID-19 will not be automatically implemented.

Anyone impacted by COVID-19 can contact the ATO to request assistance on the Emergency Support Infoline 1800 806 218, when they are ready, to discuss their situation.

www.ato.gov.au

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