THE Reserve Bank of Australia (RBA) has delivered some welcome and not entirely unexpected news to the market today, with the Board announcing its first rate cut in almost two years.

“The RBA has today decided to cut the nation’s official cash rate to the new historic low of 1.25 percent, marking the first rate cut since August 2016,” Mortgage Choice chief executive officer Susan Mitchell said.

“While today’s decision will no doubt bring relief to borrowers across the country, the question now is how soon, and by how much will the nation’s lenders pass on the savings to borrowers?

“Throughout 2018, the Reserve Bank made it clear that leaving monetary policy unchanged would be consistent with achieving sustainable economic growth and its inflation target of 2-3 percent. However, a weakened housing market, consistently lacklustre inflation and mixed messages from the labour market, may have encouraged the Board to shift its long-held stance on monetary policy.

“In the minutes of the May Monetary Policy meeting, the RBA Board said that if labour market conditions deteriorated, the Bank would be inclined to lower the cash rate. Given that the nation’s unemployment rate and underemployment rate rose month-on-month to 5.2 percent and 8.5 percent respectively, the RBA Board may have been pressured into lowering the cash rate in order to help stimulate the economy.

“Today’s cash rate cut is good news for the Australian property market which could see a boost from lower interest rates. According to the latest CoreLogic Hedonic Home Value Index, national dwelling values fell 0.4 percent in April and 7.3 percent annually," Ms Mitchell said.

“The Reserve Bank would be acutely aware that any cuts to the cash rate may serve to bolster overall activity in the property market and while I do not see dwelling values rebounding to their 2017 peak any time soon, monetary policy stimulus could help put a floor under falling dwelling values."

With the Board opting to trim the cash rate by 25 basis points, Ms Mitchell said all eyes will now be on the nation’s lenders.

“If recent history is anything to go by, the last time the RBA cut the official cash rate, few lenders actually passed on the full rate adjustment to borrowers, however lenders would be aware of the intense public backlash they would receive if they did not deliver some relief to borrowers," Ms Mitchell said.

"Financial markets are speculating that a second rate cut is on the cards in 2019, and some economists predict as many as three rate cuts by Christmas. Regardless of what the RBA has in store, I urge anyone looking to secure a home loan to speak to their local mortgage broker to ensure they are getting a good deal.

“Interest rates are already hovering at historic lows, and if lenders respond to the RBA’s move by slashing their interest rates, there is an even more compelling case for those with property buying plans to take action.

“Mortgage Choice brokers have access to a panel of over 25 lenders with varied lending policies and preferences catering to a wide range of borrowers so we can help borrowers get the most suitable deal, whatever the cash rate,” Ms Mitchell said.

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NOMINATIONS are now open for the 2019 APAC Food Safety Awards, the leading event that recognises and rewards individuals who have contributed to food safety in Australia and New Zealand. 

Hosted by global leader in integrated risk management solutions SAI Global (saiglobal.com), the Food Safety Award winners will be announced at the APAC Food Safety Awards Gala Dinner on August 21 in Sydney. The dinner is held as part of the APAC Food Safety Conference (August 20-22).

The APAC Food Safety Awards comprise three categories, with nominations closing on July 25. Entrants are shortlisted by an independent panel of recognised Australian food experts – with this year’s panel including:

• · Andrea Currie, Coles Brand Manager Policy and Technical Standards
• · Debbie Peters, wife of the late Ross Peters, the founder of the Ross Peters Award for Excellence in Food Safety
• · Paul Holder, 2018 winner of the Ross Peters Award for Excellence in Food Safety
• · Kimberly Coffin, SAI Global Head of Food, Retail and Hospitality – Assurance

The award categories are:

• · Ross Peters Award for Excellence in Food Safety. This category is open to any individual who has made a notable contribution to food safety in Australia. They can work within any sector of the agri-food industry.
• · Leaders of the Future – Food Safety Learning Scholarship. Applicants in this category must work within the food industry and have a junior quality assurance role or equivalent. They must have a background or experience that shows a unique perspective on food safety, a drive towards continuous improvement and leadership potential through vision. The winner will receive a scholarship to complete food safety courses with SAI Global to the value of $10,000.
• · Innovators in Food Safety. This award recognises an individual or organisation that has developed best in class innovations in technology, process, procedure and training in relation to food safety. The winner of this award will have made a positive and influential impact on food safety through an innovative idea or product.

