THE Institute of Public Accountants (IPA) has issued its pre-Budget 2018/19 submission to Government with key recommendations around holistic tax reform; state-backed loan guarantee schemes; publicly supported venture capital funding; investment in innovation; and legislating payment times to benefit small business.

“The IPA continues to put the case forward for major tax reform which has been a pill too hard to swallow for the major political parties,” said IPA chief executive officer, Andrew Conway.

“We are calling on the Government to deliver the much promised and almost forgotten tax reform white paper to take a long term view and encourage genuine public debate on tax reform.

“One of the main considerations is a rebalancing of the tax mix.

“We are also asking the Government to introduce a state-backed loan guarantee scheme to help increase the availability of much-needed affordable loan finance to the small business sector. 

“In addition, we are recommending that the Government introduce a publicly supported venture capital (VC) fund in order to encourage the private sector to follow the Government’s lead in boosting the entrepreneurial culture. 

“We also believe that the Government’s National Innovation and Science Agenda can be furthered by encouraging innovation policy to support innovative small to medium enterprises in Australia,” said Mr Conway.

Further information on the IPA’s recommendations can be found at http://bit.ly/2BU30Jm

publicaccountants.org.au

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THE proposed increase in registration fees for new auditors of self-managed superannuation funds (SMSF) appears to be excessive according to the Institute of Public Accountants (IPA). 

“A one-off fee increase from $107 to $3,429 is exorbitant.  Even more unfathomable is that an auditor exiting the sector will be hit with a deregistration fee of $899,” said IPA chief executive officer, Andrew Conway.

“The ATO currently already collects $259 from each SMSF to finance the SMSF monitoring role the ATO conducts on behalf of ASIC.

“This levy was a mere $45 in 2008 but now equates to approximately $142.5M (550,000 SMSFs multiplied by $259) to monitor the sector including SMSF auditors.

“In 2011/12, the Government provided ASIC with $10.7M over five years, to develop and maintain an online registration system for auditors of SMSFs.  ASIC also developed a competency exam for auditors, enabling ASIC to deregister non-compliant auditors.

“The Government also gave the ATO $10.6 million over five years to police registered auditors, check their compliance with competency standards set by ASIC and where necessary, refer non-compliant auditors to ASIC for appropriate punishment.

“Some of the funding for the SMSF auditor registration process was also sourced by ASIC charging auditors to sit the SMSF auditor competency exam.

“Surely, the fee increases under the proposed fees-for-service funding model must take into account the money already being collected via the ATO supervisory levy.

“While we understand the objectives of the new funding model and the role of ASIC, we have a major concern over the impact these fees will have on competition, especially when there has already been a decline in the number of SMSF auditors in a market which is being dominated by the major players.

“SMSF auditors, who are members of one of the three professional accounting bodies, such as the IPA, are already well regulated in our co-regulatory system, which requires them to maintain their professional and ethical standards.

“We are calling on the Government to reconsider the proposed fee increases which will deter new entrants from entering the market,” said Mr Conway.

publicaccountants.org.au

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THE Queensland Resources Council (QRC) today called for the State Government to stand-up for the resources sector and to acknowledge coal’s fiscal value to the state budget and the thousands of coal workers who help deliver the royalties.

QRC Chief Executive Ian Macfarlane said the Mid-Year Financial Economic Review (MYFER) yet again showed resources, especially coal, underpin the budget.

“Coal royalties are expected to reach $414 million above the 2017-18 budget forecast or $3.16 billion forecast over the financial year. Revenues from all resources including coal, gas and metals not only pay the wages of teachers, nurses and police they build the schools, hospitals and police stations,” Mr Macfarlane said.

“The extra coal royalties alone would pay for the North Queensland Stadium ($250 million), four schools such as the new state school at Caloundra South (4 x $34 million) and three police stations in the regions (3 x $8.3 million).

“For the second year in a row resources have delivered an early Christmas present for the government and all Queenslanders. When the resources sector is doing well, the entire Queensland economy benefits.

"The sector continues to be a mainstay of employment and economic growth in Queensland, ensuring that every Queenslander benefits from this great industry."

Last financial year the sector generated $55.1 billion in economic prosperity for the state and achieved this contribution while using only 0.1 per cent of Queensland’s land mass.

www.qrc.org.au

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MINISTER for Defence Industry, Christopher Pyne MP, has announced Naval Group has released expressions of interest and requests for information to help get Australian industry involved in Australia’s Future Submarines.

