Comprehensive Corporate Plan details three year targets:

• 9.1 million homes and businesses ready for service by 2018
• 4.4 million activations
• $1.7 billion in annual revenue for FY18
• Construction set to be complete in Tasmania and Northern Territory

More than nine million homes and businesses across Australia are expected to be ready to connect to the nbn™ network and more than four million to have signed up for an nbn™ service by 2018.

The forecasts are contained in the company’s first comprehensive Corporate Plan, which was published this week.

The introduction of additional technologies, a projected boost to the size of the construction workforce and newly-signed agreements with the construction industry are anticipated to see the total number of premises that are able to connect double over each of the next three years to 9.1 million.

At the end of the period, 4.4 million families and business owners are expected to be active on the network, an eight-fold increase on today. These users are expected to deliver a ten-fold increase in revenue to $1.7 billion.

nbn CEO Bill Morrow said:

“This is a bold plan that puts us in striking distance of our ultimate goal of delivering better broadband to every Australian by 2020.

“The steps we have taken over the past 12 months have already delivered increases in revenue, activations and serviceable premises. The work to date has also given us a more accurate picture of the actual costs of the build.

“This enables us to set the course for the move to the exponential growth of the rollout.”

nbn’s revenue targets are underscored by growing data and usage patterns. According to the Australian Bureau of Statistics, the average amount of data downloaded per month continues to grow: from 5GB per month in FY08 to nearly 60GB today.¹ Globally, video traffic online is expected to triple by 2019², with applications extending beyond entertainment to education, e-health and video conferencing for business.

Bridging Australia’s Digital Divide

Mr Morrow said the Corporate Plan estimates an increase in peak funding for the build. However the amount remains significantly lower than the total cost of an all-fibre optic network and the equity contribution of the Government remains capped.

“Upgrading the telecommunications infrastructure for an entire continent will always be an ambitious undertaking. But the risks are outweighed by the benefits,” Mr Morrow said.

“For instance, the rollout is expected to be complete in the Northern Territory and Tasmania during the period of this Corporate Plan. The nbn™ network will be a game changer for these economies and Australia as a whole, enabling greater participation in the global digital economy and helping close the digital divide.”

www.nbn.com.au

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ASIC has placed a fair warning to accountants wishing to continue to provide SMSF advice post 30 June 2016, to act now; a message that the Institute of Public Accountants (IPA) has put to its members for the past few years.

“The IPA has constantly advised accountants that they should consider their future business models in light of Future of Financial Advice (FoFA) reforms,” said IPA chief executive officer, Andrew Conway.

“We note ASIC’s considerable concern that only 160 applications for a limited Australian Financial Services Licence (AFSL) have been received and only 70 granted to date.

“If an accountant who does not want to become an authorised representative of an AFSL but wants to continue to provide SMSF advice to their clients, he or she will need a limited license under the FoFA legislation.

“Accountants must also comply with education requirements to enable them to continue in this advice space.

“ASIC has further warned that accountants need to lodge applications tom meet ASIC’s requirements by 1 March 2016 or run the risk of their application not being assessed before the 30 June deadline.

“Accountants must comply with the regulator’s requirements to continue to provide SMSF advice or they will run the risk of facing criminal charges.

“Public Accountants hold the prestigious mantle of trusted adviser and are in the best position to capitalise on the new financial services regime so we are hopeful of a greater and quicker response to the regulator’s requirements,” said Mr Conway.

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.  

www.publicaccountants.org.au

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THE ever-popular Brisbane Pop-Up business event networking showcase has attracted a record number of exhibitors this year.

Brisbane Marketing General Manager, Conventions and Business Events, Rob Nelson said Brisbane Pop-Up gave business event planners the chance to nurture their knowledge of Brisbane's new, improved and unique business event products.

“Now in its eighth year, we have a record 75 exhibiting event operators in attendance, including hotels, venues and support services,” he said.

"Brisbane Pop-Up offers the perfect opportunity to discover how Brisbane is blossoming with new ideas and experiences.”

Staged by the Brisbane Convention Bureau, Brisbane Pop-Up will celebrate the new season by springing up at City Hall on Thursday 3 September from 11.30am – 2pm.

To register your interest to attend Brisbane Pop-Up, visit http://www.choosebrisbane.com.au/conventions/brispopup-interest

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VECCI welcomes the release of the State Government’s Renewable Energy Roadmap, which aims to drive regional job creation and growth in the renewable energy sector.

“Increasing investment in the renewable energy sector in regional Victoria was a key priority from VECCI’s recent Victoria Summit 2015 – Regional Victoria,” said Chief Executive Mark Stone.

