THE Association of Independent Retirees (AIR) has welcomed the 'Review of the Retirement Income System' announced by the Federal Treasurer last Saturday.

However, AIR has some reservations.

“In conducting the review the association seeks certainty for those in retirement so they will not be adversely affected by any changes made to existing retirement income legislation,” Association of Independent Retirees (AIR) Limited director Terry O’Callaghan said
 
AIR is particularly concerned that retirees who have set in place their retirement investments prior to their retirement, are not subjected to any changes to current legislation that would adversely impact on their retirement income.

“Changing the ‘goal posts’ on legislative arrangements for Australians who have already retired and are partly or fully self-funding their retirement, should not be an option for the Review,” Mr O’Callaghan said.

The objectives of the Review, to ensure that the Retirement Income System gives Australians, including self-funded retirees, adequate retirement incomes, and that the system is fiscally sustainable and provides appropriate incentives for self-provision in retirement, are fully supported by the Association.

“However retirees need certainty in planning for their retirement and AIR seeks an assurance from the government that retirees will not be affected by any proposed changes that adversely impact on their retirement income,” Mr O’Callaghan said.
 
“Members of AIR look forward to the Review independent panel considering ways of improving the efficiency and competitiveness of superannuation and encouraging a greater percentage of the working population to partly or fully fund their retirement."

The outcomes of the Review need to ensure that sufficient incentives apply to encourage more Australians to provide for their retirement through superannuation and private savings to assist reduce pressure on the Federal Budget that is being stretched to cover the escalating cost of the Age Pension, increasing longevity of retirees and escalating health and age care costs, according to AIR.
 
Mr O'Callaghan said AIR noted that a consultation paper will be released in November this year and AIR looks forward to raising a number of issues that should be addressed in the final report including:  

• retirees having an adequate level of income that provides for at least the standard of living experienced prior to retirement;
• retention of investment incentives that are considered fair, including superannuation concessions, franking credits on Australian equities, negative gearing on investment properties, and the current 50 percent discount on capital gains tax;
• allowing workers who were self employed or has no superannuation, to sell privately held assets exempt of capital gains tax up to a defined cap, and purchase a tax-free retirement income stream product;
• improving information that assists retirees benchmark their superannuation performance and private investment yield;
• providing assistance with alternative low risk investment opportunities in times of low fixed interest such as being currently experienced;
• broadening the current age based percentage drawdowns for account based income stream pensions with a broadening of the age ranges and a lowering of the minimum drawdown percentages once a retiree has reached 75 years of age;
• adjusting deeming rules to better relate to a low investment environment.

Mr O'Callaghan said it was important that the Review established a fact base of the current retirement income system covering the age pension, compulsory superannuation and private retirement investment to ensure that there is informed public debate on recommendations proposed by the Review panel.

“Any new  legislation concerning the three pillars of Australia’s retirement income system resulting from the Review, should be based on fairness, transparency and certainty,” Mr O’Callaghan said.

For further information or for Media Comments please contact:
Terry O’Callaghan AM -  0408 143 392
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.
AIR website: www.independentretirees.com.au

THE House of Representatives Standing Committee on the Environment and Energy is travelling around the country for a series of public hearings on nuclear energy in Australia.

Chair of the Committee, Ted O’Brien MP said this is an opportunity to engage with people from Brisbane, Melbourne, Adelaide and Perth and to hear their views both in favour and against nuclear energy.

“We want to hear from experts in the field, and all interested parties from one end of the country to the other, to best understand the feasibility and suitability of these new and emerging nuclear technologies,” Mr O’Brien said.

“These hearings will be looking at nuclear from a very evidence based approach and will be identifying the conditions which would need to be in place before nuclear energy could be considered for Australia.”

Public hearing details

Brisbane
Date: Monday 30 September 2019
Location: Brisbane Novotel, 200 Creek St

Melbourne
Date: Tuesday 1 October 2019
Location: 55 St Andrews Place

Adelaide
Date: Wednesday 2 October 2019
Location: South Australian Parliament building, cnr North Terrace and King William Rd

Perth
Date: Thursday 3 October 2019
Location: Legislative Council Committee Offices, 18 to 32 Parliament Place

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

Further information about upcoming public hearings, including programs as they are released, and the inquiry in general can be found on the inquiry website: https://www.aph.gov.au/nuclearpower. 

