THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson said the Startup Year initiative proposed in Labor’s budget reply could contribute to Australia having a world-class ecosystem for entrepreneurship.

Labor Leader Anthony Albanese’s budget response included a pitch for Startup Year, a program helping up to 2,000 of the nation’s most promising entrepreneurs commercialise their ideas and university research.

Under the proposal, students would have access to loans of up to $11,300 through the HELP system to cover costs while participating in an accredited accelerator program.   

Mr Billson said the initiative is an interesting proposal and is looking forward to learning more about it.

“The Startup Year program is a useful and constructive proposal about how we might ensure Australia has a world-leading ecosystem to support entrepreneurship,” Mr Billson said.

“I look forward to learning more about the approach over the coming weeks and working collaboratively to ensure small business are a key focus in Labor’s economic plan.

“We all share the ambition of Australia being the best place to start, grow and transform a business and what this means for our economic prosperity and livelihoods.”

www.asbfeo.gov.au

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THE Foreign Affairs and Aid Subcommittee of the Joint Standing Committee on Foreign Affairs, Defence and Trade is holding the next stage of public hearings into the military coup in Myanmar on Thursday, May 13, 2021.

Representatives from the Department of Home Affairs, Department of Foreign Affairs and Trade, and the Department of Defence will appear to provide detail on the Australian Government’s response to the unfolding crisis.

Chair of the Subcommittee, Dave Sharma MP, said the submissions from community groups and experts have helped inform Australia’s approach in supporting a cessation of violence and a return to democratic rule in Myanmar.

"Last month we heard from a wide range of diaspora groups, human rights organisations and leading experts who shed light on the deeply concerning developments in Myanmar," Mr Sharma said. "With ASEAN having now assumed a diplomatic role in resolving this crisis, the Subcommittee is keen to hear from Australian government departments about how we can best support ASEAN efforts to restore civilian rule in Myanmar."

Further information about the inquiry can be found on the Committee’s website.

Public hearing details

Date: Thursday 13 May 2021
Time: 11am to 12.30pm AEST
Location: Committee Room 2R1, Parliament House, Canberra

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

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IN AN Australian-first, NSW Health will provide COVID-19 vaccinations to a small number of foreign seafarers onboard vessels that transport gas between Australian ports in an effort to reduce the risk of the virus entering the community.

The Maritime Union of Australia (MUA) welcomed the initiative between NSW Health and NSW Ports, which will cover vessels that regularly visit the Port Botany Bulk Liquids Berth, but said the model must be rolled out nationally to reduce the risk of COVID transmission to waterfront workers.

Sixteen seafarers onboard Singapore-flagged LPG carrier Epic St Agnes, which is on long-term charter to Australian energy giant Origin Energy, received their first vaccination dose yesterday morning while berthed at Port Botany.

The Epic St Agnes operates exclusively on the Australian coast, loading and discharging bulk gas at ports in Queensland, New South Wales, Victoria, Tasmania, and the Northern Territory.

The initiative follows last month’s COVID outbreak on another LPG carrier chartered by Origin Energy, the Inge Kosan. Testing of crew members on that vessel — conducted after the body of one of the seafarers washed up on a beach in Vanuatu — found 12 of 13 had the virus.

MUA Sydney deputy branch secretary Paul Garrett welcomed the NSW Health initiative, but questioned why it was only taking place on a small number of vessels at the Bulk Liquids Berth.

“This Australian-first effort to vaccinate foreign seafarers that make regular visits to Australian ports is a welcome step to reduce the risk of COVID transmission to waterfront workers, but it needs to be replicated at all ports and terminals,” Mr Garrett said.

“The COVID outbreak on the Inge Kosan last month, which appears to be responsible for the death of one of the seafarers onboard, highlights the significant risk that maritime ports of entry pose as a source of community transmission.

“NSW Health has made the decision that COVID vaccinations for crews onboard gas ships that use the Bulk Liquids Terminal are essential to reduce the risk of community transmission, yet seafarers on container ships berthed just a few hundred metres away are excluded.

“More than a year on from the Ruby Princess debacle, many of the lessons still haven’t been learnt, which is why the union is continuing to fight for COVID testing and vaccinations for all international seafarers arriving in Australian ports.”

MUA national secretary Paddy Crumlin said there was an urgent need for a nationally-consistent approach to close the gaping holes in Australia’s maritime biosecurity measures.

