THE House of Representatives Standing Committee on Economics will hear from ME Bank and Industry Super Australia at an urgent public hearing by videoconference on May 14, 2020, as part of its ongoing review of the four major banks and other financial institutions.

The chair of the committee, Tim Wilson MP, said, "Australians who put their savings into the bank or entrust it with a superannuation fund rightly expect it to be secure.

"The conduct of ME Bank has raised urgent questions about the security and flexibility of the savings of Australians with their mortgage products and necessitates scrutiny," Mr Wilson said. 

"Australians trust superannuation funds with significant savings, they hold a fair expectation that funds will provide accurate information and will act promptly if they are eligible for early withdrawal. The conduct of Industry Super Australia in publishing dubious calculations about the impacts of early withdrawal will be examined, as will processes to stop fraud," Mr Wilson said.

"Members' equity should be paramount, and concerns about liquidity also need to be answered. It was only in November last year that the sector dismissed this committee’s concerns about liquidity prompted by substantial investments by funds in illiquid assets," Mr Wilson said.

"As the superannuation system is a significant mechanism enabling Australians to support themselves in retirement, it is crucial that the superannuation sector is operating effectively, fairly and for the benefit of fund members.

"The COVID-19 pandemic has also raised a number of issues, including how banks and the superannuation sector are supporting affected customers and members," Mr Wilson said.

Public hearing details 

Date: Thursday, 14 May 2020
Time: 9.30am to 12.30pm
Location: Videoconference

9.30am – Industry Super Australia
10.50am – Break
11.00am – ME Bank
12.30pm – Finish

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

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WEALTH MANAGER Atlas Advisors Australia has become a substantial investor in the A$123 million Elanor Healthcare Real Estate Fund.

Executive chairman of Atlas Advisors Australia, Guy Hedley said as the largest co-investor in the Elanor Healthcare Real Estate Fund, Atlas aimed to increase its participation in the fund and contribute to the addition of new assets.

The fund is uniquely established to target healthcare real-estate assets such as medical centers and day surgeries.

The fund currently comprises two Queensland properties purchased from Canada-based NorthWest Healthcare Properties Real Estate Investment Trust: A multi-tenanted medical office and day surgery at 55 Little Edward Street, in Spring Hill; and a medical office and day surgery at the Pacific Private in Southport, Golc Coast.

Both assets are located in established health precincts with strong anchor tenants and present strong returns and potential for capital growth.

Mr Hedley said the importance of healthcare assets came into special focus amidst the unprecedented impact of COVID-19.

“It is an opportunity to participate in a niche investment area with assets that make an important contribution to the Australian healthcare system,” Mr Hedley said.

Mr Hedley said the investment comes as Australia’s growing ageing population drives a revolution in healthcare management with greater preference for lower risk, coordinated and cost-effective treatment in day surgeries and shared private medical facilities.

Statistics show a growing trend towards day hospitals and shared private medical facilities for elective surgery. There were around 2.3 million elective admissions involving surgery in 2017-18 with 66 percent of these occurring in private hospitals. 

There are around 300 private day hospitals across Australia.

“Day surgeries are a more efficient way of delivering quality care to elderly patients undergoing elective surgery,” he said.

In addition to the ageing population, demand for more convenient healthcare experiences is expected to propel growth in same-day healthcare surgery.

“With strong growth anticipated in this health sub-sector, we will be looking to partner in the acquisition of additional high quality heathcare assets.”

About Atlas Advisors Australia

Atlas Advisors Australia is a leading funds manager and investment advisory business, operating between China and Australia offering a wide range of financial services and wealth management solutions. With operations in Sydney and Melbourne in Australia and Shanghai in China, we are able to support investors in all China and Australia locations.

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THE CHAMBER of Commerce and Industry Queensland (CCIQ) has announced that after lengthy lobbying by business organisations the Queensland Government has ruled that JobKeeper payments woul be exempt from payroll tax in Quenesland.

"Late last night we received news that the Deputy Premier, Jackie Trad would be announcing that JobKeeper Payments will be exempt from payroll tax," CCIQ communications manager Faith Jarvis said.

"This is something that collectively we have been advocating for, and we are thrilled the voices of our small business community have been listened to.

"We understand that this will not impact every business, but for many, it will be potentially saving them additional tax, due to accessing the Jobkeeper stimulus payments, which as we know is designed to help businesses afloat and their staff employed," she said.

"This is a great win for business and one we hope that will lead the way for the adoption of our recovery plan."

Ms Jarvis thanked CCIQ members and allies for their support and collaboration.

"We look forward to continuing to use our united voices to spur the government into action," she said.

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REPORTS that the Federal Government has commenced talks with Australia’s four oil refineries about the development of a domestic fuel reserve are a welcome step towards achieving energy security, but the Maritime Union of Australia has warned the plan must also address the nation’s reliance on foreign oil tankers.

The union is seeking a meeting with Energy Minister Angus Taylor to outline Australia’s reliance on foreign owned and operated tankers, which supply more than 90 percent of the nation’s liquid fuel needs, and urge the government to address this critical vulnerability.

MUA assistant national secretary Ian Bray said reports the Morrison Government was developing a more substantial energy security plan that included increased domestic fuel reserves was welcome news.

“The key concern with the Australian Government’s announcement last month that it was spending $94 million to access crude oil stored in the United States’ Strategic Petroleum Reserve was that in a crisis this reserve would still be on the other side of the world,” Mr Bray said.

“The coronavirus pandemic has highlighted just how vulnerable global supply chains are, raising questions about how this oil could be transported to Australia during major disruptions caused by natural disasters, military conflicts, or economic crises.

“It is welcome news that the Morrison Government has recognised those issues and commenced negotiations with Australian oil refineries about the joint development of a domestic fuel stockpile.”

Mr Bray said securing supply chains needed to be a key component in any fuel security plan, with the complete reliance on foreign-owned shipping posing a serious threat.

“Australia needs an energy security plan that not only addresses storage and refining capacity, but also includes a strong shipping component, ensuring oil and refined fuels can continue to be reliably delivered to Australia, even in a crisis,” he said.

“The MUA is seeking a meeting with the Energy Minister to outline the vital role of shipping in delivering fuel security, and the need to develop a strategic fleet of Australian owned and operated tankers to ensure supplies keep flowing in the event of a global crisis.”

The union has been advocating for action since 2015, through submissions to parliamentary inquiries and by commissioning shipping expert John Francis to produce a report, Australia’s Fuel Security – Running on Empty, which examined the nation’s reliance on foreign-owned tankers to supply liquid fuels.

“The union has been warning for years that the decline of Australian shipping is a national security risk, which is why we continue to urge the Australian Government to invest in the creation of a strategic fleet,” Mr Bray said.

“When 98 percent of our trade depends on foreign-owned ships, with no guarantee we could continue to access these vessels during a crisis, it is clear our nation is in an incredibly vulnerable position.

“Unless this vulnerability is addressed, the country will remain at risk of having our fuel supplies cut due to a future military conflict, natural disaster, economic crisis or pandemic that impacts seaborne trade.”

The MUA’s report ‘Australia’s Fuel Security – Running on Empty’ is available here: https://bit.ly/31cDisq

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