QUINN Emanuel Urquhart and Sullivan (QE) today has filed class action proceedings in the Supreme Court of New South Wales against embattled financial giant AMP Limited (AMP).

The class action has been filed on behalf of affected shareholders who have seen AMP’s market capitalisation plummet by approximately $2 billion following its recent admissions of misconduct at the banking Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. QE will pursue the class action, which has the potential to be one of Australia’s largest shareholder claims, with the backing of global litigation funder Burford Capital.

The class action alleges that, amongst other things, AMP breached its continuous disclosure obligations and made misleading statements, causing shareholders significant loss.

Revelations of AMP’s misconduct have caused its share price fall to a six year low – with AMP’s share price dropping by 14 percent since 16 April 2018. At close Wednesday, AMP shares were trading at $4.08.

QE Partner Damian Scattini said: “I don’t think there’s anyone in Australia who hasn’t been shocked and appalled by the behaviour exposed by the Royal Commission. AMP admitted that it has been misleading its customers and the market for years – it knowingly charged its loyal customers fees for advisory services it never provided, and then repeatedly lied about it to the corporate regulator. The deceit of AMP and its board is reprehensible and they must be held financially accountable.

“We have been examining AMP’s conduct for some time, but these revelations show irrefutably the contempt and disregard that AMP has for both its shareholders and customers. We will be watching AMP’s annual general meeting tomorrow with great interest to see what they say about this.

“The fact that AMP’s chairman, CEO, general counsel and three directors have resigned or been stood down as a result of the evidence heard at the Royal Commission shows that even AMP realises the depth of wrongdoing that has occurred at the highest levels of the company.”

Craig Arnott, managing director of Burford said: “AMP’s directors and executives have demonstrated a serious lack of regard for their responsibilities and the legitimate expectations of the company’s shareholders, many of whom are retail investors.”

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THE NEW one-stop shop for financial complaints is taking shape, delivering on the Turnbull Government’s commitment to overhaul the external dispute resolution framework for financial disputes in Australia, providing consumers and small businesses with access to free, fast and binding dispute resolution.

THE RESOURCES sector has helped Queensland maintain its record high export results with strong growth in coal, LNG and mineral exports over the last 12 months, Queensland Resources Council chief executive Ian Macfarlane said.

Mr Macfarlane said based the latest trade figures for the 12 months to the end of March 2018 showed that the resources sector contributed more than $55 billion – or 78 percent – of the State’s $70 billion goods exports.

Premier and Minister for Trade Annastacia Palaszczuk said: “Queensland has always been a trading state. Our future is underpinned by trade, which comprises almost one-third of our economy. Our growth in exports is driven by coal, LNG and crops. We are always looking to do more to create jobs and boost the economy.”

Mr Macfarlane said he welcomed the Premier’s confidence in the sector and its ongoing contribution to Queensland’s exports.

“The fact is our exports are at record levels.  That’s good news for the Government’s budget and its capacity to reinvest in services and infrastructure.  It’s very good news for Queensland jobs and household budgets,” he said.

“Resources sector exports from Queensland are now the equivalent of $1 billion every week.”

The trade data shows coal exports increased by 12.4 percent – or $3.324 billion – to $30.174 billion over the last 12 months, while minerals increased by 9.9 percent – or $654 million – to $7.286 billion over the same period.

“LNG continues to be a growing contributor to our exports performance.  Combined the QCLNG, APLNG and GLNG projects, working off Curtis Island, have sent more than 750 shipments overseas from the Port of Gladstone,” he said.

Mr Macfarlane said stable policy and commodity prices were essential to the resources sector's strong export performance.

“However, the major threat to our export performance is a homegrown one.  Aurizon’s new maintenance regime will cut the movement of an estimated 20 million tonnes per annum.  This is the equivalent of $4 billion in lost export sales.  For the Government, and more importantly for the people of Queensland, it is a $500 million loss in royalties – in money the Government can reinvest in services and infrastructure for the people of Queensland,” he said.

