TASMANIA's lock out approach during lockdowns buffered the state’s bottom line but is reaching its expiry date, according to professional accounting body, CPA Australia.

“The Tasmanian Government has pursued a lock out approach during the mainland’s frequent lockdowns,” said CPA Australia general manager for external affairs, Jane Rennie.

“Economic orthodoxy suggests that isolation is financially disastrous for markets which go it alone," Dr Rennie said. "Without doubt, border closures pummeled some sectors and contributed to skills shortages, but on balance the budget figures suggest Tasmania’s lock outs provided short-term economic protection.

“However, this approach has an expiry date. Once Australia reaches its vaccination targets, it will be important to reintegrate into the national economy or risk being left behind as other states’ economies take-off.”

The budget forecasts a deficit of $690 million for 2021-22, which is $400 million more than expected in December. For the same period, the budget forecasts the state’s economy will grow four percent. GST receipts have made a significant contribution to the strength of the budget position. The government is forecasting a return to surplus in 2023-24.

“With the cost of borrowing so low at present, we consider the size of Tasmania’s debt manageable," Dr Rennie said. "We’re not concerned by the delay in returning to surplus. It’s much better to continue stimulating the economy than to cut back on spending too soon, which could damage Tasmania’s economy.”

There are no new taxes or revenue raising measures in the budget. The land tax threshold has been lowered, which represents a nearly $60 million reprieve for property investors over four years. There’s otherwise limited tax relief for first home buyers and nothing for owner occupiers.

Overall, the Tasmanian Government has delivered modest spending in the budget.

“We think this is appropriate given the economic circumstances. Tasmania is in a very different situation to its northern neighbours. However, we must remember that the positive economic indicators underlying the budget are the result of a highly unusual set of circumstances. This growth may not be sustainable when Australia transitions to a post-vaccination economy."

Most of the 2021-22 budget measures were announced in the 2020 budget or make good on election promises. There is a clear focus on health, infrastructure and education.

This budget allocates $900 million more to Tasmania’s health system than the 2020-21 budget.

“While additional funding for health will address critical short-term issues such as wait times, ongoing investment will be needed to consolidate any improvements,": Dr Rennie said. 

About $4.6 billion has been allocated to infrastructure over four years, the majority of which will go to existing projects, but there’s an additional $600 million in new spending.

“Private sector construction has made a strong contribution to Tasmania’s infrastructure program," Dr Rennie said. "There are clear opportunities to encourage further private sector investment. It’s disappointing that the government has not capitalised on this.”

The budget includes more than $135 million for skills and training, with a focus on the TAFE sector.

“Skills shortages are an issue in Tasmania, as they are in the rest of Australia. This will remain the case until Australia’s borders re-open and international skilled labour, tourists and students return.

“The missing piece of the jobs puzzle is investment in employment opportunities for professionals. Tasmania’s accounting profession currently faces a shortage of mid-career and senior accountants. We think more needs to be done to encourage employment pathways for graduates."

Hospitality and tourism businesses have been hard hit by Tasmania’s lock out approach.

“The impact of lock outs on business has been softened by multiple rounds of business grants, travel vouchers and buy local campaigns," Dr Rennie said. “What is needed now is to wean businesses off their dependence on government support, by building capacity, developing strategic skills and encouraging innovation.

“Overall, there’s meagre support for Tasmania’s small businesses in the budget. More should have been done to assist them to access professional advice and support their digital transformation.”

Some $10 million has been allocated to establishing a new environmental agency.

“We’re pleased to see Tasmania incorporating environmental sustainability into its economy but the government will need to scale-up this spending to create a meaningful impact," Dr Rennie said.

cpaaustralia.com.au

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PROFESSOR of engineering at the Australian National University (ANU), Andrew Blakers, will appear at Wednesday’s third public hearing for the House of Representatives Standing Committee on the Environment and Energy’s inquiry into the current circumstances, and the future need and potential, for dispatchable energy generation and storage capability in Australia.

Committee Chair Ted O’Brien MP said, "This public hearing is an opportunity for the committee to hear more about the requirements to balance an electricity market comprising more and more renewables, including through long-distance transmission, demand management, legacy generation sources and storage options.

Professor Blakers has significant expertise in energy matters. We are looking forward to discussing his research and his views on the future prospects and prerequisites for dispatchable energy in Australia," Mr O’Brien said.

