"THE LABOR Party policy to cease Franking Credit refunds severely disadvantages retirees who miss out on qualifying for a part age pension,” said Association of Independent Retirees acting president, Wayne Strandquist.

He said in the lead up to the Federal Election, there would be strong advocacy to the Australian electorate by the Association of Independent Retirees (AIR) on behalf of partly or fully self-funded retirees who have low to moderate retirement income.

Many of these retirees just missed qualifying for a part government age pension and will not receive Franking Credit refunds under the Labor policy.

Retirees who planned their finances, according to the rules at the time they retired, invested in Australian shares that attract Franking Credits.

"Now the Labor Party wants to “shift the goalposts” leaving self-funded retirees with no ability to make up the income they will lose if Franking Credit cash refunds cease," Mr Strandquist said.

As well as not supporting the removal of Franking Credit refunds, AIR will be advocating against other policies that impact on retirees such as restrictions on Negative Gearing and increases in the Capital Gains Tax.

“To support the advocacy leading up to the Federal election, AIR has adopted a new look logo that reflects the importance of the 'independence' to members of our organisation that represents partly and fully self-funded retirees," Mr Strandquist said.

“Today, more than ever independence matters for retirees – independence in the approach to retirement income and investments, independence in lifestyle and housing options, independence in health and aged care choices," Mr Strandquist said.

To strengthen advocacy for its membership, AIR joined the Alliance for a Fairer Retirement System in March 2018. AIR has made many submissions at a national, branch and member level to the House of Representatives Inquiry into the implications of removing refundable Franking Credits. AIR representatives have also made statements at public hearings held by the Inquiry.

“Over the past few years, successive governments have amended legislation for superannuation and retirement savings that have adversely impacted on retirement income which could not have been anticipated when financial plans were made for retirement. Whilst grandfathering has been a principle we recommend be applied to legislation changes, it has not always been used by governments in amending rules that affect fully and partly self-funded retirees,” Mr Strandquist said.

www.independentretirees.com.au

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THE ATO has said it understands that the pressure of meeting tax and super obligations can contribute to mental health issues for small business owners and is now offering a range of support to struggling businesses.

Deputy Commissioner Deborah Jenkins attended the Small Business Mental Health roundtable chaired by Senator Michaelia Cash, Minister for Small and Family Business, Skills and Vocational Education at Parliament House yesterday. Ms Jenkins said the ATO was committed to working with government and community organisations to address the issue.

“More and more small businesses are telling us that they are under stress. We understand that long hours, cash flow pressures, endless paperwork, staff issues and the blurring boundaries between work and family life can take a toll on mental health,” Ms Jenkins said.

“That’s why we are working together with organisations such as Beyond Blue, ASBFEO, small businesses and their associations as well as tax practitioners to develop initiatives to better support small business owners with their tax and super obligations when they are experiencing mental health issues.”

"We have rolled out training for all of our frontline staff to assist them to better understand mental health issues and show empathy for taxpayers who are struggling. Nearly 6,000 staff have already undertaken the training.

"We also offer a range of services aimed at helping businesses stay on track.

"Because we know that managing debt can be a big contributor of stress for small businesses, we have been making it easier for small businesses to negotiate and enter into payment plans if they need them. In 2017–18, we negotiated 790,000 payment plans with small businesses.

“Payment plans allow small businesses to manage their tax debts and take the pressure off when other bills are due. But our primary focus in 2019 will be on early engagement and support before debts are due,” Ms Jenkins said.

The ATO has a small business live chat service and an after-hours call back service available from Monday to Thursday. Small business owners can also subscribe to the Small Business Newsroom to get all the latest information and alerts.

The ATO's website has more information for people running small business experiencing mental health issues - ato.gov.au/smallbizmentalhealth

Resources available for small business owners on the website: ato.gov.au/SBsupport.

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THE HAYNE Royal Commission’s recommendation to create a new independent ‘super-regulatory’ body to oversee ASIC and APRA to drive accountabilities of the two regulatory bodies may have some merit but some fundamentals have to be addressed, says the Institute of Public Accountants (IPA).

