IMPROVING outcomes, regulation and oversight, providing certainty in funding and recognising its importance in skilling people for the jobs of the future are critical recommendations in CEDA's latest research on the forgotten middle child of education – VET.

Releasing CEDA’s latest research report VET: securing skills for growth, CEDA Chief Executive, Professor the Hon. Stephen Martin said VET delivered vital grassroots skills that industry needed but scandals and a disconnect with industry had significantly weakened this important tier of the education sector.

“That is why CEDA’s report is calling for a comprehensive national review of the sector to underpin COAG discussions to reach a new National Partnership on Skills Reform,” Professor Martin said.

“The imminent conclusion of the Commonwealth-State funding agreement for VET (National Partnership on Skills Reform) next year, and the fact that there are currently no signs of how or if this will be extended, is a significant issue for the sector.

“Comments from the Federal Minister for Education Senator Simon Birmingham last week suggest that the government is taking the right approach to cutting off dodgy private operators with poor outcomes from utilising VET FEE-HELP. However, much more needs to be done.

“The skyrocketing VET FEE-HELP costs have been concentrated to a relatively small number of private operators and must be fixed. However, what is equally concerning is the drastically plummeting enrolments in government supported providers.”

Professor Martin said there needs to be a refocus on working with industry to ensure courses are being linked with the labour market to ensure students have real employment outcomes on completion of a course.

“There also needs to be more focus on teaching broad-based skills competency that are transferable across occupational clusters, rather than narrowly focused courses that are too restrictive in a rapidly evolving labour market,” he said.

Professor Martin said there were many positives about VET and it had proven itself an adaptive and agile tier of the education sector.

“It has already shown that it can be responsive to Australia’s skill requirements by increasing the delivery of courses providing qualifications in childcare, aged care and disability care as demand has rapidly increased in the services sector of the economy,” he said.

“With the right policy settings, this sector is well positioned to meet the workforce challenges posed by digital disruption and automation and continue delivering skills needed by industry.

“As Australia faces coming decades of rapid technological change, which will require reskilling and new skills, our education sector needs to be strong at every level.

“The scandals in recent years in the VET sector, despite only relating to a small number of operators, have done significant reputational damage and it is now vital that the sector is supported to rebuild.”

The CEDA report also recommends:

• Improving data and transparency of data to help stakeholders make more informed decisions;
• Ensuring regulators have the power to act if standards are not being met; and
• Providing national information around providers, pricing, qualifications, audit findings and satisfaction survey results to the public.

VET: securing skills for growth is being launched in Melbourne at noon with a keynote address by Victorian Minister for Training and Skills, the Hon. Steve Herbert. Other speakers include: Australian Council for Private Education and Training CEO, Rod Camm (contributing author); PwC Skills for Australia CEO, Sara Caplan; Metro Trains Chief People and Performance Officer, Nick Dickinson; and BUPA Aged Care Australia Managing Director, Louise Dudley.

For more details about the event or to download the report go to www.ceda.com.au

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Mr Raj Venga, Chief Executive Officer and Ombudsman of the Credit and Investment Ombudsman (CIO), today expressed concern about the proposal apparently being considered by the Federal Government to establish a ‘tribunal’ to hear financial services complaints. 

“Australia is currently very well served by the existing dispute resolution architecture in financial services. The types of disputes referred to in the current debate about the need for a new body generally involve amounts that exceed the monetary limits of CIO and the Financial Ombudsman Service (FOS), and so have not been able to be considered by either scheme”, Mr Venga said.

“The more appropriate course would be to expand the jurisdictional limits and responsibilities of the existing Ombudsman schemes in the financial services sector, rather than creating a new body. CIO is committed to reviewing monetary caps that apply to small business complaints, as well as other aspects of its jurisdiction,” Mr Venga continued.

According to Mr Venga, the establishment of a tribunal, which will necessarily be a statutory scheme, would:

• create a tax-payer funded right of appeal to the courts, defeating the objective to resolve disputes fairly, cheaply and expeditiously,
   
• not have the multiplicity of access points for industry and consumer representation that the current structure affords,
   
• not have specialised industry knowledge required for the sensible resolution of disputes,
   
• be substantially more inflexible, and
   
• not be capable of responding quickly to changes in relevant markets.

CIO receives about 22,000 enquiries and 5,000 complaints a year. Its 23,000 members include non-bank lenders, finance companies, consumer lease providers, small amount lenders, debt buyers, credit unions, building societies, finance brokers, credit reporting bodies and time share operators.

“We strongly urge Government to consider the wider impacts of the establishment of such a tribunal and to ensure that any decision about a tribunal or other changes to the dispute resolution landscape are fully informed and very carefully considered.

