THE House of Representatives Standing Committee on the Environment and Energy is holding its first public hearing on the prerequisites for nuclear energy in Australia.

Chair of the Committee Ted O’Brien MP said he is looking forward to hearing from experts in the field.

"This inquiry needs to answer three basic questions about nuclear energy,” Mr O’Brien said. “Is nuclear energy feasible, suitable and palatable?

“To be feasible, it would have to stack up on economic, technological and capability grounds. To be suitable, it would have to make sense on environmental, safety and security grounds.

“And to be palatable, there would have to be an appetite among the Australian people. It’s time to hear from the experts.”

First public hearing
Date: Thursday, 29 August 2019
Time: 9am to 12:15pm
Location: Portside Conference Centre, 207 Kent St, Sydney

9am: Dr Ziggy Switkowski AO
10am: Australian Nuclear Science and Technology Organisation; Australian Radiation Protection and Nuclear Safety Authority
11:15am: Australian Energy Market Operator; Australian Energy Market Commission; Australian Energy Regulator
12:15pm: Close

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

The Committee intends to hold public hearings at various locations, which will be announced in due course on the inquiry website: https://www.aph.gov.au/nuclearpower. Submissions close on 16 September 2019.  

Further information about the inquiry, including how to lodge a submission and terms of reference, can be found at https://www.aph.gov.au/nuclearpower or contact the Secretariat on (02) 6277 4580 or at This email address is being protected from spambots. You need JavaScript enabled to view it..

ends

“THE NEED to fast-track the rollout of infrastructure projects has grown more urgent following the June quarter slump in engineering construction activity to be at its lowest level in a decade,” according to Shane Garrett, Master Builders Australia's chief economist. 

"Although the volume of engineering construction activity across the country only fell by 1.1 percent in the June quarter, it means the sector has now fallen to its lowest ebb since 2008,” he said. 

“Even though we supposed to be on the cusp of an infrastructure boom, engineering construction activity has not been this weak since the GFC. It’s a clear sign that governments are not moving fast enough to advance infrastructure commitments to the construction phase,” Mr Garrett said. 

“This will require all levels of government to urgently implement reforms to draw on the capacity of smaller and local construction contractors and also measures to ensure there is the necessary skilled workforce. 

“Today’s figures show that the other components of construction are also struggling. The downturn in residential building activity continued with another 5.1 percent reduction during the June 2019 quarter. This was eclipsed by the 6.6 percent drop in commercial building work done over the same period,” Mr Garrett said. 

“As the economy’s largest provider of full-time jobs, the new figures show that the building and construction industry is in real need of a lift. The quickest way to achieve this is by governments working together to get the infrastructure projects happening. 

“Our recently-released Master Builders forecasts indicate that engineering construction work is likely to be a crucial lifeline for our industry over the next few years, given that both residential and commercial building are expected to struggle,” Mr Garrett said. 

“A visible expansion in the amount of construction projects taking place would lift morale in the industry and show everyone that our economy is on the up again

During the June 2019 quarter, Western Australia was the only state to see an increase in construction activity (+1.4%). The largest reduction in construction work affected the ACT (-13.1%), followed by the Northern Territory (-12.3%) and Queensland (-6.0%). There were also declines in South Australia (-4.8%), Victoria (-4.4%), Tasmania (-4.1%) and New South Wales (-1.9%). 

www.masterbuilders.com.au

ends

THE Queensland Resources Council (QRC) has welcomed the release of the State Government’s North West Queensland Economic Diversification Strategy, and said it was important to strengthen the resources sector and ensure it continues to develop alongside other key industries.

QRC chief executive Ian Macfarlane said the resources sector would continue to be the main economic driver of the region, but all sectors would benefit through a plan to grow the region and encourage more investment.

“North West Queensland is a resources heartland,” Mr Macfarlane said.

“The resources sector supports almost 10,000 jobs and makes up $1.7 billion, or more than a third, of the region’s economy.

“It is already delivering for our state and it is also one of the most prospective regions of Queensland for new exploration, new investment and new jobs.

“The North West Minerals Province is rich in potential for critical minerals that are the building blocks of just about every part of our lives, including rare earths.

“The Geological Survey of Queensland has an estimated $40 billion dollars of geological information and explorers are combing through these rock libraries for clues to where the next deposit of new energy minerals might be found.

“Queensland has a world class reputation in metallurgy and minerals processing, which stands us in good stead for refining and recovering these new energy minerals.

“They will also be in growing demand on global markets, so it is important that Queensland seizes the opportunities for ongoing resources investment in the North West.

“It is important that investments in energy infrastructure, including supply and transmission, provide opportunities for common user projects, which was identified as a priority in the Strategic Blueprint for Queensland’s North West Minerals Province.

“Expanding energy opportunities in the North West will not only power the resources sector for example in mineral processing, but it will provide the reliable electricity needed to support other industries in the region including agriculture, and support the development of towns and communities.

“QRC has also welcomed the Palaszczuk Government’s commitment earlier this year to upgrading the Townsville to Mount Isa rail line and reducing rail charges.

“The opportunities for resources development in the North West could help secure Queensland’s role as a resources superpower for decades into the future.

“We are calling on both the State and Federal Governments to continue to provide incentives for exploration and development, such as the $100 million Exploring for the Future program from the Australian Government.

“Investment in common use infrastructure, exploration and supporting industries can all help deliver on the full potential in the North West.”

