THE Queensland Resources Council has welcomed the Palaszczuk Government’s offer to freeze the rates of royalties on coal and minerals for three years. 

The LNP has already promised to freeze royalty rates until October 2024.

The QRC will now ask its member companies to consider the Government’s offer along with their request for the resources industry to contribute $70 million to a Regional Infrastructure Fund over three years. 

QRC chief executive Ian Macfarlane said increasing royalties would be increasing taxes and an attack on the resources sector that supports one in eight jobs in Queensland – the equivalent of 315,000 full-time jobs.

“The Palaszczuk Government is already on track to receive more than $5 billion in resource royalties this financial year – a record and almost $1 billion more than they expected from their current budget," Mr Macfarlane said.

“Any increase in royalty taxes is a disincentive for investment in regional areas and would mean lost job opportunities for all Queenslanders.

“The industry will respond to the government on its proposal as soon as possible.”

www.qrc.org.au

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THE Institute of Public Accountants (IPA) has commended the Federal Government’s announcement to review the retirement income system.

“We were very pleased to hear that the Treasurer, the Hon Josh Frydenberg MP announce that he will commission the review which will include the interfaces of superannuation, government pensions and taxation,” IPA chief executive officer, Andrew Conway said.

“The review is long overdue. The importance of trying to define what a retirement living standard the system should aim for is not well defined.

“There is also the budgetary considerations of funding the age pension and superannuation tax concessions and ensuring that the system is sustainable going forward.

“The need to encourage greater investment in superannuation to facilitate self-funded retirement is critical as Australia will not be able to fund government pensions in the future, especially considering our ageing population.

“Different mechanisms need to be considered given the longevity risk when superannuation members retire.  This includes the development of annuity type products.

“However, there is significant complexity in the system with many competing interests, which must all be given due weight if we are to develop an equitable retirement income system.

“For instance, we cannot ignore the findings of the Productivity Commission report which suggested reforms to benefit members through lower fees and higher investment returns could generate an extra $533,000 for a new job entrant today when they eventually retire.

“An essential element of this review will be to provide access to affordable financial advice, which is what public accountants, as trusted advisers, can deliver,” Mr Conway said.

www.publicaccountants.org.au

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QUEENSLAND is strengthening its position as the most reliable supplier of gas on the East Coast after the Palaszczuk Government awarded more than 2700 square kilometres of energy rich land for exploration.

Queensland Resources Council (QRC) chief executive Ian Macfarlane said the economics of supply and demand were simple.

“If demand for gas is strong you need to increase supply to put downward pressure on prices,” Mr Macfarlane said.

“I applaud the Palaszczuk Government and the Resources Minister Dr Anthony Lynham for their continued support of the State’s gas industry. This is an investment into regional Queensland, where all levels of governments and farmers support the gas industry, resulting in massive economic benefits for farmers and rural and regional communities."

Brisbane-based Senex Energy was awarded 153sqkm near Miles under the domestic-only supply mechanism, while a Santos/Shell joint venture, Galilee Energy and Sajawin won the right to explore for gas across more than 2600sqkm between Miles and the border town of Inglewood. 

Mr Macfarlane said Queensland’s neighbours must take a leaf out of our book. New South Wales and Victoria can’t expect Queensland to continue to supply, and subsidise, their own gas users.

“It’s time for both sides of politics to consider rewarding States that do develop their resources, at the expense of those who don’t,” he said.

www.qrc.org.au

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THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the return of Senator Michaelia Cash to Cabinet as Minister for Employment, Skills, Small and Family Business.

“Senator Cash’s return as small and family business minister demonstrates the importance of this sector in Australia, getting on with the important work that’s already begun since the Minister’s initial appointment,” Ms Carnell said.

“Small business has been crying out for certainty, and now they want to see the federal government follow-through on its promises to small business and get the job done.

“Minister Cash ‘gets’ small and family business and has already shown true commitment to the sector.

“There are a number small business issues we are particularly keen on working through with Senator Cash.

“Small businesses have told us their major concerns are tax cuts, energy prices, cash flow, finding the right people with the right skills to employ and simplifying industrial relations so they can more easily employ," Ms Carnell said.

