THE House Committee on Tax and Revenue has today presented its report on taxpayer engagement with the tax system.

Presenting the report in the House of Representatives today, committee chair Jason Falinski MP said the committee’s 13 recommendations were aimed at making tax obligations in Australia easier to administer and easier for taxpayers to comply with.

“This inquiry involved a comprehensive assessment of the state of play of tax administration in Australia and in comparable nations overseas,” Mr Falinski said.

“The committee found that while the ATO’s ‘Reinvention’ as a modern tax administration service is well underway, our complex tax system is throwing up some hurdles to full automation — as advanced in Sweden, the United Kingdom and closer to home New Zealand, where most taxpayers need only approve a prefilled form.”

Reflecting back to the 2010 Review of Australia’s Future Taxation System, the first recommendation calls for a complete review of the tax system by 2022, to achieve a system that responds to the rapidly evolving digital environment, and is both easier to enforce and understand.

To address more immediate needs, recommendations are also made to close up loopholes associated with high risk industries and the growth of the gig or sharing economy. These include, to:

• consider the introduction of an ABN withholding tax system at source, with potential for grading according to industry sector, akin to the system in New Zealand; and
• standardise our workplace expenses deductions scheme, as done in other comparable nations, to reduce the potential for error and misrepresentation.

The committee has also called for greater responsiveness from the ATO to the needs of taxpayers and other stakeholders. This includes continued access to paper forms and information for those not technically enabled, implementing a service level agreement with all stakeholders affected by the agency’s changing practices, and the clear articulation of the rights and obligations of both the ATO and taxpayers in a single cohesive and easily understood tax engagement framework.

Another recommendation is for more rigorous monitoring of outcomes of behavioural economics methods and tools to ensure taxpayer funds are well invested.

“Accountability is the key to confidence,” Mr Falinski said.

“The recommendations made by the committee in this report, if implemented, will provide greater certainty for business planning, increase taxpayer confidence in the ATOs’ probity and efficiency, and reduce the potential for cash activity and tax avoidance.”

The inquiry was referred to the committee in December 2017. Copies of the report and information about the inquiry are available on the Committee’s website.  

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NATIONAL CONGRESS is highly concerned by a $6 million funding cut to Aboriginal Affairs and Reconciliation announced in the South Australian budget last week.

"We are now asking the South Australian government how they intend to alleviate the already existing disadvantage and suffering of vulnerable families and communities?" National Congress co-chair Rod Little said.

"We are alarmed that these funds will be redirected at the expense of South Australian Aboriginal people’s welfare and will only break down the hard work of building relationships and reconciliation that has given many peoples hope for a better future.

"In last week’s budget, the South Australian Government announced the discontinuation of grant funding paid to SA Native Title Services, who engage in native title negotiations with the state."

The Government will also halve of the number of staff working in the Department of the Premier and Cabinet’s Aboriginal Affairs and Reconciliation division, cut more than $6 million of funding. This includes abolishing the Office of the Treaty Commissioner after the Marshall government decided to abandon state treaty process.

The Aboriginal Regional Authority Policy, developed by Labor in 2004, will also “no longer be performed in 2018-2019".

The government attempted to divert attention away from wide-sweeping cuts by drawing attention to its “alternative approach to Aboriginal affairs” to be developed in consultation with Aboriginal people across the state, according to Mr Little.

"However, it is clear that this budget deprioritises the needs and interests of Aboriginal peoples.

“National Congress is dismayed at the sweeping cuts to Aboriginal Affairs and Reconciliation in the South Australian budget.” Mr Little said.

“Treaty negotiations are clearly on the Federal Government’s agenda with the current Senate Inquiry and the Referendum Council’s report.

“It is highly disappointing that the South Australian government has abolished the Office of the Treaty Commissioner, when we are seeing such great progress towards self-determination, representation and treaties in other states including Victoria and the Northern Territory.”

Co-chair Jackie Huggins said, “The South Australian budget reveals an alarming trend: whenever there are budget cuts, Aboriginal and Torres Strait Islander peoples feel it.

