THE House of Representatives Standing Committee on Economics will scrutinise the Australian Competition and Consumer Commission (ACCC) as part of its review of the ACCC Annual Report 2017.

The chair of the committee, Sarah Henderson MP, said, "The hearing provides a timely opportunity for the committee to scrutinise the ACCC on its performance and operation."

The ACCC is Australia’s competition regulator and national consumer law champion. This competition role extends across all industries, including the financial services sector.

A significant ACCC achievement for 2017 in the competition sphere has been the successful conclusion of the Harper review on competition policy. There have also been ACCC cartel investigations that have resulted in a number of criminal and civil proceedings. 

Ms Henderson said, "The committee’s examination will include the ACCC’s continuing work on competition compliance and enforcement."

Protecting consumers is another key area of ACCC responsibility. The Government has introduced the Treasury Laws Amendment (2018 Measures No. 3) Bill 2018 to strengthen penalties under Australian Consumer Law (ACL), by aligning them with the maximum penalties under the competition provisions of the Competition and Consumer Act 2010.

Ms Henderson said, "Increasing the ACL maximum penalties will send a strong message that there will be significant consequences for breaches of consumer law."

Public hearing details:

Time: 8.30am to 11am

Date: Friday 29 June 2018

Venue: Committee Room 2R1, Parliament House, Canberra

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

ends

MASTER BUILDERS Australia is bitterly disappointed with Labor’s pledge to ramp up the tax burden for thousands of small and medium building businesses. 

Denita Wawn, CEO of Master Builders Australia said, “Labor’s decision to abolish tax cuts for SME builders turning over $10-$50 million per year will deal a harsh blow to SME builders, many of them family businesses.” 

“It’s a retrograde step at the expense of local builders and local jobs in local communities around the country,” she said. 

“Building projects are highly capital intensive and the cost of labour, materials and equipment mean that there are many ‘mum and dad’ businesses with an annual turnover of more than $10 million,” Ms Wawn said. 

“This means that the tax cuts which Labor has committed to repealing are particularly important for our members, the people they employ directly and the sub-contractors they engage,” she said. 

“Turnover should not be confused with profit. SME builders typically operate on tight margins and do not take home anything like $10 million,” Denita Wawn said. 

“Labor should understand that there are more SMEs in the building and construction industry than any other sector of the economy,” she said. 

“Our industry employs in 1 in 10 Australians and in the last few years has been one of the most important sources of skilled jobs growth. SME builders are at the forefront of this and employ most of the 1.2 million jobs in the construction industry workforce,” Ms Wawn said.

ends

THE Australian Retailers Association (ARA) believes that an Australia that fights against illicit trade and supports our region to do the same, is a safer Australia.

The ARA-commissioned report, The Global Illicit Trade Environment Index, showed that as a nation, Australia performed well, ranking fifth globally (against 84 countries) showcasing the success of Australia’s national policies and initiatives in combating illicit trade.

However, an ARA spokesperson said, those involved in illicit trade are not bound by borders, so the effectiveness of Australian government policy needs to extend beyond our country borders.

"And with today being the United Nations International Day Against Drug Abuse and Illicit Trafficking, a focus on a regional collective effort is even more important," the ARA spokesperson said.

"The new Index found some 60 percent of our top import partners from the Asian region, rank in the bottom 50 percent of countries assessed."

Russell Zimmerman, executive director of the ARA, said stepping up to the plate to help our Asia-Pacific trading partners presents a compelling opportunity for Australia to focus on global risk-areas to reduce illicit trade. 

“Eighty percent of Australian two-way trading partners are from the Asia-Pacific region, and Asia’s historic association with being a world supplier of illicit goods also cannot be overlooked,” Mr Zimmerman said. 

“Australia and New Zealand are well-placed to leverage our close relationship to inform a collaborative approach towards Asia-Pacific trade, alongside other high performers such as Japan and South Korea, in assisting our regional neighbours to improve.” 

The ARA has been actively working with various government organisations, as well as forming the Australians to Stop Counterfeiting and Piracy (AUSCAP) industry group to stop the illegal trade in consumer goods. 

Combined with their recent initiative to combat the illicit tobacco trade, which in 2017 was estimated to cost the Government some $1.91 billion in lost excise revenue alone, the ARA believes this new report demonstrates that Australia can, and should be keeping its foot on the throat of illicit trade, spreading its experience and lessons learned with international trade partners.

The report highlights 10 of Australia’s top 15 import sources as being members of the Asia-Pacific region, all who vastly differ on the spectrum of the Report Index – ranging from New Zealand ranking 4th, to Indonesia ranking 68th.

