THE Joint Committee of Public Accounts and Audit has commenced a review of the operations of the Parliamentary Budget Office (PBO) pursuant to section 64T of the Parliamentary Service Act 1999.

The Committee will inquire into and report on:

• PBO implementation of the recommendations of the PBO Review 2016/17 Report of the Independent Review Panel;
• PBO implementation of the recommendations from the 2014 Joint Committee on Public Accounts and Audit Report No. 446 Review of the Operations of the Parliamentary Budget Office;
• Stakeholder relationships and engagement; and
• Possible areas of reform to support the effective operation of the PBO.

Lucy Wicks MP, chair of the committee, said, "This review will provide an opportunity for the Committee to gain an understanding of how the Parliamentary Budget Office (PBO) has improved since its previous independent review. The Committee will also examine options for possible areas of reform to support the effective operation of the PBO."

Submissions from interested individuals and organisations are invited by Thursday, January 23, 2019. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the review is available on the Committee’s website.

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed new legislation introduced today by the Federal Government to establish the Australian Business Growth Fund.

“The Australian Business Growth Fund was a recommendation in our Affordable Capital for SME Growth report, which identified the need to address a critical funding gap for long-term capital to enable high growth potential SMEs to flourish,” Ms Carnell said.

“This fund will benefit SMEs with annual turnovers of between $2 million and $100 million.

“Established businesses will be eligible for long-term equity capital investments between $5 million and $15 million.

“Importantly the fund will be managed by private sector expertise and will invest between 10 percent and 40 percent in the chosen businesses, allowing the business owner to maintain their controlling interest while giving them the funds they need to invest in growth.

“We welcome both the government investment in the fund, along with the major banks and financial institutions’ contribution.

“The fund is currently valued at $540 million and we support the government’s ongoing discussions with other potential investors, with the ambition to grow the fund to $1 billion as it matures," Ms Carnell said.

“This initiative comes at a time when many respected economists, including those at the Council of Financial Regulators, are expressing concerns about the difficulties Australian SMEs face in accessing finance.

“The Australian Business Growth Fund will significantly encourage business growth and promote economic expansion.”

www.asbfeo.gov.au

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THE PERSONAL insolvency regulator, the Australian Financial Security Authority (AFSA), has identified and proven over $4m of fraud, according to a new report released today.

The Personal Insolvency Compliance Report, available now on the AFSA website, outlines AFSA’s compliance, regulatory and enforcement activities across the 2018-19 financial year. 

Hamish McCormick, chief executive of AFSA and inspector-general in bankruptcy, said the annual Personal Insolvency Compliance Report provides insight into the regulation of Australia’s personal insolvency system.

“AFSA is working to be both a firm and a fair regulator," Mr McCormick said.

“We undertake regulatory and compliance work to ensure that the personal insolvency system is equitable, and that all participants are meeting their obligations.

“Overall, we aim to provide the community with a personal insolvency system that they can have confidence in.”

Mr McCormick highlighted some of the report’s key findings – including complaints against registered trustees and criminal prosecutions.

“In 2018-19, we received nearly 2,000 referrals of alleged misconduct,” Mr McCormick said.

“We analysed each referral and found that 744 warranted further investigation. We referred 115 of these matters to the Commonwealth Director of Public Prosecutions.

“In total, 96 individuals were prosecuted for offences under the Bankruptcy Act. Our prosecutions attracted wide-ranging penalties, from fines to imprisonment.

“Pleasingly the number of prosecutions decreased in 2018-19, down from 137 in the previous year. The overall value of proven fraud also dropped, down from $5.5 million in 2017-18 to $4.6 million.”

Complaints about registered trustees, and the Commonwealth Government's Official Trustee, both increased in 2018-19.

“In 2018-19 we received 296 complaints about practitioners, up from 257 the year prior. Similarly, complaints about the Official Trustee also rose – we received 48 compared to 10 in 2017-18," Mr McCormick said.