“The IPA has long advocated for the need to appropriately fund and resource the regulators to enable them to do their job,” IPA chief executive officer, Andrew Conway said.

“While on face value, having a regulatory body regulating the regulators may appear a regulatory overkill, if it achieves the desired accountability outcomes, it may have merit.

“One may question if something is broken, why not fix it before funding yet another layer of regulation," he said.

“Regardless, what we do not want to see, is further regulatory burden being filtered down on the shoulders of small business operators.

“Our Small Business White Paper points to the need to look at regulator culture and adjust behaviours that do not inflict unnecessary burden on SMEs. 

“In particular, research shows that an increasing number of small businesses continue to be concerned with the impact of laws and regulations on their ability to run their businesses and innovate," Mr Conway said.

“We also do not want to see the targeting of small targets due to additional pressure placed on ASIC to enforce, while there are more complex and yet, bigger fish to fry.

“The Royal Commission findings point to many cases where prosecution should have applied and all must be done to support those that have been aggrieved through the unscrupulous behaviour of the banking, mortgage brokerage and insurance industries.

“Up until recent times, ASIC has had the regulatory teeth on paper but not the resources and funding to actually bite so they should be given the good grace to prove themselves,” Mr Conway said.

www.publicaccountants.org.au

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TRANSPORT automation has significant implications for the provision of mass transit, depending on how it is managed.

In its submission to the automated mass transit inquiry, the Bus Industry Confederation (BIC) stated, "The introduction of driverless vehicles should be seen as an opportunity to review mobility in general, reflecting on the whole mobility system, the purpose and value of mobility and how it can be accomplished better in social, environmental and economic terms, recognising the potential benefits and challenges associated with driverless vehicles."

BIC expressed concern that automated private vehicles may lead to increased car usage, higher congestion, greater urban sprawl, and declining public transport use as people were attracted to the convenience of automation and the personal time-cost of travel became less relevant.

The alternative was a transport future based on shared-mobility, with flexible services branching off strong trunk routes, guaranteeing access, avoiding congestion and preventing urban sprawl.

The BIC held the view that “the move to autonomy will and needs to be led by mass transit bus services operating on bus priority infrastructure and dedicated bus rapid transit infrastructure such as the Brisbane Busways”.

The BIC and other organisations  will be appearing at a public hearing tomorrow as part of the House Standing Committee on Infrastructure, Transport and Cities’ inquiry into automated mass transit. The Committee will explore issues related to both automation and alternative fuels.

Committee chair, John Alexander MP, said that transport automation presented both real opportunities and real challenges to government and the community.

“The automation of mass transit is not just about driverless buses and trains—it’s also about how mass transit will fit into an automated transport future and how we will manage questions of mobility more generally.”

Mr Alexander suggested that “ideally, automated transport would be incorporated into the master-planning of the urban and regional environment in a way that maximises connectivity while promoting compact and accessible urban forms”.

Public hearing details: 8.30am – 12.10pm, Friday, February 15, 2019 Committee Room 1R3, Parliament House, Canberra

8.30am – 9.10am: ANCAP
9.10am – 9.50am: Siemens Mobility SAS
9.50am – 10.30am: CSIRO
10.50am – 11.30am: Engineers Australia
11.30am – 12.10pm: Bus Industry Confederation
12.10pm: Close

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

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THE Industry, Innovation, Science and Resources Committee will host a discussion involving several prominent organisations in the emerging Australian space industry, including the newly established Australian Space Agency.

The discussion will be held in a roundtable format featuring a number of industry participants, including Lockheed Martin, the world’s largest Defence contractor, and Airbus Australia.  

Members of the public are welcome to attend or listen in as the hearing will be broadcast live. RSVP to the Standing Committee on Industry, Innovation, Science and Resources, at This email address is being protected from spambots. You need JavaScript enabled to view it.

Other participants include the Department of Defence, Myriota and Professor Russell Boyce, Chair of Space Engineering at the University of New South Wales, Canberra.

Public briefing details: 10:30am to 12:30pm, Wednesday, 20 February 2019, Committee Room 1R3, Parliament House, Canberra.