“The current independent review into dispute resolution and complaints services, chaired by Professor Ian Ramsay, should be asked to consider the relative merits of establishing a tribunal as compared to other models of dispute resolution”, Mr Venga concluded.

www.cio.org.au

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SMALL businesses caught-up in banking disputes are looking for immediate action to resolve their issue, not a drawn-out talk fest about the banks, Australian Small Business and Family Enterprise Ombudsman (ASBFEO) Kate Carnell said.

“Speaking from a small business perspective, the current political debate about the most effective ways to deal with community concerns regarding the banks, needs to acknowledge the importance of finding solutions to individual problems quickly and effectively,” Ms Carnell said.

“I’ve held extensive consultations with the small business sector in recent months, and bank-related complaints are certainly high on their list of grievances; so much so that in my view, without an increased level of accountability, some banking practices certainly have the capacity to stifle the growth potential of many small businesses in this country.

“More often than not, small businesses involved in disputes with their banks are hurting; they can ill-afford the time and money it takes to sort these kinds of problems out. They need help and support, and they need it now.

“This isn’t an argument for or against a Royal Commission; this is about getting immediate outcomes for small businesses and finding a mechanism that delivers solutions in a timeframe that helps business owners get back on track as soon as possible.

“A Royal Commission may allow mum-and-dad small business owners to tell their story, but it won’t save their businesses.  Royal Commissions typically go on for years, and by the time it produces its recommendations, businesses that are hurting now, will be long out the door.

“Whatever action the Government decides to take in dealing with concerns people have with the banks, my office stands ready to help small businesses who are experiencing bank-related problems; we can point them in the right direction and help assist them get on with what they’d rather be doing; running their small business and in doing so, making a significant contribution to the economy.”

www.asbfeo.gov.au

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THE Minister for Defence Industry, Christopher Pyne, today announced two significant defence industry contracts worth approximately $300 million and securing hundreds of local jobs while visiting defence industry facilities at RAAF Base Williamtown.

Mr Pyne said both BAE Systems Australia and Raytheon Australia had signed contract extensions with Defence securing the jobs of hundreds of workers which would drive growth in the local economy. The Minister made the announcement during his first trip to NSW as Defence Industry Minister. 

“These are exciting times for Defence industry and deliver on the Turnbull Government’s commitment to growing Australian industry as outlined in the Defence White Paper,” Mr Pyne said.

“Valued at approximately $200m, I am pleased to announce that BAE Systems Australia has won a two year extension to support the Hawk Lead-In Fighter ensuring ongoing work for approximately 300 people at RAAF Base Williamtown, NSW and RAAF Base Pearce, WA.

“The Hawk, as the training aircraft for the Classic Hornet and Super Hornet fleets as well as the Joint Strike Fighter, is incredibly important in Australia’s combat training capability, providing experience for our trainee strike and fighter pilots as well as the Air Combat Officers.”

Minister Pyne said he was also pleased to announce an extension to the Air Combat Training Services Support Contract for the ongoing sustainment and operation of the Air Combat Group's Hornet, Super Hornet and Growler Aircrew Training Simulators Systems.  

“This extension awarded to Raytheon Australia and its subcontractor Milskil, is valued at approximately $100m and brings together separate contracts for the management and execution of training and support services for Classic Hornet and Super Hornet platforms currently being undertaken by Raytheon Australia and Milskil,” Mr Pyne said.

“It also adds the EA-18G - Growler Training Support Services, support to the Spiral Upgrade program and additional services including Force Generation Services.

“The revised contract will sustain approximately 50 jobs, supporting Air Combat Capabilities located at RAAF Bases Amberley (QLD), Williamtown (NSW) and Tindal (NT).   

“The contract will provide management, aircrew training services delivery, engineering, training device maintenance and operation, force generation and general support services for the RAAF’s Classic Hornet, Super Hornet and Growler aircrew training simulators and maintenance training devices.”

The Minister’s visit to NSW also included a roundtable discussion with key defence industry stakeholders across the state and meetings with the state government.

The trip reinforces the Government’s commitment to forming a new partnership with Australian defence industry with a national approach being taken to ensure that Defence gets the equipment, systems and personnel it needs now and into the future.

www.defence.gov.au

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CONFERENCE organisers can put colour into their next event by meeting with 80 key venues, hotels and suppliers in Brisbane next week.

Brisbane Pop-Up will see the city’s event products and services gather under the one roof for just over two hours at Brisbane City Hall on Wednesday 31 August.

Brisbane Convention Bureau General Manager Rob Nelson said Brisbane Pop-Up enabled conference organisers to seek out a kaleidoscope of products and suppliers for their events in the one hit.

New products attending include Brisbane’s first Art Series hotel The Johnson, Alex Perry Hotel & Apartments, Rydges Fortitude Valley and Howard Smith Wharves.

“Brisbane Pop-Up gives business event planners the opportunity to take their next event from ordinary to extraordinary by meeting with the city’s suppliers at the one time and in the one spot,” Mr Nelson said.

“Attendees can stay for as little or as long as they like to source contacts and new ideas for their next event.”

