AUSTRALIA’S resource industry employer group, AMMA, welcomes Minister for Immigration Scott Morrison today flagging the government’s support for removing cumbersome and unnecessary bureaucracy from Australia’s valuable skilled migration programs.

“The resource industry’s use of skilled migration has declined in recent years, but where we do employ international specialists, their expertise and skills are often critical to safety, performance and supporting a large number of aligned Australian jobs,” says Steve Knott, AMMA chief executive.

“It is encouraging to have our Immigration Minister publicly acknowledge how skilled migration supports both economic growth and employment opportunities for the Australian workforce, after an unfortunate politicisation of the skilled migration debate under the previous government.

“The minister also reaffirmed what employer groups like AMMA have long maintained, which is that misuse of the 457 Visa system is isolated and there has certainly been no widespread rorting.”

Speaking at the National Press Club, Minister Morrison also voiced the government’s early support for some changes to the 457 Visa program recommended by its 457 Visa Integrity Review Panel.

Changes such as new processes to speed up skilled migration Labour Agreements for Australian businesses are in-line with AMMA’s recommendations to the Panel.

“We have seen major resource industry projects wait up to four years to secure a Labour Agreement to cover a small number of valuable and necessary international workers. The current negotiating process is extremely difficult and time-consuming,” Mr Knott says.

“This has a very real impact on job opportunities for Australians. Skilled overseas workers have never been used to replace Australian jobs, rather they complement the skills available here with new global expertise and support projects delivering great value to Australia’s economy.

“Skilled migrants support short-to-medium term skills shortages when Australians are unable to fill such roles. They pay tax from day one, and create local jobs.

“In 2013, the Reserve Bank estimated our industry directly and indirectly accounted for 1.1 million jobs in Australia. With 457 Visa applications in 2013 numbering just 1,340, skilled migration clearly provides a small, but important contribution to our industry’s wider employment opportunities.”

Other proposed changes include more practical and effective standards for English language testing to fix an array of existing problems. AMMA also supports the proposed reduction in market salary rate comparisons from $250,000 to $180,000 per annum.

“Clearly employers should not be burdened with onerous salary comparison requirements for high income earners being paid more than $180,000 per year,” Mr Knott says.

Despite a recommendation from the Review Panel, the Minister indicated the government did not support the complete removal of Labour Market Testing measures. With Edith Cowen University research showing it can cost employers up to $70,000 to sponsor a 457 Visa holder, AMMA has long argued such measures are completely unnecessary and cumbersome.

AMMA is next week (Tuesday 16th September) hosting its 2014 Skilled Migration Conference in the Perth CBD. This is a practitioner-based event open to resource employers.

www.amma.org.au

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THE Council of Small Business Australia (COSBOA) has expressed extreme disappointment with the Federal Government’s decision to back date the removal of tax support provisions for small business as a result of the mining tax repeal, which was announced earlier today.

Peter Strong, Chief Executive of COSBOA said that the change should not be back dated as this creates confusion and extra paperwork for the small business community as well as those who, in good faith, purchased goods and/or claimed these as part of their tax return.

“We can only express disbelief that the back dating was kept in place.  This shows a complete lack of understanding about the way small businesses operate. The logical decision would have been to keep these provisions in place, pending the outcomes of the Tax Whitepaper that the Government has commissioned,” Mr Strong said.

“Another issue is that the changes take effect half-way through the last financial year. No government should implement changes to the tax system half way through a financial year.  To think that 2.1 million small business people wake up every day and go to the Treasury website to check what changes to the tax system may have occurred is totally unrealistic.”

This announcement will only impact small businesses and not big business, Mr Strong also noted.

http://www.cosboa.org.au/

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QUEENSLAND’s peak body for the resources sector has welcomed the passage of the Mineral and Energy Resources (Common Provisions) Bill, which delivers a recipe for regional economic growth.

Queensland Resources Council (QRC) Chief Executive Michael Roche says this important legislation again demonstrates that the Minister for Natural Resources and Mines, Andrew Cripps remains focused on enabling regional growth and development by streamlining unnecessary regulation.

"This Bill streamlines the objections process for the grant of a mining tenure but does not limit or remove a right to object to the mining project, rather, objections are considered as part of the project’s environmental authority," Mr Roche said. 

"Communities and landholders remain important stakeholders and still retain a genuine opportunity to raise concerns over a mining project’s environmental impacts.

