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ASIC approves the Banking Code of Practice

ASIC has approved the Australian Banking Association’s (ABA’s) new Banking Code of Practice (the Code).

ASIC’s approval of the Code follows extensive engagement with the ABA, following a comprehensive independent review and extensive stakeholder consultation. The ABA made additional significant changes to the Code in order to satisfy ASIC that it met our criteria for approval.

This is the first comprehensive broad-based industry code ASIC has approved under its relevant powers.

The Code will commence operation from 1 July 2019.

SIGNIFICANT NEW PROTECTIONS FOR SMALL BUSINESS

The new Code provides for improved protections for small business borrowers and expands the reach and impact of legal protections against unfair contract terms.

For small businesses who borrow up to $3 million, the Code provides that lending contracts should not contain a range of potentially unfair and one-sided terms. Unfair contract terms protections in the law apply to businesses who borrow up to $1 million.

At its current setting of applying to small businesses who borrow up to $3 million, the Code will cover the considerable majority – between 92-97 percent – of businesses in Australia. 

To ensure the settings in the Code provide a high level of coverage of the small business sector, ASIC’s approval is conditional on an independent review of the definition of small business within 18 months of the Code’s commencement. This targeted review will test the adequacy and application of the Code’s small business coverage in practice, and will occur well before the Code’s comprehensive review, due three years after its commencement.

At the same time, ASIC will collect quarterly data from banks and the Australian Financial Complaints Authority to monitor the extent of the Code’s coverage of small business. ASIC will ensure that this data is made public every six months. This will provide the public with ongoing transparency about the coverage of the Code.

EXPANDED PROTECTION FOR CONSUMERS

The Code has built on and enhanced the existing protections for consumers in the 2013 Code.

The new Code includes:

  • provisions for inclusive and accessible banking, including for vulnerable customers, customers on low incomes and Indigenous customers;

  • protections relating to the sale of consumer credit insurance (CCI) including a deferred sales period of four days for CCI for credit cards and personal loans sold in branches and over the phone;

  • protections for guarantors of loans, for instance, giving prospective guarantors generally three days to consider information about a guarantee and requiring banks to only enforce a guarantee once they have taken action against the borrower;

  • rules requiring credit card customers to receive reminders about balance transfer promotional periods ending, as well as more consistent treatment about how repayments are applied; and

  • enhanced processes for assisting customers in financial difficulty and processes for resolving complaints.

MONITORING AND ENFORCEABILITY

All ABA member banks will be required to subscribe to the Code as a condition of their ABA membership and the relevant protections in the Code will form part of the banks’ contractual relationships with their banking customers.

The Code will be administered and enforced by an independent monitoring body, the Banking Code Compliance Committee (BCCC). Any person will be able to report a breach of the Code to the BCCC, and consumers and small businesses with disputes about the Code protections will be able to have those disputes heard by the new Australian Financial Complaints Authority.

ASIC notes the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry may make findings relevant to the Code. ASIC may review its approval of the Code in light of the Royal Commission findings.

BACKGROUND

ASIC has provided guidance on its approach to approving codes, including how to obtain and retain approval in Regulatory Guide 183 Approval of financial services sector codes of conduct (RG 183).

 In approving the Code, ASIC considered that:

  • the rules in the Code are binding on the ABA’s members and form part of the contracts between banks and their customers;

  • the Code was developed and reviewed in a transparent way, which involved significant consultation with relevant stakeholders including consumer and small business groups; and

  • the Code is supported by effective administration and compliance mechanisms. The BCCC will have oversight on banks’ Code compliance, tools to require banks’ cooperation with their monitoring and investigations, and a range of sanctions for non-compliance with Code provisions.

www.asic.gov.au

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$4m funding call for forest industry research projects

A $4 MILLION joint funding program aimed at growing South Australia's forest and forest products industry is officially open for applications. ​

Federal Assistant Minister for Agriculture and Water Resources Senator Anne Ruston and South Australian Minister for Primary Industries and Regional Development Tim Whetstone have today released guidelines for the Mount Gambier National Institute for Forest Products Innovation fund.