SAI Global Assurance CEO John Rowley said, “The APAC Food Safety Awards is an annual event that publicly recognises the achievements of food safety professionals. Their commitment to the industry should be celebrated and rewarded, as there are many individuals in the industry who work tirelessly to ensure the safety of our food supply and the minimisation of any potential harm. Now, more than ever, it’s important that we continually strive to the challenges and changes within the food industry.”

Jessica Kelly, winner of the 2018 APAC Food Safety Award for ‘Leaders of the Future – Food Safety Learning Scholarship’ said, "It was very exciting and humbling to have been recognised for an APAC Food Safety Award last year, so early into my career. Winning this award has provided me an opportunity to expand my presence in the industry and explore new networks, career directions, skills and mentor opportunities. I highly recommend anyone thinking about entering to apply as early as possible to demonstrate their skills, passion and commitment in being a part of a strong future for the industry."

Nominations for the APAC Food Safety Awards close at 5pm, July 25, and finalists will be announced on August 14 . Award winners will be announced at the APAC Food Safety Awards Gala Dinner at Doltone House, 48 Pirrama Road, Pyrmont, Sydney on August 21.

For more information on the APAC Food Safety Awards and to nominate yourself, visit www.foodsafetyapac.com/award-nominations.

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AS THE PROPERTY downturn draws to an end, there are important lessons for policy-makers, lenders and investors to be learned, according to RiskWise Property Research.

RiskWise beleives Labor’s loss has eliminated the number one risk to the property market and this, combined with the high likelihood of interest rate cuts by the RBA this year, the introduction of the First Home Loan Deposit Scheme and APRA’s proposal to remove the 7 percent ‘stress test’ replacing it with a 2.5 percent buffer, will support the bottoming of the Sydney and Melbourne markets by the end of the year and then a gradual recovery.

RiskWise Property Research has identified six key lessons to be learned from the downturn and how to mitigate them to avoid another property crash in the future. They are:

1. RiskWise CEO Doron Peleg said despite claims by some experts it had been on the verge of collapse, the market remained viable, despite price falls. And, with a “good arsenal of tools” by the policy-makers, there should be no crash.

“In September last year, some experts warned of collapse due to ballooning household debt, compounded by sliding prices in Sydney and Melbourne, that would escalate to falls of 40 to 45 percent in the next 12 months,” Mr Peleg said.

“Not only has it not happened -- and would not even if the Labor had won the election -- but more importantly, policy-makers have taken measures to boost demand.

“The First Home Buyers Scheme (that could also be a larger-scale first home buyers’ grant, if needed) was introduced prior to the election by the Coalition and was adopted a few hours later by Labor. In addition, the flow-on effect of lower property prices on household wealth, consumer spending and also on dwelling commencements and, consequently, lower GDP, increases the likelihood of interest rate cuts to ‘almost certain’.”

He also said APRA’s credit restrictions to reduce investor demand had eased and it was proposing lenders scrap the 7 percent ‘stress test’ requirement on home loans replacing it with a buffer of 2.5 percent on top of the interest rates.

“The important thing to remember here is that in the future don’t expect total collapse of the housing market in a US GFC-style meltdown. It is extremely unlikely, and policy-makers take actions when required,” he said.

“It’s equally important that decisions should not be made under the assumption that very extreme scenarios will take place, for example, following the 60 Minutes story in September 2018 in which it was reported there could be a 40 percent drop in Australia's house prices … this had an impact on sentiment and confidence to some extent.”

2.  A more aggressive monetary policy is required by the RBA.

“The RBA should have cut interest rates already and should not have made statements declaring the next move being upwards when there were so many economic indicators and key risk indicators that should have been taken note of, such as the strong connection between dwelling prices, household wealth and spending,” Mr Peleg said.

