Business News Releases

Economics committee to probe insurers’ response to 2022 floods

THE RESPONSE of the insurance industry to major flood events across Australia in 2022 will be the focus of a new inquiry by the House Standing Committee on Economics.

The inquiry will take a whole-of-economy view of the ongoing challenges caused by intense and frequent flood events.

In particular, the inquiry will look at insurers’ responses to the 2022 flood events in south-east Queensland and northern NSW during February and March; the floods in greater Sydney and the Hunter in July; the October floods in Victoria, NSW and Tasmania; and the floods in November and December in the central west of NSW.

The inquiry will focus on a range of issues, including:

  • Timeframes for resolving claims;
  • Obstacles to resolving claims;
  • Communication with people lodging claims;
  • The effectiveness of internal dispute resolution processes;
  • The accessibility and affordability of hydrology reports and assessments;
  • The affordability of insurance cover; and
  • The preparedness of insurance companies for future major floods.

The chair of the committee, Daniel Mulino MP, said, “The aftermath of intense natural disasters continues to have a huge impact on the lives of Australians - in rural and regional communities and in metropolitan areas.

“People in my electorate of Fraser were devastated when the Maribyrnong River flooded in October. I spent the following days door knocking, making sure residents were safe and that they had been able to claim disaster payments from Services Australia. I will never forget the despair of the families and local business owners who lost everything.

“My staff are still advocating for affected residents who have outstanding claims with their insurance companies. Meanwhile, they are also trying to rebuild their lives, which is difficult when claims haven’t been settled.”

To kick off the inquiry, an online survey has been launched to hear from people who were affected by the major floods. “It is really important that people participate in the survey,” Dr Mulino said.

“Committee members need to have a good understanding of people’s experiences with their insurance companies. Their evidence will inform our discussions throughout the inquiry and help guide our recommendations.”

From an insurance perspective, the 2022 floods were some of the costliest in the nation’s history.

“This is why it is also critical that we engage with the insurance industry and understand the effect of supply chain issues, skills and labour shortages on responding to claims; how insurers communicate with their policy holders in difficult times; and their preparedness for future events,” Dr Mulino said.

In addition to the online survey, available here, the committee will also accept submissions that address the Terms of Reference until October 31, 2023. Submissions can be made online.

Further information about the committee’s inquiry, including the full terms of reference, details on how to participate in the survey or make a submission, are on the inquiry’s website.

 

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Unpaid carers, national peak bodies and support organisations to appear before parliamentary committee

THE House of Representatives Standing Committee on Social Policy and Legal Affairs will hold public hearings on Thursday, August 24, and Tuesday, August 29, as part of its inquiry into the recognition of unpaid carers to shed more light on the challenges faced by unpaid carers and inform recommendations to amend the Carer Recognition Act 2010 (the Act).

Chair of the Committee, Peta Murphy MP, said, "On Thursday, we will hear from carer support groups and organisations, national peak bodies, and four individual carers. This hearing will be an opportunity for diverse voices to contribute to discussions about the value of unpaid care and the unique requirements of specific cohorts.

"Hearing from individual carers will also offer a closer look into the daily realities of unpaid carer responsibilities and highlight the emotional, financial, and logistical aspects of their roles," Ms Murphy said.

On Tuesday,  the committee will hear from carer support organisations from various states and territories, as well as organisations dedicated to assisting specific groups of unpaid carers, including young carers and those tending to children with cancer.

Ms Murphy said, "Not all unpaid carers are expressly identified or recognised in the Act. Hearing from these support organisations will help inform the Committee make its recommendations to government on how the Act can be more inclusive and better recognise the needs and challenges of unpaid carers."

Programs for the committee’s upcoming hearings will be made available on the inquiry website here.

Public hearings details

Date: Thursday, 24 August 2023Time: 10am to 3:30pm AESTLocation: via videoconference

Date: Tuesday, 29 August 2023Time: 10am to 4pm AESTLocation: via videoconference

The hearings will be live streamed on the APH website: www.aph.gov.au/live.

Further information about the inquiry, including published submissions, hearing dates and transcripts, are available on the inquiry webpage.

 

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Economics committee to hear from aviation industry and former ASIC chair

THE House Standing Committee on Economics will next focus on the aviation industry as part of its inquiry into promoting economic dynamism, competition and business formation.

Greg Medcraft, former Australian Securities and Investments Commission (ASIC) chair, will also discuss dynamism in the financial industry.

At the next public hearing in Sydney on August 23, the committee will hear from Rex Airlines, the Australian Airports Association, and the Sydney Airport Corporation.  