Mr Pyne said Naval Group was seeking Australian industry ‘know how’ as the $50 billion Future Submarine Program continued to gather momentum.

“The Turnbull Government is committed to a sovereign naval shipbuilding capability and this includes 12 regionally superior submarines for our Navy,” Mr Pyne said.

“These submarines will be built in Australia, by Australians, which will maximise local industry involvement in all phases of the program."

So far around 130 companies have been pre-qualified by Naval Group to be part of the program. 

“Naval Group continues to support the Turnbull Government in this endeavour and is looking to Australian industry to manufacture and supply critical equipment and other common technologies for the submarines," Mr Pyne said.

“Opportunities exist for Australian industry to provide everything from electrical, mechanical, heating and air conditioning equipment, to castings, steel and titanium products.

“This is part of a wider suite of activities aimed at collecting information on industry’s capability to supply products and technologies required to manufacture and sustain the Future Submarines in Australia.

“These are the first major equipment information requests released by Naval Group, with more scheduled for release progressively throughout 2018, and complemented by the continuation of industry briefing days.

“Australian industry involvement in the Future Submarine Program is expected to generate an annual average of around 2,800 jobs over the life of the Program,” Mr Pyne said.

Companies wanting to know more about the program or respond to Naval Group’s request can visit the Future Submarine Industry Capability Network Gateway:

https://gateway.icn.org.au/project/3915/naval-group-future-submarine

The deadline for interested companies is January 5, 2018.

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THE Joint Committee of Public Accounts and Audit has launched a new inquiry into Commonwealth Contracting. The inquiry is based on the Auditor-General’s Information Report—Australian Government Procurement Contract Reporting(Audit Report No. 19, 2017–18).

The Committee’s inquiry will examine matters raised by the Auditor-General’s insights on contract information reported over a five-year period (2012–13 to 2016–17) in AusTender — the Australian Government’s centralised publication of contract notices. Particular areas included:

• the volume and value of Government procurement contracts;
• entities’ procurement contract behaviour as it relates to the timing of procurements during each financial year; and
• reporting on the number and value of contracts undertaken with Small to Medium Enterprises.

The Committee invites submissions to the inquiry addressing the terms of reference. Submissions are requested by 16 February 2018, with public hearings held from February 2018. Complementary Submission Guidance, which highlights the Committee’s five areas of focus, has also been prepared to assist submitters with their respective input to the inquiry.

Committee Chair Senator Dean Smith said Commonwealth contracting was worth $47.4 billion in 2016–17 and was an area of public expenditure that deserved close and constant scrutiny.

“Effective procurement contract behaviour is vital and transparency in contract reporting is critical so that the Government can assure itself and the Australian public that entities are achieving their objectives in an efficient and cost-effective manner,” Senator Smith said.

Interested members of the public may wish to track the committee via the website. 

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WITH Australian consumers expected to spend over $20 billion on grocery items this Christmas, the Australian Retailers Association (ARA) believes physical retailers will start to see a vast increase in foot traffic across local and inner-city stores this weekend as Australians stock up for their Christmas celebrations.

Russell Zimmerman, Executive Director of the ARA said with foot traffic increasing 7.5 percent week-on-week across bricks-and-mortar stores, the ARA believes Australians will increase their food spending by 3.27 percent during the Christmas period.

“Although more and more consumers are buying their Christmas groceries online, online retailers can only do so much leading up to the big day,” Mr Zimmerman said.

“Shoppers who have not yet ordered their Christmas groceries online will instead be heading into town to spend big at food retailers across the country to ensure they are ready for their Christmas feast.”

Bryan Skepper, Sydney Fish Market general manager, said they are expecting more than 100,000 shoppers to visit the Sydney Fish Market between 5am on Saturday 23 December to 5pm on Sunday 24 December to source their fresh seafood for this year’s Christmas lunch.

“The 36-Hour Seafood Marathon is a long-standing tradition where visitors can collect more than just seafood; they can source advice on the best wines and beer to pair with their meal from the bottle shop; or pick up fresh bread from the bakery.”

With extended trading hours in place, the ARA believes the festive season will drive supermarket sales up in the last weeks of December, exceeding last year’s sales by 3.27 percent.