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THE number of commercial building approvals surged during August to record its strongest ever monthly performance, according to Master Builders chief cconomist Shane Garrett said. 

“During August, the value of commercial building jobs receiving approval reached $6.14 billion, easily the strongest-ever monthly performance. This was 89.2 percent higher than in the same month last year,” Mr Garrett said. 

“Commercial building work has been one of the Australian economy’s star performers in the recent past, with activity surpassing previous all-time highs. The environment of low financing costs along with robust employment gains and brisk population growth in some centres has underpinned strong demand in those markets,” Mr Garrett said. 

“The remarkably strong figures for August were driven by big gains in approvals for building work in the health sector as well as for offices. The lion’s share of the growth in commercial building related to publicly funded social infrastructure projects such as hospitals, demonstrating the positive role that can be played by government investment at a time of below par economic growth.

“In contrast to commercial building, the volume of approvals for new homes is close to a seven-year low. Detached house approvals lost 2.6 percent during August, although apartment/unit approvals saw a small increase of 1.5 percent,” Mr Garrett said. 

“As it usually takes at least six months from approval stage to the start of actual building work, today’s figures mean that new home building activity will continue to move lower for the rest of this year and well into 2020,” he said. 

“We are now in a situation where we are building fewer new homes than we need in order to satisfy long-term demand. This risks holding back Australia’s future economic development and making the goal of home ownership even more difficult over the coming years."

www.masterbuilders.com.au

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THE Financial Services Council (FSC) has welcomed the Federal Government’s announcement of a review of the retirement income system and the members appointed to conduct the Review. 

FSC CEO Sally Loane said the FSC would work closely with the Review to ensure continuing improvements to Australia’s retirement income system, particularly through our unique superannuation system.

“Superannuation consumers receive significant benefits from competition and choice, and this will be an important focus of the FSC’s approach to the Review,” Ms Loane said. 

“However, this review should not delay important reforms that the Government has already committed to that will significantly improve consumer outcomes in superannuation.

“These include the introduction of a ‘default once’ framework to prevent unintended multiple accounts, as recommended by both Commissioner Kenneth Hayne and the recent Productivity Commission review of superannuation, and legislating an obligation for trustees to consider the retirement needs of their members.”

The FSC will also suggest to the Review that:

• the Government should retain its policy of increasing the Superannuation Guarantee to 12 per cent;
• superannuation laws should be simplified, and red tape in the sector should be removed including barriers to rationalising legacy products; and
• there is no need for further tax increases on superannuation, because our system, as measured against OECD standards, is not unfairly beneficial to higher income earners.

“The FSC looks forward to advocating strongly for these positions during the Review process over the coming year,” Ms Loane said.

www.fsc.org.au

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THE Queensland Resources Council (QRC) says Queensland is missing out on a multi-billion dollar addition to our resources and energy industry which would also lower global emissions, because of bans on uranium mining.

QRC chief executive Ian Macfarlane today told the House of Representatives inquiry into the prerequisites for nuclear energy in Australia that Queensland uranium could be mined sustainability and economically.  The most recent valuation estimated Queensland’s uranium deposits to be worth about $10 billion. 

“Queensland is literally sitting on billions of dollars of value to our local communities and our economy.  But the ban on uranium mining prevents us from reaping the benefit of regional jobs, investment and royalty taxes,” Mr Macfarlane said.

“Queensland’s uranium reserves are not only a valuable export, but they also have a role to play in delivering reliable and low-emissions power.

“Both the BP Energy Outlook 2019 and the International Energy Agency recognise that nuclear energy has a role to play in making significant reductions to global greenhouse gas emissions. Under the advanced emissions reductions scenarios modelling in both reports, nuclear energy use will grow between 2.3 percent to 7 percent each year through to 2040," Mr Macfarlane said.

“Even accounting for less aggressive emissions reductions models, nuclear energy will be an important option for countries that want to ensure reliable, low-emissions power in the decades ahead.

“There are already more than 316,000 jobs associated with the Queensland resources industry, and more than 70 percent of them are in regional Queensland.

“Uranium mining would provide an opportunity to add to those jobs and support new jobs in other industries such as refining and manufacturing," he said.

“A growing uranium industry will also support the State’s North West Minerals Province.  An increase in uranium exploration or development will increase the state of knowledge of Queensland’s resource endowment.

“This may well lead to the discovery of important new deposits of uranium as well as other elements and resources. 