The committee will also hear from Greg Medcraft, chair of the Australian Finance Group and former chair of ASIC, to better understand competition and economic dynamism in the financial industry.

Committee Chair Daniel Mulino said, "Mr Medcraft also has extensive experience with the OECD in Paris and he has spoken regularly about how the dominance of Australia’s major banks has eroded competition in the banking sector.

"Mr Medcraft has also discussed ways to improve competition in the residential mortgage market and the role that digital disruption, particularly blockchain, will have in improving the efficiency of global capital markets, so the committee looks forward to hearing from him," Dr Mulino said.

More details about the inquiry, including the full terms of reference, are available on the committee’s website.

Public hearing details

Date: Wednesday 23 August 2023Time: 10am to 1.45pm AESTLocation: Corinthian Room, Sydney Masonic Centre

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

 

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ATO firm on deadline for contractor reporting

THE Australian Taxation Office (ATO) is reminding businesses who are required to lodge a taxable payments annual report (TPAR) to do so by  August 28.

ATO Assistant Commissioner Tony Goding said the taxable payment reporting system helps maintain a level playing field "by ensuring all businesses pay their fair share of tax".

"While most businesses do the right thing, not reporting payments to contractors and deliberately under reporting income makes it unfair for honest businesses,” Mr Goding said.

"It may also be seen as a red flag and could prompt closer scrutiny from the ATO."

Around $400 billion in payments made to almost 1.1 million contractors were reported in the taxable payment reporting system in the last financial year.

"The taxable payments reporting system is just one tool in the ATO’s toolbelt helping expose missing income and keeping things fair for businesses doing the right thing," Mr Goding said.

"We use a range of information in the TPAR to check for red flags, like not including income, not lodging tax returns or activity statements, overclaiming GST credits or mis-using Australian business numbers," Mr Goding said.

Businesses in the building and construction industry, as well as businesses that provide cleaning, courier and road freight, information technology and security, investigation or surveillance services and have paid contractors in relation to these services need to lodge a TPAR.

The ATO recently issued more than 16,000 penalties for businesses who didn’t lodge their TPARs for previous years, despite receiving multiple reminders. The average penalty for not lodging was about $1,110.

"It is getting harder for businesses to hide from the ATO, like using cash payments to avoid tax, as the TPAR data gives the ATO the extra puzzle pieces it needs to catch-out dodgy behaviour," Mr Goding said.

"We know there are some who deliberately don’t report or under-report their income, making it unfair for honest businesses.

"Dodgy businesses doing 'cashies' are being put on notice as the ATO continues to crack down on shadow economy behaviour."

Mr Goding said the shadow economy was estimated to cost the Australian economy $12.4 billion every year in unpaid taxes.

"If you are asking for cash and not declaring it to the ATO, you will receive a 'please explain’ from the ATO and you will be penalised. It’s not a matter of ‘if’, it’s a matter of when," Mr Goding said.

He gave as an axample how TPAR data recently enabled the ATO to investigate a cleaning company which chose not to be ‘squeaky clean’ in their tax return.

A sole trader providing cleaning services reported $6,892 of income from government allowances, but no business income or expenses. The data showed they received payments of more than $80,000 from three different companies. An audit confirmed no activity statements had been lodged and the payments were never reported. As a result, their tax return was adjusted for the omitted income, and penalties were applied.

"Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care. The TPAR program helps to prevent billions of dollars being lost to the shadow economy," Mr Goding said.

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Australia’s biggest mining industry safety conference begins on the Gold Coast

THE safety and well-being of Queensland’s 61 thousand resources sector workers is the focus of Australia’s biggest industry safety conference that gets underway on the Gold Coast today.

Around 1100 delegates have registered to attend the 33rd annual Queensland Mining Industry Health and Safety Conference (QMIHSC) at The Star Gold Coast over the next four days with the theme ‘Inside Looking Out’.

Queensland Resources Minister, Scott Stewart, will officially open the conference and said it is encouraging to see so many delegates attending.

“Worker safety must be the number one priority of the Queensland’s resources sector and the QMIHSC demonstrates the industry’s commitment to that,” Mr Stewart said. “We all know how important the resources industry is to our great state’s economy, but safety must always be front and centre of everything the industry does.

“I look forward to hearing about new safety innovations and I applaud the organisers for using the conference to look to other industries to see what they can learn to improve safety practises in Queensland’s resources sector.”

Welcoming delates to the conference, chair of the 2023 QMIHSC, Larnie Mackay, said the event continued to grow and it was "great to see a record attendance at this year’s conference".