“Thousands of foreign ships visit Australian each year, with many conducting regular trips or undertaking coastal trade between Australian ports, resulting in a significant risk of COVID transmission into the community through direct contact with waterfront workers,” Mr Crumlin said.

“I wrote to the National Cabinet again last month to warn of the significant public health threat and outline the immediate reforms needed to address this risk.

“Inconsistent and tokenistic measures, such as vaccinations for seafarers at certain ports or terminals but not at others, can’t solve what is a national threat.

“What this initiative from NSW Health does prove is that it is possible to vaccinate foreign seafarers, but those efforts will only be truly effective if they’re done in a coordinated, nationally-consistent way.

“It shouldn’t take COVID outbreaks, such as the recent one on the Inge Kosan, to force Federal, State and Territory Governments to finally take the steps needed to address the risk of COVID transmission at Australian ports.”

International Transport Workers’ Federation Australia coordinator Ian Bray said the Federal Government needed to do more to protect the wellbeing of seafarers in Australia’s maritime supply chains.

“As well as providing vaccinations for seafarers travelling to Australian ports, there also needs to be COVID testing undertaken of all seafarers arriving from foreign ports,” Mr Bray said.

“Not only would rapid testing allow Australian workers who have come into contact with confirmed cases to be immediately isolated, it would mean appropriate medical care could be provided to seafarers, along with support to prevent further spread of the virus on the vessel.

“Seafarers are responsible for transporting 98 per cent of Australia’s imports and exports, which is why it is so important to address the threat COVID poses to these maritime supply chains.”

TODAY, May 10, the first public hearing on the Regional Comprehensive Economic Partnership Agreement (RCEP), will be held by the Joint Standing Committee on Treaties.

The RCEP is a regional free trade agreement between Australia and the countries of ASEAN, China, Japan, the Republic of Korea and New Zealand.

Committee Chair Mr Dave Sharma MP said, "RCEP is a significant agreement, covering almost a third of the world’s population and GDP. It is truly comprehensive, covering trade in goods and services, investment, economic and technical cooperation, promoting electronic commerce, and capturing the most recent advances in international trade in relation to intellectual property, competition and government procurement."

The RCEP is expected to enhance the economic benefits Australia already enjoys because of existing trade agreements with many of the parties to the RCEP, as well as open new opportunities for Australian businesses seeking to engage in the region.

Australian Government witnesses will speak at the public hearing in Parliament House. Further information on the inquiry can be found on the inquiry website.

Public hearing details:

Date: Monday, 10 May 2021
Time: 10am–1pm
Location: Committee Room 1R6, Parliament House

The hearing can be accessed online via the Parliament of Australia website.

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CORELOGIC today announced its estimate of the total value of residential real estate in Australia has reached $8.1 trillion.

The surge in value follows the recent broad-based capital gains witnessed across the country, with many markets now at their peak.

CoreLogic head of research, Eliza Owen, said, “The Australian dwelling market has reached fresh record highs for the past four months, but the end of April marked the first time the total value of Australian housing broke the $8 trillion dollar mark.

“This puts Australian residential property at around four times the size of Australian GDP, and around $1 trillion more than the combined value of the ASX, superannuation and commercial real estate stock combined,” Ms Owen said.

CoreLogic data shows in the three months to April, national home values rose 6.8 percent, which is the highest quarterly dwelling growth rate since December 1988.

“The increase in the value of residential real estate has put Australian home owners in a strong equity position, with the RBA estimating just 1.3 percent of housing loans to be in a negative equity position at the start of 2021. However for many Australians looking to get a foot on the property ladder, the continued strength in the market is putting home ownership further out of reach despite record low mortgage rates. Wages growth simply isn’t keeping pace,” Ms Owen said.

www.corelogic.com.au

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WITH the Federal Government suggesting international borders will not open until 2022, it is critical that internationally focused tourism businesses across Australia receive clarity on continued government support in order to give them certainty in planning for their future recovery.

“The government is indicating our international borders will be closed to visitors until at least the end of the year and while many tourism businesses are surviving with domestic visitation, there is a group of uniquely exposed businesses who receive little or no benefit from the current domestic travel stimulus programs,” ATEC managing director Peter Shelley said.

“While we welcome these stimulus initiatives which are helping drive domestic travel, there are many tourism products which domestic travellers are simply not booking, like day tours and attractions. Plus we have the inbound tour operator cohort who are unable to pivot their business model to benefit from domestic travel support programs.

