THE Australian Parliament’s Tax and Revenue Committee has launched an inquiry into the Commissioner of Taxation Annual Report 2018-19.

As Australia’s principal revenue collection body, the annual report is a key mechanism for the ATO’s accountability to the Government and the Australian community. The 2018-19 annual report is the most recently tabled annual report from the Commissioner of Taxation.

Jason Falinski, Chair of the Committee, said, "This inquiry provides an opportunity for the committee to continue ongoing monitoring of the operations of the Australian Taxation Office and its interaction with the Australian community."

Submissions from interested individuals and organisations are invited by Friday, 17 April 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the inquiry including the terms of reference is available on the Committee’s website.

Public hearing details

Public hearings for the inquiry will be held in due course and notified through the Committee’s website.

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THE Queensland Resources Council (QRC) has welcomed the collaborative approach to the supply of domestic gas with the granting of a petroleum lease to joint venture partners Australian Pacific LNG and Armour Energy near Chinchilla. 

The project is an Australian-first whereby gas will be directed towards Australian manufacturers to support local industries.

“Queensland has worked hard to become the East Coast’s most reliable producer of gas, but that advantage will be eroded without continued planning and investment in new exploration and new projects,” QRC chief execuitive Ian Macfarlane said.

“At the moment, Queensland can rightly claim the title as the heavy lifter in the East Coast gas market. We are the only East Coast state where the gas industry has been developed in recent years and jobs created, and it has been done within a robust environmental and approvals framework.

“We can see the benefit of that forward thinking through the investment and jobs in the gas industry which will now translate to support for investment and jobs in Australian manufacturing.

“Queensland has the resources to continue to lead the pack on gas project investment, jobs, and support for other industries.  But Queensland can’t afford to rest on its laurels," he said.

“The projects and jobs which are now a reality are the result of careful planning to attract investment. We must have the investment framework in place to give confidence to the next round of projects.

“QRC is particularly concerned about a Palaszczuk Government proposal for a significant expansion to the area of land locked up from gas projects in Western Queensland," Mr Macfarlane said.

“Queensland must ensure the framework is right for new opportunities for well-regulated gas development in the Lake Eyre Basin, which will benefit local communities and create local jobs including for Traditional Owners.

“Without proper planning Queensland will throw away its advantage as an East Coast gas powerhouse.

“The industry will continue to consult with the Queensland Government on this issue and will work constructively with the Opposition and cross bench in the lead up to the state election to ensure the Queensland gas industry continues to lead the East Coast.”

www.qrc.org.au

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THE Morrison Government’s arrangement to store Australia’s emergency fuel reserves in the United States is nothing more than an accounting trick that will do nothing to ensure the country’s resilience to a global crisis that disrupts fuel supplies, the Maritime Union of Australia has warned.

Energy Minister Angus Taylor announced the signing of an agreement to allow Australia to lease storage space in the US Strategic Petroleum Reserve, using that oil stored on the other side of the world to technically meet the International Energy Agency’s minimum 90-day fuel stockholding obligation.

The arrangement has provided no details of how that oil stockpile would assist Australia in a genuine crisis, how long it would take to bring to Australia, or how it would be transported when there are no Australian-owned oil tankers.

MUA Assistant National Secretary Ian Bray said the IEA requirement for minimum fuel reserves — which Australia has been in breach of since 2012 — were about ensuring adequate reserves were available to address potential shipping disruptions caused by military conflicts, economic crisis, or natural disasters.

“More than 90 percent of Australia’s fuel is imported, all on foreign tankers, yet in recent years the country has regularly had just a few weeks of fuel available, putting the economy at risk of grinding to a halt if any major incident cut those supplies,” Mr Bray said.

“To claim that storing Australian-owned oil in the US Strategic Petroleum Reserve will somehow solve this is fanciful, especially as the Morrison Government has provided no information on how it would transport those fuel supplies during a crisis.

“This agreement with the US is nothing more than an accounting trick that aims to placate the International Energy Agency while doing absolutely nothing to deliver fuel security for Australia.”

Mr Bray said the Morrison Government should take advantage of a collapse in global oil prices to construct a domestic fuel reserve, ensuring the products needed for transport, aviation and industry were on Australian soil and ready to use during any future crisis.

“The US has had a Strategic Petroleum Reserve for decades, which they consider a critical asset for their energy and national security,” he said.

“Rather than look to accounting tricks, the Morrison Government should emulate that model and construct a domestic fuel reserve that ensures adequate supplies of fuel are always available to address potential shipping disruptions caused by military conflicts, economic crisis, or natural disasters.

“Given it takes a supply chain of approximately 60 full-time fuel import tankers to supply petrol, diesel and jet fuel to Australia, and Australia has no ownership or control of any part of that supply chain, the Australian Government should also look to develop a strategic fleet that includes Australian-owned oil tankers to ensure supplies can continue during times of crisis.

