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Coalition tourism policy ‘solid’ but needs further commitment for growth - ATEC

THE Australian Tourism Export Council (ATEC) has welcomed visa measures outlined in the Coalition’s Plan to Back Australian Tourism Jobs released last week.

"The Coalition’s policy commitment to deliver on improved arrival and visa processing systems is welcomed by ATEC, as visa processing times have been a major challenge for our industry and an issue we've been highlighting for some time” ATEC managing director, Peter Shelley said.

"Addressing the length of time it takes to process a visa application, and ensuring fast and efficient arrivals processes at the airport are important factors that will continue to contribute to Australia’s positioning as a sought after destination.

"We are pleased to see visas and processing issues are on the Coalition agenda, along with a benchmarking study which will identify our standing in this competitive area on the global stage," Mr Shelley said.

“The additional support for airport upgrades and a genuine investment in industry supported tourism icon infrastructure development was to be applauded along with small business tax breaks which were announced in the budget.”

However, Mr Shelley said the tourism export sector would be disappointed with the lack of additional marketing funds desperately required for Tourism Australia to maintain its ‘world leading’ tourism marketing program, especially given the number of competing countries which are now outspending Australia in efforts to attract international tourists -- stealing Australia’s market share as a result.

"It is disappointing that the call of the tourism industry, Australia’s second largest export industry, has not been recognised by the Coalition, especially when every $1 invested in marketing Australia as a tourism destination returns $15 to $20 to the Australian economy," Mr Shelley said.

“This week we saw the true contribution of our industry with the release of the National Tourism Satellite Account. Our industry contributed $57 billion to GDP, up 5 percent on the previous year while the rest of the economy is only growing at less than 3percent. Inbound tourism alone contributed 9.3 percent of total exports and we employed 5.2 percent of the workforce.

“We know that Tourism Drives Growth and that this industry has become a powerhouse of our economy, however we fear the hard-won success achieved over recent years is under threat in the absence of a genuine government commitment to invest in the future potential of this industry."

www.atec.net.au

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Industry Super Australia calls it the 'great unpaid super scandal'

THE SAVINGS GAP between those Australians robbed of their super by rogue employers and those workers paid correctly has blown out by 25 percent in just three years, with new analysis shining a light on the unpaid super epidemic, according to Industry Super Australia (ISA).

ISA analysis of tax office data from 2016/17 by ex-Treasury official Phil Gallagher has revealed the extent of the theft, where employers withhold super payments to prop up their own books, robbing workers of their rightful entitlements.

The analysis shows since the first ISA analysis of ATO data in 2013/14, the number of workers short-changed super has climbed by 90,000 to a total of 2.85 million Australians being ripped off $5.94 billion in super entitlements (more than $2,000 each a year) – an increase of $340 million.

Most startling is the increase in the cumulative savings gap between those underpaid super in a single year, and those paid their entitlements – that has seen on average, a person not underpaid their super end up with around 50 percent more super than a worker underpaid in 2016-17. 

Underpayment seems to repeatedly affect the same workers and lead to large cumulative differences in their super balances.

The average gap in savings has blown out to $24,506 for 2016/17, up from $19, 709 in 2013/14 – an increase of 25 percent in the space of just three years.

It’s even worse for young workers under 25 with wages below $30,000 – those not underpaid in 2016/17 have an astonishing 81 percent more super accumulated than those who are underpaid. This shows how much damage could be done if the Government continues to fail to act.

The report has also shone a light on dodgy employers who exploit a loophole in the law where if workers choose to salary sacrifice and contribute to their super, employers then ‘count’ that as their super guarantee payment for that worker – robbing them of their rightful entitlement.

This unfair exploitation has seen 370,000 workers who think they are doing the right thing lose‑out on super payments totalling $1.5 billion.

The data also coincides with new research conducted by UMR which reveals more than half of Australians polled incorrectly believe employers are required by law to pay super into a workers account at the same time as salary – meaning many will not even know they are being ripped off.

Only 19 percent of Australians polled correctly identified that as many as one in three workers are currently being robbed of their super by their employer – proving the problem is a lot worse than people realise.

After being told that one in three workers are underpaid, or not paid super, a huge 93 percent of Australians say that stopping unpaid super by paying it at the same time as salary is important.