Attendance at Brisbane Pop-Up is free for registered guests and includes lunch and prize giveaways from the participating exhibitors.

For more information, go to http://www.choosebrisbane.com.au/conventions

ENDS

THE RECENT announcement by Telstra of a $1.5 billion share buy-back has sparked a call from the Institute of Public Accountants (IPA) for the government to review the revenue leakage generated through off market buy-back schemes.

“In this difficult, fiscal deficit environment that Australia finds itself in, it’s time to have a look at the off-market share buy-back scheme loophole that continues to reduce the Commonwealth revenue line,” said IPA chief executive officer, Andrew Conway.

“Off-market share buy-backs are different to on-market shares bought directly through the ASX. They comprise of a capital and dividend component and are offered to all shareholders on an opt-in basis. If the shares were sold on-market there would not be any dividend component and the proceeds would be generally capital gains or losses. 

“People on higher marginal tax rates receiving a dividend have to pay ‘top-up’ tax and are therefore, much less likely to participate in off-market share buy-back schemes.

“This creates an inequitable distribution of franking credits than would ordinarily be the case had the company paid the dividend equally amongst all shareholders. Off-market buybacks are mostly attractive to nil rate or low tax paying shareholders.

“For entities that pay no tax and superannuation funds paying no tax or up to 15 percent tax, share buy-backs can be a genuine benefit as they receive the additional incentive of an imputation rebate directly from the Government.

“While buy-backs may be a useful tool for corporate entities in terms of capital management, they come at a cost to the taxpayer, as Treasury coffers miss out on top up tax due to the skewed distribution of franking credits.

“Streaming of franking credits to specific classes of shareholders (ie those paying nil or low tax) is normally caught by anti-avoidance streaming rules. 

“If more major listed entities engage in off-market share buy-backs the revenue leakage cannot be ignored while we are running historically high budget deficits and likely to do so in the short to medium term.

“The Government needs to seriously consider the tax treatment of off-market share buy-backs, for the benefit of all taxpayers,” said Mr Conway.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than with more than 35,000 members and students in over 65 countries.  The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.  

publicaccountants.org.au

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IN LESS than two weeks, the Australian Institute of Management (AIM) will be fighting to set a new Guinness World Records™ title for the most people attending a business speed networking event (multiple venues), with a day of national networking on August 29, 2016.

Open for professionals, students, job seekers and community members, the AIM National Networking Day will celebrate ‘real’ networking, with simultaneous events taking place across the country; in Melbourne, Sydney, Brisbane, Adelaide, Canberra, Darwin and Cairns.

In this global marketplace, where virtual networking is on the rise, the importance of face-to-face rapport and networking ‘chemistry’ is more important than ever. National Networking Day is encouraging individuals to develop these ‘real networking’ skills and develop a platform for personal career development, business growth and overall better business collaboration for the future.

With seven simultaneous events taking place across the country, AIM is ready to break the record, however to achieve this the overall total of attendees must exceed the single-venue record of 1,068 participants. In 2013, AIM’s Regional Committee in Cairns broke the Guinness World Records™ title for ‘Most people attending a business speed networking event in a single venue’, with 475 people across 215 business sectors exchanging business cards in one location. So now Australia has decided it’s time to bring a new networking title down under.

The event will see 1.5 hours of speed-networking take place – where guests have three minute rounds to introduce themselves and network with a fellow attendee. To break the Guinness World Records™ title, each attendee must meet with a minimum of 20 other participants. In addition to this valuable face-to-face networking experience, guests are invited to enjoy drinks following the event.

So for those who are seeking growth opportunities, new connections, job hunting, business developing or team building, it’s the perfect opportunity to gain some real face time and expand your network.

Prices start from $55 for AIM Members, $75 for Non-Members, and $50 for full-time students.

For more information or to sign up for your local event visit the website www.aim.com.au/nnd2016.

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The Victorian Chamber of Commerce and Industry is delighted that Melbourne is once again the world’s most liveable city, for the sixth year running.

Victorian Chamber Chief Executive Mark Stone AM said it was no surprise to the residents of Victoria that our capital city is a vibrant and desirable place to visit and live.

“Melbourne has an array of offerings that is unrivalled, and the Victorian Chamber congratulates the Lord Mayor Robert Doyle and the City of Melbourne on enabling us to secure this accolade again,” he said.

“Victorian businesses are at the heart of our communities, in Melbourne and around Victoria, and enable the great quality of life we all enjoy.

“Our liveability credentials play a key role in companies choosing to establish their base in Melbourne or start up and grow their businesses here, with the quality of life our city has to offer helping them to attract some of the best talent in the world.

“The Victorian Chamber will continue to work with the City of Melbourne, State Government, and businesses and traders to ensure we continue to thrive and grow.

 “I have no doubt we will be in a strong position next year to retain our prized title as well.”

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.

victorianchamber.com.au

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