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

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THE Queensland Resources Council (QRC) has welcomed the Australian Government’s commitment to prioritise critical minerals projects in its latest round of Cooperative Research Centre Project (CRC-P) funding.

QRC chief executive Ian Macfarlane said the investment of up to $20 million for critical minerals projects would help encourage new exploration, which is essential to secure the resources jobs of the future.

“Queensland is one of Australia’s heavy hitters when it comes to resources investment. As a result, our sector supports more than 316,000 jobs and creates $62.9 billion in value to the state’s economy,” Mr Macfarlane said.

“Our commodities of coal, LNG, bauxite and zinc are in demand in major international markets and as a result the resources sector is on track to deliver a record $5.2 billion to the Queensland budget in royalty taxes this year.

“Those commodities will continue to underwrite our economy for decades into the future.  But Queensland’s potential is made all the richer through our new prospects for exploration in critical minerals including rare earths, scandium and tin.

“Exploring new areas, as well as the development of the North West Minerals Province, will create a new wave of economic opportunities for Queensland.

“This CRC-P funding should encourage more exploration and development in projects that deliver on our state’s potential.

“The most recent Queensland Exploration Council (QEC) Scorecard found the highest level of sentiment in the industry since the Scorecard began in 2011.

“This is good news for all Queenslanders, including in our regions.

“We can’t take our success for granted. The resources industry will continue to work with all levels of Government to deliver the policy and regulatory certainty that is essential for investor confidence and to translate potential into projects.

“A strong resources sector means a strong and prosperous Queensland.”

www.qrc.org.au

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THE Joint Standing Committee on Northern Australia is holding a public hearing in Canberra on Friday, February 15, 2019, as part of its Inquiry into the Opportunities and Challenges of the Engagement of Traditional Owners in the Economic Development of Northern Australia.

The Committee Chair, Warren Entsch MP, stated that, "The Committee is interested to hear from Federal Government agencies about how Traditional Owners in Northern Australia can be supported to take advantage of economic opportunities. In particular, the Committee will examine the role of representative bodies, government entities, and any legislative, administrative and funding constraints to the economic engagement of Traditional Owners."

The hearing program and further information about the Committee’s inquiry is available on the Committee’s website: www.aph.gov.au/jscna. The hearing will be broadcast live at aph.gov.au/live.  

PUBLIC HEARING DETAILS:

Canberra

9.15am to 11.45am, Friday, February 15, 2019

Committee Room 1R2, Australian Parliament House

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LEGISLATION to implement the recommendations of the banking Royal Commission should be treated with the same diligence and rigor as any other new bills to be brought before parliament, Financial Services Council CEO Sally Loane said today.

In Canberra today, Ms Loane said the FSC understood the appetite for immediate reform and was broadly supportive of the Commission’s recommendations.

“With the release of the final report, there is a real and justifiable desire to get on with the job of strengthening and improving our financial system,” Ms Loane said.

“There are already several important superannuation reform bills languishing in Parliament that have not yet been passed into law. The FSC would like these passed without delay.

“The next tranche of financial system reform needs to be treated with the same rigor and scrutiny as any other legislation or regulation would receive.

“While we must move quickly to repair the sector’s damaged reputation and ensure that consumers are able to trust the people, products and services in our sector, it was only eight days ago that the final report of the Royal Commission was released by the Government. 

“In some important areas of reform, further information has been either been sought by Treasury or further analysis is required. We need comprehensive industry consultation to ensure that the unintended consequences of any technical changes are identified and dealt with.

“We cannot end up in a situation where well-intended reforms deliver poor customer outcomes down the track. It makes no sense to ram through new reforms in a way that could damage our economy, hurt small business or harm consumers.”

About the Financial Services Council

The Financial Services Council (FSC) is a leading peak body which sets mandatory Standards and develops policy for more than 100 member companies in Australia’s largest industry sector, financial services. Full Members represent Australia’s retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. Supporting Members represent the professional services firms such as ICT, consulting, accounting, legal, recruitment, actuarial and research houses. The financial services 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.

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