Other key take-outs from the ISA analysis of the ATO 2016/17 data include:

  • Almost one in two young adults earning under $30,000 are underpaid superannuation;
  • More than 43 percent of labourers, machinery operators and drivers have collectively missed out on more than $800 million making it to their super accounts in 2016/17; and
  • Combining these risk factors reveals 75 percent of Australians short-changed their super contributions are aged under 35, or earn under $30,000 or are in blue collar jobs.

Industry Super Australia Chief Executive Bernie Dean called on the major political parties to act on what can only be described as systematic exploitation.

“This should be a wake-up call for the major parties. We are now seeing the cumulative damage the unpaid super epidemic is doing to workers’ super balances and it’s very clear,” Mr Dean said.

“Allowing employers to continue robbing workers of their super entitlement means these workers are going to end up worse off at retirement.

“While most employers do the right thing, unless we see action from the major parties this election, those dodgy employers are going to continue taking advantage of lax laws, a weak regulator and insufficient penalties to rip off these hardworking Australians.

“The research shows Australians are rightly concerned about their super and the fact that so many people are missing out on their entitlements. They overwhelmingly believe stopping unpaid super is an important issue and that something needs to be done.”

Mr Dean said there was a simple fix the major parties could commit to this election that would solve the problem.

“The easiest way to end this exploitation and ensure workers are paid their super is to simply legislate that all employers must deposit money into a workers super account at the same time as they deposit their salary into their bank account,” he said.

“Anything else is nothing more than a band-aid solution that won’t fix the problem and will only see more hardworking Australians have their super entitlements stolen by rogue employers.”

The full report by Industry Super Australia into this latest data can be accessed at https://www.industrysuper.com/assets/Uploads/d62c256bec/Super-Scandal-Unpaid-super-guarantee-in-2016-17-FINAL.pdf

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First home buyers are not winners in housing tax policy: HIA

THE Federal Opposition contradicted its own housing policy this week when it said that proposed changes to negative gearing and capital gains tax won’t have an appreciable impact on the price of housing, according to the Housing Industry Association.

“Labor’s proposals to increase capital gains tax on residential property investments and restrict access to negative gearing arrangements was intended to level the playing field between first home buyers and rental investors,” HIA managing director, Graham Wolfe said.

“How will first home buyers be better able to compete in the housing market if raising the taxes on residential rental property investors doesn’t impact house prices?

“How will additional taxation on housing deliver more affordable housing?

“Raising taxes on residential investors will constrain new rental property supply and inevitably place more pressure on housing affordability for hundreds of thousands of households that rely on rental accommodation," Mr Wolfe said.

“With no benefit for first home buyers and no increase in rental housing supply, the proposed changes to negative gearing and capital gains tax will only add another layer of taxation to the substantial amount of taxes already levied on housing, which can be in excess of 40 percent of the cost of a new home.

“It is hard to see the proposed changes to negative gearing and capital gains tax as anything more than a tax grab masquerading as housing policy,” Mr Wolfe said.

www.hia.com.au

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ATO should 'stop preying on small businesses' says senator

LIBERAL DEMOCRATS Senator Duncan Spender has slammed the Australian Tax Office for its mistreatment of small businesses, as exposed by the Australian Small Business and Family Enterprise Ombudsman.

“Unfortunately the Ombudsman has confirmed what I already suspected: that the taxman is enforcing its debt recovery actions on small businesses, despite appeals processes still taking place,” he said.

“The fact that this was found to be occurring in at least 12 percent of cases is further cause for concern.

“While the Ombudsman has ordered the ATO to cease debt recovery action immediately, I’m concerned such maltreatment of small businesses will continue.

“The ATO should not have the power to reach into the backpockets of Australian small business owners to recover alleged debt, especially when the said debt is being contested.

“The ATO is garnishing the bank accounts of unsuspecting business owners, which puts their ability to pay wages, rent, overheads and supplier fees at huge risk. They are literally swiping the money out of the bank accounts of small businesses before any ongoing disputes have even been settled.

“Small businesses are already facing an uphill battle in this country. The last thing they need is the taxman preying on them when they are vulnerable," Senator Spender said.

