THE IMPENDING roll out of major government-led transport infrastructure will be good news for thousands of small construction businesses across Australia, according to newly-released forecasts from Master Builders Australia. 

Shane Garrett, Master Builders chief economist said, “Our Master Builders Australia Forecasts: 2019/20 to 2023/24 report released today indicates that engineering and civil construction activity is set to expand strongly until 2021/22, notching up its strongest performance since the mining investment boom at the beginning of the decade.

“As a result of record activity in natural resources investment, the volume of engineering construction had peaked at $142.8 billion in 2012/13. The subsequent slump was heavy, involving a 38.6 percent reduction in activity,” he said. 

“While latest data indicate that engineering construction activity has still been battling tough conditions, the eventual roll out of government-led infrastructure projects will see growth return in the near future,” Mr Garrett said. 

“We forecast that the volume of engineering construction work will expand by 12.5 percent by 2021/22 compared with 2018/19. Thereafter, activity will ease back at the pipeline of infrastructure work comes to an end.

“Both road and railway construction work will see big gains over this period, while the completion of the NBN means that telecommunications related activity will slip back,” Mr Garrett said. 

“At the moment, the actual volume of construction work underway is smaller than it was this time last year. While our forecasts do envisage growth returning, government can help by getting things moving on the ground with more urgency. There is particularly strong scope for this when it comes to small and medium-sized infrastructure projects,” he said. 

“As well as benefiting thousands of small building and construction businesses across Australia, a speedier roll out of infrastructure projects by government would give the wider public real and visible evidence that our economy continues to move forward."

www.masterbuilders.com.au

ends

THE Queensland Resources Council (QRC) said it was disappointing to see reports that engineering firm Aurecon would end its business relationship with Adani "based on ill-informed bullying from anti-resources activists".

QRC chief executive Ian Macfarlane said regional Queenslanders would be the ones who missed out on jobs as a result.

“All businesses and CEOs should stand up to defend the opportunities in our resources sector,” Mr Macfarlane said.

“The resources sector is one of Queensland’s biggest employers. It supports more than 315,000 jobs, and over 262,000 of those jobs are in associated businesses and industries.

“The majority of those supporting jobs are in regional Queensland.

“So it’s disappointing to see any business give in to bullying tactics from activists, many of who are acting illegally to disrupt lives and businesses," Mr Macfarlane said.

“Ultimately every company can make its own business decisions. But it’s local workers who will miss out through the lost opportunities of working on new investments and new resources projects.“

The resources sector creates one in every eight jobs in Queensland and generates one in every five dollars, according to QRC figures.

"It delivers for every Queenslander through more than $5.2 billion in royalty taxes and making up 80 percent of Queensland’s export earnings," Mr Macfarlane said.

“It provides jobs and opportunities in every town and city in Queensland. All Queenslanders should be proud of our resources industry and the incredible things it helps build. 

“We should stand up against the bullying tactics of anti-resources activists, most of who rely on the very industry they demonise for their everyday lives.

“The QRC backs our resources workers and we hope to see everyone in our great industry do the same.”

www.qrc.org.au

ends

THE Queensland Resources Council (QRC) has welcomed the Palaszczuk Government’s announcement of new powers to crack down on extremist activists who are risking their own lives and the lives of others with their reckless tactics.

QRC chief executive Ian Macfarlane said the new offence to prevent dangerous devices being used to shut down public thoroughfares and infrastructure was an important measure to protect everyday citizens simply going about their lives and doing their jobs.

“QRC supports the right of every Queenslander to protest peacefully.  But by locking on to rail lines or blocking trains, activists clearly cross the line to becoming a danger to themselves, to the safety of train drivers and a menace to the wellbeing of the entire community,” Mr Macfarlane said.

“There have been too many near misses from reckless activists who disregard safety by blocking railway lines or roads.

“Safety is the number one priority for everyone who works in or with the resources industry," he said.

“The careless actions of protestors who disrupt rail lines make a mockery of those safety standards.  But hypocritically at the same time those reckless activists are relying on the strict safety environment and skilled staff who work on the rail network to prevent a tragedy.

“Protestors cannot be allowed to flout the law at their own choosing and to continually disrupt lawful business and people going about their day-to-day lives.

