CONFIRMATION the $10 billion Arrow Energys Surat Gas Project, in the State’s south-west, will proceed into the first phase of development is a major boost in Queensland’s economic recovery for COVID-19.

Queensland Resources Council chief executive Ian Macfarlane said the announcement today the project between Dalby and Wandoan would proceed was “good news when Queensland needed it most”.

“The loss of jobs across Queensland in the COVID-19 response has been devastating," he said.

“The resources sector has been at the forefront of slowing the spread of COVID-19. Our coal, metals and petroleum companies have been continuing to operate, invest, employ and export on behalf of all Queenslanders.

“The Arrow announcement is a long-term commitment and it could not have come at a better time for Queensland.”

The first phase of the project would create 200-plus construction jobs, and provide additional business opportunities for local suppliers.  The project, over all phases to 2046, would create up to 800 construction jobs and 200 permanent, operations jobs.

Mr Macfarlane said prior to COVID-19, the resources sector supported one in seven jobs in the Queensland workforce – or more than 372,000 jobs.

“The majority of companies are either maintaining their employment levels or anticipating a slight increase," Mr Macfarlane said.

"Indeed, there are currently about 800 jobs in the Queensland resources, mining and energy sector advertised online with Seek.”

www.qrc.org.au

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TODAY the Tax Practitioners Board (TPB) has registered a legislative instrument, along with an explanatory statement, on the Federal Register of Legislation, that extends the services and advice BAS agents can legally provide on the Australian Government’s COVID-19 stimulus package.

BAS agents can now legally support Australian businesses by advising about their entitlements under the new JobKeeper Payment and Cashflow support for business initiatives.

TPB chair, Ian Klug said the legislative instrument makes it clear that BAS agents can lawfully advise on the JobKeeper Payments and on the Cashflow support for business.

"This reflects a sensible and appropriate outcome to support the Government’s initiatives," Mr Klug said.

"The TPB is working to support the extraordinary efforts of all registered tax practitioners acting professionally and ethically to assist Australian workers and businesses, especially in understanding these stimulus entitlements."

Mr Klug said the issuing of the legislative instrument provides a timely reminder to all Australians who use a tax practitioner, to ensure that they are registered with the TPB.

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CBUS SUPER has congratulated the South Australian Government and Cbus Property on their partnership for a new $300 million office building development, in the heart of the Adelaide CBD.

The South Australian Department of Planning, Transport and Infrastructure will act as an anchor tenant for the 83 Pirie Street building.

Cbus Super CEO David Atkin said the development would support up to 2,000 construction jobs during the Covid-19 recovery.

“This landmark project comes at such an important time for the construction industry in South Australia,” Mr Atkin said.

“Building and construction will be the frontline of Australia’s economic recovery.

“Cbus has supported over 95,000 construction jobs through Cbus Property while delivering strong returns for our members.

“Cbus Super is in a strong liquidity position and we are determined to play our part in ensuring a strong pipeline of construction work to help secure the economic recovery.”

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BUILDERS and tradies remain open for business and are complying with the social distancing and hygiene rules, in line with the latest advice from government according to Master Builders Australia CEO Denita Wawn.

“The Prime Minister has confirmed that building is an essential industry and is being kept open but there is some confusion in the community about how this is applied to the home and we want to clear that up,” Ms Wawn said.

“Safe Work Australia advice confirms that a workplace includes a private home or dwelling, which means building workers and tradies will do everything to follow social distancing and strict hygiene practices, so any risks are eliminated or minimised.

“This means that the public can have confidence that they are doing the right thing in helping stop the spread of COVID-19, while still going ahead with their residential building projects.

“For home and property owners it is important to know that you don’t need to pull the plug on current work,” Ms Wawn said.

"Whether you’ve been planning a new build, a renovation job or you’ve been planning to talk to your builder about getting the ball rolling for this kind of project, you can still have your builder on your premises for purposes of work and be confident that they are complying with their obligations and that you are doing the right thing by the community,” Ms Wawn said.