"The amendments reduce unnecessary duplication in Queensland’s approvals processes," he said.

Mr Roche said QRC would also like to acknowledge the chair of the Parliamentary Committee, Ian Rickuss, the hard-working member for Lockyer, who succeeded in keeping the committee hearings on this legislation grounded in reality while they were surrounded in controversy.

"Mr Rickuss and the majority of committee members have demonstrated that they can see past the cheap theatrics and focus on the actual issues at hand, which are fair process, regional growth and delivering regional jobs," Mr Roche said. 

"The committee hearings were a good opportunity to hear the important concerns of genuine landholders."

The Bill introduced a number of important reforms including:

	implementing the 2012 findings of the Land Access Implementation Committee—on which peak agricultural groups worked closely with peak resource industry bodies under an independent Chair
	a new process for ensuring that the maximum resource extraction occurs when coal and coal seam gas tenures overlap—that’s good news for Queensland as it means jobs and royalties will be maximised
	providing new powers to ensure legacy boreholes can be swiftly made safe; and
	a simple and consistent system of restricted land for all resource tenures—that’s good news for landholders.

QRC remains committed to working closely with the industry’s stakeholders, including landholders, rural and regional communities and peak agriculture bodies with whom we share an interest in seeing regional Queensland grow and develop.

www.qrc.org.au

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IN A FISCAL deficit environment that Australia finds itself in, it’s time to have a hard look at the share buyback scheme loophole that continues to reduce the Commonwealth revenue line, says the Institute of Public Accountants (IPA).

“The share buyback system is inequitable and reduces Australia’s revenue options to fund other initiatives, especially those supporting small business,” said IPA chief executive officer, Andrew Conway.

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

“This creates an inequitable distribution of franking credits and reduces the attraction of buybacks for specific groups of taxpayers. Off-market buybacks are mostly attractive to low tax paying shareholders.

“Given that one of the principles of developing tax policy is equity, then this issue should be considered in future tax reform, so that all taxpayers receive the same treatment.

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

“While buybacks 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  skewed  distribution of franking credits.

“Telstra is the first major listed company since the GFC that has announced a buyback and no doubt there will be many more to follow.  Therefore, it may be timely to consider the tax treatment of buybacks, for the benefit of all taxpayers and for the benefit of companies that are offering share buybacks.

“The Government should seriously look at the artificial streaming of franking credits which buybacks create,” 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 with more than 24,000 members and students in over 51 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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QUEENSLAND'S peak resources sector body has welcomed the state government’s environmental approval for a new gas project that will benefit Bowen Basin communities for at least 40 years.

The Chief Executive of the Queensland Resources Council Michael Roche says Arrow Energy’s Bowen Gas Project (BGP) project, about 150km south west of Mackay will provide more than 1500 jobs during the construction phase from 2016, and about 700 permanent jobs.

‘The government’s approval of the environment impact statement (EIS) for the project supports Arrow’s announcement yesterday that it was beginning front-end engineering and design work for the proposed Bowen upstream gas project.

‘The environmental assessment of this project has been in train since 2012 and will now be assessed by the Australian Government.'

BGP involves developing Arrow’s tenements near its existing gas fields with staged expansion of about 4000 gas wells and gas infrastructure in an 8000km² area. 

The project will supply local and export markets.

www.qrc.org.au

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PEAK retail industry body the Australian Retailers Association (ARA) said reducing penalty rates is a crucial step in creating higher levels of employment for Australians.

ARA Executive Director Russell Zimmerman said the Australian Chamber of Commerce and Industry’s (ACCI) recent comments regarding the detrimental effects of penalty rates on both employers and employees were 100 percent warranted, despite union criticism about ACCI supposedly ‘misleading’ the community.

“It’s all over the news at the moment – Australia’s unemployment rate has soared to its highest level in 12 years.

“There’s no denying the fact that retailers would employ more staff if they did not have to pay penalty rates. SME retailers in regional areas in particular, who do not currently open on Sundays, would definitely consider their options if penalties were reduced.

“Retail staff in regional areas do not usually have the opportunity to work on Sundays and a lower penalty rate would mean these retail employees would have the opportunity to work extra hours. We cannot ignore the major benefits for all involved, including additional hours retailers will be able operate, if penalties are reduced.

“A number of larger retail members have advised the ARA that whenever their stores are not ‘forced’ to open under their lease requirement, they close the store completely due to severe double-time penalty rates. If these stores could afford to be open, they would in turn employ a number of staff on a Sunday and this would not only improve business in country and regional stores but increase employees discretionary spending.