“We are not political playthings. These budget cuts will impact Victorian Aboriginal people’s lives and wellbeing. How can we expect social outcomes to improve when governments keep slashing funding to the programs which are supporting First Peoples? We can’t.”

www.nationalcongress.com.au

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INDUSTRY super funds have announced a new initiative to take the legwork out of consolidating multiple accounts to save eligible members an average $260 a year in fees and insurance premiums.

So far, 18 industry super funds covering over half the workforce are cooperating in a collective cross-fund matching initiative that will be free of charge to members if a successful match is found.

In its first full scale deployment, the matching initiative seeks to automatically consolidate 500,000 low balance inactive accounts.

Successfully consolidating all these accounts could collectively save members an estimated $100 million a year in duplicate fees and insurance premiums.

Industry Super Australia chief executive, Bernie Dean, said industry super funds had been designing and testing the sophisticated cross-matching scheme for over a year.

“The initiative follows a successful 2017 pilot led by Industry Funds Services and nine industry funds which consolidated 50,000 accounts,” said Mr Dean.

“It has been developed to cut through restrictive rules which limit the ability of funds to reunite members’ lost and inactive savings without first obtaining express consent.

“Once a match is found members will still be able to opt out, but a survey following the pilot found members who had accounts consolidated were very happy funds proactively chased their savings.

“This is the right thing to do for members – they expect the system to sort out multiple accounts for them," Mr Dean said.

“Industry super funds have been consolidating multiple accounts for many years but it has relied on members kicking it off. This new initiative will cut through the red tape,” he said.

“Consolidating the accounts will reduce duplicate charges and help members build their super savings faster,” Mr Dean said.

According to Productivity Commission estimates, eliminating multiple accounts could save a member $51,000 over his or her entire working life. 

Industry Super Funds’ cross-matching initiative:

• · Eligible inactive accounts with balances under $6,000 will enter a collective pool to be matched to the active account held by participating funds.
• · There will be no charge to members associated with the matching of a superannuation account and no exit fees for duplicate accounts closed as accounts are consolidated.
• · Industry Super-owned AUSfund – an Eligible Rollover Fund – will be used to match and consolidate members’ inactive accounts to an active account held in a participating industry super fund.
• · Any inactive accounts sent to AUSFund but not consolidated in the initial wave of matching will attract investment returns net of a low annual administration fee of $11.50 and 0.53 percent indirect costs until consolidated in subsequent matching waves.
• · Where required, funds will inform members of their fund’s participation in the cross fund matching exercise through disclosures, including the annual member statements.

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SINGLE TOUCH Payroll (STP) reporting is off to a successful start, according to the Australian Taxation Office (ATO), with around 40,000 employers already sending tax and super information from their payroll software each time they pay their employees.

The STP transition year for employers with 20 or more employees started on July 1, delivering on the commitment to streamline reporting obligations and make sure employers pay the right amount of super for their employees.

ATO assistant commissioner John Shepherd acknowledged the significant efforts undertaken by employers to change the way they report to the ATO and commended those involved in the design of STP.

“Software providers and tax professionals have done a great job getting their clients’ systems and processes ready for STP reporting. Their collaboration with the ATO in designing and ensuring the readiness of STP has made this first step in the implementation of STP a success,” Mr Shepherd said.

"Once an employer starts reporting through STP, they will no longer have to give their employees a payment summary (what many still call a Group Certificate). Employees will be able to access an income statement for each employer in ATO online services, accessed through myGov. STP data will be pre-filled into their tax return at the end of the financial year and made available to their registered tax agents.

“Over 2.5 million employees can already see their tax and super information being updated after every pay in myGov. This gives them a better picture of their super entitlements and more control over their retirement savings.

“As with any major transition we recognise that some payroll software providers may require additional time to transition their employer clients to STP-enabled software,” Mr Shepherd said.

Penalties generally won’t apply in this transition year as the ATO continues to focus on providing tailored support to employers as they commence their STP reporting.

Employers who need additional time can also apply using the ATO’s online form or by asking their tax or BAS agent to make an application on their behalf.

Around 73,000 employers with 20 or more employees are expected to transition to STP reporting this financial year. Around 15,000 small employers with 19 or fewer employees have also voluntarily started their STP reporting.

www.ato.gov.au

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THE Queensland Resources Council has welcomed the Palaszczuk Government’s release of the Environmental Impact Statement (EIS) for the new coking coal mine, Olive Downs, in central Queensland.