Researchers with projects to grow Australia's forest and forest products industry are encouraged to apply for funding between $50,000 and $500,000.

Minister Ruston is encouraging innovative applications to continue growing the plantation forest and forest products industry.

"The National Institute for Forest Products Innovation fund is aimed to seize upon opportunities to harness the potential of our forestry assets, and maximise the contribution of the industry to our regional and national economies," said Minister Ruston.

"The fact that one of the National Institute for Forest Products Innovation hubs is located in Mount Gambier demonstrates the importance of South Australia and the Green Triangle to Australia's forest and forest products industry."

Minister Whetstone said the fund will provide important opportunities to boost research and development in the forest and forest products industry.

"The forest and forest products industry is a significant contributor to the state's economy and an important employer in our regions. The industry in South Australia generates over $2 billion in revenue annually," said Minister Whetstone.

"This research funding will play an important role in exploring and facilitating innovation in areas such as forest management, timber processing, wood fibre recovery and value adding, advanced manufacturing and the bio-economy.

"Priority areas for funding in the plantation forest and forest products industry include the development of new products, innovative, safe and efficient workplaces, and precision management; as well as tree growing, and robotics, automation and artificial intelligence."

Applications for the National Institute for Forest Products Innovation fund close on September 7, 2018. For more information and funding guidelines visit www.nifpi.org.au.

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Retailers jumping for joy with June trade figures

THE Australian Retailers Association (ARA) believes June trade figures released today by the Australian Bureau of Statistics (ABS) represent a fair trade for the end of financial year, with a 2.87 percent total growth year-on-year.

Russell Zimmerman, executive director of the ARA, said this positive growth is mostly due to the strong trade in Clothing, footwear and personal accessories and Food retailing.

“Winter finally hit in June as we saw the Clothing, footwear and personal accessories category grow by 5.26 percent year-on-year,” Mr Zimmerman said.

“Food retailing also saw a yummy result, growing 4.31 percent in June with supermarkets making a tasty comeback by having their strongest growth since June last year.”

With the new financial year in mind, consumers increased their spend in the Specialised food (6.05%) and Liquor (4.72%) sub-categories, which showed solid growth for the month.

Department stores (1.77%) saw a second-consecutive monthly rise in year-on-year sales, while weakness in the Household goods category (0.60%) dragged down the overall result for the industry.

“We have seen the housing market come off the boil of late in several states, which explains the flat results for Hardware and building and more significantly, Furniture, which was down by 2.55 percent,” Mr Zimmerman said.

“People don’t renovate when the housing market is down.”

Across the country, Victoria (5.77%) and the Australian Capital Territory (4.30%) showed the strongest growth in June, closely followed by Tasmania (3.87%) and New South Wales (3.05%). South Australia (2.53%) and Northern Territory (2.39%) remained steady, while Queensland (0.62%) and Western Australia (-0.46%) remained flat.

June saw the key retail categories posting healthy results, which is linked to the business confidence increase Roy Morgan has reported for the month.

“Business confidence often falls after the Federal Budget; however, this increase shows greater strength in the market, giving retailers much-needed assurance to invest in their businesses and execute product strategies,” Mr Zimmerman said.

“We believe this would grow further with the Federal Government’s company tax cuts coming into play again in the Senate in a few weeks’ time.”

Monthly retail growth (May 2018 – June 2018 seasonally adjusted) 

Clothing, footwear and personal accessory retailing (1.71%), Cafes, restaurants and takeaway food services (0.86%), Household goods retailing (0.45%), Food retailing (0.39%), Other retailing (0%) and Department stores (-1.23%).

Australian Capital Territory (1.24%), Victoria (1.11%), Tasmania (0.91%), New South Wales (0.42%), Western Australia (0.22%), South Australia (-0.04%), Queensland (-0.33%) and Northern Territory (2.58%).