“However, only nine complaints about registered trustees were found to be justified. And only one complaint about the Official Trustee was justified.”

The report noted that the conduct of untrustworthy bankruptcy advisers remains a potential threat to community confidence in the personal insolvency system. In 2018-19, AFSA made a concerted effort to disrupt the activities of untrustworthy advisers, who provide dodgy advice to people at a time when they are in financial difficulty and vulnerable.

“In 2018-19, we worked closely with registered trustees and industry bodies to identify and disrupt untrustworthy advisers,” Mr McCormick said.

“During the year we finalised three prosecutions involving untrustworthy advisers, and one more is still in progress. We will continue to target untrustworthy advisers in an effort to protect the integrity of the personal insolvency system. And where appropriate, we will refer matters to the Commonwealth Director of Public Prosecutions for action.”

The full report is available now on the AFSA website.

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A NEW Parliamentary inquiry will examine Australia’s Defence relationship with Pacific Island nations in the context of the Pacific Step-up.

The inquiry will be conducted by the Defence Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade, and Sub-Committee Chair Andrew Wallace said the inquiry would examine how Australia’s Defence Cooperation programs and Pacific Step-up activities correspond to the needs, requests and feedback from partner nations in the Pacific.

"We recognise that there may be opportunities for closer coordination and collaboration between Defence and other Government departments on Australian programs and activities across the South West Pacific, as well as between other nations seeking to invest and engage in the region," Mr Wallace said.

"This inquiry will examine the relationship between Defence’s longstanding Cooperation Program and its Step-up activities and evaluate whether these existing programs are effective in meeting the needs of Pacific Island nations."

The inquiry will include a review of the current activities and outcomes undertaken by Defence in the South West Pacific and gauge the effectiveness of the planning and execution of joint activities and preparation for Humanitarian and Disaster Relief efforts.

The Defence Sub-Committee invites submissions from anyone with an interest in the issues raised by the terms of reference, which are available on the committee’s website. Submissions should be lodged by February 20, 2019. 

Further details about the inquiry, including how to contribute, can also be obtained from the Committee’s website.

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THE Queensland Resources Council (QRC) has welcomed the partnership between Brisbane-based Armour Energy and Santos through the South Nicholson Basin Farmin Agreement.

QRC chief executive Ian Macfarlane said diversity in the state’s gas industry leads to smaller and larger operators using each other’s strengths to develop gas.

“This agreement is good news for the gas industry and demonstrates the collaborative approach in the development of gas fields in Queensland,” Mr Macfarlane said.

Under the agreement, Santos with a proven track record in safe and environmentally sustainable operations, will assume operatorship and has right to earn a 70 percent interest in Armour's South Nicholson Basin tenements in North Queensland and the Northern Territory. In return Armour will receive an upfront $15 million capital injection from Santos and a free carry on the proposed work program up to a total capped amount of $64.9 million."

Mr Macfarlane said Queensland remains a leader in responsibly developing gas which was good for all customers both domestic and international.

“Queensland’s gas industry invested $8 billion into the State’s economy last financial year, supported 37,984 full time employees and spent $2.7 billion with local businesses and community organisations,” he said.

www.qrc.org.au

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YET ANOTHER Federal Court judgement has provided 270,000 further reasons why the Parliament should support the Ensuring Integrity Laws, according to Master Builders Australia. 

In the decision handed down earlier today, the Court found the CFMMEU and three of its officials had broken workplace laws by engaging in unlawful picketing through a coordinated campaign to block site access. 

Two sites were blocked by groups of men standing in front of CFMMEU vehicles which were parked across a driveway. When told to leave and advised they were trespassing, one group said, "piss off, we're here, we're staying". 

The Court penalised the CFMMEU and the officials penalties totalling $270,000 and made a costs order against the union.