“Whether its indoors or outdoors there is absolutely no problem with your project going ahead. There is no need to put kitchen or bathroom renovations, plumbing or electrical work or landscaping on hold.

“It’s also important for home and property owners and the community to know that Safe Work Australia has produced information for in-home workers and tradies, containing a range of practical information about client interactions, householder checks and other ways to reduce or eliminate risk,” Ms Wawn said.

“Our message to clients is that it’s your home and our members workplace so they will do everything necessary to comply with all safety laws.  It is still also more than okay to go and inspect a display home providing that you make an appointment. Our members are telling us that appointments are being made and now is a great time to do this,” Ms Wawn said.

“Builders and tradies care deeply about the safety and wellbeing of their communities and they are complying with the latest government advice so they can provide building services to their communities.

“There are nearly 370,000 residential building businesses in Australia, including thousands of mum and dad businesses. The survival of these businesses is essential to the livelihoods of builders and their families but also the state economy which is also under huge pressure from the COVID-19 crisis,” Ms Wawn said.

“We are encouraging the public to make the time now to book an appointment with their builder to plan their new project, to inspect a Display Home and continue on with their building project or renovation."

www.masterbuilders.com.au

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THE OVERWHELMING majority of NSW councils have signed up to a workplace deal that will protect thousands of local government jobs during the current health crisis, providing job retention payments for workers unable to undertake their usual roles due to COVID-19 service closures.

Negotiated between local government unions, councils, and employer association Local Government NSW, more than 100 councils have already signed on to the Local Government (COVID-19) Splinter Award 2020, which was approved by the NSW Industrial Relations Commission late yesterday.

The Splinter Award, which will apply for 12 months, is designed to deal specifically with the effects of the COVID-19 health crisis, operating in addition to the existing award and any enterprise agreements at individual councils.

Councils will be required to look for other suitable work for employees whose usual jobs have been impacted by mandatory closures or other changes, and where this isn’t possible those workers will be paid a weekly job retention allowance of $858.20 for a period of 13 weeks. Employees can supplement that allowance from their accrued annual or long service leave, taking it up to their ordinary pay rate.

It also entitles employees to up to four weeks of Special Leave at their normal pay rate to cover any period where no work can be provided, including if an employee is required to self-isolate.

USU general secretary Graeme Kelly OAM said the agreement was designed to save jobs and provide financial security to local government workers facing the dramatic impacts of the current pandemic.

“This Splinter Award delivers immediate assistance to our members, particularly those who work in services that have been shut or disrupted by COVID-19 such as libraries and aquatic centres,” Mr Kelly said.

“Many of these workers have already been stood down without pay, or forced to take accrued leave, putting them in real financial hardship.

“This agreement, which the overwhelming majority of NSW councils have already signed up to, provides certainty and security to workers in these difficult times, keeping more staff in paid employment longer.

“The central features are a requirement for councils to look for alternate work that staff can be redeployed into during the crisis, along with special leave provisions and a job retention allowance that ensure a minimum financial safety net for all local government workers.

“We are continuing to work with other councils and expect more to sign up to the Splinter Award, extending this same support and assistance to their staff during the current crisis.”

Further information about the Splinter Award and a full list of councils that have signed up:  https://usu.org.au/local-government-covid-19-splinter-award-2020-summary/

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THE Parliamentary Joint Committee on Intelligence and Security has completed its Review of the mandatory data retention regime, and is now working on its report.

The chair, Andrew Hastie MP said, "The Committee has received considerable evidence from submitters and witnesses regarding the effectiveness of the mandatory data retention regime. This marks the completion of the Committee’s review and the Committee’s attention now turns to preparing a bipartisan report which delivers tangible ideas for reform and consideration. The Committee expects to table the report by the end of July."

The deputy chair, Anthony Byrne MP said, "The Committee is grateful for the evidence received and will complete the task of drafting a report that will set out some of the major concerns with the regime and access to data under the Telecommunications Act 1997 as well as recommendations to government addressing these concerns."

Section 187N of the Telecommunications (Interception and Access) Act 1979 provides for the completion of the review by April 13, 2020.

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

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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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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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