“The mining industry has been through considerable change over the past three decades in improving safety and health, but there is always more we can do.  We need to think differently, particularly in light of the current labour shortage in Australia as well as globally ,” Ms Mackay said.

“This year’s theme ‘Inside Looking Out’ is about exploring not only the initiatives, programs and innovations coming from within the mining industry (the “inside”), but also looking at outcomes being achieved by other like-minded industries here and around the world where safety is the number one concern.

“Safety is an issue in which the entire Queensland mining industry is on the same page and this week’s conference is a great opportunity for representatives to come together to share experiences and information that benefits the whole resources sector,” Ms Mackay said.

“I’m looking forward to welcoming delegates today and we thank Minister Scott Stewart for opening the conference, who is well-known for his commitment to improving safety of all workers.

“We have two excellent keynote speakers for Day One of the conference.

“James Wood entered the mining industry in New South Wales straight out of school where he worked until a work accident ended his career and completely changed his life. James will talk about the importance of making the right choices at work, even when doing what may seem the simplest of tasks.

“As we look to learn from other industries, delegates will also hear from Neryl Joyce, a single mum who went from working the checkout at a supermarket, to putting her life on the line as a highly trained bodyguard protecting diplomats in the Middle East.”

Monday will feature an impressive list of keynote speakers and plenary sessions as well as the presentation of this year’s Legends Award, which is always a conference highlight.

The QMIHSC concludes on Wednesday evening with the Conference Dinner and industry award presentations.

About the Queensland Mining Industry Health and Safety Conference

The Queensland Mining Industry Health and Safety Conference is an initiative to promote health and safety in the Queensland mining industry. The four-day conference provides the industry with the opportunity to exchange information, network and foster proactive health and safety management techniques. The in-person and online conference is organised by representatives from the Queensland Resources Council (QRC), Resources Safety and Health Queensland, the Mining and Energy Union Queensland, industry organisations and the Australian Workers’ Union. The conference boasts a full program of topical sessions, workshops, award presentations and a gala dinner and attracts a wide range of presenters willing to share their knowledge, expertise and insights into important health and safety matters in the industry.

 

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ATO firm on deadline for contractor reporting

THE Australian Taxation Office (ATO) is reminding businesses who are required to lodge a taxable payments annual report (TPAR) to do so by  August 28.

ATO Assistant Commissioner Tony Goding said the taxable payment reporting system helps maintain a level playing field "by ensuring all businesses pay their fair share of tax".

"While most businesses do the right thing, not reporting payments to contractors and deliberately under reporting income makes it unfair for honest businesses,” Mr Goding said.

"It may also be seen as a red flag and could prompt closer scrutiny from the ATO."

Around $400 billion in payments made to almost 1.1 million contractors were reported in the taxable payment reporting system in the last financial year.

"The taxable payments reporting system is just one tool in the ATO’s toolbelt helping expose missing income and keeping things fair for businesses doing the right thing," Mr Goding said.

"We use a range of information in the TPAR to check for red flags, like not including income, not lodging tax returns or activity statements, overclaiming GST credits or mis-using Australian business numbers," Mr Goding said.

Businesses in the building and construction industry, as well as businesses that provide cleaning, courier and road freight, information technology and security, investigation or surveillance services and have paid contractors in relation to these services need to lodge a TPAR.

The ATO recently issued more than 16,000 penalties for businesses who didn’t lodge their TPARs for previous years, despite receiving multiple reminders. The average penalty for not lodging was about $1,110.

"It is getting harder for businesses to hide from the ATO, like using cash payments to avoid tax, as the TPAR data gives the ATO the extra puzzle pieces it needs to catch-out dodgy behaviour," Mr Goding said.

"We know there are some who deliberately don’t report or under-report their income, making it unfair for honest businesses.

"Dodgy businesses doing 'cashies' are being put on notice as the ATO continues to crack down on shadow economy behaviour."

Mr Goding said the shadow economy was estimated to cost the Australian economy $12.4 billion every year in unpaid taxes.

"If you are asking for cash and not declaring it to the ATO, you will receive a 'please explain’ from the ATO and you will be penalised. It’s not a matter of ‘if’, it’s a matter of when," Mr Goding said.

He gave as an axample how TPAR data recently enabled the ATO to investigate a cleaning company which chose not to be ‘squeaky clean’ in their tax return.

