THE House of Representatives Standing Committee on Economics today presented its second Report on the banking sector.

On 24 November 2016 the committee tabled its first Report which contained 10 Recommendations designed to improve the banking system for Australian consumers. The second Report affirms these 10 Recommendations, and calls on Government to implement each of them.

The March 2017 public hearings provided the committee with an opportunity to scrutinise the banks over their response to the committee’s November Recommendations and the Carnell Report Recommendation into the use of non-monetary default clauses in small business loans.

Committee Chair David Coleman MP said that the second round of hearings had provided a useful forum in which to scrutinise the banks on the November recommendations.

“Each of these Recommendations should be implemented,” Mr Coleman said.

“The committee is open to some modest variations to the first report Recommendations but affirms the substance of each of them.

“In particular, it is important that the committee’s Recommendations on executive accountability, creating a new focus on competition, and opening up of consumer data are acted upon.”

Mr Coleman said that ANZ had been notably more constructive than the other banks during the hearings.

“Other than ANZ, the banks all argued against the committee’s recommendations to put in place a new executive accountability regime and increase the focus on competition in the banking sector,” Mr Coleman said. 

“The reasoning of the banks on these matters was not in any way persuasive and their views should be rejected by the Government.”

As part of the hearings, the committee scrutinised the banks over their use of non-monetary default clauses in small business loans. This matter was examined by the Australian Small Business and Family Enterprise Ombudsman, Ms Kate Carnell, as part of her inquiry into small business loans.

The committee commends Ms Carnell on her important work on this issue and has recommended that non-monetary default clauses be abolished for loans to small business.

The report can be accessed from the Committee’s website.

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THE HISTORY and future co-existence of the resources sector and farmers is a tradition that is reaping rewards for those on the land, resource companies and every Queenslander, Queensland Resources Council Chief Executive Ian Macfarlane told the Rural Press Club in Brisbane today.

However, that synergy is being threatened, ironically, not by many of those who live on the land, but by a majority living in the inner suburbs.

“The co-existence model we have in Queensland leads the nation and has been a major wealth creator and regional employer,” Mr Macfarlane said.

“While some states put their heads in the sand, most Queensland farmers have worked with the resources sector, not against it, to thrash out sensible solutions to the hard issues.

“My experience has been that if you work with the resources sector to strike a fair deal, the farmers will bring their rural communities along with them.  And that is what we continue to work on here in Queensland.”

It’s that co-existence and collaboration that provided $2.1 billion in royalties to the Queensland Government last financial year, which helped to fund such things as our infrastructure, police, nurses and teachers and the buildings they occupy. The greatest threat to Queensland’s economic development today is green activism, fuelled by some media that fail to fact check the propaganda fed to them by the radical groups, he said.

“Last week’s rollout of fake news by the Sydney Morning Herald and the ABC was just the most recent in a long line of propaganda published by various news outlets,” Mr Macfarlane said.

“The optimist in me knows that good journalism isn’t dead and that the reason behind no fact-checking is an under-resourced newsroom – but the cynic in me sees a pattern of behaviour from the same journalists at the same news outlets.

“I call on everyone to question and check everything they are told, especially if the consequences have the potential to cause harm, to health, business or reputation.”

www.qrc.org.au

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THE BACKLOT Films is thrilled to announce the exclusive ‘one week only’ theatrical release of the much-anticipated documentary I Am Heath Ledger in Australia.  A select number of cinemas have been secured in each state for the release on Thursday May 11.

I Am Heath Ledger is a feature length documentary celebrating the life of Heath Ledger: actor, artist and icon. The documentary provides an intimate look at Heath through the lens of his own camera as he films and often performs in his own personal journey.

Extravagant in gesture and in action, Heath’s artistic nature and expression set him apart from the Hollywood mainstream, and ultimately vaulted him to stardom and endeared him to the world.

Complementing the footage from his own personal recordings, the documentary also features excerpts of his greatest performances, combined with interviews with friends and family (including Ben Mendelsohn, Naomi Watts, Ang Lee, Ben Harper, and his sister Kate).  

I Am Heath Ledger is co-directed by Derik Murray (with Adrian Buitenhuis), the man behind the “I Am” slate of documentaries on Bruce Lee, Steve McQueen, Evel Knievel, Chris Farley and JFK Jr. His film work is rounded out by the Academy Award® shortlisted feature documentary Facing Ali, and the feature documentary Johnny Cash - American Rebel.

