THE HOUSE of Representatives Standing Committee on Economics will hold a public hearing in Dee Why on Friday November 30 as part of its inquiry into the implications of removing refundable franking credits.

The Chair of the committee, Tim Wilson MP, said, "The committee is examining how removing refundable franking credits would affect investors, particularly senior Australians who have planned for their retirement under the existing rules."

"During last week’s hearings in Sydney and Melbourne, many retirees shared their concerns that they stand to lose up to a third of their income and may be forced onto the Age Pension if the ability to claim a refund on their franking credits is removed," he said.

Wilson Asset Management, who will appear at Dee Why, said in its submission, "The current system ensures that individuals who are subject to a tax rate below the 30 percent company tax rate are compensated for the tax that has been paid at a higher rate."

Wilson Asset Management argues that the proposal to remove refundable franking credits is "regressive", since "high-income earners would still receive credits to offset their tax liabilities, with low-income earners paying the price."

By contrast, the Australian Council for Social Services (ACOSS) submitted that "those most adversely affected by the removal of refundable imputation credits would for the most part be relatively wealthy people with substantial income from self-managed superannuation funds, who pay little or no income tax".

ACOSS recommend that if such a policy is implemented, investors with low income from dividends could be protected by simply allowing ‘the refunding of imputation credits up to a modest annual limit.

Mr Wilson said, "The final hour of the public hearing will provide the opportunity for members of the public to make short statements to the committee about how the removal of refundable franking credits would affect their retirement savings and whether it would increase reliance on the Age Pension."

Public hearing details: 9.30am to 1.30pm, Friday, November 30, 2018, Dee Why RSL Club, Oaks Room 2, 932 Pittwater Road, Dee Why, New South Wales.

Further public hearings will be announced as the inquiry progresses. Program information will be available closer to the event on the inquiry webpage. The hearings will be webcast live (audio only).

A number of submissions have been received and are available on the committee’s webpage at: www.aph.gov.au/economics. Submissions can be made online or by emailing This email address is being protected from spambots. You need JavaScript enabled to view it.

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THE Joint Standing Committee on Treaties has tabled a report supporting the Agreement between the Government of Australia and the Government of the United Kingdom of Great Britain and Northern Ireland on Cooperation in the Peaceful Uses of Nuclear Energy.

The Agreement is the first of a series of agreements with the UK resulting from the UK’s decision to leave the European Union. As part of the Brexit arrangements, the UK is in the process of establishing new treaties, so while this treaty is new, all current arrangements relating to Australian nuclear materials will be unchanged.

Committee chair, Russell Broadbent MP, said the Agreement would ensure that the transfer of Australian uranium to the UK, and the commercial operations of Australian uranium mining companies, is uninterrupted post-Brexit.

Australia imposes strict rules on the use of exported Australian nuclear materials.  Australian nuclear materials can only be used for peaceful purposes.

Australian rules also require that Australian nuclear material must be safely and securely stored, and must be accounted for at all times.

“The UK is a significant international manufacturer of nuclear fuel.  Australian nuclear materials transformed into nuclear fuel can only be exported from the UK to other countries that have a nuclear cooperation agreement with Australia,” Mr Broadbent said.

In addition, the UK must seek Australia’s prior consent before exporting Australian nuclear material to another country.

The Agreement will ensure that Australian nuclear materials are always subject to Australia’s stringent safety and security standards. It will come into force on either March 29, 2019 or December 31, 2020, depending on the outcome of the Brexit negotiation process.

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ENERGY network businesses leading the way in improving customer outcomes were recognised last night at the Energy Networks Australia 2018 Annual Awards.

Energy Networks Australia CEO Andrew Dillon said Australian networks were focused on modernising while keeping prices down and so it was imperative to continually seek new and innovative ways to manage networks and keep the customer at the centre of decision making.

The winner of the Energy Networks Australia and Energy Consumers Australia 2018 Consumer Engagement Award, Essential Energy (NSW), was the unanimous choice of the judging panel for its 2019-24 Regulatory Proposal customer engagement program.

Energy Consumers Australia CEO Rosemary Sinclair presented the award, saying that embracing consumers as partners in change to drive down electricity prices was a critical part of building a new culture in the energy sector.

“Rebuilding trust with consumers in the energy sector will take time and must come from the top – the leading businesses are entering into a new dialogue with consumers and taking responsibility for the issues they’re raising to deliver more affordable outcomes," Ms Sinclair said.

“The winner showed they had proactively engaged with their consumers to better reflect their views and priorities and allow that to shape services.

“This award is a great way for networks to showcase the work they are doing to change the culture in the industry and better incorporate the value of the customer’s voice in all aspects of their business.”

Western Power (WA) received a highly commended from the judges for its Kalbarri Microgrid project.

Other finalists were SA Power Networks (SA), TransGrid (NSW) and the joint Victorian distribution businesses.

INNOVATION AWARD

Federal Energy Minister, Angus Taylor MP, presented the Energy Networks Industry Innovation Award to TasNetworks for its CONSORT Bruny Island battery trial.