Total sales (0.41%).

Year-on-year retail growth (June 2017 – June 2018 seasonally adjusted)

Clothing, footwear and personal accessory retailing (5.26%), Food retailing (4.31%), Cafés, restaurants and takeaway food services (2.36%), Department stores (1.77%), Other retailing (1.32%) and Household goods retailing (0.60%).

Victoria (5.77%), Australian Capital Territory (4.30%), Tasmania (3.87%), New South Wales (3.05%), South Australia (2.53%), Northern Territory (2.39%), Queensland (0.62%) and Western Australia (-0.46%).

Total sales (2.87%).

 

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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Southern states must follow Qld's lead to ease gas prices

THE Queensland Resources Council (QRC) says southern states must follow Queensland’s lead to develop their own gas resources in order to bolster supply and lower prices.

QRC chief executive Ian Macfarlane said today’s ACCC Gas Inquiry Interim Report reaffirmed what’s clear from the evidence – that the best way to bring down prices is to bring more gas to market.

“Queensland has been safely developing its coal seam gas industry for 20years,” Mr Macfarlane said. “The fact that we have developed our resources has meant not only gas for us here in Queensland, but it’s also been the supply that’s kept the lights and the heaters on in New South Wales and Victoria.

“Queensland is our nation’s energy super power, exporting coal-fired electricity and gas to southern states.

“Our gas industry has also paid almost $400 million to local landholders, who have benefited directly from co-existence with the gas industry, which is particularly important as landholders battle with the current severe drought.

“Queensland is the case study that works, and other states ignore it at their peril.

“New South Wales and Victoria can’t expect Queensland to continue to supply, and subsidise, their own gas users when each of those states has either a handbrake or a full-blown ban on any gas development.”

The ACCC notes that a looming gas supply crunch has eased and that prices have come down from highs of more than $20 a gigajoule, but that prices remain in the $8-$11 a gigajoule range.

“It’s unrealistic to expect prices to fall below the international price and they certainly can’t fall below the cost of production. But as Queensland shows, developing a local gas industry has the triple benefit of increasing supply, reducing costs and adding value to local communities,” Mr Macfarlane said.

www.qrc.org.au

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Sydney and Melbourne hearings for inquiry into impediments to business investment

THE House of Representatives Standing Committee on Economics will hold public hearings in Sydney on Tuesday, 31 July 2018 and Melbourne on Wednesday, 1 August 2018 for its inquiry into impediments to business investment.

The chair of the committee, Sarah Henderson MP, said the committee will examine how government at all levels can better support business investment in Australia.

Ms Henderson said,"The committee will hear from a range of stakeholders and industry sectors about how the Government can remove impediments to business investment, foster innovation and create jobs."

Public hearing details

Sydney: Tuesday, 31 July 2018, Macquarie Room, NSW Parliament House, Macquarie St, Sydney

9.15am: KPMG

10am: Australian Chamber of Commerce and Industry

10.45am: Australian Private Equity and Venture Capital Association Limited

11.30am: Break

11:40am: Consult Australia

12.10pm: Business Council of Co-operatives and Mutuals

12.40pm: NSW Business Chamber

1.10pm: Lunch break

1.30pm: Australian Dental Industry Association

2pm: The Tax Institute

2.30pm: Public Interest Advocacy Centre

3pm: Insurance Council of Australia

3.30pm: Finish

Melbourne: Wednesday, 1 August 2018, Room G3, Parliament of Victoria Committee Rooms, 55 St Andrews Place, East Melbourne

9.30am: Australian Petroleum Production and Exploration Association

10.15am: National Offshore Petroleum Safety and Environmental Management Authority

11am: Australian Retailers Association

11.45am: Break

12pm: CSL and Cochlear

12.45pm: Minerals Council of Australia

1.30pm: Institute of Public Affairs

2pm: Finish

The hearings will be streamed live in audio format at aph.gov.au/live

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Who will take out this year’s Retailer of the Year crown at the 2018 Retail Realm?