“All Australians, including small business owners, need a low tax future. If elected, I pledge to make the necessary legislative amendments to ensure money made by small owners remains in their pockets, especially while ATO disputes are ongoing.”

The Ombudsman’s review into the ATO was conducted following a 2018 exposé by ABC’s Four Corners and Fairfax Media that showed alleged unfair treatment and heavy-handed tactics towards small business owners.

The final report was released on Monday and is available here.

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Resources industry assured by government that royalty increase not in Qld Budget preparations

QUEENSLAND Resources Council has received assurances from the Queensland Government that increases of the rate of coal royalties, which are now at record levels, were not part of the preparations for the June 11 State Budget.

QRC chief executive Ian Macfarlane said the industry welcomed Treasurer Jackie Trad’s comments that the Labor Government was "proud to be a resource State here in Queensland," in response to a question from Katter's Australian Party (KAP) Member for Hinchinbrook Nick Dametto on coal royalties. 

“I understand the Treasurer did not want to disclose Budget details in Parliament, the reality is that the QRC has already sought and received assurances from the Palaszczuk Government that there is no plans to increase royalties,” Mr Macfarlane said.

"Queensland coal set an export record last year – every extra tonne we export delivers more dollars for the Treasurer’s budget and predictions are that the Government will receive an extra $1 billion in royalty taxes this year."

Mr Macfarlane said the State Government was on track to receive a record $5.2 billion in royalty taxes from the 316,000 men and women who work in the resources sector. Coal royalties are at record levels with $4.2 billion expected this financial year, compared to $1.6 billion under the last Budget of the previous Government.

“The Treasurer knows that Queenslanders are already seeing a strong return on coal exports and her answer in Parliament also acknowledged the importance of royalty stability to attract and retain investors in developing resources,” Mr Macfarlane said.

“With the Treasurer’s attack in Parliament today of the previous Government’s decision to increase royalties, it would be totally hypocritical for the Palaszczuk Government to consider an increase.

“It’s important in all Budgets not to kill the goose that lays the golden egg,” Mr Macfarlane said.

www.qrc.org.au

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Free legal advice service 'offer' for small businesses and farmers welcomed by ASBFEO

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell today welcomed Labor’s commitment to establish a free legal advice service for small businesses and farmers in dispute with financial service providers.

“Through this initiative, small businesses and farmers would get free legal advice as soon as a dispute arises,” Ms Carnell said. “This service would continue to provide legal advice if the dispute is escalated to the Australian Financial Complaints Authority (AFCA) or is taken to court.

“Small businesses and farmers would also be able to call on this advice to prepare for past cases to be considered by AFCA under its extended remit – to consider eligible financial complaints from small businesses dating back to January 1, 2008.

“We support measures that ensure small businesses have access to justice, particularly in cases where there's an imbalance of bargaining power.

“The court system is expensive and is extremely time-consuming; money and time are two key things that small business owners don’t have," Ms Carnell said.

“Phase I of our Access to Justice Inquiry found three out of five small business owners sought legal advice from a lawyer. Even with legal advice, small businesses find the cost of any action to achieve justice outweighs the potential gain.

“The proposed initiative would have the ability to actually fund cases, which is a real step to achieving justice for small businesses and farmers with valid cases against their financial service providers.”

www.asbfeo.gov.au

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Consumers left vulnerable to raids on super if grandfathered exemptions go ahead - ISA

CONSUMERS will once again be left vulnerable to raids on their super accounts by financial advisers if a government proposal to allow grandfathered conflicted remuneration to continue goes ahead, according to Industry Super Australia.

Industry Super Australia has strongly opposed the move in its submission to the Exposure Draft Treasury Laws Amendment (Ending Grandfathered Conflicted Remuneration) Regulations 2019.

Despite a clear recommendation by the Royal Commission that grandfathering arrangements should cease, the government’s draft regulations effectively give an exemption for financial institutions to continue provisions for conflicted remuneration by allowing a rebate or monetary benefit scheme to be established.

Industry Super Australia chief executive Bernie Dean slammed the proposal and called on the provisions for conflicted remuneration to be repealed as soon as possible – "in line with Commissioner Hayne’s recommendation".