The roadmap is the first step in the development of the Renewable Energy Action Plan that will further detail the government’s plans to increase the use of sustainable energy sources in Victoria.

VECCI’s Victoria Summit 2015 policy paper, Regional Victoria Means Business, called on
the State Government to ensure that the Renewable Energy Action Plan includes a strategy to leverage regional capabilities and resources to attract new investment and grow expertise in research, production, construction and maintenance of wind farm power generation, solar energy, biofuels and bioenergy.

VECCI looks forward to working with government and businesses in the development and implementation of the Renewable Energy Action Plan.

VECCI also welcomes moves to increase access to finance for environmental upgrades, through mechanisms such as Environmental Upgrade Agreements (EUA).

VECCI has a strong record of working with governments and businesses to facilitate the take up of renewables and is currently working with the City of Melbourne to help organisations prepare business cases for installing solar panel systems, including through EUAs where eligible.

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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AUSTRALIA’s resource industry employer group, AMMA, has warned of the damaging effects strike action at the Gorgon natural gas project could have on Australia’s international reputation as being ‘open for business’.

“This is an irresponsible and reckless action by the unions in urging employees toward industrial action. Industrial disputation is in nobody’s best interest – not the employees or the contractor companies involved,” says AMMA CEO Steve Knott.

“The solution lies in continued good faith negotiations. We encourage the unions to consider the national impacts of striking and choose a more responsible path to resolving the impasse.”

Mr Knott says nation-building projects such as Gorgon have the international spotlight on them, and strike action threatened late in the construction phase is a bad look for Australia.

“At a critical time for Australia’s resource industry, unions are holding to ransom our largest project which employs many thousands of Australian workers and brings other significant economic benefits for the state and for the nation,” he continues.

“Threatening to strike every time an agreement is up for renewal undermines Australia’s reputation as a sound investment destination. It hurts the very people the unions represent as projects and jobs disappear offshore.”

AMMA notes that many of the employees are in favour of the roster, wages and conditions outlined by the employer. Further, certainty over important workplace issues such as established roster arrangements is critical for resources projects both current and in the future.

“It’s important to note, these roles are some of the best paid construction jobs in the world, with many employees earning in excess of $200,000 per annum,” Mr Knott continues.

“The current rosters at Gorgon are commonplace among mega construction projects and the head contractor has genuinely attempted to find an acceptable middle ground.

“From the employees’ perspective, it’s also not as simple as the unions purport. It’s understandable that many seek to retain the current rosters to get the greatest financial reward from their contracts before construction is wrapped-up.

“To dramatically change the working patterns at Gorgon as the project enters the final stretch is unrealistic and further damages Australia’s reputation as a competitive and industrially stable place to invest and build new resource projects.”

www.amma.org.au

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‘Underutilisation of infrastructure assets is rife across Australia—in both the private and public sectors.’

That is the view of National ICT Australia (NICTA), the nation’s largest ICT research organisation, which is set to give evidence tomorrow at an Inquiry into the role of Smart ICT in the design and planning of infrastructure.

NICTA believes that ‘there are simple and specific steps (the) government can take that will greatly enhance the efficiency of Australia’s infrastructure,’ including:

• The harmonisation of data formats;
• The development and deployment of more innovative technology; and
• An examination of the productivity benefits of Smart ICT in transport and supply chains.

The Infrastructure and Communications Committee will look at smarter ways to build and use public and private infrastructure, and will hear from witnesses representing industry and the university sector.

Committee Chairman Jane Prentice MP (Ryan, Qld) said, “Australia needs to do more than just simply build more infrastructure; we need to build smarter, more efficient infrastructure, and make better use of the infrastructure we already have.”

Mrs Prentice noted that the technology and information systems required to build smart infrastructure were already available—governments and industry just needed to apply them.

Details of the hearing are as follows:
Date: Friday, 21 August 2015
Time: 10:30 am–1:15 pm
Venue: NICTA (Australian Technology Park), Level 5, 13 Garden Street, EVELEIGH NSW

10:30am NICTA(Submission 23)
11:15am Lynnwood Consulting (Submission 16)
11:45am buildingSMART (Submission 10)
12.15am SMART Infrastructure Facility, University of Wollongong (Submission 12)
12:45am Laing O’Rourke (Submission 15)

The public hearing will be webcast live at http://www.aph.gov.au/live

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THE call that the 2016 round of tax reform is dead before it starts is much exaggerated according to RSM Bird Cameron.