WITH THE AUSTRALIAN retail industry having experienced a complete shake up over the past 12 months, the Australian Retailers Association (ARA) will be seeking to crown the 2018 National Retailer of the Year at the 2018 ARA Retail Awards this October.

The 2018 eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, showcasing the most influential retail leaders and employees within the Australian retail industry.

This year’s awards,  themed The Retail Realm: thinking outside the shop, will touch on every element in the retail sphere including customer experience, technology, payments, sustainability, supply chain, growth, employee development and corporate social responsibility.

With Naomi Simson, founding director of online experience retailer RedBalloon, addressing this year’s Awards, retailers across the country have been submitting their entries to demonstrate how their small, medium, large or franchise business thinks ‘outside the shop’.

Russell Zimmerman, executive director of the ARA, said thinking beyond the shopfront is a crucial element in today’s retail marketplace with various external factors transforming the traditional course of retail.

“The Australian retail industry has undergone some serious changes over the last 12 months, and as a result, retailers have had to change their thinking to adapt to the new retail realm,” Mr Zimmerman said.

“This year’s Awards will highlight and identify those progressive retailers who have revolutionised their business model and transformed to accommodate the new 24/7 retail landscape."

With 13 awards up for grabs across three retail categories, the Retailer of the Year category will surely be one of hardest to critique, and an impressive amount of extraordinary retailers have already submitted their entries on the ARA’s Awards platform.

“This Award category is huge, containing awards for independent, small, medium, large, online and retail franchisees,” Mr Zimmerman said.

“I’m certainly glad I’m not judging this year’s Awards as the sheer amount of entries we’ve received over the past few weeks will be no mean feat for our exceptional panel of judges."

The 2018 eftpos ARA Australian Retail Awards judging panel includes Warwick Ponder, head of Corporate Affairs and Communications at eftpos Australia, Bernie Brookes AM, adjunct industry fellow at Swinburne University of Technology, Camille Reed, founder of Australian Circular Fashion (ACF), Rupert Deans, founder of augmented reality platform Plattar, and Radinck van Vollenhoen, country manager of Stocard, Australia’s leading mobile wallet app.

With only two weeks left to enter, the ARA recommend retailers get their submissions in quickly as entries close Friday, August 10.

“After submissions close, the judges will have two weeks to review each submission before finalists are announced on the 20th of September,” Mr Zimmerman said.

“So, if you want to be recognised in the Retail Realm, and acknowledged as a leading retailer in your field, you have to act fast – because just like the retail industry these Awards present endless opportunities.”

The 2018 eftpos ARA Australian Retail Awards will be held on Thursday 18 October at the Myer Mural Hall in Melbourne. The ARA encourage retailers of all sizes to submit an entry by nominating an influential leader or instrumental employee before Friday 10 August via the 2018 eftpos ARA Retail Awards platform.

To secure your seat for the 2018 eftpos ARA Australian Retail Awards head to The Retail Realm.

 

About the eftpos ARA Australian Retail Awards:

First held in the 1970s, the eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, recognising and rewarding outstanding retail businesses, innovations, and individuals across all sectors of retail. Relaunched in 2008, the annual 2018 eftpos ARA Australian Retail Awards breakfast will commence on Thursday 18 October at the Myer Mural Hall in Melbourne. For more information regarding the 2018 eftpos ARA Australian Retail Awards email This email address is being protected from spambots. You need JavaScript enabled to view it..

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Qld is ideal place for Japanese HELE coal investment

QUEENSLAND Resources Council chief executive Ian Macfarlane has welcomed action from the Federal Government to encourage new investment from Japan in advanced coal-fired power stations in Australia.

“It’s common sense to make full use of our vast energy resources, including high-quality coal to run high-efficiency low-emissions (HELE) power stations,” Mr Macfarlane said. “And Queensland is the ideal place to build one.