“An example of this is the stronger than expected fall in dwelling commencements, as published by RiskWise in December 2018, alongside an extended period of time when inflation was consistency well below target and wage growth was poor.”

3.  Investors amplify credit and dwelling price cycles contributing to financial stability risks.

“Therefore, any major reduction in investor activity has an impact on the demand of both existing and new properties,” Mr Peleg said.

“It is unrealistic to expect an increase in dwelling commencements when investor activity is significantly reduced. This is a key lesson for any policy-maker who proposes a policy with a major impact on investor demand, and the proposed taxation changes by Labor are a prime example for that.”

4. Off-the-plan units mainly in high-supply areas carry a high level of risk.

Since mid-2017, RiskWise has been warning that many areas subject to unit oversupply carry high risk of low demand and price reductions.

“This risk is very relevant to construction lenders, developers and obviously buyers, largely investors,” he said.

Prime examples include the Brisbane CBD where, even as early as June 2016 in Statistical Area Level 4 (SA4) Brisbane Inner-City, price growth was -1.8 percent with 17,417 units in the pipeline, an addition of 24.5 per cent to the current stock.

A recent analysis by BIS Oxford Economics also demonstrates that two out of three Melbourne apartments sold off-the-plan over the past eight years made no price gains or lost money upon resale, despite a property boom and record immigration.

5. It’s important to listen to mainstream economists and research houses which provide accurate and up-to-date predictions. This was particularly the case from the end of 2017 when it was obvious property prices would materially decrease.

“The only question then was ‘by how much exactly?’,” Mr Peleg said. “This is a key lesson, mainly for lenders and investors, as the majority of the assets that were purchased in the past couple of years experienced material price reductions, and many of them with negative or very little equity. Obviously, in some cases poor credit decisions have been made and some investors will need a number of years to see their property value increasing to the original purchase price.

“Mainstream leading economists and research houses shared with the media the results of their analysis – the same results they provide to their clients, in most cases lenders and investment funds. They have no incentive to mislead their clients and talk the market up or down.”

Mr Peleg said any major policies must be constantly reviewed and their impact reassessed according to recent developments in the housing market. Eg Labor’s proposed changes to negative gearing did not have a visible reassessment process from when it was suggested in 2016, despite major changes in the property market.

“Policy-makers should have a proper process of challenge and feedback from mainstream bodies that research the market, especially if that research is saying the implications could be adverse,” he said.

6. Affordable areas show more resilience than the top end of the market.

This can be demonstrated using CoreLogic’s latest Quarterly Economic Review from February which showed despite a 7 percent fall across Melbourne for the last three months of 2018, the bottom end enjoyed a 0.5 percent increase.

Also, in the past 12 months houses in the lucrative areas of the Eastern Suburbs of Sydney have fallen by 10.9 percent and the Inner-East in Melbourne by 18.8 percent.

“Investors or owner-occupiers with low equity have to reconsider purchasing a property at the top end of the market as they could suffer from high volatility in the short term.

“For example, if you plan to refinance or sell and move to another property in three to five years expecting strong capital growth, this could be significantly impacted by major economic events. However, the lower end is by far less volatile and generally less subject to such strong market movements.”

www.riskwiseproperty.com.au

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THE  Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the new federal shadow ministry, and looks forward to working closely with Shadow Minister for Small and Family Business, Brendan O’Connor and Shadow Minister for Industrial Relations, Tony Burke.

“Brendan O’Connor has a long political history and has previously served as the Minister for Small Business,” Ms Carnell said.

“He has a good knowledge of the sector and what small businesses need to thrive. Mr O’Connor will be supported by Shadow Minister Assisting for Small and Family Business, Matt Keogh.

“There are a number of issues we are particularly keen on working through in the interests of small businesses.

“Small businesses have told us their major concerns are tax cuts, energy prices and cash flow.

“Access to affordable capital is fundamental to the growth of small to medium enterprises (SMEs), so the delivery of the Australian Business Securitisation Fund and the Australian Business Growth Fund is essential.