Craig Cooper, director, RSM Bird Cameron, said, “Meaningful reform will be extremely difficult to achieve, given the current economic environment, and the present political landscape. But that doesn’t mean that all reform is dead in the water.

“If vested interests do stymie substantive reform measures, then the next Federal election will be a farce. It is likely to be fought around another pork barrel of unsustainable giveaways, and the bill for the existing social programs cannot be funded sustainably. This also makes it unlikely that the Government will be able to repair the budget as promised, or deliver any new growth initiatives.”

RSM Bird Cameron believes that the public voice is missing. It has been silent to date, and quite possibly confused by the claims and counter-claims advanced by the competing vested interest groups.

Craig Cooper said, “Australian taxpayers could be forgiven for this apparent disengagement. Tax reform has become a fixed agenda item for recent successive Governments, and taxpayers may well ask whether they receive value for money from these exercises, or whether tax reform is simply a euphemism for yet another round of tax increases. Fatigue, cynicism or simply ennui seem reasonable public responses in the circumstances.”

Despite this there is no doubt that Australia is currently living beyond its means.  

Craig Cooper said, “The issue is: what is the right mix of remedial action? What programs can be scaled back? What taxes will be increased and/or what changes will be made to the tax mix? How best can we come back to living within our means, without stalling the economy?

“In economic terms, finding the right remedial balance and the least distortional tax mix will encourage economic growth.

“The objective of tax reform is unequivocally for governments to collect more tax overall, not less, and in the most economically efficient manner. Individual Australian taxpayers will bear that increased tax burden, with the open question being how that tax increase will be shared amongst the tax-paying population.

“The reality of marginal tax rates is that an increase in rates at the upper income range will make the welfare lobby feel good, but raise very little revenue. To raise significant revenue, the middle income brackets must be taxed, and/or the cost of social programs reduced. Individual taxpayer responses to tax reform will be largely influenced by how they are affected by the tax/transfer system.

“The battle between capital and labour is over: capital has won. With decreasing global tax rates on company profits, the tax burden can only move to individuals. This is through higher marginal tax rates, which kills productivity and participation, or through an increase in indirect taxation, and/or increased recourse to other consumer-related taxing bases, such as fuel taxes or land taxes.”

About RSM Bird Cameron
RSM Bird Cameron is the largest mid-tier accounting firm in Australia with national ownership and profit sharing and offers a full range of specialist advisory services, including business consulting and advisory, assurance and advisory, taxation consulting, corporate consulting and turnaround and insolvency. RSM Bird Cameron is a core member firm of RSM International, the seventh largest network of independent accounting and consulting firms in the world.

www.rsmi.com.au

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THE Northern Australia Committee will be holding hearings in Queensland from 24, 26 and 27 August as part of its inquiry into opportunities to expand the aquaculture industry in Northern Australia.

Global annual production of prawns alone amounts to 7 million tonnes, of which 3.9 million tonnes are produced through aquaculture. Globally, China is the biggest aquaculture producer (1.2 million tonnes) followed by Vietnam (0.5 million tonnes); and Indonesia, India, and Ecuador (each producing about 0.3 million tonnes). In comparison, Australia produces only 4000 tonnes annually.

 Committee Chair, the Hon Warren Entsch MP, said: 'There is a huge opportunity for the expansion of Australia’s aquaculture sector, especially in Northern Australia, which could capitalise on the global and Australian demand for prawns, fish, shellfish and other aquaculture species.’

 ‘A good example is the proposed Sea Dragon Project, where the aquaculture sector is poised for expansion on the Northern Territory–Western Australia border. The Sea Dragon Project is estimated to generate, at full production, 100 000 tonnes annually of premium black tiger prawns and $800 million in exports,’ Mr Entsch said.

 Witnesses at the hearings in Cairns, Townsville, and Brisbane include

• Sea Farms Group (the proponent of the Sea Dragon Project)
• Australian Prawn Farmers Association
• Pacific Reef Fisheries (proposing a new prawn farm at Guthalungra)
• James Cook University
• Australian Institute of Marine Science
• Great Barrier Reef Marine Park Authority

'It is important that the environmental impact of new aquaculture developments has minimal or no impact on the Great Barrier Reef,’

 ‘New technology and improved farm design and management is already mitigating potential contamination of the Reef catchment and in many cases, there is actually a net benefit to water quality at the outlet point. These factors will also help to allow the development of an industry which will contribute significantly to regional economies,’ Mr Entsch said.

Hearing programs are available at: www.aph.gov.au/jscna