Public hearing details

Date: Wednesday, 25 August 2021
Time: 10.15am to 11am
Location: via videoconference

Due to Covid-19 restrictions, committee proceedings held in Parliament House are not currently open to the public. The hearing will be broadcast live at aph.gov.au/live.

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RIO TINTO will reappear before the Joint Standing Committee on Northern Australia to discuss the status of their relationship with the Puutu Kunti Kurrama and Pinikura People, following the destruction of the rock shelters at Juukan Gorge. There is also an intention to discuss the legacy of Marandoo.

Northern Australia Committee Chair Warren Entsch MP said this was an important opportunity for the committee to see how the recommendations from the interim Juukan Gorge report have been taken up by Rio Tinto.

Mr Entsch said he "seeks to discuss the Marandoo Mine with Rio Tinto and their perceptions of the Marandoo Act considering their reconciliatory approach to the destruction of Juukan Gorge".

The Wintawari Guruma Aboriginal Corporation has made a submission to the committee regarding the Marandoo Mine and the fact that artefacts were taken away by contractors and later disposed of. The committee is eager to listen to Rio Tinto’s response to these allegations.

A program for the public hearing is available on the committee’s website.

Public hearing details

Date: Friday, 27 August 2021
Time: 10am to 11am AEST
Location: by video/teleconference

The hearings will be broadcast live at aph.gov.au/live.

Further details of the inquiry, including terms of reference, can be found on the Committee’s website.

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ISSUES such as country of origin labelling, regional infrastructure and regulatory pathways in aquaculture will be considered by the House Agriculture and Water Resources Committee at an upcoming public hearing.

The committee will hear from Seafood Industry Australia, the national peak body representing the Australian seafood industry, as part of its current inquiry into Australia’s aquaculture sector. The organisation will be appearing via videoconference.

Committee Chair, Rick Wilson MP, said Seafood Industry Australia represents a wide range of stakeholders in aquaculture throughout Australia and offers perspectives from across the industry on a broad range of topics such as policy, regulation, workforce, infrastructure and export market growth.

"While the committee has heard that there are many region-specific issues to be considered in this inquiry, it is valuable to understand how these are reflected on a national scale," Mr Wilson said.

For further information, visit the inquiry website.

Public hearing details

Date: Thursday, 26 August 2021
Time: 10.10am to 10:50am AEST

A live audio stream of the hearing will be accessible at: www.aph.gov.au/live.

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AT A PUBLIC hearing on Friday August 27, the Parliamentary Standing Committee on Public Works will scrutinise a $27.49 million proposal from the Australian Institute of Marine Science to expand its National Sea Simulator to support research for protecting the Great Barrier Reef.

The inquiry into the Australian Institute of Marine Science, Expansion of the National Sea Simulator will examine the need and cost effectiveness of the proposed expansion, and explore how the expanded SeaSim capacity will directly support significant research under the Reef 2050 Long-Term Sustainability Plan and the Great Barrier Reef Restoration and Adaptation Program.

Public hearing details

Date: Friday, 27 August 2021
Time: 11am to 12pm (AEST)
Location: via teleconference

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

The Parliamentary Standing Committee on Public Works is not involved in the tendering process, awarding of contracts or details of the proposed works. Inquiries on these matters should be addressed to the relevant Commonwealth entities.

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THE House of Representatives Standing Committee on Tax and Revenue has today presented its report titled Owning a Share of Your Work: Tax Treatment of Employee Share Schemes.

Employee share schemes are a means by which an employer can offer an employee shares or options in relation to their employment. In its report, the committee makes 18 recommendations to support the uptake and use of employee share schemes in Australia.

The committee’s overarching recommendation is that employee share schemes be treated as capital for the purposes of taxation, and that a tax liability would arise on the disposal of the assets granted, using the current capital gains tax regime.

The committee’s recommendations also include regulatory relief to reduce disclosure requirements in certain situations, enhanced collection and sharing of data relating to employee share schemes, a public awareness program, and an investigation by the Productivity Commission to identify how Australia’s existing arrangements in this space can be improved.

The Committee’s recommendations also include proposed amendments to the Tax and Superannuation Laws Amendment Employee Share Schemes) Act 2015 and the Income Tax Assessment Act 1997, to simplify the complicated and restrictive current tax arrangements for employee share schemes, and support more individuals to access tax concessions for employee share schemes.