“Equally vital to small business is finding the right people with the right skills to employ and simplifying industrial relations so they can more easily employ," Ms Carnell said.

“We have identified a number of simple steps to tackle the overly complex industrial relations system for small businesses that would make a real difference to the sector.

“We would also urge the Opposition to work with the government to deliver its faster payment times policy.

“We look forward to working closely with the shadow ministry to achieve better outcomes for the engine room of our economy.”

www.asbfeo.gov.au

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THE Institute of Public Accountants (IPA) is pleased to announce the signing of a mutual recognition agreement with the Institute of Certified Management Accountants of Sri Lanka (CMA Sri Lanka) commencing May 24, 2019.

CMA Sri Lanka is a full member body of the International Federation of Accountants (IFAC), the South Asian Federation of Accountants (SAFA) and the Confederation of Asian and Pacific Accountants (CAPA). 

“We will provide CMA Sri Lanka technical and educational resources to build their capacity and professional development,” IPA Group chief executive officer, Andrew Conway said.

“This agreement will also lead to the transfer of knowledge and sharing of experiences between both Institutes,” Mr Conway said.

IPA members who are interested in applying for CMA Sri Lanka membership can contact This email address is being protected from spambots. You need JavaScript enabled to view it. and refer to CMA Sri Lanka website at www.cma-srilanka.org for more information.

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 36,000 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. 

publicaccountants.org.au

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TODAY, Monash University announces the future expansion of Monash University’s World Mosquito Program (WMP), a not-for-profit initiative that works to protect the global community from mosquito-borne diseases such as dengue, Zika, chikungunya and yellow fever, enabled by a transformational donation from the Gillespie Family Foundation.

Currently reaching three million people across 12 countries around the world, the generous donation will help the program to expand its operations to 16 of the top endemic countries for these diseases by 2023 , reduce the ability of mosquitoes to transmit harmful viruses through the WMP’s self-sustaining Wolbachia method, and ultimately help eliminate these mosquito-borne diseases.

Since 2014, the Gillespie Family Foundation has committed their time, passion and financial support to the WMP, which has contributed to eliminating the transmission of dengue in areas of Far North Queensland and the global scale-up of the program.  

WMP director at Monash University’s Institute of Vector-Borne Disease, Professor Scott O’Neill, said, “We are extremely pleased at the program’s success in halting dengue in release areas across Queensland’s Far North, and deeply grateful for the continued support and extraordinary generosity that has been provided by the Gillespie family to the WMP. It will enable the program’s further global expansion and research into natural methods to combat transmission of mosquito-borne diseases.”

The Gillespie Family joins other donors and supporters to the Program who together are enabling the protection of more and more people.

Co-founder of the foundation and one of Melbourne’s leading entrepreneurs and philanthropists, Roger Gillespie OAM, has also been appointed campaign council chair of the largest philanthropic fundraising campaign in Monash University's history, Change It. For Good.

Lesley Gillespie OAM is chair of the World Mosquito Program Philanthropy Advisory Council and Roger Gillespie is a member.

The Change It. For Good. campaign has achieved incredible results so far, reaching the halfway mark of each of its three goals, including $370 million raised towards the goal of $500m, over 26,000 of the 50,000 donor target and the confirmation of more than 100 new bequests.

Professor Margaret Gardner AO, president and vice-chancellor of Monash University, said Mr Gillespie would provide essential leadership in taking these impressive achievements to the next level.

“Roger has a deep understanding of the transformative power of philanthropy," Prof.Gardner said. "For many years, he has been a strong advocate for how we can collectively create positive change. I look forward to Roger’s leadership in driving Monash towards achieving our Campaign goals.”

Roger Gillespie is co-founder of Bakers Delight with his wife and Monash alumna, Lesley Gillespie. Roger and Lesley, along with their children Aaron and Elise and their spouses, Meghan Gillespie and David Christie, founded the Gillespie Family Foundation, which is committed to working for the good of the wider community, through philanthropy, action and advocacy.

www.monash.edu.au

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IT WILL BE Bunsen burners, beakers and bots to the fore at Alexandra Hills State High School today when the school hosts students from Holland Park and Kingston state high schools. 

