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RSM Bird Cameron on tax reform 2016

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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IPA reinforces ASIC warning to accountants

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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Renewable Energy Roadmap to drive growth in regional Victoria’s renewable energy sector

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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Smarter ways to build the future

‘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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Opportunities for expanding the aquaculture industry in northern Australia: Queensland hearings

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

Victorian retailers hardest hit by new public holidays - ARA

THE Australian Retailers Association (ARA) is dismayed at the decision of the Victorian Government to go ahead with two new public holidays for the state, with many retailers expected to be forced close their doors, as a result of two extra days of penalty rates.

The introduction of public holidays on Grand Final Friday and Easter Sunday will increase Victoria’s public holidays to 13 a year – the most of any state.

“These two new public holidays come at a high cost to retail businesses, as it means increased wages as a result of high penalty rates if they are to open,” said Russell Zimmerman, Executive Director of the Australian Retailers Association.

“Many Victorian retailers have indicated to the ARA that they will have no choice but to close their doors on these two days,” he said.

“Wages can be 50 per cent higher on Easter Sunday and 150 per cent higher on Grand Final Eve. Retailers face the difficult choice between remaining open and paying incredibly high penalty rates, or closing and losing sales or production.”

Grand Final Friday and the iconic annual CBD parade has always been a key event for Melbourne CBD retailers, with increased visitors to the area driving sales. The confirmation of this day as a public holiday will lead to less consumers in the city area.

"Grand Final Friday will have the greatest impact on the profitability of CBD retailers, as workers will not be in the city before AFL Grand Final, diminishing what has traditionally been a peak business period in the Victorian events calendar,” said Zimmerman.

“There will be no wages transfer through higher penalty rates being paid or the traditional net benefit from tourism during AFL Friday as workers and businesses abandon Melbourne CBD to stay at home.”

The ARA is currently engaged in a review of the General Retail Industry Award 2010 (GRIA) with Fair Work, with the view to reducing costs for retailers who trade on Sundays and public holidays.

The ARA supports recommendations by the Productivity Commission in its workplace relations report earlier this month that penalty rates must be reduced to support retail growth and sustainability.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $265 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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Committee to examine land management in the Indian Ocean Territories

THE National Capital and External Territories Committee will examine Crown land management, local planning processes and the prospects for economic development on Christmas and Cocos (Keeling) Islands as part of its inquiry into governance in the Indian Ocean Territories.

Local government representatives from the Indian Ocean Territories will participate via teleconference in a public hearing to be held in Canberra tomorrow.

Committee Chair, Mr Luke Simpkins MP said, “Access to land, together with clear policy and processes that support development are essential to improve investor confidence and increase opportunities for tourism and other industries in the Indian Ocean Territories’ economy.”

PUBLIC HEARING DATE: Thursday 20 August 2015
VENUE: Committee Room 1R2, Parliament House, Canberra
PROGRAM: 10:35 am  Chair’s opening statement
10:40 am  Shire of Christmas Island
11:05 am  Shire of Cocos (Keeling) Islands
11:30 am  Close.

Members of the public are welcome to observe proceedings.

The hearing will also be webcast at www.aph.gov.au/live.

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Market ready for second Emissions Reduction Fund auction

THE Clean Energy Regulator has announced it will hold the second Emissions Reduction Fund auction for carbon abatement contracts on 4 and 5 November 2015.

“We are making this announcement today as the volume of projects registered in July indicates sufficient market readiness for a second auction,” said Ms Chloe Munro, Chair of the Clean Energy Regulator.

“With a growing number of methods available and a large number of new project registrations, we are confident the second auction will attract strong competition.”

“We understand that some potential participants will only apply to register their projects after an auction date has been announced. Our message for those that haven’t yet prepared their applications is do not leave it until the last minute,” Ms Munro said.

To ensure an orderly process leading up to the auction, the Clean Energy Regulator has decided that projects will not be eligible to participate in the auction unless a complete application for project registration is received at least 30 business days before the auction.

“For the November auction, the cut-off date to apply for project registration is Friday, 18 September 2015. Clients are encouraged to get in early to ensure their applications can be processed in time,” Ms Munro said.

Project applications submitted after this date, or those that require further information to be assessed will be eligible to qualify for future auctions.

The auction guidelines will be published on Friday, 21 August 2015. The guidelines will confirm that the auction format will be similar to the first auction. Bidding will be conducted in a single round through AusTender.

“We are required to provide a minimum of six weeks’ notice before an auction. We have chosen to provide the market with a longer notice period so that participants can be well prepared,” Ms Munro said.

www.cleanenergyregulator.gov.au

 

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nbn construction workforce to double as rollout accelerates

THE nbn™ will embark on one of Australia's largest workforce training initiatives to ensure the network can be rolled out sooner and at less cost to taxpayers.

Under the workforce training scheme, the nbn™ will work with delivery partners to recruit and train around 4,500 workers.  This will see the current project construction workforce doubled, with around 9,000 workers employed at the peak of the rollout.

The nbn™ has identified skills shortages and will work with delivery partners to ensure that trained workers have jobs after their training and stay on working in the project and the telecoms industry as the project proceeds.

