THE Queensland Resources Council has welcomed BHP’s annual economic contribution report highlighting its increased payments to the Queensland Government last financial year totalled $1.24 billion or $100 million every month.

QRC chief executive Ian Macfarlane said the report showed the company’s payments, including royalties, from its coal operations to the Queensland Government had increased by more than $100 million last financial year based on the current US dollar-Australian dollar exchange rate.

“These payments to the Queensland Government can be reinvested in services and infrastructure for all Queenslanders,” he said. 

“For instance, a $1.24 billion payment to the Queensland Government pays for all the budget capital works projects in Queensland hospital and health facilities ($1.22 billion). That means better hospital care and health facilities for Queenslanders no matter where they live."

Mr Macfarlane said this contribution did not include the multi-million-dollar injection from BHP in the form of wages, purchases from suppliers and contributions to local councils across Queensland.

“The QRC produces an annual contribution from the resources sector.  In 2017-18, the QRC study showed the resources sector contributed $62.9 billion to the Queensland economy, making $19.5 billion in purchases, paying $5.2 billion in wages and returning $4.3 billion in royalties to the State Government.

QRC will update its State-wide economic contribution report for 2018-19 in November.

Link to the 2017-18 QRC economic contribution report summary https://www.qrc.org.au/wp-content/uploads/2018/11/QueenslandStory2018_final.pdf  

Link to the BHP 2019 economic contribution report https://www.bhp.com/-/media/documents/investors/annual-reports/2019/bhpeconomiccontributionreport2019.pdf?la=en 

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THE Future of Financial Advice (FoFA) legislation has failed to deliver affordable financial advice, denying many people access to appropriate advice leading into their retirement, according to the Institute of Public Accountants (IPA).

To fill this void, IPA is advocating that all Australians should be able to get limited financial advice and support from their trusted adviser, the accountant.

“The Productivity Commission observed that 48 percent of Australian adults indicated having unmet financial advice needs. So, obviously there is an advice gap in Australia which needs to be addressed” IPA chief executive officer, Andrew Conway said.

“The IPA has developed a revised financial services licensing regime for accountants, which recognises their existing qualifications and experience.

“Our members are answerable to high levels of professional and ethical standards, subject to ongoing quality assurance evaluations, and must maintain currency of knowledge through committed and continuous professional development and training," he said.

“It, therefore, makes perfect sense for public accountants to fill the financial advice void; unshackling them to have genuine discussions with their clients.

“We believe it is the right time to introduce a new, extended Accountants Exemption,” Mr 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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THE Australian Competition and Consumer Commission (ACCC) will appear before the House of Representatives Standing Committee on Economics at a public hearing in Canberra on Wednesday, September 18, 2019.

The Chair of the Committee, Tim Wilson MP, said, "This hearing is an important mechanism for the Parliament to scrutinise the ACCC’s effectiveness as competition regulator and national consumer law champion.

"As the ACCC has significant responsibility for competition issues, it is timely to examine the regulator on these matters, particularly in relation to the financial services industry," he said.

In the consumer law area, Mr Wilson said, "Since the committee’s last hearing with the ACCC in June 2018, the Parliament has passed legislation to strengthen penalties under Australian Consumer Law by aligning them with the maximum penalties under the competition provisions of the Competition and Consumer Act 2010."

"The committee looks forward to examining the ACCC’s recent work on its priority areas and the range of ongoing inquiries and market monitoring."

Public hearing details

Date: Wednesday, 18 September 2019
Time: 11.05am to 1.50pm
Location: Committee Room 2R1, Parliament House, Canberra

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

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the Federal Government’s latest commitment to cutting red tape and is looking forward to working closely with the deregulation taskforce on its key priorities.

“Small businesses and family enterprises are crying out for less red tape and unnecessary regulation, so they can get on with the job of growing their business,” Ms Carnell said.

“The government’s efforts to bring down the barriers to business investment and boost productivity are commendable.

“While we support the intentions of the deregulation taskforce in principle, understanding the detail of these proposals to ensure there are no unintended adverse consequences, is vital.

“It’s also critical the government consults widely as part of the deregulation process, which my office is looking forward to playing an active role in, to ensure the government engages fully with small business.

“Of particular interest is the taskforce’s agenda in dealing with the degree of regulatory complexity, the length of time for approvals and duplication across levels of government," Ms Carnell said.

“This has the potential to be a game-changer for Australia’s small businesses and family enterprises.

“We are working with the government to achieve these positive outcomes for the benefit of Australia’s 2.3 million small businesses.”

www.asbfeo.gov.au

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PRESSURE selling insurance products, over the phone or otherwise, is not acceptable according to the Financial Services Council (FSC).

FSC CEO Sally Loane said insurers should not be able to make outbound calls with the view to sell life insurance or consumer credit insurance when people were not aware the call was coming - in other words, being called cold.

“There is no place for cold calling and pressuring random people into buying a life insurance product they don’t need, want or understand,” Ms Loane said.

“For an outbound call to be justified, a person must first have given their positive, clear and informed consent, before being contacted. 