“QRC repeats its call on Aurizon to resume normal maintenance practices and await the outcomes of both the Supreme Court action, which Aurizon initiated, and the Queensland Competition Authority assessment.”

QRC is the peak representative body for Queensland’s resource sector. The sector provides one in every $6 in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 businesses across the State, all from 0.1 percent of Queensland’s land mass.

www.qrc.org.au

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QUEENSLAND high school students keen to follow in the legendary footsteps of film composers such as Ennio Morricone and John Williams are encouraged to enter Queensland Music Festival’s (QMF) annual state-wide competition Score IT!, which closes on May 18.

Budding high school composers are invited to create an original composition to accompany a short animated film produced by Griffith Film School, with winning entries to be performed by a live orchestra in July 2018.

There are three categories for entry: Score IT! Junior (year 7-10) will see students create a score for The Forest, the story of a young monk who must help a deer in order to restore peace to the forest. Score IT! Senior (year 11-12) entrants will use The Poet and the King for inspiration, the story of a king who attempts to win the love of a court poet with a series of terrible poems. Score IT! Plus (year 7-12) comes with the added challenge of composing for specified instrumentation and submitting a written score to Sweep, the story of the young chimney sweeper who rescues a cat to try and win a girl’s heart.

Entries will be judged by an expert panel including QMF Artistic Director Katie Noonan, award-winning screen composer Cameron Patrick, known for orchestrating films such as Spiderman: Homecoming, Zootopia, Jurassic World, UP, Jupiter Ascending, and Star Trek: Into Darkness, as well as industry leaders from Griffith Film School, Queensland Conservatorium Griffith University, Queensland School of Film and Television and PixelFrame.

QMF Artistic Director Katie Noonan said Score IT! would help inspire the next generation of composers.

“Music speaks - without words. I can recall many film scores that have moved me throughout the years, and I can’t wait to hear what our talented young composers come up with for the three beautiful animations produced by Griffith Film School students,” Ms Noonan said.

“Many past Score IT! participants have gone on to study music at university and are still following their passion, which is exactly why we started this Queensland Music Festival project in the first place.”

Minister for the Arts Leeanne Enoch said Score IT! was a wonderful initiative that encouraged Queensland’s young creatives to test their skills and create an imaginative film score.

“The Queensland Government supports the Queensland Music Festival and Score IT! as part of our commitment to fostering a vibrant, sustainable and accessible arts sector, including nurturing our emerging artists and musicians.

“QMF does a great job of delivering outstanding legacy programs and projects for our state, and I look forward to Score IT! and the other exciting events in store for 2018,” Ms Enoch said.

Finalists will be invited to take part in a number of composition workshops and masterclasses led by senior lecturers and practitioners from the Queensland Conservatorium Griffith University in July, and will also take part in a half-day workshop with top video and digital agency, PixelFrame.

The winners will take home RØDE Microphones recording gear, and the winning Score IT! Plus composition will be performed by students from Queensland Conservatorium – Griffith University at Griffith Film School on 25 July 2018.

Composer Cameron Patrick said music was key to creating a film’s emotional highs and lows.

“Each of the short films alludes to a specific geographical setting, and while not absolutely required, the students might want to incorporate certain instrumental sampled sounds to give the audience an immediate association with that place.”

“Perhaps Tibetan instruments like the Piwang could be used for The Forest in the Junior competition.  For The Poet and the King, the Persian Setar might be a good choice. In Sweep for the Plus competition, while not explicitly set in London, students might want to explore an English or even European flavour. YouTube is a wonderful resource for researching, watching and listening when it comes to instruments from other cultures,” Mr Patrick said.

Score IT! is presented by QMF and Brisbane City Council and supported by Griffith Film School Griffith University, Queensland Conservatorium – Griffith University, APRA AMCOS, Queensland School of Film and Television, PixelFrame and RØDE Microphones.

For more information visit qmf.org.au.

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THE INSTITUTE of Public Accountants (IPA) has analysed the tax policies as announced by the two major political parties and questions how it can be that we have such divergent views when it comes to tax. 