“Let’s not forget that grandfathered commissions remove money from consumers' accounts without their express consent. This is akin to stealing money,” Mr Dean said.

“This is money that would otherwise have been maintained, in a consumer’s account, and instead was siphoned off to pay financial advisers for nothing.

“To claim administrative inconvenience as an excuse to try and water down what should be a blanket ban on grandfathered commissions, is astounding given the disgraceful conduct that was exposed during the Royal Commission.”

Mr Dean said this was not the first time the retail fund sector had tried to persuade the government – previously through the FoFA legislation – to put in place a backdoor arrangement that would have seen grandfathered commissions allowed into perpetuity.

“While some parts of the super sector will fight tooth and nail to keep grandfathered conflicted remuneration provisions – at the expense of consumers – our position is clear," Mr Dean said.

“We do not support a watering down of the blanket prohibition on grandfathered commissions. Any attempt to provide exemptions for conflicted remuneration will only erode consumer protections and leave consumers worse off.”

Industry Super Australia’s full submission can be found at https://www.industrysuper.com/media/ending-grandfathered-conflicted-remuneration/

Work with industry to keep the resource project pipeline and Queensland moving

THE Queensland Resources Council has urged the Palaszczuk Government to focus on moving the multi-billion-dollar pipeline of resource sector projects from planning to purpose.

QRC chief executive Ian Macfarlane said while he welcomed the Government’s advertisement promoting the fact $20 billion worth of resource projects had been approved with the creation of 7000 jobs over the last four years, there was in excess of $60 billion of resource project investment in the pipeline.

“We are competing with the world for investment in the development of our resources -— coal, gas and metals. Our resources are first class. We have dedicated and skilled workers. We need the confidence that stable policy settings from government gives to secure the new projects and new jobs for Queensland,” he said.

“It’s great to celebrate the investment secured over the last four years, but no one won a race running backwards. We are in a race — commodity prices and demand is strong.

“Abrupt and unpredictable government policy and decision-making from government is our biggest threat.

“With Queensland’s unemployment rate now back over 6%, there is no better time to give the resources sector the renewed confidence to invest, employ and export for all Queenslanders.”

Mr Macfarlane said since the 2017 State election, full-time equivalent jobs in the Queensland resources sector had grown at the rate of one every 57 minutes.

www.qrc.org.au

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ATO receives cryptocurrency data to assist tax compliance

THE Australian Taxation Office (ATO) is collecting bulk records from Australian cryptocurrency designated service providers (DSPs) as part of a data matching program to ensure people trading in cryptocurrency are paying the right amount of tax.

Data to be provided to the ATO will include cryptocurrency purchase and sale information. Deputy Commissioner Will Day said the data will make up a key element in the ATO’s compliance program.

“The ATO uses third party data to improve the integrity of the tax system by identifying taxpayers who fail to disclose their income details correctly," Mr Day said. "We also use third-party data to assist taxpayers in meeting their tax obligations through pre-filling of tax returns.

“This data will be collected under notice from the DSPs on an ongoing basis,” he said.

There has been significant growth in participation of crypto-assets in recent years. It is estimated that there are between 500,000 to one million Australians that have invested in crypto-assets.

Cryptocurrency and blockchain technology is seen as an enabler of existing risks for the ATO. Cryptocurrency has been used to move funds within the black economy, hide money offshore, and is sometimes linked to risks with unexplained wealth and undeclared taxable capital gains.

The ATO will be working with other regulators, in particular the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the Australian Securities and Investment Commission (ASIC) to ensure that tax law requirements align with a whole of system approach.

“The ATO is also working in a joint international effort as part of the Joint Chiefs of Global Tax Enforcement (J5), aimed at investigating cryptocurrency-related tax evasion and money laundering,” Mr Day said.

Following the data matching exercise people may be contacted by the ATO and given the opportunity to verify the information collected, before any compliance action is undertaken. People will be given at least 28 days to clarify any information that has been obtained from the data provider.

“We want to help taxpayers to get it right and ensure they are paying the correct amount of tax,” Mr Day said.

“Where people find that they have made an error or omission in their tax return they should contact the ATO as soon as possible. Penalties may be significantly reduced in circumstances where we are contacted prior to an audit.”