“Queensland can develop its uranium industry in a sustainable way. Queensland has some of the highest environmental standards in the world and all resources projects undergo a rigorous assessment process. Uranium mines in Queensland would be subject to the same high standards.

“Queensland has an abundance of energy options, including coal, gas, solar and uranium for nuclear energy.

“It is sensible for this review to take place to look at the long-term options for uranium exports, and in the longer-term, nuclear energy generation.”

www.qrc.org.au

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“THE amount of engineering construction work done is well down on a year ago with the building and construction industry still waiting for the green light on key infrastructure projects,” Master Builders Australia chief economist  Shane Garrett has warned.  

“During the June 2019 quarter, the volume of engineering construction work done slipped by 0.9 percent and was 15.4 percent lower than the same period in 2018,” he said. 

“Master Builders continues to call for the construction of infrastructure projects to be fast-tracked.

“The heavy volume of new infrastructure project announcements over recent times is very welcome, but today’s figures confirm that there are significant blockages in the way of getting project work started on the ground which must be addressed," Mr Garrett said.

“Tackling the blockages and obstacles in the way of infrastructure projects is an issue which must be prioritised by all levels of government.

“With the pace of economic growth at its weakest in a decade, the prompt delivery of new infrastructure is vital for getting us all moving in the right direction,” Mr Garrett said. 

During the June 2019 quarter, the largest decline in engineering construction work done affected the ACT (-13.1%) followed by Tasmania (-12.7%) and the Northern Territory (-11.6%). There were also falls in South Australia (-5.8%), Queensland (-5.1%) and Victoria (-4.8%). 

Over the same period, both Western Australia (+10.3%) and New South Wales (+3.2%) saw gains in the volume of engineering construction work done.

www.masterbuilders.com.au

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ASX-LISTED Magnis Energy Limited (MNS) has announced it has completed a valuation on its lithium-ion battery cell manufacturing facility in New York as part of the due diligence process for project financing.

The independent valuation, which was completed by O'Brian & Gere, a wholly owned subsidiary of Dutch engineering giant Ramboll Group, on the battery plant came in at $US71.34 million.

The valuation began in August 2019 and went through all the items purchased as part of the acquisition made in early 2018. In the current condition of the equipment the report attributes a valuation today of US$71.34 million (A$105.5 million). With Magnis having an ownership of over 50 percent in iM3NY through its direct and indirect holdings including its stake in C4V, a value of about A$53 million can be attributed to Magnis’ share in the value of the equipment.

Magnis managing director Marc Vogts said, "We believe that the purchase of the New York battery plant will fast track cell manufacturing at commercial scale for the company once funding for commissioning of the plant is secured. The purchase of the equipment last year was a strategic purchase and today’s announcement validates our decision.

"We continue to prioritise efforts to secure funding and the third-party valuation of our battery plant will assist in financing considerations.”

Having recently secured $8 million through a private placement with Middle East based Negma Group the company is now well funded to advance on all projects both in Australia and overseas, he said.

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THE Law Council of Australia has welcomed the release of detailed reporting entity guidance measures for the Modern Slavery Act 2018, which will assist organisations with compliance. 

The guidance, released by the Department of Home Affairs today, further establishes Australia as a world-leader in combatting modern slavery practices. It follows a period of close consultation with key stakeholders, including the Law Council.

Law Council President, Arthur Moses SC, said given the widespread global nature of modern slavery, the guidance should be a “living document”, reviewed and regularly updated to remain relevant, accessible and informative. 

“Too often we are tempted to think of slavery as a relic of the past, but the truth is it’s a problem alive and well,” Mr Moses SC said. 

“The United Nations has estimated there are more than 40 million victims of modern slavery worldwide. Around 25 million are estimated to be exploited through global supply chains.  

“More than half of all modern slavery victims are estimated to live in the Asia-Pacific region, where the supply chains of many large Australian businesses are concentrated. This means the risk of exposure to modern slavery is a very real and current problem for businesses.  

“Modern slavery in supply chains also distorts global markets, undercuts responsible businesses, and poses significant legal and reputational risks for companies. 

“The Law Council commends the Federal Government for the steps it is taking to stamp out this insidious practice, which represents a false economy based on human misery.” 

The Law Council believes the guidance is useful and comprehensive. 

As the legislation moves into its second year the guidance could usefully be expanded and the Law Council looks forward to ongoing consultation with the department. 

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