“We understand that next week’s Federal Budget is a pre-election Budget and by their very nature, Budgets and Budget replies are inherently political,” said IPA chief executive officer, Andrew Conway.

“However, there is too much at stake for political posturing when we have very real and growing expenditure pressures on the budget brought about by our ageing population and increasing tax complexity.

“We strongly encourage the parliament to put the national interest ahead of political interest and partisanship when it comes to tax.

“The ‘tax-talk’ from both sides of politics is so divergent that the layperson has even less of an idea of what the tax system will look like if the changes come into force. 

“As a community, we need to give politicians the license to be bold when it comes to tax reform. A tax system built on simplicity and equity should be our collective goal. 

“We have kept track of the announcements to date:

Labor’s announced tax policies:

1. A restoration of the company tax rate to the full 30 percent coupled with a possible lower rate for smaller corporate entities with turnover less than $2m;
2. Higher personal tax rates at the top end of the income scale and lower personal tax rates at the lower end;
3. An increase in the Medicare levy to 2.5 percent coupled with a more generous Medicare levy arrangement for lower paid workers than currently available;
4. A prohibition on negatively gearing investment properties other than newly built investment properties;
5. A halving of the capital gains tax (CGT) discount to 25 percent for individuals;
6. A minimum tax of 30 percent on all distributions from discretionary trusts;
7. A denial of any refund in respect of excess imputation credits;
8. A new deduction (the Australian Investment Guarantee) which will enable a 20 percent deduction in respect of the purchase of any new eligible asset worth more than $20,000;
9. Capping of deductions for managing tax affairs to a maximum of $3,000;
10. Whistle-blower rewards for tax evasion; and
11. Superannuation:

• · Oppose catch up contributions on concessional contributions and tax deductibility on personal superannuation contributions;
• · Lower annual non-concessional contribution cap to $75,000 and further lower high income super contribution threshold to $200,000; and
• · Increasing the Superannuation Guarantee to 12 percent when fiscal circumstances allow.

In contrast, the Coalition’s current tax policies (prior to the May Budget) are:

1. A reduced corporate tax rate for all companies eventually with a target rate of 25 percent;
2. A likely reduction in personal tax rates particularly for income levels up to $100,000;
3. No change to current arrangements regarding negative gearing of investment property;
4. No change to the CGT discount which currently sits at 50 percent for individuals;
5. No change to the current arrangements regarding trust distributions from discretionary trusts;
6. No change to the current arrangements regarding imputation in particular, full refund of excess imputation credits; and
7. No changes in relation to depreciation – the $20,000 immediate asset write-off available to 30 June 2018 is not currently being extended by the Coalition. This may change on 8 May.

“Our key concern is that with the Budget just days away, we seem to be headed for more tinkering and less substantive tax reform. Either way, the Federal Parliament seems unwilling or unable to talk about holistic tax reform where the total tax mix is taken into consideration,” said Mr Conway. 

www.publicaccountants.com.au

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THE Australian Financial Complaints Limited (AFCL) has received authorisation from the Minister for Revenue and Financial Services to establish and operate the Australian Financial Complaints Authority (AFCA).

Under the Minister’s Authorisation, AFCA will commence accepting new complaints on 1 November 2018. All financial firms required to hold membership of an external dispute resolution scheme will be required to join AFCA by no later than 21 September 2018. Ninety-eight percent of current members of the Financial Ombudsman Service (FOS) have already completed the annual assessment and member declaration to ensure a smooth transition to AFCA. 
 
The current Transitional Board of AFCL was formed for the purpose of making the application for authorisation and is chaired by Prof. Michael Lavarch and comprises the FOS Board and two members of the Superannuation Complaints Tribunal Advisory Council. 
 
The inaugural AFCA Board, to be chaired by Helen Coonan, will formally assume responsibility from 4 May 2018 for the implementation of the new scheme. The AFCA Board will comprise Helen Coonan, four directors appointed by the Minister and six ongoing directors from the AFCL Transitional and FOS Boards. The directors on the AFCA Board effective 4 May 2018 are set out below.
 