People can correct a mistake by requesting a self-amendment or making a voluntary disclosure, and can also contact us if they need help paying their tax.

Details of the ATO’s data matching strategies are published at www.ato.gov.au/datamatching

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QRC commends QR on Mt Isa rail opening

THE Queensland Resources Council has commended Queensland Rail (QR) on today's (April 29) opening of the vital economic rail link between Mount Isa and Townsville after it was severely damaged by the north Queensland floods. 

QRC chief executive Ian Macfarlane said QR CEO Nick Easy and his team "worked tirelessly to not only repair the rail but lifted its end of run times". 

“I personally thank Nick and the 400-person QR team who were immediately tasked to rebuild the rail and carry out widespread improvements from remote temporary accommodation camps,” Mr Macfarlane said. 

“As a result of the 11-week operation the opening is ahead of schedule and will result in reduced transport times by around 50 minutes.

“This rail line is a key transport corridor for Queensland’s metals industry which contributed $9.3 billion to the state’s economy last financial year, supported more than 50,000 full-time jobs and paid $1.3 billion in wages.

“Additionally, the metals industry pays royalty taxes to the Queensland Government which are on target to reach a new record of $5.2 billion this year which pay for schools, hospitals and roads." 

QR said the record monsoonal event damaged 200 sites across the 300km  track including repairs to 38 bridge abutments, the replacement of 47 km of rail and 120,000 tonnes of ballast. 

The Queensland resources sector provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses and community organisations across the state all from 0.1 percent of Queensland’s land mass, according to the QRC.

www.qrc.org.au

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QRC welcomes Labor commitment to metals, now needs mettle on coal

THE Queensland Resources Council has welcomed Federal Labor’s commitment to new resource discoveries as a boost for the state’s mining industry, but it has urged Labor to be clear on its position for the future role of coal.

QRC chief executive Ian Macfarlane said Queensland had a huge potential, particularly through the North West Minerals Province, to develop the new economy minerals so essential for the global growth in renewable energy technology, electric vehicles and battery storage.

“Prior to the election, the QRC urged the Coalition and Labor to embrace this opportunity, and we welcome the announcement by Opposition Leader Bill Shorten today,” he said.

“Any investment in additional investigation for resources, like $75 million for a road map for a new generation of mines, will help deliver new discoveries, new investment, new exports and new jobs for Queensland.”

Mr Macfarlane said in 2017-18, metals contributed $9.3 billion to Queensland’s gross regional product and supported more than 50,000 full-time equivalent jobs or the equivalent of 2 percent of Queensland’s workforce. The metals sector also contributed $370 million in royalties.

“Through policy and infrastructure – and fittingly the Townsville to Mount Isa rail line that is so important to that region reopens today after devastating floods earlier this year – we can grow that contribution to Queensland and Queenslanders,” he said.

Mr Macfarlane said he welcomed the role of CSIRO and Geoscience Survey in Federal Labor’s commitment, and he hoped there would be a prominent role for the State Government’s Queensland Geological Survey.

“CSIRO and Geoscience Australia are internationally renowned, so I welcome their planned role in Labor’s initiative. It dispels some of the criticism of their role in assessing the Carmichael Coal project’s Groundwater Management and Monitoring and Groundwater plan,” he said. 

Mr Macfarlane said the contribution of metals continued to be dwarfed by the role of coal in the Queensland economy – coal contributed $43.4 billion to the Queensland economy and more than 215,000 full-time equivalent jobs or 9 percent of the state’s workforce.  Coal royalties paid to the Queensland Government were $3.8 billion in 2017-18 and are expected to exceed $4 billion this financial year.

“During this Federal election campaign, where winning Queensland seats is so crucial, no Party should be vague about their commitment to coal,” he said. 

“All parties, vying for Queensland support, should be clear on their own support for the development of new coal mines, particularly in the Galilee Basin, and the continuation of existing mines producing both thermal and metallurgical coal.”

www.qrc.org.au

QRC report on 2017-18 economic contribution of metals: https://www.qrc.org.au/wp-content/uploads/2018/11/2018_Metals_Contributions.pdf

QRC report on 2017-18 economic contribution of coal https://www.qrc.org.au/wp-content/uploads/2018/11/2018_Coal_Contributions.pdf

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