“This new power is an important step, but there is more to be done to address the range of disruptive and dangerous tactics activists are using on rail, roads and other infrastructure," Mr Macfarlane said.

“The QRC calls on the entire Parliament to support the Criminal Code (Trespass Offences) Amendment Bill put forward by the LNP to crack down on activists who take part in illegal trespass.”

www.qrc.org.au

ends

LEGISLATION to close a loophole that lets employers rip off workers who try and do the right thing by contributing to their super through salary sacrifice is welcome, but doesn’t go far enough according to Industry Super Australia.

Industry Super Australia (ISA) has published its submission to the Treasury Laws Amendment (Tax Integrity and Other Measures No 1.) Bill 2019, which seeks to close a loophole that has seen employers able to count a worker’s salary sacrifice contribution to their super as the employer’s own contribution.

ISA analysis of 2016-17 ATO data revealed that more than 370,000 Australian workers are currently missing out on $1.5 billion in super entitlements each year because of this loophole.

Despite the previous Parliament considering legislation to close this loophole, for some reason it was never brought on for debate in the Senate, meaning workers are continuing to miss out on their retirement savings, according to ISA chief executive Bernie Dean.

ISA has called on the Federal Government to address the bigger issue of unpaid super, "with one in three workers currently missing out on close to $6 billion in super because dodgy bosses are holding on to the money for themselves, rather than paying it into their employees super account".

"This happens because under the current law, employers are only required to pay super into a workers account quarterly, making it easy for them to hang on to the money and put it back into their business, or only pay a proportion of what the worker is entitled to," Mr Dean said.

"While the salary sacrifice loophole is a serious issue and must be fixed, the proportion of workers impacted by this loophole is around 17 percent of the total number of workers who are not being paid their legal super entitlements.

"In other words, the government’s Bill only fixes 17 percent of the problem."

ISA is calling on the Federal Government to take action on the bigger problem of unpaid super, by committing to change the law and make super payable on pay day.

"Federal politicians currently receive their super on pay day, it’s time there was one rule for everyone," Mr Dean said.

“More than 370,000 workers who think they’re doing the right thing and contributing to their own super are actually being double-crossed by their employers because of this loophole.

“This is one part of a much bigger problem. One in three workers are not getting paid super because dodgy bosses are hanging on to it and keeping it inside their business. It’s daylight robbery," Mr Dean said.

“The government needs to fix the whole problem – not just part of it. The government needs to go further and stop unpaid super once and for all by making super payable on pay day.”

ISA’s submission can be accessed here.

www.industrysuper.com

ends

THE Palaszczuk Government is backing business and giving young Queenslanders access to gain a valuable qualification for free to build a career in the industries where we know there will be jobs.

The Skills Strategy is a blueprint to deliver Queensland’s next generation of skilled workers.

A huge part of The Skills Strategy includes free apprenticeships for people under 21 years of age, across 139 qualifications.

"This is great news for young Queenslanders but even better news for businesses as they won’t have to bear the cost of training an apprentice," Queensland Premier Anastacia Palasczuk said.

Qualifications on offer are in traditional trade areas as well as non-trade areas such as electrical, plumbing, engineering, healthcare, hospitality, and early childhood.

ends

THE Financial Services Council (FSC) today welcomed the release of the Morrison Government’s Royal Commission implementation roadmap, confirming the government’s intent to act on all of the Commission’s recommendations by the end of 2020.

FSC CEO Sally Loane said with the release of the roadmap, industry has certainty and can approach the task of implementation in a more targeted way, ensuring resources are allocated and directed at the Federal Government’s priorities.

“It is very important to move quickly to rebuild consumer confidence and enhance consumer outcomes, however any legislation to implement the recommendations should be treated with the same diligence and rigor as any other new bill to be brought before the Parliament,” Ms Loane said.  

“The industry is committed to embracing this program of reform through action, strengthening the trust and ties between financial services and the community.

“The FSC is committed to working with Government to ensure all recommendations are implemented in the timeframes.”

The FSC said it looked forward to working on the implementation of the following recommendations:

• 2.4 – Ending grandfathered commissions for financial advisers;
• 2.7 – Reference checking and information sharing for financial advisers;
• 1.15 – Enforceable code provisions for industry codes of conduct;
• 4.7 – Application of unfair contract terms provisions to insurance contracts.

