AUSTRALIAN trustee company Equity Trustees has welcomed the NSW Government’s Budget announcement that it would spend more than $812 million on building and upgrading social housing to help create jobs while meeting demand for affordable housing.

The announcement followed one by the Victorian government, which aims to spend $5.3 billion on social housing.

Equity Trustees executive general manager for corporate trustee services, Russell Beasley, said, “Investor interest is growing in social housing due to its ability to provide regular and consistent income with capital stability.

“We are seeing more and more investment vehicles seeking to tap what is expected to become a $5 billion asset class. There are estimates of disability accommodation projects alone that will house some 28,000 people; all backed by National Disability Insurance Scheme (NDIS) payments worth some $700 million a year,” he said.

“The pipeline of new homes being developed under this scheme has already jumped 50 percent over the past 12 months.

“Investor revenue from government-subsidised dwellings targets a yield of 8-10 percent a year on an unleveraged basis, without taking into account the use of debt to enhance returns for investors,” Mr Beasley said.

Equity Trustees is the trustee for the Synergis Fund, which plans to invest in 1000 specialist disability accommodation properties around Australia over the next five years – having just completed its first disability housing projects in Sydney, NSW and Ipswich, Queensland.

Equity Trustees is also a leading specialist provider of fund management and funding for the charitable and for-purpose sector, with specialist NFP investment services and a philanthropic granting team distributing more than $80 million of funds annually to the social sector.

The Synergis unlisted wholesale investment trust seeks to provide positive social impact and generate attractive long-term, risk-adjusted financial returns for investors from rental payments made through the Commonwealth Government’s NDIS.  

The fund was founded by Social Ventures Australia and Federation Asset Management and includes investors such as Suncorp, HESTA and the Paul Ramsay Foundation, among others.

“The Synergis Fund is having a big practical impact on many people’s lives, with homes incorporating easy-to-use smart technology and wellness features, with fully accessible designs servicing the unique needs of each resident,” Equity Trustees Mr Beasley said.

The fund is managed by Social Infrastructure Investment Partners and the first projects, Oak Tree at Mt Colah, NSW, and Tyson’s House in Ipswich were developed by Good Housing and SDA Australia Group respectively. There are currently another 35 Synergis Fund projects under development and construction, which can home up to 116 tenants across Queensland, NSW, Victoria and South Australia.  

The 132-year old Equity Trustees is one of Australia’s leading specialist trustee companies.

www.eqt.com.au

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell is backing the video game industry’s call for a 30 percent tax offset, to ensure Australian producers are internationally competitive.

In its submission to the Federal Government’s inquiry into Australia’s creative and cultural industries, the Interactive Games and Entertainment Association (IGEA) has recommended the tax offset to encourage productivity and help local producers secure a greater share of international contracts.

Ms Carnell said there was a strong economic argument as to why Australia’s video game industry, which is comprised of many high growth potential small businesses and start-ups, ought to be supported.

“The video game production industry was worth about $250 billion globally in 2019, but the Australian sector earned a mere $114 million of that,” Ms Carnell said.

“Internationally, we are seeing video game production industries in countries that offer tax incentives such as Canada, the UK and New Zealand securing substantially larger slices of the pie.

“For instance, in Canada, which offers a digital media tax credit on labour and certain marketing expenditures, the video game development industry employs more than 27,000 full time workers and generates $3.8 billion in revenue.

“Australia compares poorly with less than 1,300 full time workers in the video game production sector and earning less revenue that New Zealand," Ms Carnell said.

“While the Federal Government invests $750 million annually in arts and culture, the video game sector continues to fall through the cracks.

“IGEA estimates Australia could create a $1 billion industry in game development, providing export revenue and employing an additional 10,000 full time workers with the right support.

“A tax offset for game development, similar to the incentives given to the screen production industry would be an excellent start.”

www.asbfeo.gov.au

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THE South Australian CFMEU and Master Builders SA are jointly calling on the South Australian Government to immediately work with the industry to avoid a prolonged shutdown of construction which would damage the economy and hurt businesses and workers as the state grapples with the coronavirus outbreak.

CFMEU SA Construction Secretary Andrew Sutherland and MBA CEO Ian Markos said they understood the need to get on top of the coronavirus outbreak, however the construction industry around the country has clearly demonstrated it can safely operate during the pandemic. 

"We both agree that the Marshall government must protect the livelihoods of the more than 75,000 South Australians directly employed in the industry," Mr Sutherland said.

"The industry understands the importance of getting the virus under control and since the pandemic began workers, unions and builders have worked collaboratively to put in place the hygiene and safety measures that ensure the industry can remain open and covid-safe. 

"We are calling on the Marshall Government to work with us to find ways to keep construction going, as the industry has done safely and successfully around the country throughout 2020."

Even at the height of the pandemic crisis with hundreds of cases being reported daily, the construction industry in Victoria did not shut down completely. The Victorian CFMEU and MBA successfully worked together to keep sites safe and maintain the industry's role as a backbone of the economy.

"The industry in South Australia has already put in place strong safety and hygiene measures to limit the risk of Covid exposure and spread on construction sites and we are ready to work with the State Government to keep the industry open and able to maintain its vital role to the SA economy.  It can be done," he said.

"It is critical that the industry is able to commence planning this weekend for a start next Wednesday – or sooner, so that construction work can start in a safe, planned and controlled way."

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KEY PLAYERS in the superannuation sector will be scrutinised at the House of Representatives Standing Committee on Economics public hearing this Friday.

Committee Chair Tim Wilson said Friday’s hearing would provide an opportunity to ask questions about superannuation funds’ response to COVID-19.

"We are continuing our scrutiny of the super sector to ensure they’re putting members and members’ interests first," Mr Wilson said. "The significant numbers of Australians who have accessed their super during the pandemic highlights the need for the sector to be there for Australians when they need them.

"Recently our scrutiny has raised questions about bonuses above $30 million for individual fund managers from the superannuation savings of Australians, prompted ASIC investigations into potential insider trading and anti-competitive behaviour within funds.

'Following on from our hearing on 6 November, we are looking forward to exploring these and other super related topics further, as, particularly in times like these, it is crucial that the superannuation sector is operating effectively, fairly, and to the benefit of fund members."

The hearing forms part of a broader review of Australia’s four major banks and other financial institutions. Examination of these institutions will also include monitoring the financial sector’s progress on implementing relevant recommendations from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

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

Public hearing details

Date: Friday, 20 November 2020
Time: 10.30am to 5.30pm
Location: Videoconference

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

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