“While these businesses have welcomed the support packages offered by the government so far, they are crying out to know if this support will continue until international borders reopen.

“Without this certainty, they have no confidence to invest in their future or begin planning for our industry’s restart, let alone continuing to hold on to the rubble of their businesses."

Mr Shelley said inbound tour operators (ITOs) were particularly exposed and will have no revenue until the borders reopen.  These businesses are crucial to the export tourism supply chain given they connect Australian tourism products to our lucrative international markets, he said.

“ITOs are the businesses which sell Australian tourism product across the world," Mr Shelley said. "They continue to manage strong forward booking enquires for future international visitors despite not having any revenue.

"They are not asking for much, just the clarity of knowing if they will receive ongoing support to sustain operations until borders open.  This knowledge will mean they can make the hard decisions about their ability to survive or if they should simply wind up their operations.

“This small cohort of ITO businesses influence, convert and manage unique Australian itineraries which are featured on the websites and in travel brochures of thousands of Aussie Specialist travel agencies around the world.

“We view this cohort of ITOs as critical strategic assets for Australia’s inbound tourism industry and without certainty in the form of ongoing government support, we will see more of these businesses close their doors, significantly eroding Australia’s competitiveness as a global tourism destination.

“ATEC is anxiously awaiting the details of the Federal Budget which will be a clear indicator of the Government’s understanding of tourism’s plight.”

www.atec.net.au

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THE 2021-22 Northern Territory Budget sets the scene for fiscal consolidation, with modest new spending and a proposed hard debt ceiling offering a glimpse of things to come, according to CPA Australia general manager external affairs, Jane Rennie.

Dr Rennie said, “There’s an element of thrift to some of the budget measures which may make it harder for the government to achieve its ambition of a $40 billion economy by 2030.

“Now is the time for expansionary fiscal policy. The Territory lags behind other states and territories on a number of economic indicators and COVID is far from over. We think it’s too early to tighten the public purse strings.”

The centrepiece of the budget is $1.6 billion in infrastructure investment. Rennie said, “When it comes to public infrastructure this is not a huge sum of money and is likely to have limited impact on jobs and growth. More investment in public infrastructure may be needed in coming budgets.”

Another challenge for the Territory’s economic recovery is attracting and retaining labour. Some $2 million is allocated to a Critical Worker Support Package, which includes training and payments to attract workers from interstate but may not be sufficient.

“Labour shortages are an Australia-wide issue right now. The Territory is competing with other regions in the battle to attract workers. This won’t be the only budget to offer inducements,” Dr Rennie said.

According to Dr Rennie, the success of labour incentives will be determined by factors such as, “Are the incentives attractive enough, is the incentive pool big enough, is affordable housing available, as well as appropriate support and infrastructure for new workers and their families."

The Territory’s net debt is expected to reach $9 billion in the next financial year – $1 billion lower than expected in the last budget.

Dr Rennie said, “With the cost of borrowing so low at present, we don’t consider the size of the Territory’s debt concerning. Nor are we concerned about the forecast $1.36 billion deficit for 2021. Additional borrowing to properly fund some of the budget measures is preferable to underinvesting.”

The government used the budget to flag its intention to legislate a hard debt ceiling of $15 billion.

“Measures like this don’t allow for events beyond the government’s control, such as natural disasters, and may need to be unwound," Dr Rennie said.

At a time when many small businesses are struggling to access finance, CPA Australia welcomed the expansion of the Local Jobs Fund to provide concessional loans and financing to small and emerging businesses. Also singled out for praise is the $12 million in funding allocated to continue the Aboriginal Ranger Grants program.

“Initiatives such as this embed environmental sustainability into Australia’s economic recovery while supporting a pro-growth, pro-jobs, economic rebuild,” Dr Rennie said.

About CPA Australia

CPA Australia is one of Australia’s leading professional accounting bodies and one of the largest in the world. CPA has more than 168,000 members in over 100 countries and regions, supported by 19 offices globally. Core services include education, training, technical support and advocacy. CPA Australia provides thought leadership on local, national and international issues affecting the accounting profession and public interest. CPA engages with governments, regulators and industries to advocate policies that stimulate sustainable economic growth and have positive business and public outcomes. cpaaustralia.com.au

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