There are a number of recommendations due to be implemented that the FSC believes require further discussion with government:

• 2.10 – A new disciplinary system for financial advisers;
• 7.1 – Compensation scheme of last resort. 

Ms Loane said modernising the default superannuation system to end the proliferation of duplicate accounts by implementing a ‘default once’ framework has not been dealt with as part of this implementation roadmap.

“We look forward to the Government providing a response to the issue and timing for the reform as part of its response to the Productivity Commission’s report into the efficiency of the super system,” Ms Loane said.

www.fsc.org.au

ends

AUSTRALIA'S four major banks will appear before the House of Representatives Standing Committee on Economics at public hearings in Canberra on November 8 and 15, 2019.

The Chair of the committee, Tim Wilson MP, said, "These hearings are an important mechanism for the Parliament to publicly scrutinise and hold Australia’s four major banks to account.

"The committee’s scrutiny will include examining the four major banks’ progress in implementing the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

"Given the widespread misconduct across the financial services sector identified by the Hayne Royal Commission, it is important that financial institutions are held accountable and to ensure that they make the crucial improvements needed to start restoring trust in our financial institutions," Mr Wilson said.

Beyond actions taken by the sector, Treasurer Josh Frydenberg released a royal commission implementation road map today, which outlines how the Morrison Government will move on all recommendations requiring legislation by the end of 2020 – with one-third planned to be finalised this year.

In a future series of hearings the committee will extend its scrutiny beyond the four major banks to smaller banks and the insurance, superannuation and financial advice sectors.

Public hearing details

Date: Friday, 8 November 2019
Time: 9.15am to 4.15pm
Location: Committee Room 2R1, Parliament House, Canberra

9.15am–12.15pm: Westpac
1.15pm–4.15pm: Commonwealth Bank of Australia

Date: Friday, 15 November 2019
Time: 9.15am to 4.15pm
Location: Main Committee Room, Parliament House, Canberra

9.15am–12.15pm: National Australia Bank
1.15pm–4.15pm: Australian and New Zealand Banking Group 

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

ends

INDUSTRY Super Australia (ISA) has welcomed the Federal Government’s commitment to implementing the recommendations of the Hayne Royal Commission.

ISA chief executive Bernie Dean said the government’s implementation roadmap set out an ambitious legislative timetable that should deliver important protections for consumers, including the requirement that ongoing fee arrangements must be renewed annually, introduction of a new disciplinary system for financial advisers, and bans on hawking of super products.

"ISA is a strong advocate for legislative reform that is in the best interest of members and whilst quick implementation is to be commended, it should not compromise the interests of members," Mr Dean said.

"While the recommendation relating to stapling will be dealt with as part of the Government’s response to the Productivity Commission, ISA will continue to work with Government as they determine their response to this important recommendation.

"Industry super funds preferred model is to automatically combine a worker's super each time they change jobs into a single quality checked account," he said.

An independent cost-benefit analysis of ISA’s model by KPMG found it would deliver up to $416 billion in performance dividends to members and eliminate multiple accounts, with consumers standing to benefit from close to $200,000 more in super over their working life.

"This is in comparison to the ‘fund-for-life’ model which could see workers stuck in a single underperforming fund for life," Mr Dean said.

Separately, ISA is urging the Federal Government not to lose sight of the other key reform priorities in the superannuation sector.

"Both the Royal Commission and Productivity Commission made it clear that underperformance is the single most costly drag on the system, costing consumers hundreds of thousands of dollars in retirement savings," Mr Dean said.

"Dealing with this chronic underperformance must remain the government’s top priority when it comes to superannuation, along with the elimination of multiple accounts and stopping the scourge of unpaid super," Mr Dean said.

“The Royal Commission did a very good job of identifying where the problems and misconduct were – now the government must get on and fix them," he said.

“We welcome the government’s commitment and the ambitious reform program they have set out and we stand ready to work with them as they implement these important protections for consumers.

“While this important work is underway, we urge the government not to lose sight of the other challenges such as chronic underperformance and the fact that one in three workers are not even getting paid super," Mr Dean said.

www.industrysuper.com

ends