Business News Releases

Seven year low for detached house approvals

LATEST FIGURES indicate that the number of new detached houses receiving approval fell by 6.8 percent during October to record its lowest result since January of 2013, according to Master Builders chief economist Shane Garrett. 

“Unfortunately, the weak figures were not limited to the detached side of the market. New approvals for apartments/units dropped by 10 percent over the course of October,” Mr Garrett said. 

“Results from previous months had suggested that the housing market was in the early stages of recovery, with approvals, prices and lending starting to move in the right direction.

“Today’s figures are a warning as to how delicate that recovery actually is," he said.  "Home building activity is reliant on new greenfield localities being opened up through investment in road and rail infrastructure, as well as the necessary utilities.

“For the most part, we are still waiting for actual work to begin on the wave of major transport infrastructure projects that have previously been committed,” Mr Garrett said. 

“The unnecessary delays here are placing the upturn in residential building at risk."

During October 2019, there was better news for commercial building approvals which grew by 4.2 percent in dollar terms compared with September. Overall, the value of commercial building approved has grown by some 17.7 percent over the past year. 

New South Wales led the decline in new home building approvals with a fall of 16.4 percent during the month. It was followed by the Northern Territory (-11.1%) and Queensland (-10.2%). 

Despite the weak national figures, new home building approvals increased in the majority of states. The largest gain was in South Australia (+14.7%), followed by Western Australia (+11.5%) and Tasmania (+6.2%). The number of approvals also rose in Victoria (+5.7%) and the ACT (+3.1%).

www.masterbuilders.com.au

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5G inquiry talks to the experts

AN INQUIRY into 5G mobile technology in Australia will continue this week, with a hearing in Canberra.

House of Representatives Communications and the Arts Committee Chair David Gillespie said the hearing would feature regulators, researchers and industry leaders from a range of fields.

"During this inquiry, we’ve heard a range of views on the deployment of 5G and we’re keen to discuss some of the expressed concerns with experts," Dr Gillespie said.

"We’re also interested to learn more about the future of Australia’s 5G rollout. Australians are beginning to access some 5G services, and we want to hear from those responsible for its deployment.

"We want to hear about any potential risks and challenges and how these can be addressed."

Information about the inquiry, including the public hearing program, may be found on the committee’s webpage.

Public hearing details

Date: Friday, 6 December 2019
Time: 9am – 2.30pm
Location: Committee Room 2R2, Australian Parliament House, Canberra

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

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QRC and CFMEU call for Acland mine approvals

THE CFMEU has added its voice to calls from the Queensland Resources Council (QRC) for the Palaszczuk Government to act on approvals for the New Hope coal mine near Oakey.

CFMEU Queensland Mining and Energy district president Stephen Smyth said the government must stand up for workers.

“This has gone on for long enough. I know first hand how important mining jobs are for regional Queensland,” Mr Smyth said.

“We want to see Queenslanders employed in the coal industry whether they’re in Moranbah or at Acland. New Hope workers deserve better than silence and stonewalling from the Palaszczuk Government.”

QRC chief executive Ian Macfarlane said the drawn out process for approvals sent a poor signal to investors.

“If Queensland wants to attract new investment that create new jobs, investors have to be confident of the rules and regulations that apply,” Mr Macfarlane.

“While people respect the courts, they expect leadership from the State Government. 150 people have already lost their jobs because of the uncertainly about the mine expansion. More are at risk without approvals.

“The Palaszczuk Government must act to back jobs.”

In 2007 Anna Bligh’s Government legislated to guarantee operations at Xstrata’s Wollombi project in Central Queensland in response to a court ruling.

At the time, Anna Bligh said: "My government is not prepared to have this uncertainty… Next week we will legislate to validate the mining lease so that the mine can proceed, but only with stringent environmental requirements."

www.qrc.org.au

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Explorers optimistic despite policy concerns

ONGOING confidence in the resources sector is translating into an increase in exploration investment across all major commodities but policy concerns persist, a new report from the Queensland Exploration Council (QEC) has found.

The QEC Scorecard was released at the QEC breakfast attended by the Minister for Natural Resources, Mines and Energy, Anthony Lynham this morning.

“Coal exploration increased for only the second time since 2011-12 up by 25 percent. Copper and gold exploration expenditure lifted 19 percent and petroleum exploration expenditure grew by 10 percent,” QRC chief executive Ian Macfarlane said.