“We have access to the best energy resources for a diverse energy mix that is affordable and reliable.

“Queensland’s high-quality coal is already being exported to other countries in our region for use in advanced coal-fired power stations including Japan, China and Korea.

“It makes economic sense to use those resources here in Australia too.”

Thousands of HELE units are already in use or under construction around the world, he said.

“Queensland is Australia’s energy super power, with our extensive reserves of high quality coal, gas and renewable resources,” Mr Macfarlane said.

“Our gas resources are already keeping the lights on in the southern states, including in Victoria where gas development is banned. And we export electricity from our fleet of coal-fired power stations to NSW and Victoria to help power the national grid.

“Building a new HELE coal-fired power station in Queensland makes sense to further strengthen energy security for all Australians.

“We encourage the Commonwealth and all states and territories to finalise the National Energy Guarantee, which is technology neutral and will provide investment certainty for all types of power generation.”

www.qrc.org.au

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Government fees to use the PPSR are going down tomorrow

FROM TOMORROW, the fee to do an onlinePersonal Property Securities Register (PPSR) check will be only $2 — a reduction from $3.40.

Australians use the Personal Property Securities Register to check whether the second hand car they’re looking at buying doesn’t have any money owing on it.

A PPSR check will also tell potential buyers whether the car’s been reported as stolen or written off.

"Enter the details and with just one click, a quick motor vehicle search of the PPSR provides real time information that helps consumers make informed decisions before they buy," said Hamish McCormick, chief executive of the Australian Financial Security Authority (AFSA).

The PPSR is also used by businesses to register their interest in goods they provide until they receive final payment. Businesses can also use the PPSR to obtain credit — by using their goods and assets as collateral.

Registrations fees have also been reduced, with seven year registration to cost $6 instead of $6.80, $25 for a seven – 25 year registration (down from $34) and $115 for a registration with no end date (down from $119.)

Earlier this year, AFSA reviewed the PPSR fees and charges and proposed a reduction in most fees.

"AFSA has worked closely with stakeholders and users of the PPSR to propose these new fees. This is good news for Australian consumers and businesses, making the PPSR even more affordable,” Mr McCormick said.

www.ppsr.gov.au.

PPSR Background

The PPSR is the single, national online noticeboard of security interests in personal property in Australia. Personal property generally includes all forms of property other than land, buildings and fixtures.

Individuals or businesses can search the PPSR to check whether the valuable goods they want to buy are free from existing financed debt and safe from possible repossession.

Individuals or businesses can make a registration on the PPSR to show that they have a security interest in the goods they are supplying. If the customer doesn’t pay or becomes insolvent, they are in the best position to get their goods, or their value, back.

The PPSR can also be used by businesses to raise finance, using their goods and assets as collateral.

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Defence offers funding for cyber technology research

DEFENCE is inviting research proposals from industry and universities to enhance the cyber capabilities of the Australian Defence Force.

Minister for Defence Industry, Christopher Pyne, said Australia must respond urgently to cyber threats which are becoming widespread and persistent.

“Malicious cyber activity costs Australian business and families over $1 billion every year, and malicious cyber activity from state and non-state actors is a threat to Australia’s national security,” Minister Pyne said.

“The government encourages Australia’s scientists and researchers to contribute to the development of cyber capabilities, which is a priority for national security. 

“We want academia and industry to collaborate with Defence Science and Technology, and CSIRO’s digital research network, Data61, to deliver technology developments and demonstrator systems within three to five years.

“It is critical that Australia develops a sovereign capability to protect our nation.”

Funding of up to $650,000 is being provided by the Next Generation Technologies Fund for the cyber research program.

Initial proposals will be funded for 12 months with the option of future funding for promising projects.