Committee chair, Jason Falinski MP, advocated for policy changes in this space.

"Employee share schemes matter because they support new businesses, innovation and start-ups, which are the engine of higher productivity in our country," Mr Falinski said.

"Higher productivity leads to sustainably higher wages, better products and services, greater competition and more choice. All these outcomes directly impact on the quality of life that hard working Australians enjoy. Productivity is what makes life better, more affordable and easier."

A full copy of the committee’s report can be found on the inquiry’s website: https://www.aph.gov.au/Parliamentary_Business/Committees/House/Tax_and_Revenue/EmployeeShareSchemes

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THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has concluded a review into the Foreign Intelligence Legislation Amendment Bill 2021 and recommends its passage with amendments.

The PJCIS made three recommendations in relation to the Bill, including to improve oversight and accountability of foreign intelligence gathering.

The proposed legislation addresses unintended gaps in Australia’s foreign intelligence collection. The Bill will restore intelligence agencies’ ability to collect intelligence about foreign threats to Australia in line with the original intent of the Parliament which has been impacted by technological change.

The Bill also responds to a recommendation in the comprehensive review of intelligence by Dennis Richardson to close a gap in Australia’s foreign intelligence collection framework which permits collection on Australians acting on behalf of foreign powers while they are offshore but not onshore.

Chair of the Committee, Senator James Paterson said, "The capability to gather foreign intelligence is a key component of the Australian Government’s ability to protect Australians and safeguard our national interest. It is vital we ensure it remains operationally effective in the modern era."

Further information on the inquiry as well as a copy of the report can be obtained from the Committee’s website.

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THE NSW Government's decision to deny construction workers from LGAs of concern being able to use rapid antigen testing as a means of proving they are safe to work is discriminatory and a slap in the face to an industry that has met every challenge Covid has thrown at it.

Union leaderes say the current rules have caused "untold distress and anxiety to a group of construction workers already doing it tough as a result of an issue not of their own making".

“The CFMEU, ETU and Plumbers union have been calling for the Berejiklian Government to support a rapid antigen testing regime in the industry since the start of the pandemic, and as an alternative to mandatory vaccination, and it is shameful that some construction workers are going to be excluded from it. Construction workers are being unjustifiably punished,” CFMEU NSW construction secretary Darren Greenfield said.

“Until today the Berejiklian Government had consistently resisted supporting rapid antigen testing in the industry. Despite this resistance, rapid antigen testing has been adopted widely across the industry following the long-term advocacy for its use by the CFMEU, ETU and Plumbers Union as a means of detecting and managing the risk of covid on construction sites.

“It is bizarre and defies any sensible rationale that in announcing the rapid antigen testing regime for every other industry that the government has excluded construction workers living in the 12 LGAs of concern from being able to use it as a means of proving they are safe to work. Construction workers, in an industry that is such an important pillar of our economy, deserve much better," Mr Greenfield said.

“Construction workers who live in Sydney's Western and South Western Suburbs are being discriminated against by a government that ignores the evidence of how the industry has successfully managed Covid.

“The industry has effectively managed the risks posed by Covid-19 since this pandemic began by putting in place upgraded and enhanced safety measures, including staggered start, finish and break times, social distancing on sites, enhanced cleaning and hygiene practices, mandatory face masks, contact tracing and elevated testing regimes - including rapid antigen testing.

“Many builders have adopted the Contact Harold system which tracks where workers are on sites and assists in identifying close contacts of any case where a covid-positive person has been on a site," he said.

“The measures put in place over the past 18 months are over and above what any other industry has done in response to the risk of Covid-19 at the workplace. These measures have ensured that any time Covid has been detected on a site the industry has acted immediately and successfully managed the risk to construction workers and their families.

“If the government is serious about increasing vaccination rates, they need to make vaccines easily available, providing workers with choice and back it up with a clear and consistent public information campaign so workers can make an informed and confident choices about their own health.

“Now that tens of thousands of construction workers have been vaccinated, we demand of the government introduce immediately the opportunity for antigen testing, which is already in place, as an alternative to mandatory vaccination. We will continue to fight for all workers in the construction to return to work unconditionally and to be treated no less favourably than any other worker," Mr Greenfield said.

“Workers should not be forced to pay the price for the bungled vaccine rollout, mixed messaging on vaccine safety and the ongoing failure by the State and Federal Governments to give people the accurate information they need to make their own health choices.”

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