The AFCL Transitional Board notes the contribution of Michael Lavarch, David Coorey and Louise Lakomy and thanks them for their service to AFCL, FOS and its predecessor schemes. The AFCL Transitional Board would like to thank John Berrill and Michael Dwyer for their contributions on both the Joint Working Group and AFCL Transitional Board. One of the early actions of the new AFCA Board will be to consult stakeholders on the proposed AFCA Rules and on an interim funding model for the new scheme.
 
As part of the interim funding arrangements, there will be separate and appropriate arrangements for the funding of superannuation disputes. This will be based on using the parameters applied for the current APRA levy calculations.
 
AFCA will also work with financial firms on the process to formally become a member of AFCA by 21 September 2018.  

The AFCA Board will continue working with the Credit and Investments Ombudsman (CIO) Board on the necessary arrangements for a transfer of its members and operations to AFCA. AFCA will continue its close collaboration with the Superannuation and Complaints Tribunal (SCT) during the transition process.
 
In the lead up to the commencement of the AFCA EDR scheme on 1 November 2018, AFCA will be actively engaging with all its stakeholders, including consumer organisations.
 
Contact details for AFCA, including its website and contact number will be available from today. 
 
Member inquiries:     This email address is being protected from spambots. You need JavaScript enabled to view it.

AFCA Board
 

THE top 10 tech start-ups at CeBIT 2018 will go head-to-head for the coveted title of PitchFest winner at ICC Sydney on May 17.

CeBIT Australia’s PitchFest is a 'Shark Tank' style competition giving ten of the nation's most promising start-ups the opportunity to pitch their entrepreneurial ideas to an esteemed panel of judges, before an audience of fellow start-ups, investors and potential customers.

The ultimate winner of CeBIT PitchFest 2018 will not only get extraordinary exposure but will receive a prize package valued at over $20,000; comprising a fully-paid exhibition stand at CeBIT Australia 2019, three Square Contactless and Chip Readers from Vodafone, a Norton Small Business 10, which protects 10 devices for 12 months, a $10,000 USD Alibaba Cloud credit valid for one year, three months free co-working space at Tank Stream Labs in Sydney, a one-year membership to TIE Sydney, and ongoing support and mentorship. 

The 10 finalists battling it out to win PitchFest are:

• AdvancedCateringSolutions – provide specialist cloud and Blockchain technology software that liberates chefs, giving them unrivalled food traceability, cost-savings and operational efficiencies.
• BenchOn – focused on solving the problem of employee under-utilisation, providing an online B2B platform solution for companies to manage the peaks and troughs of their business cycle by matching staff with current short-term contracts.
• Diffuse Energy – offers a small wind turbine that's twice as efficient while being quieter and safer than other products currently on the market.
• HeadsafeIP – offers the Concussionometer, a portable headset using clinically validated, patented technology to measure the brain’s electrical activity when concussed and send results to a smartphone.
• Inspace XR – builds augmented and VR software for the real estate sector, allowing designers to visualise their VR CAD files within seconds, communicate with stakeholders easily with scale-accurate, on-demand walkthroughs, reviews and sync automatically allowing users to virtually step inside a design.
• KnowHowHere – is an IoT app platform that improves safety and performance for workers who perform complex tasks in the real world of mining, construction, infrastructure, transport, and defence. 
• Littlescribe – is helping combat illiteracy, enabling children to create original books from their hand drawn and written pages – encouraging kids to read and providing positive curriculum outcomes and tools for schools.
• Oppizi – is technology powering offline marketing acquisition initiatives that allow clients to seamlessly track and optimise their campaign performance.
• Sourcr – a recruitment platform allowing businesses to find and compare recruiters and manage their existing relationships more effectively.
• Ping Data – technology that brings paper receipts into the modern age by digitally capturing payment data to create PINGreceipts, which are then matched to the transactions in a user's banking app.

Each finalist will have four minutes to pitch their tech-related start-up idea, followed by a four minute Q&A session with this year's four revered judges; Adam Cook, Investment Associate AirTree Ventures, Bradley Delamare, Chief Executive Officer, Tank Stream Labs, Kara Frederick, General Partner, Reinventure and Noga Edelstein, Co-Founder, UrbanYou.