QRC chief executive Ian Macfarlane said Pembroke’s $1 billion Olive Downs project, near Moranbah, would further strengthen the resources sector’s contribution to the Queensland economy.

“Currently the resources sector in Queensland is creating a new job and investing $1 million every hour while exporting $1 billion every week and delivering almost $100 million to the Palaszczuk Government every week,” Mr Macfarlane said.

“Olive Downs is a milestone project for Queensland which will create 500 jobs in the construction phase, 1000 once operational, produce 15 million tonnes of coal every year and will be one of the largest open cut coking coal mines in the world.”

Mr Macfarlane thanked State Development Minister Cameron Dick and Isaac region Mayor Anne Barker for their support of the resources sector.

“This is a clear and practical example of all levels of government working together to provide big city economic opportunities in regional towns of Moranbah, Dysart, Nebo, Middlemount. Jobs in the resources sector are high-tech and well-paid jobs with the highest average weekly full-time adult earnings of any industry at $2659 – or over $138,000 per annum,” he said.

“This is more good news for Queensland’s coal industry and highlights the strong fundamentals of Queensland’s coking coal from the Bowen Basin. It’s high-quality coal, close to ports and is produced at a lower cost to other markets including the US.”

The Queensland resources sector now provides one in every six dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State – with almost 7000 businesses in the Greater Brisbane region – all from 0.1 per cent of Queensland’s land mass, according to the QRC.

www.qrc.org.au

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THE ACCC has expressed preliminary concerns about the proposed merger of Siemens A.G.’s (Siemens) Mobility Division with Alstom S.A. (Alstom), which are detailed in a Statement of Issues published today.

“A combined Siemens-Alstom would be by far the largest supplier of heavy rail signalling in Australia,” ACCC chair Rod Sims said.

The ACCC’s review has focussed on signalling systems for heavy rail passenger networks, particularly train interlocking systems and automatic train protection (ATP) systems. Signalling systems provide safety and traffic management controls on rail networks.

Interlockings are the core of a signalling system; they set routes for the safe movement of trains across railway lines. Train protection systems ensure that trains comply with movement authorities issued by the interlockings.

“The ACCC’s preliminary view is that the proposed merger may substantially lessen competition in the supply of heavy rail signalling systems for passenger rail networks in Australia, in particular interlocking systems and ATP systems. The loss of competition could result in increased prices for customers, or lower levels of service, quality, or innovation,” Mr Sims said.

“We have heard from many industry participants who have expressed competition concerns with the merger. We will continue to evaluate the competitive options available to passenger rail networks in Australia."

The proposed merger is also being reviewed by overseas competition regulators, including the European Commission.

“The ACCC is liaising closely with overseas competition regulators, as some of these potential competition issues may also arise in other countries,” Mr Sims said.

The ACCC invites further submissions from interested parties in response to the Statement of Issues by 20 September 2018. The ACCC’s final decision is due on 29 November 2018.

The Statement of Issues is available on the public register: Siemens A.G and Alstom S.A propose to combine Siemen's mobility business with Alstom.

THE POTENTIAL has grown for more Queensland jobs, exports and royalties from the State’s critical resources sector, with a 22 percent increase in exploration spending for minerals and petroleum over the last 12 months.

Queensland Resources Council chief executive Ian Macfarlane said total investment in exploration for minerals and petroleum was $442.1 million last financial year – an $80 million or 22 percent increase – compared with 2016-17.

“An increased investment is an increased investment in future jobs, future exports and future royalties for Queenslanders,” Mr Macfarlane said.

“The Queensland Resources Council is working with the Government to ensure we have stable and predictable policy for the sustainable, competitive and stable development of the State’s resources for the benefit of all Queenslanders.”

Mr Macfarlane said the resources sector was already performing well on jobs by creating a new role every hour, on exports by delivering $1 billion in overseas sales every week, and on royalties delivering almost $100 million to the Palaszczuk Government every week.

“The increase in exploration spending has been across commodities and reflects the role the resources sector plays in supporting new infrastructure, the expansion of renewable energy, the growth in electric vehicles and battery storage,” he said.

“The strongest growth was in base metals - copper, silver, lead, zinc, nickel and cobalt with exploration increasing by 53% over the 2017-18 financial year from $57.6 million to $88 million.”

