THE Tourism & Transport Forum (TTF) will outline the importance of Australia marketing itself as a prime destination for wealthy families from the Middle East, at a public hearing in Canberra tomorrow.

The Trade Sub-Committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade wants to hear from the TTF about the potential for growing tourism from the Gulf States for its inquiry into trade and investment with the Middle East.

According to the TTF, the Middle East has been identified as a key growth market by Tourism Australia, which estimates that visitors from Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates collectively have the potential to spend $1 billion a year as tourists to Australia.

The $1 billion expenditure target places tourists from the relatively sparsely populated countries of the Gulf in much the same league as Japanese and German tourists. The higher average spend of Middle Eastern tourists coming to Australia is mostly due to them spending more per day and staying longer than visitors from other countries.

The potential for attracting more tourists from the Middle East is being assisted by the growth in international air services to Australia from the Gulf States, which grew by 27 per cent in 2014, mostly due to the Australian airline alliances with UAE-based carriers such as Emirates and Etihad.

More than 1.5 million passengers flew to Australia on Emirates, Etihad and Qatar Airways from the UAE and Qatar, and more than 150,000 came on Qantas and Virgin Australia services from the region.

To promote this, the TTF is urging the government to streamline its visa system for the Gulf countries, provide premium passenger services for passport control and customs for the high-end visitors from the Middle East, and offer similar services at business jet terminals.

Public hearing
Date/Time:  Wednesday 18 March 2015, 11:05 am
Location:  Committee Room 1R3, Parliament House, Canberra
Organisation:  Tourism & Transport Forum

Live audio broadcast will be available at www.aph.gov.au/live

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Public Hearing Details

Committee: House of Representatives Economics Committee
Venue: Committee Room 2R1
Parliament House
CANBERRA

Date: Friday, 20 March 2015
Time: 9.30 am to 12.30 pm

Webcast: The hearing will be webcast live on www.aph.gov.au/live

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THE Financial System Inquiry (FSI) proposal to reinstate the banning of limited resource borrowing arrangements (LRBA) within an SMSF should be reviewed in favour of more targeted measures to address inappropriate use of gearing linked to poor quality advice, according to the Institute of Public Accountants (IPA).

“The IPA believes that the issue is not SMSF borrowing per se, but inappropriate advice provided by unlicensed advisers,” said IPA chief executive officer, Andrew Conway.

“A sledgehammer approach may not be the appropriate way to eliminate the use of poor quality advice relating to SMSF gearing.

“We need better analysis of ways to address the risks surrounding borrowing before merely imposing an outright ban.

“No case has been made, including no evidence presented, that there is a risk to the superannuation system as posed in the final FSI report.

“Interestingly, there are also no alternative measures other than an outright ban to mitigate some of the concerns raised.  For example, if they are worried about the diversification, why not consider excluding LRBAs for funds with small balances.

“There is plenty of scope to amend the rules to specifically address all of the issues raised without resorting to a total ban,” said Mr Conway.

The IPA has made this recommendation as part of its 2015/16 pre-Budget submission.  Further detail can be found at www.publicaccountants.org.au/2015budget

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THE Victoria Events Industry Council (VEIC) has welcomed the Andrews Government’s announced Victorian Visitor Economy Review for the benefit it will bring to the events industry.

“Victoria’s celebrated business, sporting and cultural events are an important part of our state’s $19 billion tourism sector and it is positive that the spotlight is on opportunities to further capitalise on this growth industry,” said VEIC Chief Executive Dianne Smith.

“Victorian businesses throughout our state are keen to collaborate further on events with government and we are confident that this review will highlight innovative opportunities for this.”

Ms Smith’s comments follow the Andrews Government’s announced Victorian Visitor Economy Review, which will study events in Australian and international cities, along with a review of Victoria’s relevant government bodies, to ensure Victoria retains its status as the events capital of Australia.