The 60 students will be taking part in a workshop run by the Queensland Minerals and Energy Academy (QMEA), which will test their problem solving and encourage collaboration and complex design thinking. 

“These are the skills needed for the workforce of the future,” said Glencore Coal’s Anthony Exelby, Senior HR Coordinator. 

“Glencore Coal is a proud supporter of QMEA, which encourages students to continue with high-level science technology engineering and maths (STEM) subjects at school so that they enjoy a wider choice of careers in the future,” he said. 

“It’s critical for students to experience the practical application of their classroom studies, while learning about the range of exciting career opportunities that STEM-related subjects can lead to in mining,” said James Palmer, asset president of BHP Mitsubishi Alliance. 

"Our sector is at the pointy end of technology and innovation so it’s important for us to ensure that we have high-calibre people seeking careers with us.”

Alexandra Hills SHS principal Gail Armstrong said she was delighted to welcome the Holland Park and Kingston students to its school.  

“As the location for the QMEA/Alexandra Hills SHS Centre of Excellence in Automation and Robotics, we can offer students special opportunities to explore careers in the resources sector,” Ms Armstrong said. 

“Our students benefit from cutting-edge resources and unique learning opportunities made possible through this schools/industry partnership.” 

The QMEA is a partnership between the Queensland Resources Council and the Queensland Government under its Gateway to Industry Schools program. It has 60 schools throughout Queensland. 

www.qrc.org.au

www.qmea.org.au

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HILTON, the world's first global hotel company and one of the fastest growing in Asia Pacific, celebrates its milestone 100^th anniversary on May 31, in the midst of the most dynamic year in the company's storied history.

To mark the occasion, hundreds of hotels around the world, including throughout Asia Pacific, are extending Hilton hospitality beyond their doors by taking 'Acts of Hospitality' to their communities -- everywhere from Sydney to Shanghai and Delhi to Tokyo.

As it looks ahead to its next century, Hilton also announced today the creation of the Hilton Effect Foundation, which will help create a better world to travel by investing in both organisations and people having a positive impact on the communities Hilton serves.

The Foundation is launching this week with 15 grants to organisations that will support 20 communities around the world. These initial grants will support programmes around the globe that are creating opportunities for youth, aiding in disaster recovery, and supporting water stewardship and sustainability.

The Foundation builds on the impact already driven by Hilton through its Travel with Purpose strategy, which seeks to double the company's investment in social impact while cutting Hilton's environmental footprint in half by 2030. Since the inception of Travel with Purpose in 2011, Hilton's team members have performed more than 1.3 million hours of volunteer service and the company has invested tens of millions of dollars in the communities it serves.

As Hilton's primary international philanthropic arm, the Foundation will channel all of the company's financial and in-kind resources to further amplify the Hilton Effect around the world.

Celebrating its 100^th anniversary with hospitality and a global Foundation speaks to Hilton's founding vision.

"One hundred years ago, Conrad Hilton had a noble idea that travel can make the world a better place," said Chris Nassetta, president and CEO of Hilton. "That deep-rooted sense of purpose has fueled our transformative impact all across the globe, as we have welcomed 3 billion guests, employed 10 million team members and contributed US$1 trillion in economic impact. And in the years to come, we will do even more to positively change the world through our Hilton Effect Foundation."

Past and Present

Founded in 1919 in the tiny town of Cisco, Texas, Hilton has pioneered the travel industry for decades, introducing room service, air-conditioned lobbies, in-room televisions, airport hotels, the mini-bar, the computerized reservation system, and Connected Room -- the first hotel room allowing guests to unlock their doors and control their lights, thermostat and TV with a smartphone app. Hilton properties even invented the brownie and the pina colada.

Hilton now offers 17 distinctive brands across 113 countries and territories, with more than 5,700 properties and continues to grow with a new hotel opening somewhere in the world every day.

Hilton first entered Asia Pacific in 1963, with the opening of Hilton Tokyo, and recently opened its 300^th trading hotel, having grown fivefold in the last decade alone.