“Given the short timeframes involved during the kind of emergencies where fuel supplies might be threatened, the Morrison Government’s solution of storing emergency fuel halfway around the world is not only fanciful, its recklessness puts the Australian economy at genuine risk.

“With the growing coronavirus pandemic already causing problems with supply, and businesses and households facing shortages of some products, it would be in the national interest if fuel wasn’t added to that list.

“A cut to fuel supplies wouldn’t just impact the transport sector, it would jeopardise our national food security and devastate local manufacturing, including some pharmaceuticals.”

MEN HAVE $282 billion more in their super funds and on average retire with $90,000 more in their account than women, new analysis by Industry Super Australia (ISA) has revealed.

ISA research shows that the gender pay gap persists and even widens when it comes to retirement savings.

On International Women’s Day ISA and Women In Super (WIS) are calling on the Federal government to make some simple changes that could help bridge the super gender gap, including paying super on Commonwealth paid parental leave, abolishing the $450 threshold and sticking to the legislated super rate increase.  

Analysis of tax file and ABS data reveals that on average women retire with 40 percent less super than men. But as the ISA table (below) shows women have less super at every stage in life.

A recent retirement survey, commissioned by ISA, found that on average women spend 12 years less in the full-time workforce than men, this time away from work is having a dramatic impact on their super balance.

The super balance gender gap begins to expand when a woman hits her 30s, the average super balance gap doubles from 15 percent at 30 to 30 percent once a woman reaches her 40s.

Men also receive $11 billion more in employer contributions each year than women. One in three women retire with no super balance at all, according to a 2016 Senate report.

Contributing to the gender super gap is:

• That women are still more likely to leave the paid workforce to do unpaid caring work for children or other family members,

• Wages in female dominated sectors such as nursing and teaching are lower than in male dominated sectors such as mining,

• Generally lower wages for women than their male counterparts when doing the same work,

• Women are more likely to have multiple jobs – often part-time – giving them more than one low-balance account.     

ISA and WIS has also called on the government to abolish the $450 super contributions threshold – where super is only paid if an employee earns more than $450 a month. The threshold impacts low-income and casual workers – a group that is over-represented by women.

Paying super on Commonwealth paid parental leave will help parents balance keep accumulating while taking time off from paid work and sticking to the legislated increase of the super guarantee rate to 12 percent will give women the opportunity to put more money away during their working life. 

ISA chief executive Bernie Dean said, “It is time we bridged the gender gap in super. We can help do this by abolishing the $450 threshold, paying super on paid parental leave and sticking to the legislated increase in the super rate.

“Until we fix inequities in the super system we will continue to see women retiring with balances that are persistently lower than men.”

Women in Super chief executive Sandra Buckley said, “Women should not be asked to trade off rent allowance or wage increases for super. Every Australian is entitled to a dignified retirement.

"For too long the structural inequities of the current super system have failed to take account of the women’s working patterns and lower lifetime income,"she said.

” A growing number of women older than 55 face the dilemma of a poverty-stricken retirement, as a result of caring for others.

“We have a unique opportunity now to act to change the structural inequities or we will be condemning future generations of women to the same appalling outcome.”

Table: The gender super gap at different life stages

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the Federal Government’s announcement today of a new $10,000 grant and simplified access to existing loans for small businesses impacted by the recent bushfires.

“It’s great to see both the Federal and NSW governments recognise the problems small businesses are experiencing during the bushfire recovery process,” Ms Carnell said.

“The excessive red tape and unnecessary bureaucracy standing in the way of small business owners getting the loans or grants they are entitled to, is counterproductive.

“The announcement today of the $10,000 grant will help businesses affected by the bushfires to stay afloat and keep their staff.

“This money can be used in a variety of ways so I urge small businesses to see their local financial advisor to put together a plan to get through the next six to 12 months.

“The announcement also outlines a reduction in bureaucratic requirements for eligibility for low-interest loans which will make it easier for small businesses to apply," Ms Carnell said.

 “We understand that many small business owners are not confident enough to apply for loans, but for those who have decided to continue on with their business, these loans are a good option to help businesses get back on their feet.”

Further details are available on the National Bushfire Recovery Agency website at www.bushfirerecovery.gov.au/recovery-assistance/small-business.

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THE Australian Taxpayers’ Alliance, the nations’ largest grassroots advocacy group representing taxpayers, today applauded the work of Senator James McGrath and seconded his call for greater government transparency especially when it comes to spending tax dollars.

“The Australian people deserve to know exactly how their money is spent,” said ATA policy director, Emilie Dye. “When we don't know how our money is being spent it is hard to hold politicians accountable.

“It seems like every month a new politician is embroiled in controversy for having misused taxpayer dollars on expensive trips or to prop up their political campaigns. Ralph the Rorter takes the fall and the rest of our pollies sigh in relief and continue business as usual.

"Australia needs a zero tolerance policy for corruption, but as the system works now most know they can get a away with fudging the books in their favour. Instead, anyone should be able use google to find exactly how every department and every politician spends their money.