The scheme will target both school leavers and people who have worked in the industry who require retraining.

"This is one of the largest infrastructure projects in Australia's history and it's certainly the most complex," Communications Minister Malcolm Turnbull said. 

"Each day the project is being rolled out on hundreds of work-fronts across the country so it's vital we have enough people to roll out the network as we increase the pace of the rollout.

"And it's exciting to be a part of Australian history. This is a piece of infrastructure that will be around and maintained and augmented for decades, that will be vital to people's lives."

It comes as the nbn™ significantly accelerates its rollout. Since the election, the company has gone from being able to service one in 50 premises around the country to one in 10

The project will continue to significantly ramp-up in coming years, with the company on track to reach every home and business in Australia by 2020.

Under the scheme, the nbn™ will work with training organisations including TAFEs and private providers, to deliver relevant training programs, while delivery partners will be responsible for providing on-the-job training.

The nbn™ will also establish a skills register to ensure that workers are being retained in the industry.

Anyone who would like to register their interest in the training program can do so at the nbn™ website: www.nbnco.com.au

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AMMA calls for end to workplace relations reform stalemate

THE chief executive of national resource industry employer group AMMA (Australian Mines and Metals Association) has used a major national conference to call for an end to the ‘political and policy stalemate’ that is preventing the workplace relations reform that Australia needs to be productive and globally competitive.

In his opening address to around 200 resource industry leaders at the 2015 AMMA Resource People National Conference in Perth, chief executive Steve Knott pointed to competitive challenges and overregulation as key reasons for urgent workplace relations reform.

“In the second decade of the 21st Century, genuine job security comes from working in a productive and competitive enterprise. It doesn’t come from intrusive overregulation of the workplace that serves only to push third parties into the employment relationship and create headaches and costs for employers,” Mr Knott said.

AMMA’s national conference, which is the only resource industry event dedicated to workplace and employment matters, comes after a year which saw at least $80 billion in new resource project investment slip through Australia’s fingers.

At the same time, resource employers are facing greater workforce challenges arising from a drastic low point in the commodity price cycle, productivity issues and heightened competitive pressures.

“It must be better understood that if major projects in our country don’t go ahead, or are lost to international competitors, this not only costs jobs, but decades of potential government revenues will also be foregone,” Mr Knott said.

“Fortunately, Australia still has some competitive advantages. We have great human capacity, innovation and vast natural resources that could still fuel the developing world.

“With the right support in other areas of regulation, such as workplace relations, the resource industry can bring more jobs, more royalties and more opportunities to Australia.”

Mr Knott warned that the current politicking taking place in Australia was failing to stimulate greater economic prosperity and job creation, and called for all parliamentarians to engage on the Productivity Commission’s draft report on Australia’s the workplace relations framework.

“The inertia on meaningful, necessary changes is costing jobs, costing investment dollars, and costing economic opportunities for our country.  With parliament resuming next week, there is an opportunity for our politicians to engage in meaningful discussions on workplace reform,” he says.

“The Productivity Commission’s draft report has fallen short of the systematic reform we so desperately need. The Fair Work laws and institutions need an overhaul, not a ‘repair job’.

“Nonetheless, the report does address some important issues for the resource sector and, if we can drown out the predictable scare campaigns with reasoned debate, it can still be a catalyst for meaningful discussions on our nation’s future.”

www.amma.org.au

 

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RIRDC research to unveil new insights on national rural issues

THIS Wednesday, August 5, the Rural Industries Research and Development Corporation (RIRDC) will release three new research reports from its National Rural Issues program in Canberra.

The National Rural Issues program aims to consider themes that cover multiple industries and in areas where industry and government leaders need independent advice to help inform their roles.

Authored by some of Australia’s leading rural industry experts from organisations like the CSIRO, the Australian Farm Institute and various universities, the reports highlight lessons which will help inform the future positioning of the Australian agricultural sector. The reports include:

  • Australian Farm Business Performance – insights from effective farm business managers’ contributes to an improved understanding of farm business performance across selected Australian agricultural industries. It provides insights into how highly effective producers analyse and innovate in their businesses to achieve their goals.
  • Geographical Indications of Origin have so far only been used for wine in Australia. However the ‘Provenance of Australian food products – is there a place for Geographical Indications?’ argues that there is reason to seriously consider potential advantages of such a tool for regional development. For example this tool has facilitated the promotion of premium wine and associated tourism in Queensland, a state not normally associated with wine production.
  • Collective Bargaining in the Agricultural Sector’ examines why Australian farmers seem to underutilise the provisions of competition law which would enable collective action in purchasing and selling. The report analyses the factors impacting the uptake of collective bargaining opportunities across a wide range of food products. It suggests how farmers could improve their bargaining position in the future.

Two other pieces of research will be released on Friday August 14 ; one that synthesises the big-picture 15 to 20 year agricultural sector megatrends, and the other considers factors that will influence Australian farm competitiveness in the global marketplace.

EVENT DETAILS

WHEN: 3pm – 5.30pm, 5 August 2015 (followed by drinks and canapés), with media interview opportunities with RIRDC and report authors
WHERE: The Boat House by the Lake (West End Room), Grevillea Park, Menindee Dr, Barton, ACT
  

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