Michael Jackson, Director of Merchandising, Marketing & Customer Insights at Endeavour Drinks Group, said any Christmas lunch wouldn’t be complete without an excellent beverage selection.

“Rosé continues to be the fastest growing category in wine this year, but we believe Aperol and Campari Aperitifs will be the biggest trend in spirits this summer,” Mr Jackson said.

“While the Great Northern continues to drive the mid strength category for beer lovers, Pure Blonde Cider is leading a change to the Cider category with its focus as a lighter and healthier drink.”

With only two weeks until Christmas, and foot traffic on the rise, the ARA urge retailers to be prepared for a surge in shopper traffic this weekend as Australians stock up for their Christmas celebrations.

“With consumers to hit the stores late this week we also ask that shoppers remain patient as retail staff manage the increased number of customers,” Mr Zimmerman said.

To view the ARA and Roy Morgan’s Annual Pre-Christmas Sales Predictions for 2017 click here.

ARA ROY MORGAN PRE-CHRISTMAS SALES PREDICTIONS 2017

November 15 – December 24, 2017

2017 Pre-Christmas Sales Growth by Category

[ARA / ROY MORGAN]

2017 Pre-Christmas Sales Growth by State

[ARA / ROY MORGAN]

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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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THE House Standing Committee on Indigenous Affairs has tabled its long-awaited report into Indigenous education.

The inquiry, spanning two parliaments, provides an in-depth look into the educational opportunities available to Aboriginal and Torres Strait Islander students—considering both the challenges and achievements of students, schools, organisations, and communities across Australia. The committee is led by the Chair, Melissa Price MP.

“Education provides opportunities and choices for the future. Evidence shows that improving education outcomes is critical to improving quality of life for a community,” Ms Price said.

“There is no shortage of examples of Indigenous people who have worked hard to achieve significant education and employment outcomes, often overcoming substantial disadvantage to do so. Nonetheless, the gap in attendance and education outcomes between Indigenous and non-Indigenous students is an unavoidable fact that must be addressed.”

The report makes a number of recommendations regarding addressing barriers to achievement; improving cultural safety in schools and boarding facilities; ensuring gender equity of engagement and support programs; strengthening teaching and use of effective pedagogies; improving boarding facilities and standards; and improving access to financial support such as ABSTUDY.

As the Chair noted, “All children have a right to feel safe, included, valued and supported both at home and at school. So, the committee hopes that, by schools working together and building relationships with students, their families and communities, the barriers to achievement will diminish and Indigenous students will finally be able to grasp all of the opportunities afforded to them.”

The report has been published on the committee’s website.

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MINISTER for Veterans’ Affairs Dan Tehan said today time was running out for businesses to nominate for the inaugural Prime Minister’s Veterans’ Employment Awards, closing on December 22.

The Prime Minister’s Veterans’ Employment Awards will showcase leading Australian businesses that are employing veterans as well as former Australian Defence Force (ADF) personnel making significant contributions to their workplace.

The winners will be announced at a gala award ceremony to be held in Canberra and attended by Prime Minister Malcolm Turnbull.

Mr Tehan said the awards celebrate the skills and talents former ADF personnel bring to a job as well as promoting the Australian businesses that were employing veterans.

“I strongly encourage Australian businesses of all sizes to nominate for an award and help honour the service and sacrifice of the men and women who defend our nation by celebrating their ongoing contribution to the Australian community,” Mr Tehan said.

“The awards will highlight the Australian businesses that are recognising these skills and utilising them to be successful. They will encourage other businesses to think about what a veteran could offer their workplace.

“Nominating your business for an award is a fantastic way to raise awareness about the positive contributions our veterans are making after they leave the ADF.

“Each year, around 5,200 people leave the ADF and the Turnbull Government is working to ensure they transition smoothly to civilian life and find meaningful employment.

“Over the course of their careers in Defence, our ADF personnel acquire qualities that are in high demand. They are leaders, problem solvers and work well in teams.”

The Government has also established an Industry Advisory Committee (IAC) on Veterans’ Employment, comprising representatives from a range of industries, to develop strategies and best practice for employing and retaining veterans.

Nominations for the awards close on December 22. Visit www.veteransemployment.gov.au/awards to enter.

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