“Additionally, given there is no legislated time frame in which calls need to be made, the FSC believes an initial call should be made within three months of consent.

“It is important to note that the industry has already made significant improvements through better use of monitoring and oversight, through remuneration practices, appropriate incentives, culture, training and the FSC Life Insurance Code of Practice.

“These anti-hawking measures ensure the conduct on all calls is at the highest standards,” Ms Loane said.

The FSC submission is in response to Recommendation 4.1 of the Financial Services Royal Commission, that hawking of insurance products should be prohibited. 

A copy of the submission can be found here: https://fsc.org.au/resources/1852-fsc-submission-unsolicited-telephone-sales-of-direct-life-insurance/file

About the FSC

The Financial Services Council (FSC) has over 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 almost $3 trillion on behalf of more than 14.8 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world. 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.

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SMALL BUSINESS couriers in the gig economy, like Uber Eats and Deliveroo, can now access the Victorian Small Business Commission (VSBC) to help resolve their disputes. 

Under new amendments to the Owner Drivers and Forestry Contractors Act 2005 passed in Parliament yesterday, the definition of ‘freight broker’ has been changed to make sure contractors employed through third party platforms like Uber Eats are covered.

The change responds to a government review that found many hirers and brokers to be in breach of the Act. For example, many weren’t providing cost schedules and contracts, leaving owner drivers exposed to safety, income and business risks. 

Commissioner Judy O’Connell has backed the change to the dispute resolution process, and our new role in providing further supports for disputes can’t be resolved through mediation. 

“This new support is significant because it means gig economy small business couriers who are in dispute can come to us for determinations that are binding, keeping their disputes out of the court system,” Commissioner O’Connell said.

In 2018–19 the VSBC received 23 applications for small business driver disputes, about 85 percent of which were successfully resolved. Where disputes couldn’t be resolved, this was because the parties couldn’t reach an agreement or the business contracting the service refused to take part in mediation.

“In a lot of instances, it’s just not worthwhile taking these matters to court because of the high costs involved – costs that are prohibitive for many small businesses,” Commissioner O’Connell said. 

“This important change means small business couriers will have access to a low cost, confidential and binding dispute resolution process that will let them resolve their disputes quickly so they can get back to business.”

The VSBC will start providing these new supports in May 2020. For more information about how gig economy small business couriers can access these services, visit the VSBC’s website.

The Victorian Small Business Commission is an independent government agency that advocates on issues affecting small business, educates people in small business about their rights and responsibilities, and helps them to avoid or resolve disputes. 

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SHOULD Australia move to fixed four-year parliamentary terms? A parliamentary committee will hold a roundtable discussion on this topic on Thursday  November 7, 2019, and has invited questions and views from the public.

Andrew Wallace MP, Chair of the House Social Policy and Legal Affairs Committee, said the Australian Parliament’s House of Representatives was the only lower house in the country with three-year parliamentary terms.

"Four-year terms could address the community’s concerns about the revolving doors of politicians and policy by providing more stability and opportunities for longer-term outcomes," Mr Wallace said.

"All of our state and territory parliaments have four-year lower house terms, with Queensland moving to four-year terms in 2020 following a successful referendum in 2016. On the other hand, there may be down-sides to fixed parliamentary terms. Current events in the United Kingdom show that this issue is one that needs careful consideration."

The roundtable will consist of a panel of Constitutional experts including laureate professor emeritus Cheryl Saunders, professor Gabrielle Appleby, professor Anne Twomey and professor George Williams.

"Any change to parliamentary terms would require popular support from voters, so we’re offering voters the opportunity to be involved in the process from the very beginning," Mr Wallace said.

The roundtable will be open to the public and streamed live on the Parliament's website. Australians can participate by submitting questions and views via the roundtable website.

The Committee will also consider questions posted live on Twitter on the day of the roundtable. The House’s Twitter account, @AbouttheHouse, will post live commentary from the event.

Following the roundtable, the Committee intends to present a short report to the House reflecting the issues discussed.

For more information go to the Committee’s website.

Public roundtable details

Date: Thursday 7 November, 2019
Time: 9am to 12.15pm
Location: Committee Room 2R1, Parliament House, Canberra

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

POLITICAL advertising on social and traditional media is being investigated by the Joint Standing Committee on Electoral Matters as part of its inquiry into the 2019 Federal election.

Committee Chair, Senator James McGrath, said social media has blurred the lines of what is and isn’t political advertising.

"It was clear in the 2019 election that Australians were inundated with a huge volume of political advertising on all platforms. But perhaps of more concern is the rise in political disinformation from ambiguous sources online," Senator McGrath said.

"Smart phones and social media have changed how Australians publish and access information. Digital platforms are taking over traditional media – but the regulatory framework hasn’t kept up."

"Electoral integrity is crucial for a healthy democracy. We need to hear from people with solid ideas on how we can keep our electoral processes strong."

Anybody can make a submission that address the terms of reference. Submissions attract protection under the Parliamentary Privileges Act 1997.

Submissions close on September 20 and the Committee expects to hold public hearings later this year.

People wishing to make a submission can call the secretariat for advice or visit aph.gov.au/em for more information.

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