“The results underpin the growing optimism in the exploration industry with 58 percent of explorers planning to increase or significantly increase their exploration expenditure and 92 percent of drilling companies forecasting similar or increased spending over the next 12 months.

“Once again, the scorecard shows that Queensland is in prime position to benefit from our state’s rich mineral prospectivity.

“That investment has significant potential to grow," Mr Macfarlane said. "Queensland will be at the forefront of the development of the expanding critical minerals industry.

“Recently, I joined Federal Resources Minister Matt Canavan on his critical minerals delegation to the United States.  This delegation reaffirmed the potential of the partnership between Australia and the US to invest in the projects that will provide the building blocks for everything in our modern societies from mobile phones, to cars and solar panels, as well as use in defence and other strategic industries.

“QRC will also work with the Queensland Government on the implementation of a $13.8 million five-year package to discover and develop critical minerals.”

QEC is the exploration arm of the QRC and its chair, Kim Wainwright, said a strong building block out of this year’s report was the close relationship that has been developed with the Department of Natural Resources, Mines and Energy.

“Explorers’ rapport with the Queensland Department reached an all-time high," Mr Wainwright said. "For the first time in the Scorecard’s nine-year history, explorers were positive about departmental assistance.  This is an important relationship, and we hope it continues to grow.

“Our industry will continue to work constructively with the Government and the Department to improve the exploration permit process. Exploration is the cornerstone of the overall resources industry and if we don’t explore for new resources today we won’t have a resources industry into the future.”

Mr Macfarlane said the Scorecard also sounded a note of caution about access to capital, social licence to operate and policy uncertainty which was sitting at negative 36 points.

“If we are to attract new investment and create new jobs we need a clear and stable policy environment in which it to operate,” Mr Macfarlane said.

“This includes a clear, consistent approval framework and timetable, as well as potential for new exploration and new projects.  Despite our rich prospectivity, Queensland cannot take future investment for granted.

“These will be key issues for Queensland in the election year 2020.”

Both Mr Macfarlane and Ms Wainwright thanked outgoing QEC chair Brad John PSM for his outstanding dedication over the past two years to the QEC and the exploration industry.

www.qrc.org.au

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IPA hones in on business mental health issues

INSTITUTE of Public Accountants (IPA) chief executive officer, Andrew Conway, has addressed hundreds on delegates at IPA’s national congress being held in Adelaide this week, highlighting the extensive work the Institute is doing in the mental health arena.

“Having carried out an Australia wide road show, gathering feedback from small businesses and small accounting practices, the message we received loud and clear was that the mental health of small business has become a paramount issue,” Prof Conway said.

“We heard of many stories of true concern; too many to ignore. Our members echoed these sentiments and as trusted advisers; they are in an inevitable position of trying to assist clients who are facing such issues as depression and anxiety.

“The IPA has advocated for a Federal response.  A roundtable meeting with the Prime Minister in late 2018 has led to a series of government run working groups to address the issue of the mental health of small business," he said.

“This work is ongoing, and IPA continues to be represented on such forums to generate recommendations for government.

“In addition, we have provided mental health first aid training to senior staff and members.  We are looking to extend our research to ensure we have an evidence-based approach to policy development in this area,” Prof Conway said.

 

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.   

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Through the telescope - a trio of treaties

THE Joint Standing Committee on Treaties has tabled a report endorsing three proposed treaty actions.

Committee chair Dave Sharma MP said that each of the treaty actions represented important progress for Australia.

In particular, the report includes a treaty that provides for the establishment of the governing body of the Square Kilometre Array Observatory. The Square Kilometre Array is a global big-science project to build and operate the world’s largest, most advanced radio observatories.

"Australia will be one of two countries to host a Square Kilometre Array telescope and our involvement will reinforce Australia’s commitment to international cooperation in scientific and technological fields," Mr Sharma said.

"The Committee was also excited to hear that the project is expected to generate Nobel Prizes, some of which are expected to be received by Australian scientists."

Also considered in the report is a treaty on the protection of investments agreement with Uruguay, which Mr Sharma said reflected Australia’s commitment to update older style investment treaties.

A treaty on the United Nations Convention on Transparency in Treaty-based Investor-State Arbitration has also been endorsed by the Committee, with Mr Sharma noting that it enhances transparency for investor-state arbitration proceedings, a longstanding matter of public concern.

"Once ratified, the UN Convention will enable existing transparency rules to be applied to arbitrations across a wider pool of investment treaties, including the publication of case related information and for tribunal hearings to be made public," Mr Sharma said.