“Business and government absolutely need to continually work hard to make sure we get the greatest return possible from this thriving and important industry,” said VEIC Chair Peter Jones.

“It is a competitive market and many events, such as this week’s Formula 1 Australian Grand Prix, are highly sought after by competing destinations.”

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The Victoria Events Industry Council (VEIC) is the peak body for Victoria’s events industry, providing one united industry voice. Major Events contribute over $1 billion to Victoria’s economy every year, creating jobs and underpinning Melbourne’s status as one of the global sporting capitals and the World’s Most Liveable City.


vtic.com.au

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THE Inspector-General of Taxation and several key stakeholders will participate in a wide-ranging discussion on current tax issues this Wednesday.

As part of the House Tax Committee’s inquiry into the Australian Taxation Office (ATO) 2014 Annual Report, senior officials from the ATO will give evidence on a range of issues, including:

• the risk framework used to select taxpayers for audits;
• the introduction of single touch payroll from July 2016;
• the ATO’s survey on taxpayer perceptions of ATO fairness; and
• delays in issuing refunds to taxpayers.

Committee Chair, Bert van Manen MP, said the hearing would allow the committee to track progress with the Commissioner’s plan to reinvent the ATO as a more contemporary and client-focused organisation.

“In past hearings, the ATO has been responsive in dealing with issues raised by stakeholders and the committee. We look forward to working through new issues at this hearing and being part of continuous improvement at the ATO,” he said.

Public hearing
Wednesday, 18 March 2014
Committee Room 2R1
Parliament House, Canberra

4pm   ATO
           Inspector-General of Taxation
           Chartered Accountants Australia + New Zealand
           Council of Small Business of Australia
6pm   Adjournment

The hearing will be broadcast live at: www.aph.gov.au/live

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FEDERAL Parliament’s Public Accounts Committee will hold a public hearing this Friday as part of its review of an Australian National Audit Office (ANAO) report on the Regional Development Australia Fund (RDAF).

The Department of Infrastructure and Regional Development, and the ANAO will appear as witnesses.

Committee Chair, Dr Andrew Southcott MP, said that a number of issues in the report required further public scrutiny, with RDAF involving a significant outlay of public funds.

“The ANAO report emphasised there was not a clear trail through the assessment stages to demonstrate that the projects awarded funding were those with the greatest merit in terms of the published program guidelines. The ANAO also noted that the department had not implemented recommendations from a previous audit of the first RDAF funding round,” Dr Southcott said.

“The report concluded that there needs to be greater adherence to published program guidelines and identified principles of better practice grants administration, and that decisions need to be made in accordance with the public interest and without regard to party political considerations.”

The RDAF was established in 2011 as a nationally competitive, merit-based grants program. Four funding rounds were delivered between 2011 and 2013, with some $226 million in grant funding being awarded to 121 projects under the third and fourth rounds. The ANAO’s findings and recommendations are set out in Report No. 9 (2014-15), Design and Conduct of the Third and Fourth Funding Rounds of the Regional Development Australia Fund.

Details of the hearing are as follows:

Friday, 6 March 2015 – 9.30am to 11.30am

Committee Room 2R1, Parliament House, Canberra

Further information about the inquiry, including the program for the hearing and copies of submissions, can be accessed via the Committee’s website at www.aph.gov.au/jcpaa.

The hearing will also be streamed live at http://www.aph.gov.au/News_and_Events/Watch_Parliament.

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The House Economics Committee has today tabled its first report on the Review of the Australian Prudential Regulation Authority (APRA) Annual Report 2014. 

The Chair of the committee, Mr John Alexander OAM MP, said that this review continues the committee’s important examination of Australia’s prudential standards for the banking, insurance and superannuation sectors.

APRA informed the committee at the public hearing in November 2014 that the Australian financial sector is broadly in good health and that authorised deposit-taking institutions (ADIs) remain profitable.