“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.

“The delivery of the government’s payment times policy is crucial to small businesses, as is the continued downward pressure on power prices.

“It’s encouraging to see ‘skills’ included the Minister’s new title. Investing in change to address the needs of rural and regional small businesses in particular will create productive communities," Ms Carnell said.

“And we will continue to work with the government to deliver greater access to justice for SMEs.

“We welcome the opportunity of working with Attorney-General and Minister for Industrial Relations on the simplification of Australia’s workplace relations.

“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," she said.

“We look forward to working closely with Senator Cash and her team to continue better outcomes for the engine room of our economy."

www.asbfeo.gov.au

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"THE RECENT Federal election result reinforces a principle that we have constantly recommended to successive governments that retirees require certainty when they plan their retirement finances, especially those who rely on modest investment income and don’t qualify for the age pension,” Association of Independent Retirees acting president Wayne Strandquist said.

“Our association acknowledges that from time to time there may be a need to increase spending on such areas as health, aged care, education and infrastructure, but targeting particular concessions and taxes or particular demographics creates unfairness and discrimination in the community," Mr Strandquist said. 

“If a large increase in revenue is required, then a comprehensive review of all taxes, concessions, royalties and excises and other revenues should be undertaken. This wide-ranging review should include a thorough impact assessment using current data to ensure that vulnerable members of the community are protected.”

He further noted, “Retirees are used to living within their means and maybe politicians should consider a similar approach when devising government expenditure policies."

Following the Federal election result, partly and fully self-funded retirees are relieved that they will not be disadvantaged through any changes to current legislation that applies to retirement savings, superannuation, Australian share dividends and franking credits, capital gains tax, negative gearing of investments (including property) and family trusts.

"Our association notes the Federal Treasurer’s recent comments that he is positively disposed to a review of the retirement income system as proposed by the Productivity Commission. This and many other recommendations made by the Productivity Commission and the Banking Royal Commission still need to be progressed," Mr Strandquist said.

“The Association of Independent Retirees looks forward to providing input on any review of the retirement income system or other recommendations that may be initiated by the newly elected government.

“However, we would be concerned if self-funded retirees of modest means, many of whom are on a part age pension, were disadvantaged by changes to legislation that impacted their current retirement income arrangements.” Mr Strandquist said.

www.independentretirees.com.au

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INDUSTRY Super Australia (ISA) today congratulated the Morrison Government on its re-election and announcement of key treasury portfolio ministers who will be responsible for progressing important reforms that could make hundreds of thousands of dollars difference to Australians’ retirement.

ISA chief executive Bernie Dean today congratulated the newly appointed Assistant Minister for Superannuation, Financial Technology and Financial Services Jane Hume, who will work alongside Treasurer, Josh Frydenberg, to oversee Australia’s superannuation system.

“We’re looking forward to working constructively with the Morrison Government to deliver the change that is needed to lift performance and improve member outcomes,” Mr Dean said.

“The Royal Commission and Productivity Commission made it clear that the chronic underperformance plaguing parts of the system and incidence of multiple accounts will have a devastating impact on Australians’ retirement savings unless there is significant reform.

“We need to ensure dud underperforming funds are weeded out from the system, and that there is a framework in place to connect people to a single, high-performing and quality checked fund - whether by default or choice.”

Mr Dean said stopping the rort of unpaid super that sees nearly 3 million workers robbed of close to $6 billion in super by dodgy bosses every year was another area requiring urgent action. 

“There is a simple fix the new Government can make – requiring all employers to pay super at the same time as they pay salary,” Mr Dean said.

“With women on average retiring with less than half the amount of super than men, closing the gender gap is another area that we need to see more progress in.

“Paying super on parental leave and abolishing the $450 super guarantee threshold are two commitments the Government could make that would go some way to closing the gap.”

Mr Dean said there were also significant opportunities for IndustrySuper Funds to be partners in the Government’s infrastructure agenda, investing capital at appropriate rates of return for members whilst simultaneously driving growth and creating jobs.

THE Australian Tourism Export Council today congratulated Senator Simon Birmingham on his return to the role of Minister for Tourism and welcomes the new role of Assistant Minister for Regional Tourism which will be held by Senator Jonathon Duniam.