“Seeking to be the voice of reason, the ARA is not calling for penalty rates to be abolished but there is a strong need to get the balance right so that retailers can operate competitively on weekends and offer increased employment opportunities,” Mr Zimmerman said.

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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THE Federal Government has announced the dates from which the small businesses concessions attached to the repeal of the mining tax will no longer apply.

The dates are the same as those proposed in the original repeal Bill (that was defeated in the Senate) for the instant asset and motor vehicle write off.

The government has however backdated the repeal of the company loss carry back concession. This concession was originally meant to be removed from the date of royal assent. The original repeal bill was introduced on November 11, 2013 so the removal of this concession from July 1, 2013 will come as a shock to small businesses.

The Minister for Finance, Mathias Cormann, has set the following dates of effect for relevant taxpayers:

• abolition of the mining tax from October 1, 2014
• abolition of the company loss carry-back from July 1, 2013
• reduction of the instant asset write-off from January 1, 2014
• abolition of accelerated depreciation of motor vehicles, also from January 1, 2014.

In relation to the instant asset write off, when eligible small business taxpayers are purchasing depreciating assets, the reduced threshold of $1,000 will apply from January 1, 2014 rather than the $6,500 threshold that was available before this date.

The accelerated depreciation for motor vehicles will cease to be available to eligible small businesses for motor vehicles purchased after January 1, 2014.

In respect of the loss carry-back concession, it cannot be claimed for the whole of the 2013-14 financial year as the government has backdated this change to July 1, 2013.

The ATO has advised that it will waive all penalties and interest in instances where taxpayers have chosen not to prepare their returns on the basis of the government's announcement of these measures, if they seek to have their income tax assessments amended within a reasonable time.

As the original repeal bill was introduced in November 2013 and these changes received royal assent on September 5, 2014 — almost a full year afterward — the date of implementation has come as a surprise to Taxpayers Australia and the wider small business community.

Head of Tax with Taxpayers Australia, Mark Chapman, criticised the new measures.

“With the mining tax itself not being abolished until October 1, 2014 the government appears to be on a tax grab from small businesses by making these measures retrospective. In addition, the added burden of amending tax returns to comply with the new law when taxpayers have claimed these concessions in good faith in accordance with the law as it stood at that time is unfair and contrary to the principle of reducing red tape.

“In relation to the loss carry back concession, removing the ability to claim this measure for the 2014 income year entirely, given that the original bill proposed the measure would apply from the date of royal assent, is even more disappointing,” Chapman added.

“The small business community badly needs certainty and clear guidance from the government rather than backdated measures that leave them further out of pocket even after they have, in some cases, lodged their tax return and paid their liability for the year.”

Taxpayers Australia is a not-for-profit organisation committed to a fairer and more transparent taxation system for every Australian taxpayer. Its aim is to provide taxation practitioners, superannuation professionals, small businesses and individuals with up-to-date, informative and above all understandable information about taxation – to ensure that every Australian pays the right amount of tax and not a cent more.

Visit our website: www.taxpayer.com.au

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PEAK retail industry body the Australian Retailers Association (ARA) said the Reserve Bank of Australia’s (RBA) decision to keep the cash rate on hold at 2.5 percent does little to support consumer confidence and jobs growth.

ARA Executive Director Russell Zimmerman said that despite a small uplift in recent retail sales figures, consumer confidence remains extremely fragile.

“Worsening employment figures are also painting a picture of an economy needing monetary support.

“Lowering interest rates today would have been a supportive step in the right direction for the retail sector and jobs but unfortunately this wasn’t the reality.

“Given the current fiscal tightening of the economy to balance the budget, retailers believe the RBA will need to continue to support the economy via low interest rates for some time. The RBA remains one of the few central banks able to offer that support to the economy globally.

“There were some signs of life for the retail sector in the 2013-14 financial year, however, this activity has been short lived and extra stimulus is now needed for the consumer-lead economy.

“It is imperative that the RBA do all that it can to ensure that retail trade does not suffer as we gear up toward the spring/summer racing season and also the Christmas trading period.

“With the festive season right around the corner, retailers are beginning to invest in new marketing strategies and have also begun hiring Christmas casuals. The cost of doing business is increasing daily. Now is the time for the RBA to lower interest rates and aid retail growth,” Mr Zimmerman said.

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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