Energy Networks Australia CEO Andrew Dillon congratulated Essential Energy and TasNetworks for the different ways they had shown leadership and helped solve some of the industry’s most complex challenges.

“TasNetworks has shown how to carry out smart coordination of solar and batteries, which has large economic and environmental benefits by allowing more renewable energy to connect, increasing grid stability and opening new markets,” Mr Dillon said.

Funded by ARENA, the TasNetworks project had a number of partners including the Australian National University, University of Sydney, University of Tasmania and Reposit Power.

Runner-up for the Industry Innovation Award was Jemena, for its demand response trial: power chargers.

Other finalists were Essential Energy (NSW) and Evoenergy (ACT).

INDUSTRY CONTRIBUTION

Mr Dillon also congratulated Powerlink’s general manager for network regulation, Jennifer Harris, winner of the 2018 Industry Contribution Award for her substantial contribution to the industry over several years.

“This award recognises Jenny’s significant contribution to our industry and her clear focus on the customer driven transformation of our networks,” he said.

Energy Networks Australia represents Australia’s electricity transmission and distribution networks and gas distribution networks. Its members provide energy to virtually every household and business in Australia. Energy Consumers Australia is the national voice for residential and small business energy consumers. Established by the Council of Australian Governments (COAG) in 2015, its objective is to promote the long-term interests of consumers with respect to price, quality, reliability, safety and security of supply.

www.energynetworks.com.au

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RETAILERS in New South Wales (NSW) will have an extra reason to celebrate this Christmas after the Australian Retailers Association (ARA) secured a major win for retail tenancy in the state.

The ARA and major industry leaders the Pharmacy Guild of Australia (PGA), along with other industry bodies, are behind the development of the landmark Retail Industry Code of Practice – The Reporting of Sales and Occupancy Costs (the Code). 

An outcome of the 2016 review of the Retail Leases Act 1994 (NSW), the Code marks a major power shift back to retailers, as shopping centre landlords will now have an obligation to provide benchmark information to their tenants where retailers provide sales data.

Russell Zimmerman, executive director of the ARA, said that from January 1, 2019, the Code will ensure that retailers will have the ability to access information on sales reporting and occupancy costs, improving transparency and accountability.

“This landmark achievement for retailers in NSW will provide vital information to tenants in shopping centres, allowing them to better-understand the real value of their leases,” Mr Zimmerman said.

“The implementation of this Code will help to give some power back to retail tenants and give them some added certainty when it comes to negotiating with their landlords.”

The Code has also been agreed to by the Shopping Centre Council of Australia (SCCA) and will be implemented next year. Shopping centres will have a six-month transitional period to July 1, 2019 to sign-up and implement the Code.

Mr Zimmerman said the reform could not have been possible without the support of the PGA, along with the Deputy Premier of NSW, John Barilaro, who championed the reforms.

“The ARA is grateful to our friends and partners at the PGA for their continued advocacy, not only on behalf of their own members, but for the benefit of the entire industry,” Mr Zimmerman said.

“We will be working to implement this Code nationally over the medium-term, and with rising costs, increasing competition and patchy sales growth creating some headwinds for retailers, big wins like this can make a substantial difference.”

To view a copy of the Code, click here.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Australian Retailers Association (ARA) said that following the announcement by the New Zealand Associate Minister of Health, Jenny Salesa, to legalise vaping and nicotine e-cigarettes, Australia will soon sit behind more than 60 other countries in continuing to ban the alternatives to traditional tobacco products.

The announcement by Associate Minister Salesa last Friday emphasised that legalising vaping will enhance product quality and safety and assist low-income earners, who have some of the highest smoking rates, to switch to a cheaper and less harmful alternative.

Russell Zimmerman, executive director of the ARA, said that it was past-time that the Health Minister, Greg Hunt MP, dropped his personal opposition to legalising nicotine e-cigarettes in Australia, and followed the lead of our international counterparts.

“The Health Minister is standing in the way of a path towards better health outcomes for long-term smokers, due to a personal opposition to all forms of tobacco,” Mr Zimmerman said.

“We call on the Minister to put his personal convictions aside for the benefit of Australians, and listen to our counterparts across the Tasman, who have clearly stated that vaping is significantly less harmful than smoking.”

In August, the CSIRO’s E-cigarettes, smoking and health (the report) literature review indicated that e-cigarettes can assist some smokers in quitting traditional cigarettes. The report also provided evidence for a range of health improvements when conventional tobacco smokers make the switch.

“According to the CSIRO’s findings, it is clear that e-cigarettes are preferred by some smokers as a cessation method. Trials have found nicotine e-cigarettes are more effective at reducing conventional smoking than nicotine free e-cigarettes or no e-cigarettes,” Mr Zimmerman said.

“The Government should listen to the CSIRO and alleviate concerns about unregulated usage by allowing retailers to sell nicotine e-cigarettes legally.”