Master Builders Australia CEO Denita Wawn said that this judgement showed "exactly why we need the Ensuring Integrity laws". 

"Two of the three officials involved in this case have a track record of breaking workplace laws, including intimidating and abusive conduct towards workplace inspectors,” Ms Wawn said. 

"It makes no sense that, despite their extensive history of lawbreaking, these officials are still out there on the ground and still have the right to exercise all the privileges and protections given under the Fair Work laws. 

"Without the Ensuring Integrity laws, they will just keep on breaking the law and nothing will change,” Ms Wawn said. 

"When a Judge writes a decision noting that the CFMMEU has 'an apparent willingness to contravene industrial laws in a serious way' that means something – and we hope the Parliament is listening,” she said. 

"The ABCC Commissioner was right to say the CFMMEU see these fines as a cost of doing business because that's exactly what it is – we don't let drivers keep their licence just because they can pay the fines so why do we let lawbreaking unions do it?,” Ms Wawn said. 

“The Ensuring Integrity laws will mean all organisations and officials, be they unions or employer associations, could lose their rights and privileges if they keep breaking workplace laws. 

"Most organisations and officials do the right thing every day and the Ensuring Integrity laws won't make a difference to those who play by the rules. The simple facts are that unions and their officials do not need to repeatedly and deliberately break workplace laws to represent your members,” Ms Wawn said.

www.masterbuilders.com.au

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed newly introduced legislation to implement Director Identification Numbers (DIN) and modernise business registers.

If passed, the legislation will require Australian company directors to have a unique identification number.

Ms Carnell said the legislation would help combat illegal phoenixing, a process where directors inappropriately take assets out of a business before liquidating, leaving staff, small businesses and suppliers in the lurch.  

“Illegal phoenixing not only hurts small business, it costs the economy as much as $3 billion per year,” Ms Carnell said.

“The DIN will allow regulators to detect and track rogue company directors to ensure they cannot engage in multiple instances of phoenixing.

“The legislation is a definite step in the right direction, so that small businesses get a fair go," she said.

“We also support the move to create a new central business registry regime, which will simplify the process for small and family businesses.

“At the end of the day, any measure that reduces red tape is good news for small and family businesses, because it allows them to get on with the job of growing their business.”

www.asbfeo.gov.au

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THE House of Representatives Standing Committee on the Environment has commenced an inquiry into the efficacy of past and current vegetation and land management policy, practice and legislation and their effect on the intensity and frequency of bushfires and subsequent risk to property, life and the environment.

On launching the inquiry, chair of the Committee, Ted O’Brien MP, said. "Many communities across Australia had experienced or were still in the grip of a bushfire crisis.

"We are currently experiencing a difficult, dangerous and potentially prolonged bushfire season," he said.

"We feel for our fellow Australians both impacted by, and trying to control, these devastating fires.

"The new inquiry provides an opportunity to better understand the practices relating to vegetation and land management, legislative frameworks, economic impact, mitigation strategies and the engagement of emergency services.

"The Committee understands people will have very passionate views about this, particularly in light of the current bushfire season. We look forward to hearing all views and accessing all the evidence put before us."

The Committee’s inquiry is in response to Minister for Natural Disaster and Emergency Management David Littleproud. It will have particular regard to matters including:

• past and current practices of land and vegetation management;
• the impact of current legislation and regulatory responses for landholders;
• the scientific basis behind relevant bushfire management activities;
• legislative capability at the local, state and federal levels requiring landholders to reduce fire risk on properties;
• the economic impact of severe fires in urban, regional, rural and remote areas;
• the progress and implementation of various state reviews over the last decade; and
• the engagement of emergency services with land management officials in managing fire risk.

Submissions to the inquiry will be accepted until 28 February 2020. The Committee intends to hold public hearings at various locations, which will be announced in due course on the inquiry website.

Submissions must address the inquiry’s terms of reference, which are available along with details on how to make a submission on the inquiry website.

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