A sole trader providing cleaning services reported $6,892 of income from government allowances, but no business income or expenses. The data showed they received payments of more than $80,000 from three different companies. An audit confirmed no activity statements had been lodged and the payments were never reported. As a result, their tax return was adjusted for the omitted income, and penalties were applied.

"Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care. The TPAR program helps to prevent billions of dollars being lost to the shadow economy," Mr Goding said.

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Health professionals to call on NSW Government to phase out gas

A GROUP of health professionals from Healthy Futures and NSW Doctors for Environment (DEA) today announced plans to issue an open letter to the NSW Minister for Health and  the NSW Energy, Climate Change and Environment Minister calling for a phase-out of gas in homes and public buildings.

Healthy Futures is a health advocacy organisation that works to protect public health from the impacts of pollution and climate change. NSW Doctors for Environment is a group of doctors who are working to promote environmental sustainability and protect public health.

The open letter, which has already been signed by key health organisations, nationally and state-based, and by dozens of leading NSW health professionals, warns that gas poses a serious risk to human health. 

Gas burning releases pollutants such as nitrogen dioxide, carbon monoxide, benzene, and radon, which can cause respiratory problems, cancer, and other health problems. Gas also contributes to climate change, which is the greatest threat to public health.

“We are calling on the NSW Government to phase out gas as soon as possible,” NSW campaigner at Healthy Futures, Bronwyn McDonald said.. “Gas is a dirty and dangerous fuel that is harming our health and our climate. We must switch to clean, renewable energy sources like solar and wind power.”

The letter will call on the NSW Government to take the following actions:

  • Phase out gas in all new homes and buildings by 2025;
  • Provide financial assistance to households on low incomes to switch to clean energy.

Retrofit public buildings, including hospitals and schools, to be gas-free

The letter can be viewed and signed at https://www.healthyfutures.net.au/gasfreensw

 

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ATO firm on deadline for contractor reporting

THE Australian Taxation Office (ATO) is reminding businesses who are required to lodge a taxable payments annual report (TPAR) to do so by  August 28.

ATO Assistant Commissioner Tony Goding said the taxable payment reporting system helps maintain a level playing field "by ensuring all businesses pay their fair share of tax".

"While most businesses do the right thing, not reporting payments to contractors and deliberately under reporting income makes it unfair for honest businesses,” Mr Goding said.

"It may also be seen as a red flag and could prompt closer scrutiny from the ATO."

Around $400 billion in payments made to almost 1.1 million contractors were reported in the taxable payment reporting system in the last financial year.

"The taxable payments reporting system is just one tool in the ATO’s toolbelt helping expose missing income and keeping things fair for businesses doing the right thing," Mr Goding said.

"We use a range of information in the TPAR to check for red flags, like not including income, not lodging tax returns or activity statements, overclaiming GST credits or mis-using Australian business numbers," Mr Goding said.

Businesses in the building and construction industry, as well as businesses that provide cleaning, courier and road freight, information technology and security, investigation or surveillance services and have paid contractors in relation to these services need to lodge a TPAR.

The ATO recently issued more than 16,000 penalties for businesses who didn’t lodge their TPARs for previous years, despite receiving multiple reminders. The average penalty for not lodging was about $1,110.

"It is getting harder for businesses to hide from the ATO, like using cash payments to avoid tax, as the TPAR data gives the ATO the extra puzzle pieces it needs to catch-out dodgy behaviour," Mr Goding said.

"We know there are some who deliberately don’t report or under-report their income, making it unfair for honest businesses.

"Dodgy businesses doing 'cashies' are being put on notice as the ATO continues to crack down on shadow economy behaviour."

Mr Goding said the shadow economy was estimated to cost the Australian economy $12.4 billion every year in unpaid taxes.

"If you are asking for cash and not declaring it to the ATO, you will receive a 'please explain’ from the ATO and you will be penalised. It’s not a matter of ‘if’, it’s a matter of when," Mr Goding said.

He gave as an axample how TPAR data recently enabled the ATO to investigate a cleaning company which chose not to be ‘squeaky clean’ in their tax return.

A sole trader providing cleaning services reported $6,892 of income from government allowances, but no business income or expenses. The data showed they received payments of more than $80,000 from three different companies. An audit confirmed no activity statements had been lodged and the payments were never reported. As a result, their tax return was adjusted for the omitted income, and penalties were applied.

"Every dollar of tax dodged is a dollar that can’t be used for vital services like health and aged care. The TPAR program helps to prevent billions of dollars being lost to the shadow economy," Mr Goding said.