Looking Ahead

With one of the industry's fastest-growing pipelines, Hilton plans to expand to more than 20 additional countries by 2020, with more than 2,300 hotels in Hilton's construction pipeline. In Asia Pacific, the company has more than 500 hotels under development across nine different brands and nearly one in every four hotels under construction in the region carries a Hilton flag.

The company's legacy of driving innovations that change the hospitality industry will also continue in 2019 and beyond with the ongoing expansion of the first mobile-centric Connected Room.

As Hilton continues to grow, the communities in which it operates are integral to the guest experience, from team members to local suppliers. Asia itself is home to 60 percent of the world's youth and in recognition that many underprivileged youth may not have the right opportunities, the Hilton Effect Foundation will provide five grants to youth development projects across the region. This includes partnerships with the China Foundation for Poverty Alleviation and the Sichuan Tourism University; the Smith Family in Australia; Playground of Hope in Japan; Magic Bus in India; and the Youth Career Initiative in Vietnam.

The launch of the Hilton Effect Foundation continues Hilton's commitment to Travel With Purpose. Hilton is the first major hotel chain to institute science-based targets for carbon reduction as part of its ambitious 2030 goals, which are aligned with the United Nations' Sustainable Development Goals. Hilton also partners with several soap recycling partners across Asia Pacific, and has sent nearly 10 million bars of soap to communities in need all over the globe as part of its commitment to send zero soap to landfill. These efforts and more led to Hilton being named to the 2018 Fortune 'Change the World' list.

In addition to the Foundation, the hospitality giant has also launched a grassroots service initiative called 'Acts of Hospitality'. Team members throughout Hilton locations around the world are conducting meaningful, simple gestures for others that extend Hilton's hospitality beyond the doors of its hotels and into local communities.

Some of these gestures include; providing fresh bottled water to transport workers in China; creating memorable weekend experiences for families in need in Australia; providing refreshments to volunteer fire response teams in India; building new playgrounds in Japan; plus delivering treats to street cleaners in Indonesia and police volunteers in Malaysia.

Alan Watts, area president, Asia Pacific at Hilton, said, "Our Team Members have been delivering the light and warmth of hospitality in Asia Pacific for more than half a century, displaying that same pioneering spirit that saw the company born a century ago. As we celebrate this remarkable milestone, it's inspiring to see the positive impact we continue to have and the opportunity to shape the next 100 years of travel in the world's fastest growing hospitality market."

From the beginning, the source of Hilton's innovation, purpose and growth has been its team members and leadership. Hilton has been recognized for its exceptional workplace culture and is the first hospitality company in history to achieve the number one ranking on Asia's best multinational workplace, recognized by Great Place to Work.

"Our first century of hospitality has been tremendously meaningful, but I truly believe that now is our time," global CEO Mr Nassetta said. "Hilton is as strong as it has ever been, and our potential to positively change the world grows with each hotel we open and every guest we serve.

"Our 100^th year of hospitality is an opportunity to reflect on how far we've come and put a stake in the ground for our future. Conrad Hilton charted an ambitious course for Hilton in 1919, and I think he'd be proud of what we've accomplished so far. In my view, the world's a better place because Hilton was born 100 years ago, and if we do our job right, the world will be a better place because Hilton's in it for the next 100 years."

www.hilton.com

About Hilton

Hilton (NYSE: HLT) is a global hospitality company with a portfolio of 17 world-class brands comprising more than 5,700 properties with more than 923,000 rooms, in 113 countries and territories. Dedicated to fulfilling its mission to be the world's most hospitable company, Hilton earned a spot on the 2018 world's best workplaces list, and has welcomed more than 3 billion guests in its 100-year history. Through the award-winning guest loyalty program Hilton Honors, more than 89 million members who book directly with Hilton can earn Points for hotel stays and experiences money can't buy, plus enjoy instant benefits, including digital check-in with room selection, Digital Key, and Connected Room. Connect with Hilton on Facebook, Twitter, LinkedIn, Instagram and YouTube. 

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