Further information on the treaties and the final report can be obtained from the Committee’s website.

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Indonesia-Australia Comprehensive Economic Partnership Agreement legislation passes the Senate

ON BEHALF of CPA Australia I acknowledge the successful passage of Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA)," said CPA Australia chairman and president, Peter Wilson.

"The IA-CEPA will further strengthen the economic and commercial ties between these two markets," Mr Wilson said. "Indonesia is one of the fastest growing economies in the region, and one of Australia’s nearest neighbours. This geographical proximity, plus the countries’ already strong ties means that Australian businesses and jobs are well positioned to benefit from this new agreement.

"Under the agreement, non-tariff barriers to trade will be reduced, paperwork simplified and the IA-CEPA will allow 99 percent of Australia's goods exports to enter Indonesia either duty free or with significantly improved preferential arrangements. All Indonesia's goods exports will enter Australia duty free.

"Encouraging international trade by removing impediments is very positive for both Australian businesses and Australian jobs. The agreement also ensures that Indonesia will not apply tariffs to Australian goods exports in the future," he said.

"We also acknowledge the bipartisan support of the Australian Labor Party who supported the passage of this important legislation."

Indonesia is an important trading partner with Australia. According to the Department of Foreign Affairs and Trade (DFAT), in 2018, total two-way trade in goods and services with Indonesia was worth A$17.6 billion, making Indonesia Australia's 4th largest trading partner.

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CPA Australia is one of the world's largest accounting bodies, with more than 164,000 members working in 150 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. Visit our website: www.cpaaustralia.com.au

Activating trade and investment for a win-win in the Pacific

THE Parliament’s Foreign Affairs, Defence and Trade Committee has launched a new inquiry into activating trade and investment between Australia and Pacific island countries.

Chair of the Committee’s Trade Sub-Committee, Ted O’Brien MP, said parliamentarians wanted to understand how to activate greater trade and investment opportunities with the Pacific region, not only to benefit Australia, but also our Pacific neighbours.

“Pacific Island nations might be in our backyard, but let’s not forget that Australia is also in theirs,” Mr O’Brien said.

“We’re far more than just trading nations, we’re neighbours who can mutually benefit by activating greater trade and investment opportunities, which is why we’re launching this parliamentary inquiry.   

“We want to hear all the stories – the good and the bad – from practitioners in the field. We want to learn from businesses who are successfully exporting into the Pacific as well as from those who have tried and failed.  We also want to hear from businesses who, right now, are weighing up the pros and cons, the risks versus the opportunities, of trading in the Pacific,” he said.

“Free trade is good for those nations which embrace it, and so we want this inquiry to examine the conditions that will help activate even more trade and investment opportunities, with the people of the Pacific and Australia all coming out winners.”

The inquiry follows Australia signing a new development-centred trade agreement, the Pacific Agreement on Closer Economic Relations Plus (PACER Plus), with 13 other members of Pacific Islands Forum.

"We’re keen to explore how PACER Plus will help Pacific island countries become more active partners, and benefit from, the regional trading system," Mr O’Brien said.

Submissions from any person, businesses or organisations with an interest in the issues raised by these terms of reference are welcome. Submissions addressing all or some of the terms of reference should be lodged by February 11, 2020, with overseas submissions due on February 18, 2020.

Further details about the about the inquiry, including terms of reference, details on how to contribute a submission and, when available, details of public hearings and roundtable discussions, can be obtained from the Committee’s website.

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Government and crossbench can't abandon 380,000 small construction businesses

THE GOVERNMENT and crossbench must not abandon the almost 400,000 small businesses and sub-contractors in the building and construction industry. 

That is the warning from Master Builders Australia’s CEO Denita Wawn, who said that it is now "more crucial than ever that it be made clear that the small businesses and subbies aren't going to be left to the mercy of bullying and thuggery displayed by some organisations and their officials". 

"There are more small businesses in the building and construction industry than any other sector of the economy, and 99 percent of illegal bullying and thuggery committed by some unions and their officials happens to our members,” MsWawn said. 

"We've been inundated with calls this morning, particularly from small subbies, to express their fears in light of the Senate's decision. 

"They are telling us what everyone knows - building unions will spin the outcome as being given a green light to continue their tactics of bullying and intimidation,” Ms Wawn said. 

"They are worried that a bad situation will now get far worse and are asking - who will stick up for us? Master Builders thanks to the Senators who voted to support the Bill, particularly those from South Australia.