“Australians should not have to spend money on freedom of information reports. This opaque bureaucratic system was made by the politicians for the politicians," Ms Dye said.

“Journalists, think-tanks, and advocacy groups provide an important check on government, but they can’t do their job if pollies hide behind poorly designed government websites and bureaucratic rules."

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INSURANCE law firm, Maurice Blackburn has called out the life insurance industry’s failure to meaningfully reform its claims assessment culture and processes in the wake of a highly critical independent report showing widespread non-compliance with its Code of Practice.

An investigation by the administrator of the Code, the Life Code Compliance Committee (LCCC) found many insurers breached their commitment to process insurance claims and requests for reviews within certain timeframes.

The investigation was sparked by a bulk complaint lodged by Maurice Blackburn in early 2018 which alleged more than 700 instances of breaches of the insurers’ industry code within a six month period in 2017.

Maurice Blackburn Principal, Josh Mennen said today’s findings by the LCCC lend weight to the view that many insurers failed to sign up to the Code of Practice in good faith and with due preparations but rather in an attempt to rebuild their public image after damning media stories at the time.

“Today’s report suggests that despite all the rhetoric and promises to do better before and after the Hayne Royal Commission, many insurers have treated their own code as a paper tiger and this casts doubt on the industry’s ability to rebuild public trust," Mr Mennen said.

“I applaud the LCCC for taking these breaches seriously and for using them to identify the continuing systemic problems within the industry. These hundreds of confirmed breaches are merely the tip of the iceberg because no doubt many more have gone undiscovered since I lodged this complaint with the LCCC two years ago.

“Given all these breaches of the Code relate to delays in the processing of consumers’ claims, the insurers should take immediate action to pay compensation, including penalty interest,” Mr Mennen said.

“We look forward to hearing a proposal for compensation from each of the insurers.”

In investigating the bulk complaint, the LCCC sampled a small number of alleged breaches and identified the systemic issues which caused the unreasonable delays and then tasked the insurers to apply those gaps and inadequacies across the affected consumers’ cases.

“So the finding that 315 breach notices were upheld is the number that the insurers were willing to accept were indeed unreasonable delays,” Mr Mennen said.

“And while Maurice Blackburn remains firmly of the belief that all 700 breach notices were genuine, we accept that the LCCC doesn’t have the resources or the mandate to investigate every single one.

“We continue to see unreasonable delay and poor communication by some insurers, however it is pleasing to see the LCCC was able to use a sample of our bulk complaint to identify the systemic and cultural problems still plaguing the industry, with a view improving the industry’s treatment of its customers” Mr Mennen said.

“It defies belief that almost four years after the code commenced, insurers are still yet to implement appropriate training and documents management systems to ensure compliance with their own code.”

The LCCC also criticised the insurers for failing to respond and cooperate with the LCCC in a timely manner.

“Clearly, many of the insurers must see the administrator of the Code as a toothless tiger when they take over a year to respond to its requests," Mr Mennen said.

“Despite the LCCC’s best endeavours, this attitude is unlikely to change until the Code of Practice is given teeth through regulatory oversight by ASIC and meaningful sanctions for any breaches,” he said.

“Furthermore, it’s very disappointing that the LCCC lacks the power to identify the worst offending insurers because it hasn’t been built into its charter.

“This is a level of transparency that is employed to the industry ombudsman, AFCA and the same authority should be given to the LCCC,” Mr Mennen said.

“We know there is a vast discrepancy between the insurers in terms of effort to address these systemic problems and de-identifying the worst performers unfairly tarnishes the others.

“Had the Code had real teeth as we have been calling for several years, our clients’ cases would not have been impacted with significant delays and would instead have been dealt with in a timely fashion. “

www.mauriceblackburn.com.au

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SUBMISSIONS are now open for the 17^th Australian Insurance Industry Awards, hosted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF).

This is the insurance industry’s night of nights, celebrating the accomplishments of individuals and businesses in Australia.  The awards will take place at The Star Event Centre in Sydney on August 27, 2020.

"The Australian Insurance Industry Awards bring the industry together to reflect on the year that was, and celebrate the success and accomplishments of Australia’s most talented individuals, innovators and organisations contributing to the growth of the insurance industry," said Prue Willsford, CEO of ANZIIF.

"We are currently seeing the largest legislative change to financial services in 30 years following the Hayne Royal Commission. It is incredibly pleasing to see proactive collaboration from industry in tackling challenges and contributing to building professional standards.

"This is something that deserves to be celebrated and our awards are the perfect platform. I encourage you to apply and participate in this wonderful celebration of our industry."

ANZIIF has introduced a new category for 2020 – General Insurance Claims Team of the Year. This award recognises a claims team that has demonstrated excellent technical skills, strong claims results and outstanding customer service during 2019.

2020 ANZIIF Australian Insurance Industry Awards categories:

 Submissions close Friday, May 1, 2020. 

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