Set for a World Premiere this weekend at the Tribecca Film Festival in New York on the evening of April 23, the documentary will then screen in LA for the Australians In Film Society, ahead of the Australian Premiere on Tuesday 9th May at Luna Cinemas in Perth, which will be attended by Heath’s family.

The official trailer for the documentary released online last week and has had more than 5 million worldwide views.  Interest has been huge in Australia with media and fans clamouring for more information on a potential release in Heath’s home country.

Information on locations that have been selected to screen I Am Heath Ledger can be found at the official Australian website - www.iamheathledger.com.au.  Locations will continue to be added and more information will be released in the lead up to May 11 via the website and Facebook.

I Am Heath Ledger is produced by Network Entertainment with theatrical distribution in Australia via The Backlot Films. International media sales are via Fremantle Media. All cinema / exhibitor enquiries should be directed to The Backlot Films - This email address is being protected from spambots. You need JavaScript enabled to view it.

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THE Australian Retailers Association (ARA) strongly supports the Federal Government in closing the Low Value Threshold (LVT) loophole for the purchase of offshore tangible goods under $1000.

Russell Zimmerman, Executive Director of the ARA said they have been working with the Federal and State Governments to reduce the low value threshold and provide a level playing field for Australian retailers.

“This is a tax equity issue and internationally-based retailers should pay their fair share of tax,” Mr Zimmerman said.

“Retailers conducting business in Australia should pay their tax just like Australian retailers currently do.”

The ARA has said this GST has been a long time coming, expressing thanks to then Assistant Treasure Bill Shorten for his commencement of the process in 2011.

“Multiple jurisdictions are already introducing similar laws as this is a global tax issue,” Mr Zimmerman said.

“This new legislation will create a fairer tax system for Australian retailers by creating a level playing field against international competitors.”

This new model may not be perfect but the ARA believes that the proposed system is the best model at this point.

“Freight companies and credit card businesses should not be responsible for collecting this tax, the onus should fall on internationally-based businesses to collect it” Mr Zimmerman said.

“Australian retailers already collect this tax in Australia, therefore it is unnecessary to complicate this process and allow international retailers to continue to exploit this legislative loophole.

“We already know that overseas retailers selling online have the capability of charging taxes as required by Australian law,” Mr Zimmerman said.

The ARA will be appearing as witnesses at the Senate Economics Legislation hearings this Friday, 21 April, to reiterate the importance of this GST.

“We strongly support this proposed GST model and will continue to work with the Government to resolve any implementation issues,” Mr Zimmerman said.

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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SATELLITE imagery depicting pictures of what was purported to be a coal spill from the Abbot Point port into wetlands have been shown as a clear misrepresentation of the satellite imagery supplied by NASA.

Queensland Resources Council Chief Executive Ian Macfarlane said NASA’s own website provided further evidence that the information supplied to the ABC by the Mackay Conservation Group was incorrect.

“It’s disgraceful that satellite imagery was misrepresented as coal particles in the water by the Mackay Conservation Group when in fact NASA’s website clearly says water absorbs light so it is usually black in the images.”

“Similar photos taken in the aftermath of Cyclone Debbie show black water in the imagery which included swimming pools and waterways nowhere near coal terminals.”

In a statement Adani confirmed they were not only acting within its Temporary Emissions Licence (TEL) from the Department of Environment and Heritage Protection (DEHP) but have not exceeded its normal licence limits.

“It’s time these extreme tactics of environmental activists were exposed and all media outlets should be alert to the constant misrepresentation of the truth by groups opposed to economic development in Queensland,” said Mr Macfarlane.

www.qrc.org.au

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THE ACS, the professional association for Australia’s ICT sector, today welcomed changes to skilled migration policy in Australia, following the Turnbull Government’s plans to abolish the Subclass 457 Visa in favour of a new Temporary Skill Shortage (TSS) Visa, as a measure to address genuine skills shortages in Australia[1].

The aim of the new TSS Visa is to ensure Australian workers have priority to Australian jobs, while at the same time ensuring Australian businesses have access to temporary and critically needed talent.