"We've made it very clear to all our South Australian members that Centre Alliance and Senator Bernardi did the right thing and backed them in the vote,” Ms Wawn said.

"We applaud Senators Patrick and Griff from Centre Alliance, and Independent Senator Cory Bernardi, for taking such a considered and constructive approach to the Ensuring Integrity Bill.

"These Senators, particularly Senator Rex Patrick, have listened and recognised there is a problem. We congratulate them for doing the right thing by South Australian small businesses by saying ‘yes’ to small business and ‘no’ to bullying,” she said. 

"It is crucial for Government to now let the industry know that they won't be abandoned. We want the Government to bring this Bill back to the Parliament as a matter of urgency, to show they remain committed to finding a solution to a problem that is obvious to everyone. 

"Almost everyone who spoke during the Ensuring Integrity Bill debate acknowledged there is a problem and we want them to work towards finding a solution," Ms Wawn said.

www.masterbuilders.com.au

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FSC welcomes ASIC's new fee and cost guidance for super funds

THE Financial Services Council (FSC) has today welcomed several initiatives included in ASIC’s revised fees and costs disclosure requirements for PDSs and periodic statements, including the updated Regulatory Guide 97.

FSC CEO Sally Loane said, "We are pleased to see that the updated rules increase comparability and clarity of disclosure, including changes as to how some of the fees and costs categories are grouped together.

“Consistency in reporting of superannuation fees is crucial to ensure consumers can meaningfully compare products and make informed choices about their retirement savings,” Ms Loane said.

“Overall the changes are a positive step forward for Australians, who will be able to more clearly understand what they are being charged for when it comes to financial products. We are however disappointed that our request for a longer timeframe for compliance has not been granted in today’s update.

“The FSC’s submission earlier this year pressed strongly for a longer timeframe for compliance, particularly in the case of PDSs. We submitted that this was necessary to accommodate the extensive system, data gathering and disclosure changes – the shorter timeframe will create added pressure and risk for businesses implementing the new rules,” Ms Loane said.

“The FSC looks forward to engaging with ASIC over the coming months to ensure industry has a disclosure framework that provides transparent, comparable information and promotes consumer trust and confidence in the financial services system.”

The new rules and guidance follow ASIC’s Consultation Paper 308 Review of RG 97 Disclosing fees and costs in PDSs and periodic statements released earlier this year, and Report 581 Review of ASIC Regulatory Guide 97: Disclosing fees and costs in PDSs and periodic statements.

www.fsc.org.au

 

About the Financial Services Council

The Financial Services Council (FSC) has more than 100 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 $3 trillion on behalf of more than 15.6 million Australians. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency. The FSC’s mission is to protect and enhance confidence in a strong, sustainable financial services sector that serves Australians with integrity.

PFAS remediation work in the spotlight

ON MONDAY December 2, the PFAS Sub-committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) will hear from the Department of Defence about the effectiveness of its National PFAS Investigation and Management Program.

The chair of the PFAS Sub-committee the John McVeigh MP said the Department of Defence was at the forefront of remediation work on per-and poly-fluoroalkyl substance (PFAS) contamination in Australia.

The Department of Defence is now conducting PFAS investigation and remediation work at 28 Defence sites, with innovative water and soil treatments being delivered with the aid of expert environmental service providers.

“The question for the Sub-committee," Dr McVeigh said, “is whether these works are delivering the desired results, and being seen to do so?”

Evidence from the ANU PFAS Health study last week confirmed what Sub-committee members have seen in affected communities themselves - the levels of anxiety and uncertainty are high. This is despite the evidence that concentrations of PFAS in the environment, and hence people’s exposure, is coming down.

“With environmental regulations becoming more robust and locally based medical evidence being consolidated, reducing exposure to PFAS and its presence in water and soil is environmental best practice”, Dr McVeigh said.

“The challenge is to ensure that the Department of Defence is accountable to the public for the work being done, and that affected communities, in particular, are informed of progress, and problems, at each step of the way.”

The PFAS Sub-committee will report on the evidence taken by the end of the year and continue its ongoing scrutiny of government activity at hearings from the first sitting weeks of 2020.

Public hearing details:

Date: Monday 2 December 2019
Time: ~4:10pm to 5pm
Location: Committee Room IR4, Parliament House, Canberra.

The hearing will be audio streamed live at www.aph.gov.au/live.

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