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Intelligence Committee visits New Zealand

MEMBERS of the Parliamentary Joint Committee on Intelligence and Security (PJCIS) have reinforced the strong ties between Australia and New Zealand on intelligence and security issues during a visit to New Zealand on August 14 and 15.

The PJCIS delegation was led by Committee Chair, Peter Khalil MP, and included  PJCIS members Andrew Hastie MPSenator James Paterson and Senator Marielle Smith. At the committee’s invitation, the delegation was joined by the Director-General National Intelligence, Andrew Shearer; and the Director-General of the Australian Secret Intelligence Service, Kerri Hartland.

The delegation met with various members of the New Zealand Government and opposition, parliamentary representatives and intelligence leaders, including: Minister for Defence Andrew Little; Opposition Leader Christopher Luxon; Deputy Opposition Leader Nicola Willis; Opposition spokesperson for Defence and Veterans Tim Van de Molen; the heads of the New Zealand Government Communications Security Bureau (GCSB), Security Intelligence Service (NZSIS) and National Assessments Bureau (NAB); senior leaders of the NZ Ministry of Foreign Affairs and Trade; Defence Secretary Andrew Bridgeman; the Vice Chief of the New Zealand Defence Force, Air Vice-Marshal Tony Davies; and representatives from the Department of Prime Minister and Cabinet.

Committee Chair and delegation leader, Mr Khalil, said the visit focused on enhancing the already strong relationship and coordination between Australia and New Zealand in the Indo-Pacific. Discussions focused on further strengthening collaboration as active partners across the Pacific.

"The visit follows the release of a series of important national security statements by the New Zealand government. Australia and New Zealand are more closely aligned than ever before on the Indo-Pacific security environment," Mr Khalil said.

 

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Speaker takes Parliament to Victoria

THE Speaker of the House of Representatives, Milton Dick MP is in Victoria as part of the Parliament in Schools program this week.

Students will learn about federation, democracy and the Australian Parliament, as well as hear first-hand from the Speaker and their local member on what a typical day looks like in their electorate and when they are in Canberra for sitting weeks.

Over two days, the Speaker will visit:

  • Balwyn North Primary School, Balwyn North – with the Member for Kooyong, Dr Monique Ryan MP on Monday, August 21.
  • Crib Point Primary School, Crib Point – with the Member for Flinders, Zoe McKenzie MP on Monday August 21.
  • Bannockburn College, Bannockburn and Grovedale Primary, Grovedale – with the Member for Corangamite, Libby Coker MP on Tuesday August 22.

About the Parliament in Schools program

Launched last year, the Parliament in Schools program is a bi-partisan initiative to make civics education accessible to students regardless of their location. In collaboration with local federal members, the Speaker is visiting schools across Australia to bring parliament to them.

The program is an extension to well-established PEO onsite, digital and outreach education programs available to schools across Australia.

It also complements the existing PEO online and print resources that are curriculum-aligned, for Australian teachers and students.

 

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ATO corrects the record on Operation Protego

THE Australian Taxation Office has corrected the record on the fraudulent losses discovered after its Operation Protego.

In a statment issued today, an ATO spokesperson said:

"This fraud did not cost the tax office $4.6 billion as reported in the AFR (Australian Financial Review) this morning.

"In our Annual Report to June 2022 we reported a cost of $1.2 billion at that time.

"We became aware of an increase in referrals from banks in late 2021 which escalated in early 2022. We took immediate action.

"There has been extensive ATO reporting of the impact of this fraud since Operation Protego was launched in April 2022 (Operation Protego publicly announced May 2022, first raids announced June 2022, further raids announced July 2022, crackdown on promoters Feb 2023, arrest activity August 2023).

"As a result, we have prioritised and taken compliance action against more than 56,000 perpetrators.

"In addition, working with Serious Financial Crime Taskforce and law enforcement agencies, more than 100 suspected perpetrators have been arrested, including members of outlaw motorcycle gangs, organised criminal organisations, and youth crime gangs – and more than 10 people have already been convicted for their involvement in this activity.

"We continue to address this fraud with the full force of the ATO. Since the reporting in our 2022 Annual Report, we have raised in the order of a further $700 million in liabilities, which includes around $300 million in penalties and interest.

"As previously stated by Deputy Commissioner Will Day, we have stopped $2.7 billion being paid to fraudsters. We continue to pursue those who have committed this fraud and collect debts which attract penalties and interest.

"We also continue to monitor for any tax agents facilitating clients to participate in this fraud. We expect that any tax or BAS agent that becomes aware of a client that has participated in fraud to notify the ATO immediately.

"This was an unprecedented threat proliferated via social media and is now contained."

 

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