APRA has also stated that it has boosted its scrutiny of ADI lending standards as a response to increased residential property lending. This is welcomed by the committee which will continue to monitor this activity with interest.

APRA informed the committee it has been overseeing the progressive implementation of the new prudential standards through the Stronger Super reforms and takes the view that reasonable progress had been made.

APRA has also stated its particular focus on reviewing governance and risk management frameworks and practices in this industry and improving disclosures regarding investment risks for superannuation fund members.

The committee regards these activities as appropriate but as yet unfinished. Mr Alexander stated, "Although we are encouraged by APRA’s comments around the need for better governance and accountability in the Super Industry, we will still have to wait and see how successful its approach will be."

The recent recommendations of the Financial System Inquiry (FSI) have the potential to directly impact on APRA’s activities in the period ahead. Mr Alexander commented that the committee looks forward to discussing these suggested reforms with APRA at future hearings.

The next APRA hearing will be held this coming Friday 20 March 2015 in Canberra. The report is available on the committee’s website at: http://www.aph.gov.au/Parliamentary_Business/Committees/House/Economics/completed_inquiries

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THE Australian Retailers Association (ARA) said the seasonally adjusted rise (0.4 percent increase) in monthly retail trade figures (month-on-month) reported today by the ABS followed a 0.2 percent rise in December 2014.

ARA Executive Director Russell Zimmerman said retailers reported strong sales in the first week of January but experienced a tougher trading environment towards the end of the month.

“Boxing Day was huge for retailers this year and many consumers carried on bargain hunting well into the first half of January.

“Department stores struggled during December, but come January, it seems effective promotions were successful in drawing people in-store.

“While food retailing suffered during January (-0.7%) due to consumers often being away from home and choosing to eat out instead, the cafes, restaurants and takeaway food services sector enjoyed a nice boost in sales (2.0%). As always at this time of year, Aussies are out and about socialising with friends and family at their local eateries. 

“With many consumers returning to work from their Christmas holiday towards the end of January, there was a natural drop in discretionary spending which unfortunately impacted the clothing, footwear and personal accessory sector (0.1%).

“It will be interesting to see the results of February retail sales when this information is released next month, as Valentine’s Day usually provides retailers with another welcome boost in sales,” Mr Zimmerman said.  

In seasonally adjusted terms the states which displayed rises were Queensland (1.2%), Victoria (0.5%), Tasmania (1.9%) and Western Australia (0.1%). New South Wales was relatively unchanged (0.0%). There were falls in the Australian Capital Territory (-1.9%), the Northern Territory (-1.8%) and South Australia (-0.1%). 

MONTHLY RETAIL GROWTH (December 2014 – January 2015 seasonally adjusted)

Department stores (2.2%), Cafes, restaurants and takeaway food services (2.0%), Other retailing (1.0%), Household goods retailing (0.7%) Clothing, footwear and personal accessory retailing (-0.1%), Food retailing (-0.7%) and Total sales (0.4%).

Tasmania (1.9%), Queensland (1.2%), Victoria (0.5%), Western Australia (0.1%), New South Wales (0.0%),  South Australia (-0.1%), Northern Territory (-1.8%) and Australian Capital Territory (-1.9%). Total sales (0.4%).

YEAR-ON-YEAR RETAIL GROWTH (January 2014 – January 2015 seasonally adjusted)

Household goods retailing (8.7%), Cafes, restaurants and takeaway food services (5.0%), Clothing, footwear and personal accessory retailing (3.0%), Food retailing (2.2%), Other retailing (1.1%) and Department stores (1.1%). Total sales (3.5%).

New South Wales (5.2%), Victoria (3.6%), South Australia (3.1%), Queensland (2.4%), Western Australia (2.1%), Tasmania (1.9%), Australian Capital Territory (1.7%) and Northern Territory (-2.0%). Total sales (3.5%).

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia.

Visit www.retail.org.au or call 1300 368 041.

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