ACS president Anthony Wong said, “Strengthening labour market testing was one of ACS’ key recommendations in our May 2014 submission to the Independent Review of Integrity in the subclass 457 programme[2]. We are pleased to see this is a key focus in the Prime Minister’s announcement.”

The new TSS Visa will include a strengthened training obligation for employers sponsoring foreign skilled workers to provide enhanced training outcomes for Australians in high-need industries and occupations.

“While labour market testing and training benchmarks have previously existed in the 457 Visa framework, we see tightened criteria under a TSS programme as an important signal that the Turnbull Government understands the need to treat Australia’s human capital as a strategic asset as we expedite our transition to the digital and knowledge-based economies,” Wong said.

Mr Wong further added, “Skilled migration in all its forms should be a source of competitive advantage for any country.  It should never be at the expense of the domestic labour market and attracting full workforce participation.”

The implementation of the new reforms is expected to be completed in March 2018.

About the ACS 

The ACS is the professional association for Australia's Information and Communication Technology (ICT) sector. Over 22,000 ACS members work in business, education, government and the community. The ACS exists to create the environment and provide the opportunities for members and partners to succeed. The ACS strives for ICT professionals to be recognised as drivers of innovation in our society, relevant across all sectors, and to promote the formulation of effective policies on ICT and related matters. Visit www.acs.org.au for more information.

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THE HOUSING affordability debate needs to consider the economy on an Australia-wide basis, according to the Institute of Public Accountants (IPA).

“While there is a housing unaffordability crisis in Sydney and Melbourne, this is not the case in the rest of Australia's cities and regional areas,” said IPA chief executive officer, Andrew Conway.

“We urge the Government to consider a holistic and broad approach to housing affordability, and to consider the whole country and the entire economy. 

“This must include consideration of land supply problems in Sydney; giving time for APRA's macro-prudential levers to take effect; dealing with the over-reliance of state governments on stamp duty revenue; responsible lending by banks; responsible borrowing by consumers; a greater focus on financial literacy; getting over the 'fear of missing out'; dealing with the impact of foreign investors, including property vacancies; and, other factors.

“There is also another impact which must be considered.  Many small business owners are also individual consumers; some of whom have second mortgages on their homes to fund their business. 

“This means that Government housing policy can have flow on impacts to the health of these small businesses; not just the potential for financial distress but also impacts on the mental and health wellbeing of small business owners. 

“The IPA is urging the Government to consider the housing affordability situation not in isolation but in the broader context of the whole of the economy, and especially for the sake of the health of the small business sector and owners.

“All variables and options should be explored. However, any discussion of accessing superannuation for the purpose of entering the housing market needs to be cautioned to ensure the true objective of superannuation is not lost; that is to provide income in retirement to substitute or supplement the age pension.

“We welcome the fact that the Government seem to be looking at a range of solutions to address housing affordability and we will continue to be an active participant.  There is no panacea to this problem so we must all work constructively to find a range of solutions,” said Mr Conway.

publicaccountants.org.au

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THE Institute of Public Accountants (IPA) suspects that another protracted trust law court case will cause the Federal Government more grief and highlight the long overdue need to reform trust tax law.

“The unfinished business of reforming trust tax laws has come back to haunt the government; it was not that long ago that the government had to make some hasty complex changes to trust laws following the land mark Bamford case,” said IPA chief executive officer, Andrew Conway.

“It looks like the government may be in the same position following a recent Full Federal Court Decision of Thomas v Commissioner of Taxation (2017) FCAFC57.

“In this particular case the taxpayer allocated dividend franking credit entitlements as it saw fit. The long established trust law principal is that franking credits must flow to beneficiaries in the same proportion as the dividend income and they cannot be specifically allocated to achieve an optimal tax outcome even if permitted by the trust deed.

“It seems the decision in the Full Federal Court has allowed a taxpayer franking credits to flow to beneficiaries not in a way the legislation was intended to operate, underscoring the odd outcomes that can still arise with trusts. 

“The distribution of franking credits to beneficiaries independently of the related dividends goes against established principles.

“Franking credits should ordinarily flow to the shareholder who received the dividend but this seems to be different in this case.

“After many years of trust tax reform discussions and various court rulings there is still a considerable degree of uncertainty in our tax system when it comes to trusts and the need to reform remains, especially in light of the fact that many businesses use trusts as the vehicle to operate their business,” said Mr Conway.

publicaccountants.org.au

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