Along with the CSIRO’s report, a Crosby Textor poll conducted in June found almost 50 percent of Australians and more than two thirds of smokers support the legalisation of e-cigarettes and personal vaporisers in Australia.

“The Crosby Textor poll showed that 70 percent of Australians and 67 percent of smokers agreed that vaporisers were a way to completely phase out cigarette smoking in Australia,” Mr Zimmerman said.

With New Zealand legalising the sale of nicotine e-cigarettes, Australia will now sit behind over 60 countries, including most of the European Union, the United Kingdom, the United States of America, and several Asian nations, giving consumers ample options to circumvent local restrictions and import vaping products from overseas.

“When restrictions force consumers to import these products, rather than purchase them legally at home, consumers are exposed to the risk of unregulated and potentially unsafe products,” Mr Zimmerman said.

“The number of people who are already importing nicotine-based e-cigarettes from overseas is growing, giving offshore retailers a significant advantage and translating into a significant loss of revenue for Australian retailers.

“Allowing retailers the opportunity to sell these harm reduction alternatives is a win-win, as it provides health benefits for the community, and economic benefits, including a reduced burden on the health system and crucial support for local retailers.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Standing Committee on Employment, Education and Training has today tabled its report, Australian Government Funding Arrangements for non-NHMRC research.

The report identifies ways to simplify research funding application and assessment processes, particularly for university researchers.

Committee chair Andrew Laming MP said, "Australian researchers spend a great deal of time and effort applying for competitive research funding.  Time spent applying for research funding, is less time available to conduct world-class research."\

The Committee has made 15 recommendations in its report.  The key recommendation is the introduction of a central online research management system for all Commonwealth grant programs, and a two-stage application process which favours the strength and merit of research ideas.

Mr Laming said, "The Committee’s recommendations aim to reduce the large volume of information required to support a research funding application. The recommendations emphasise the need to make use of existing data sources and information, improve document uniformity, and level the playing field for under-represented researchers.  This includes early and mid-career researchers, women, minority groups, Indigenous researchers and rural and regional universities."

The report also calls for a more strategic approach to Australia’s research investment, including investment and participation in international research funds.

The Committee received 97 submissions to its inquiry, and held four public hearings in Brisbane, Melbourne, Sydney and Canberra.  Further information on the inquiry, including the full terms of reference, is available on the Committee website.

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THE Joint Committee of Public Accounts and Audit is holding its second public hearing on Wednesday for the Committee’s inquiry based on Audit Report No. 48 (2017-18), Managing Compliance with Foreign Investment Obligations for Residential Real Estate.

The committee will hear from the Australian Taxation Office, the Department of the Treasury, and the Australian National Audit Office.

Committee chair, Senator Dean Smith, said the public hearing would assess the effectiveness of the ATO’s and Treasury’s management of compliance with foreign investment obligations for residential real estate.

“The committee will consider how foreign investment compliance arrangements by the ATO and Treasury were monitored and reported, and activities undertaken to address potential non-compliance.”

The JCPAA is Parliament’s joint public administration committee. It scrutinises the governance, performance and accountability of Commonwealth agencies, and has the power to inquire into all expenditure of Commonwealth money.

The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

Further information about these inquiries can be accessed via the Committee’s website.

Public hearing: Wednesday, 28 November 2018, Committee Room 2R1, Parliament House, Canberra

9am to 10am: Audit Report No.48 (2017-18), Managing Compliance with Foreign Investment Obligations for Residential Real Estate

Witnesses: Australian Taxation Office, Department of the Treasury, and the Australian National Audit Office

The public hearing will be broadcast live at aph.gov.au/live. The hearing program is available from the Committee website.

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INDUSTRY super fund, Vision Super, today announced they will be divesting from tobacco, thermal coal and tar sands producers, in addition to their existing controversial weapons exclusion.

Chief executive officer Stephen Rowe said the fund has a decision-making framework and the board applied it after seeking the views of members.

“As a values-based fund, environmental, social and governance factors are important to us when we decide how to invest,” Mr Rowe said.

“Our ESG decision-making framework looks first to reduce harm through active ownership of shares, and the Board will only decide to divest if the evidence is clear that the harm of a particular product cannot be reduced.

“We also take into account the views of our members, through member forums, feedback and surveys.

“We already had considerably lower carbon intensity than the index across our portfolio, because we don’t believe markets are pricing in carbon risk appropriately – which could put members’ money at risk.

“But thermal coal and tar sands are two of the biggest contributors to climate change, and we don’t believe the risk of continuing to use them can be mitigated. Report after report tells us that if we don’t act now to keep temperature increases contained, future generations will suffer. So the board made the decision to exclude these.

“We also looked at tobacco through the same lens, and concluded that it’s not possible to minimise the harm of a product that kills its users, and the people around them. So the decision was made to exclude tobacco too.”

Vision Super is working on a strategy for prudently selling excluded stocks out of the portfolio.

The materiality threshold for divestment has been set at 25 percent of revenues, with a buffer of +-5 percent.

https://www.visionsuper.com.au/

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