Following these results, report author Chris Clague, managing editor Asia and global editorial lead of Trade and Globalisation, outlines the fact that the poor governance of Free Trade Zones in Asian economies is a major contributor to illicit trade.

“Free Trade Zones represent an area in which international cooperation is key and balancing the reason for the zone with the importance of protecting against illicit is a difficult equation,” Mr Clague said. 

“They present a space in which illicit trade can be intercepted before entering markets and are an important component of supply chains.” 

The ARA conceded that while illicit trade causes unacceptable damage to legitimate businesses, it was also at the centre of many of the most challenging crises facing our world. 

“The ARA are fiercely committed to protecting Australian businesses by stamping out global illicit trade. This will not only protect Australian commercial interests, but also keep our country safer,” Mr Zimmerman said.

To access The Global Illicit Trade Environment Index 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. 

ends

TODAY 10 coal producers – among them Australia’s largest coal producers – have filed an application to join the judicial review application commenced by Aurizon Network against the Queensland Competition Authority (QCA) in the Supreme Court of Queensland.

The coal producers who have applied to join the judicial review application are:

• AngloAmerican
• BHP Mitsubishi Alliance and BHP Mitsui Coal
• Coronado
• Glencore
• Idemitsu
• Jellinbah Mining and Lake Vermont Resources
• Peabody, and
• Yancoal.

Aurizon Network commenced the judicial review application on 30 April 2018.

Aurizon Network stated at the time it commenced the application:

“Aurizon Network has today applied to the Supreme Court of Queensland for the Judicial Review of the Queensland Competition Authority’s (QCA) Draft Decision on the 2017 Draft Access Undertaking (UT5) for Aurizon’s Central Queensland Coal Network (CQCN) on the basis of apprehended bias. This application results from the QCA Chairman, Professor Roy Green also being the Chairman of the Port of Newcastle in NSW, part of the Hunter Valley coal supply chain. Aurizon Network is seeking Judicial Review of the Draft Decision on the basis that it was affected by legal error because the Queensland Competition Authority did not afford procedural fairness to Aurizon Network due to Professor Green’s conflict of interest and the apprehension of bias.”

The coal producers have an interest in the application by virtue of their interests in, among other things, the process giving rise to the QCA’s draft decision and the outcome of the QCA’s final decision on UT5.

It is not yet known when the coal producers’ application will be heard by the Court.

www.qrc.org.au

ends

THE House of Representatives Standing Committee on Economics tabled the report of its Review of the Australian Prudential Regulation Authority (APRA) Annual Report 2017.

The report provides a summary of issues raised at the public hearing with APRA in Canberra on March 28, 2018.

During the hearing, the committee scrutinised APRA on its work on issues of governance, risk management and culture in financial institutions. In particular, the committee examined measures to reinforce sound lending practices and ensure that Australian banks remain prudentially strong.

The chair of the committee, Sarah Henderson MP, said, "While APRA has been working on improving responsible lending practices in the Australian financial sector, there is still a lot of work to be done in this area."

The Government has been taking action in a number to areas to enhance APRA’s prudential oversight tools. Recent measures have included: 

• the Banking Executive Accountability Regime (BEAR)
• introducing new crisis management powers to empower APRA to better address crises in Australia’s financial system, and
• proposed changes to superannuation, which will improve governance and transparency in the industry.

The BEAR will take effect from July 1, 2018, for the major banks. There will be a measured transition for smaller institutions. 

Ms Henderson said, "The BEAR will provide mechanisms to make senior bank executives more accountable and subject to additional oversight by APRA."

"Strengthening accountability measures for senior executives was a key recommendation of the committee's Review of the Four Major Banks.’

The report and hearing transcript are available at: www.aph.gov.au/economics 

ends

WITH UP TO 15 percent of global Gross Domestic Product (GDP) lost each year to illicit trade, the Australian Retailers Association (ARA) believes more needs to be done to combat such a severe issue.

According to the World Economic Forum, US$2.2 trillion worth of global GDP is lost a year, due to organised crime and corruption.

To counter this serious issue the ARA have been working with various government organisations and associations forming the Australians to Stop Counterfeiting and Piracy (AUCAP) industry group to stop the illegal trade in consumer goods.

The ARA and AUSCAP have been working closely together recently commissioning Chris Clague, managing editor Asia and global editorial lead of trade and globalisation, to develop The Global Illicit Trade Environment Index to evaluate 84 nations around the world and their efforts in combating this scourge on the world’s economy and what we can do better.

Russell Zimmerman, executive director of the ARA, said this progressive report proves Australia is tracking well in its fight against illicit trade due to the country’s strong policy implementation.