During 2017-18, the growth included:

• gold exploration up 21% from $51 million in 2016-17 to $61.7 million in 2017-18;
• copper exploration increased by 41% over the 2017-18 financial year, from $38.2 million to 53.8 million; and
• petroleum exploration increased by 5% over the 2017-18 financial year from $154.9 million to $162.6 million. Up 22% over the quarter.

Queensland Exploration Council chair Brad John said the increased exploration investment reflected not only confidence in the sector and its future, but it also highlighted the importance of the Palaszczuk Government’s Collaborative Exploration Initiative and its commitment to release more land for exploration.

The Government has been seeking expressions of interest from explorers for:

• 44,000 square kilometres for gas and coal
• 1107 square kilometres in the North West Minerals Province
• authorities to prospect for petroleum and gas over 17,245 square kilometres
• 540 square kilometres for coal exploration

www.qrc.org.au

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COLLABORATIVE, diverse and inclusive company culture as well as access to networking and mentorship are critical to support career progression and retention of Women in STEM, according to Women in the STEM Workforce 18 keynote speaker and CSL Data Science head, Milica Ng.

Speaking at today’s Women in the STEM Workforce event and webinar (from 1.30pm-5pm AEST today, September 4) hosted by the Australian Mathematical Sciences Institute’s (AMSI) APR.Intern program in Melbourne, Dr Ng said she was proof women could have career success later and career changes and breaks were not a full stop to advancement.

“It is important women are supported with the flexibility to manage their careers and progression in a way that acknowledges their future potential and present needs,” Dr Ng said.. 

Dr Ng, who said she experienced her renaissance in her 40s when she was hungry for new challenges, believed women should not feel pressured to reach their career peak early or made to feel they need to accelerate their careers during time out or slowing of professional development. It is possible for women to have it all, but not all at the same time.

“To me, career pathways are more like a game of snakes and ladders rather than a straight ladder, the journey includes pauses and changes of direction, these are not full stops and shouldn’t be barriers to progression,” she said.

Women currently account for only 16 percent of the STEM workforce, with family pressures, isolation in male-dominated industries and lack of confidence –Tabcorp’s Advancing the STEM Conversation report (published in June 2017) revealed they are 55 percent more likely to doubt their capability than men – as key contributors. 

Dr Ng is an APR.Intern success story. Having been originally placed at CSL through its PhD internship program, she now supervises interns herself to help drive her team’s research. The program provided an ideal platform to kick-start her career.

“Through the internship I found my way into CSL, which offered a supportive environment with ample opportunities for learning, growth and advancement. Access to industry, gave me a pathway to build experience and a professional support network to accelerate my career,” Dr Ng said.

APR.Intern has been running for over a decade – initially as AMSIIntern – to place emerging specialist research talent at the frontline of industry. Over that period, AMSI director, Geoff Prince, said that while the program had increased the number of female placements, 67 percent have been male. 

“We are seeing slow increases but overall women are severely underrepresented across all areas of STEM," Professor Prices said. "APR.Intern is just one of the programs AMSI delivers to tackle gender equity across the pipeline."

Today’s event marks the first in a series planned by APR.Intern to identify and address barriers such as flexibility in the workplace, unconscious bias and lack of confidence, contributing to the low representation of women in the sector.  

Dr Ng was one of two keynotes at today’s event, with Chief Executive Women president, Kathryn Fagg also addressing 120 attendees and national viewers of the livestream event. 

With a focus on identifying and existing initiatives and new opportunities to address barriers for women in STEM, the event also included two powerful Q&A sessions featuring thought leaders and industry champions. Speakers included representatives from Westpac, Telstra, Alcoa, STA Superstar of STEM, IMNIS, Australian Academy of Science, Australian Research Council, Engineers Australia and SAGE Athena Swan.

“APR.Intern is committed to giving a voice to women in STEM and providing a platform to tackle systemic issues surrounding their engagement and career success," Prof. Prince said. "This is essential to building Australia’s ongoing STEM capability to support future innovation."

Women in the STEM Workforce 2018 is being live streamed across the country. The event will still be viewable online after the event on https://aprintern.org.au/women-in-stem-webinar/

www.amsi.org.au

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