“Minister Birmingham took on the tourism portfolio in August last year and his reappointment to the role gives us the opportunity to continue to grow our relationship with his office and build on our advocacy for the tourism industry,” ATEC managing director, Peter Shelley said.

“We are also very pleased to see recognition for our regional industry members with Senator Duniam appointed as Assistant Minister for Regional Tourism, providing a firm focus on developing regional tourism with a view to increasing regional dispersal of domestic and international travellers.

“Our industry is strong and robust but we have some significant challenges to overcome in delivering a continuing economic success for Australia.

“These challenges centre around questions relating to maintaining our competitiveness as an attractive tourism destination over the coming years, and how we ensure the delivery of high quality, authentic Australian experiences - key questions to our future success -  and ATEC will be working with the Government to highlight these issues and find solutions.

“ATEC calling on the new Morrisson Government to embrace an ‘an all of Government approach’ to address issues which are impeding the growth of the tourism industry threatening to erode the momentum of what is a $44bn export industry that grew at more than 7 percent in the past year.”

QUEENSLAND Premier Annastacia Palaszczuk should immediately cancel her planned trade trip to Japan and stay in Queensland to end the uncertainty about royalty taxes which could cost jobs in the resources sector, Queensland Resources Council (QRC) Chief Executive Ian Macfarlane said.

“To be frank, there’s no point to a trade mission to any of our valued trading markets while there is uncertainty that new taxes will be imposed on resources," Mr Macfarlane said.

“Unless Annastacia Palaszczuk can give a straight answer that no, there won’t be any increases in royalty tax rates in the upcoming budget, she should cancel the trip.

“Japan is one of our most important trading partners and a big investor in mining in Queensland. They deserve better than the mixed messages the Premier and the Treasurer are sending which are causing concern to Japanese investors and coal buyers both here and in Japan.

“Queensland relies on investment from overseas, particularly Japan, to grow our resources sector and create more jobs in regional Queensland and create more wealth for all Queenslanders.

"Japan has long been a foundation customer for Queensland and has invested in mines, ports and rail and helping us build our most valuable export industry based on long term relationships. We need to be sending consistent, positive messages to those investors that they are welcome here and that the investment climate here is stable.

“Queensland is also a trading state. About 80 percent of our $80 billion export trade comes from resources, including our high quality coal exports," Mr Macfarlane said.

“Our world-class commodities will already deliver $5.3 billion in royalty taxes to the state budget, to build roads, schools and hospitals. 

“By putting up taxes the State Government risks undermining our state’s biggest asset -- mining jobs.

“Increasing royalty tax rates would undermine the competitiveness of our resources sector and make our commodities less attractive compared to other nations and even other Australian states like New South Wales.

“Job security through resources projects is a top priority for Queenslanders, especially in our regions. They sent that message in no uncertain terms at the ballot box last weekend.

“The LNP has committed to no increases for royalty taxes through its first term if it wins the next state election. That would mean stable royalty tax rates through until at least 2024.

“Annastacia Palaszczuk and Jackie Trad must do the same.The QRC will work with both sides of Parliament on policies that deliver a long term, stable future for the resources sector and the 315,000 Queenslanders who work in or with the sector.

“The Premier has been a strong advocate for coal in Japan.  She and Minister Anthony Lynham secured the $1 billion Byerwen coal mine, she soothed concerns in Japan about last year’s dispute over rail access for coal and over the new financial assurance scheme. I fear a lot of that work will be undone without an assurance on royalties.

“The Premier should convene a resources specific delegation to our key trading partners but only when there is a clear message of support for resources projects. Until then the Premier should stay home and end the uncertainty the Government has created.

“There must be a clear commitment to no new royalty taxes and a rock solid commitment to a clear and independent approvals process through the Coordinator General that applies to all projects," he said.

“The Queensland Parliament can also voice its unequivocal support for regional mining jobs by rejecting the Greens Bill which wants to ban all mining in the Galilee Basin.

“Our jobs and our prosperity as a state depend upon a prosperous resources sector and when resources prosper, all of Queensland prospers.”

www.qrc.org.au