“Australia’s approach to tackling illicit trade were highlighted in this latest Index, due to the success of the Government’s policy to tackle the $2 trillion global black market,” Mr Zimmerman said.

“Our recent initiative to combat the illicit tobacco trade, whose global value is some $35 billion annually, means Australia is well placed to support the Asia-Pacific region’s otherwise, frankly, weak performance in areas relating to Government policy.”

Although Australia received the highest score in government policy in the Asia-Pacific region, Mr Clague believes there is much to be done to build a better environment and prevent illicit trade.

“Illicit trade affects businesses, people, nations, and in the present transnational environment, and what the Index shows is that while some nations are striding forward, others are falling behind,” Mr Clague said.

"By taking lessons from the nations that have been successful, approaches to illicit trade can be strengthened, improving the situation from a business and taxation perspective.”

The ARA believes this new report demonstrates that Australia can, and should be keeping its foot on the throat of illicit trade, spreading its experience and lessons learned with international trade partners.

“The Index applauds our domestic accomplishments, but points to a lot more work ahead to build a global, legal trade system that works,” Mr Zimmerman said.

“An Australia that is strong against illicit trade, that supports its region to be the same, is a safer and more prosperous Australia for all.”

Report author, Chris Clague, was in Canberra on Monday 25 June to launch the report at Parliament House and discuss Australia’s role in shaping the progress of illicit trade in the Asia-Pacific region. To access The Global Illicit Trade Environment Index 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.

ends

CEDA’s annual two-day State of the Nation Conference continues tonight in Canberra with Victorian and NSW Treasurers to present at the National Gallery of Australia.

Day two will begin with a keynote address from Federal Leader of the Opposition, Bill Shorten.  

To see the full State of the Nation program and speaker times click here.

State Treasurers' Panel at the National Gallery of Australia
Event overview
Delivering policy outcomes for the community across a range of areas requires more effective Commonwealth-State collaboration and healthy budgets. This State of the Nation session will involve a discussion between Victoria and NSW State Treasurers on how governments face up to these challenges across the federation.

Presentation times (AEST) 
7.05pm Welcome by Paul McClintock AO, National Chairman, CEDA
8.00pm Introduction by Damian Graham, Chief Investment Officer, First State Super
8.05pm Facilitated panel discussion 

• Tim Pallas, Treasurer of Victoria
• Dominic Perrottet, Treasurer of NSW  

Day two State of the Nation speakers at the National Convention Centre​

• Gerard Brody, Chief Executive Officer, Consumer Action Law Centre
• Paul Fletcher, Federal Minister for Urban Infrastructure and Cities
• Nicholas Gruen, Chief Executive Officer, Lateral Economics
• Amanda Hagan, Chief Customer Officer and Group Executive Digital, Australian Unity
• Delia Rickard PSM, Deputy Chair, ACCC 
• Bill Shorten, Federal Leader of the Opposition
• Andrew Stevens, Chair, Data Standards Body, Consumer Right Data
• Dan Tehan, Federal Minister for Social Services

Live stream: 
The State of the Nation conference will be live streamed via www.ceda.com.au.

The live stream on day two will begin with Federal Opposition Leader Bill Shorten's address at the following times:
ACT, NSW, QLD, TAS, VIC  8.25am   |    SA, NT  7.55am   |    WA  6.25am 

ends

THE FEDERAL Government’s proposed one‑off, 12-month amnesty for historical underpayment of Superannuation Guarantee (SG) to complement the sweeping SG integrity package has been passed by the House of Representatives.  It now needs to go through the Senate and Australia needs to get on with it, according to the Institute of Public Accountants (IPA).

“Any non-payment of this worker entitlement represents wage theft; a practice never to be condoned," IPA chief executive officer, Andrew Conway said.

“However, we acknowledge that small businesses can sometimes experience cash flow issues, making them vulnerable when it comes to meeting their SG obligations by the required due date.

“The IPA supports this amnesty period as it incentivises employers to come forward and do the right thing by their employees by paying any unpaid superannuation in full.

“Employers that do not take advantage of the one-off amnesty will face significantly higher penalties if they are subsequently caught (a minimum 50 percent on top of the SG Charge they owe). In addition, throughout the amnesty period the ATO will still continue its usual enforcement activity against employers.

“We are now urging all parties to push this through the Senate and make it happen and for employers to make the most of the situation.

“This one-off amnesty should be supported to allow employers to wipe the slate clean and pay their workers what they're owed, as all Australian workers should be paid their entitlements in full.

“We also want to remind employees to be cognizant of their rights and take personal responsibility for checking to make sure their superannuation payments are being made correctly,” Mr Conway said.

publicaccountants.org.au

ends