Applications close Wednesday August 15 with proposals to be submitted through the Defence Innovation website: http://bit.ly/2O6Ou48

Further information is available at www.dst.defence.gov.au/cyber

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Protect your most important assets – your workers

THIS AUGUST is Tradies Health Month, and Safe Work Australia is reminding employers to protect their business’ greatest assets – their workers.

The nationwide initiative aims to raise awareness of work health and safety risks for tradies. Safe Work Australia’s CEO Michelle Baxter said worksites for tradies were hazardous by nature, and that employers have a duty to ensure their team is working safely.

“According to the latest WHS statistics, tradies make up almost one-third of Australia’s workforce, but they represent over half of the country’s serious workers’ compensation claims,” Ms Baxter said.

The most common serious claims for workers’ compensation are attributed to muscular stress while lifting, carrying or putting down objects.

“Injuries that tradies often experience include traumatic joint/ligament, and muscle/tendon injuries. Most distressingly, almost 50 tradies a year die from vehicle incidents,” Ms Baxter said.

Throughout August, Safe Work Australia will share resources on tradies’ health and safety by publishing a collection of data, videos, resources and information on our website. These can be accessed at any time, from any smartphone or tablet device.

“We want every tradie to go home safe. For more information and guidance on WHS in the trade industry, contact the local WHS regulator in your area,” Ms Baxter said.

“Serious injuries and fatalities will end up costing you more if you take shortcuts. Deadlines are serious, but injuries and fatalities are worse.”

Visit the www.swa.gov.au for resources, WHS contacts and general guidance on how to keep safe as a tradie.

Note: ‘Tradies’ are comprised of technicians and trades workers, labourers, and machinery drivers and operators.

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Nominations for 2018 FPA Awards open

THE Financial Planning Association of Australia (FPA) is calling for FPA members to make submissions for the 2018 FPA Awards, a program that recognises excellence in financial planning and the notable contributions made by members to local communities.

The awards acknowledge the achievements of outstanding planners, paraplanners, students and practices, and celebrate the individuals and businesses who go above and beyond to deliver outstanding outcomes for clients.

FPA CEO Dante De Gori said the 2018 FPA Awards program was an important initiative that highlights the talent and passion within the financial planning profession.

“Financial planning professionals know that trust and respect is earnt through excellent client service – proactively going out of the way to answer questions before they are even asked and maintaining an open, transparent and communicative relationship,” Mr De Gori said.

“Hearing our members’ success stories makes me immensely proud, and this year we’ll be honouring them for the exceptional work they do across six different award categories.”

The six categories open for submissions are:

  • • FPA Certified Financial Planner Professional of the Year Award
  • • FPA Financial Planner AFP of the Year Award
  • • FPA Paraplanner of the Year Award
  • • FPA Professional Practice of the Year Award
  • • FPA University Student of the Year Award
  • • Community Service Award supported by Future2.

Future2 is the philanthropic arm of the FPA. The Future2 Community Service Award recognises FPA members who have made an outstanding contribution to improving the circumstances of the most socially excluded or financially disadvantaged members of the community in a probono, volunteering or community service capacity.

The next generation of financial planners are also acknowledged in the FPA University Student of the Year Award that recognises students who are excelling in the finance field and show a dedication to financial planning. Students who have demonstrated exceptional performance will be nominated by their respective accredited educational institution.

“With previous winners from Mackay, Brisbane, Melbourne and Perth unveiled at the 2017 FPA Professionals Congress, I strongly encourage all FPA members across Australia to enter this year,” Mr De Gori said.

“Let’s share how financial planners make a meaningful positive difference to the lives of clients and within our communities.”

All categories will be judged by a panel of experts. Depending on the category, award winners will receive consumer media opportunities, financial contribution to professional development and complimentary registration to the FPA Professionals Congress.

The award winners will be announced at the 2018 FPA Professionals Congress in Sydney from November 21-23, along with the next winner of the bi-annual Gwen Fletcher Memorial Award.

Applications are now open and close on Friday August 31.

To enter: https://fpa.com.au/fpa-community/fpa-awards/

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