Previous winners of CeBIT PitchFest have gone on to become multi-million-dollar, multinational companies. The 2017 winner Look Who's Charging, helps Australians easily identify merchant charges to our credit cards. Since showcasing at CeBIT Australia last year, the business has had enormous success and were recently crowned the winner of Money Magazine’s 2018 – Most Innovative Banking Feature Award.

Harvey Stockbridge, Managing Director of Hannover Fairs – organiser of CeBIT Australia – said the annual PitchFest competition is a hugely popular segment on the CeBIT Australia program.

“CeBIT PitchFest has a proud history of unearthing and supporting Australia’s leading technology start-ups and this year is sure to be no exception. It is an absolute privilege to be in a position to help launch the next generation of tech-industry game-changers," said Mr Stockbridge.

According to a report released by KPMG in mid-2017[i], investment in Australian start-ups is growing significantly, with a noticeable maturation of our start-up ecosystem.

Deputy Premier and Minister for Small Business, Hon. John Barilaro said nine out of the ten finalists were NSW based start-ups, including six companies that have been supported by the NSW Government-backed Jobs for NSW.

“Start-ups and small businesses are the big job generators of our economy and events like PitchFest help unearth and launch the best new companies of the future. 

“Congratulations and best of luck to all the finalists, your breakthrough technologies demonstrate the breadth and excellence of the start-up community in this country.

“The NSW Government's support for CeBIT Australia and for our start-up industry will continue to grow our state's global reputation as a technology industry leader,” said Mr Barilaro. 

PitchFest is one of Australia’s premier start-up launch platforms, showcasing innovative talent and pitch presentations held on the FutureTech Stage from 2pm - 4.15pm on Thursday 17 May, wrapping up the three-day CeBIT Australia 2018 event at ICC Sydney.

www.cebit.com.au

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THE Victorian Chamber of Commerce and Industry today welcomes the major investments in infrastructure, training and regional tax relief contained in the 2018/19 State Budget.

Victorian Chamber of Commerce and Industry Chief Executive Mark Stone said it is pleasing to see many of the Victorian Chamber’s recommendations taken up in this State Budget.

“The pro-business initiatives provide a boost to Victoria’s 590,000 businesses and create new employment, investment and trade opportunities," Mr Stone said.

“With an average annual infrastructure spend of $10.1 billion per year over the next four years, the budget is tackling the state’s congestion and growth challenges, benefiting industry through more efficient freight movements and supply chain opportunities for tens of thousands of businesses,” he said.  

Key infrastructure initiatives contained in the State Budget include:

• $110 million to fast track the completion of design and planning for the North East Link
• $50 million for detailed planning of a fast train to Geelong integrated with an Airport Rail Link
• $712 million for the second stage of the Monash Freeway upgrade
• $941 million for regional road upgrades
• $50 million for community infrastructure in fast growing interface council areas
• $153.2 million for a Geelong City Deal that includes a new convention centre and Stage 2 of the Shipwreck Coast Masterplan.

Mr Stone also welcomed an extensive skills package, including stronger secondary school pathways to apprenticeships and traineeships and better career advice to ensure more skilled workers are job ready.

Key skills and training initiatives include:

• $172 million to make TAFE training free for 30 priority courses
• $25.9 million to strengthen vocational pathways
• $109 million to improve student career advice
• $48.9 million to fast track secondary school students into apprenticeships and traineeships.

Mr Stone said thousands of regional businesses will save $167 million with a new lower payroll tax rate of 2.425 per cent, making regional Victoria a destination for investment with the lowest payroll tax rate in the nation.
 
“However, while welcoming the reduction in regional payroll tax, the Victorian Chamber will continue to call on all parties to provide wider payroll tax relief by increasing the payroll tax threshold to $850,000 in the lead up to the election,” he said. 
 

About the Victorian Chamber of Commerce and Industry
The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.victorianchamber.com.au

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