AUSTRALIA'S ECONOMY expanded by just 0.4 percent during the September 2019 quarter with growth hit by continued delays in the activation of new infrastructure projects -- and that is a real concenr, according to Master Builders chief economist Shane Garrett. 

“The three parts of the economy which shrank during the quarter were engineering construction, residential building and private business investment. Slow conditions in construction are not helpful from the point of view of encouraging businesses to invest,” Mr Garrett said.

“Clearly, the pace at the construction of new infrastructure is being commenced is holding back not just construction activity but the entire economy.

“The key ABS data released today show that the annual pace of GDP growth was 1.7 percent over the year to September, well short of the economy’s 3 percent trend rate of growth,” Mr Garrett said. 

“At a time when infrastructure should be one of the economy’s highlights, the volume of engineering construction work done actually dipped to its lowest level since early 2008 - having shrunk by another 5.9 percent during the last quarter. 

“The weakness of construction activity is clearly hurting growth in other areas of the economy too.

“With household spending having stagnated, growth in our economy is now almost completely reliant on day-to-day government spending and demand for our exports from overseas,” Mr Garrett said. 

“Master Builders calls all levels of government to do more to accelerate the construction of infrastructure projects. While mega-projects take time to activate, there are many opportunities to fast track smaller projects outside Sydney and Melbourne, including in regional Australia. Many of these can be delivered by smaller and local construction contractors which helps to multiply the economic benefits,” he said. 

“Construction activity is unique in its visibility and its capacity to restore confidence amongst consumers and businesses. We need to seize this opportunity."

www.masterbuilders.com.au

ends

A 33-year-old Sydney man has been sentenced at the Mt Druitt Local Court today after pretending to be a tax agent and charging several people a fee to lodge their tax returns, only to then steal their refunds.

As a result of his actions, Mr Cox received a two and a half year prison sentence to be served in the community by way of an Intensive Corrections Order. He was also ordered to pay over $13,000 in compensation to the ATO and his victims, and has had $22,000 worth of his assets seized.

Mr Benjamin Cox pretended to be a tax agent to more than 1,000 people, charging $100 for his services and using their myGov login details to submit income tax returns on their behalf. He also stole $12,866.62 worth of refunds by having them directed to his personal account.

Mr Cox advertised his services through Facebook and Gumtree, targeting vulnerable people in the community who were unfamiliar with the Australian tax system.

The ATO and TPB are working closely to identify and put a stop to unregistered preparers. People pretending to be tax agents often promise refunds that are too good to be true or provide discounted services much cheaper than legitimate registered tax agents.

Another tell-tale sign to look out for is that unregistered preparers often use a taxpayer’s personal login details to access their ATO Online account through myGov to lodge tax returns. A legitimate tax practitioner will never ask for your myGov credentials – they use dedicated ATO Online services to lodge returns for their clients.

The ATO, the Tax Practitioners Board (TPB) and NSW Police received complaints about Mr Cox and he was promptly arrested after a joint investigation into his activities.

Assistant Commissioner Adam Kendrick welcomed the sentence handed down today, saying that Mr Cox’s actions risked damaging the integrity of the tax system and the tax profession.

“Not only was Mr Cox pretending to be a tax agent and providing services without a registration, he was stealing from his clients," Mr Kendrick said.

“These unregistered preparers pose a threat to vulnerable taxpayers and risk the reputation of registered tax agents.

“They pretend to offer legitimate services to the community, but in reality they pose a serious threat not only to the people that use them, but to the broader community and the tax system as a whole.

“Your tax agent has access to your personal identifying information like your Tax File Number. Giving information like this to an untrustworthy person can end badly, as shown in this case. You can protect yourself by checking that your tax agent is registered and never sharing your myGov login details and password with anyone, including your tax agent.

“We have a shared interest with registered agents, the TPB and tax professional associations to protect the community and the integrity of Australia’s tax and super systems,” Mr Kendrick said.

Taxpayers can check if their tax practitioner is registered on the Tax Practitioners Board website at tpb.gov.au

ato.gov.au/tipoff

ends

THE Australian Energy Council and Energy Networks Australia have issued a fact sheet on the potential impacts of extended hot weather on the energy system following the release of the Australian Energy Market Operator’s (AEMO) Summer Readiness Plan.

The National Electricity Market will be under pressure to deliver reliable power during summer in situations where supply is tight and demand is high. Electricity generators and network businesses developed the fact sheet to explain how the industry works to deliver reliability during these extreme weather periods.

Energy Networks Australia CEO, Andrew Dillon and Australian Energy Council chief executive, Sarah McNamara, said the industry had been doing everything it could to ensure power supply could be maintained during the hot summer months.

Power station operators and transmission and distribution businesses have been undertaking plant and system maintenance in the lead-up to summer.

The AEC’s chief executive Sarah McNamara said, “Individual power station generation units can and do have unplanned outages from time to time as we have seen this year. But this is normal, not just for large plants here in Australia, but also overseas. Power systems have back-up capacity, which is designed to manage a limited number of individual outages.”

Historically, electricity demand has been highest on hot weekdays when business and industry are fully operating.

“The biggest risk occurs with very high demand. Usually that is at the end of a run of two or more extremely hot days. Buildings are already hot, there may be low output from wind generation and solar PV output declines late in the afternoon,” Ms McNamara said.

"Losing power even for short periods during a heatwave can cause real inconvenience. But electricity providers will continue to do everything possible to avoid that occurring. We are working with AEMO to have sufficient supply available for the hotter periods.”

Energy Networks Australia CEO Andrew Dillon said networks take all possible steps to keep the lights on during summer.

“Outages can occur for a number of reasons when temperatures hit extremes and networks respond as quickly as possible to restore power,” Mr Dillon said.

Extreme weather, such as fire, strong winds or storms, can damage network infrastructure.

When there is not enough electricity being supplied, AEMO may also direct networks to cut power to customers, this is known as load shedding.

When directed to load shed by AEMO, networks take all possible steps to minimise this disruption, keep critical infrastructure such as hospitals and public transport online and restore power as quickly as possible.

“For information on outages, follow your local network provider via social media or contact them directly,” Mr Dillon said.

Local electricity distributor list here.

Fact sheet here.

ends

AS PART of a Federal Parliament inquiry into economic engagement with Traditional Owners, Members of Parliament are travelling to the Northern Territory.

The Northern Australia Committee is holding public hearings in Darwin, Katherine and Alice Springs, and will hear evidence from Land Councils, Native Title holders, Indigenous business leaders, local councils and other stakeholders.

Committee Chair Warren Entsch said that with 48 percent of the Territory’s land mass and 80 percent of its coastline granted as Aboriginal freehold, the Northern Territory is potentially a land of opportunity for Indigenous Australians—the key is finding a way to engage Indigenous people in exploring the opportunities their lands provide.

The Committee will hold public hearings in Darwin, Katherine and Alice Springs.

Public hearing details

Date: Tuesday, 10 December 2019
Time: 9am to 5pm
Location: Ballroom B, Hilton Hotel, Mitchell St, Darwin

Date: Wednesday, 11 December 2019
Time: 9:30am to 1:15pm
Location: Roper Gulf Regional Council, Crawford St, Katherine

Date: Thursday, 12 December 2019
Time: 10:30am to 3:45pm
Location: Double Tree by Hilton, Barrett Drive, Alice Springs

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

The inquiry commenced in the last Parliament, and was suspended during the election period. To date, the Committee has received 35 submissions and held four public hearings. Further details of the inquiry, including expanded terms of reference, can be found on the Committee’s website.

ends