NEW FIGURES released by the Australian Taxation Office (ATO) today estimate that almost 90 percent of income tax from small businesses is paid voluntarily or with little intervention from the ATO.

“This shows that the vast majority of small businesses in the tax system are trying to do the right thing,” Deputy Commissioner Deborah Jenkins said.

“Small businesses make up more than 99 percent of all Australian businesses. They contribute $380 billion to the economy each year and employ around five million people," Ms Jenkins said.

“Considering how much small businesses have on their plate, we’re grateful for the level of work they put in to get their tax right.”

The ATO estimates the 2015-16 income tax gap for the small business sector to be approximately 12.5 percent, or $11.1 billion, with over $7 billion (or over 64% of the total value of the gap) being attributed to black economy behaviour.

Small business tax gaps that have been released overseas range from 9-30 percent.

Around 90 percent of small businesses use a registered tax professional to help them comply with their income tax obligations. 

“We recognise the important role that tax professionals have in helping small businesses get their tax right and we would not have been able to achieve this result without the support of our tax professionals," Ms Jenkins said.

“In addition to seeking qualified advice from a registered tax professional, we know that small businesses who keep good records and have invested in record keeping software are more likely to get their tax right.

“We’ve found that some small businesses are making mistakes with their tax, but these are often unintentional errors which are easily fixed.  Our objective is to support these honest small businesses to better understand their obligations and to help them get it right the first time.”

The ATO has a research program that measures tax performance across all market segments. This work helps measure the effectiveness of the tax system.

As part of this program, the ATO measures tax gaps – estimates of the difference between the tax collected and the amount that would have been collected if everyone was fully compliant with the law.

“Internationally, tax gaps are difficult to compare, but what’s clear is we are performing well in terms of small business compliance, and that is something worth celebrating.”

The ATO’s research shows a small percentage of businesses are deliberately avoiding their tax obligations, but by dollar value this adds up to a significant portion of the gap. This behaviour could be motivated by a desire to avoid tax, limit impacts on welfare payments, or to avoid law enforcement. 

“Hiding income, exaggerating expenses and operating outside the system are all considered to be black economy behaviours. Businesses doing the wrong thing are about to attract our full attention,” Ms Jenkins said. 

The Black Economy Taskforce estimates that the black economy costs community as much as $50 billion, approximately 3 percent of Gross Domestic Product (GDP). 

“Small business operators that engage in black economy behaviour are not competing on a level playing field. They have an unfair advantage over those doing the right thing,” Ms Jenkins said.

“We’re implementing a number of initiatives to tackle the black economy. Changes like a ban on sales suppression software and a new tip off line where people can report suspected black economy behaviour to us.”

The ATO is also expanding their sophisticated data analytical tool that spots red flags indicating omitted income or other black economy conduct.

“We’ve stepped up our enforcement activities, including highly visible mobile strike teams. We visited close to 10,000 businesses around the country last year and we plan to visit another 30,000 over the next three years.”

The ATO provides free, educational resources, guidance materials and online tools and services on its website. The ATO also works with tax professionals and provides them with tools to educate and inform their small business clients to ensure they can meet their tax obligations.

EXTRA INFORMATION

Tax gap estimates are an important feature of the performance and accountability story of any modern tax authority. (Find out more at ato.gov.au/taxgap.)

The ATO has previously released the net income tax gap for large corporates, estimated at 4.4 percent or $1.8 billion in 2015-16, and the net income tax gap for individuals not-in-business for 2014-15, is estimated at 6.4 percent, or $8.7 billion.

To measure the 2015-16 income tax gap for small business, we use findings from our random enquiry program to estimate the difference between what we expected to collect, and what was actually collected for the given year.

Initially, the ATO undertakes a detailed profile of the tax affairs for each taxpayer in the sample, which helps to identify all tax risks or issues for each taxpayer.

The ATO makes use of all information provided by the taxpayer as well as data collected by the ATO, for example, interest and dividend payments, and public domain data.

Where we find issues, we, escalate to an audit. The audit results contribute to the calculation of the tax gap.

This method is considered highly credible, and is commonly used in other tax jurisdictions for tax gap estimation in similar situations. 

The small business income tax gap estimate provides a better understanding of compliance in this segment. This information helps the ATO better tailor our products, support and strategies to mitigate these risks, and improve the experience for taxpayers.

More information about the small business tax gap including how we calculated it is available through the ATO website at ato.gov.au/SmallBizTaxGap.

Tax gap estimates are an important feature of the performance and accountability story of any modern tax authority. Find out more at ato.gov.au/TaxGap. 

About the Black Economy Taskforce

The Black Economy Taskforce was established to provide a whole-of-government approach to combat the black economy in Australia. It was established in December 2016 to develop a policy framework involving new proposals to tackle black economy activity. The Black Economy Taskforce's Final Report was released in October 2017.

The ATO plays a significant role in leading and delivering on the Black Economy Taskforce recommendations accepted by the Government. Since 1 July 2018, the ATO has coordinated an extensive program of work to tackle the black economy. This program of work includes a multi-faceted approach.

The ATO is responsible for addressing the following aspects of the black economy:

• deliberate under-reporting income and over-claiming expenses
• ensuring businesses meet their employer obligations – so they don’t pay employees or contractors cash in hand, underpay wages, fail to withhold tax or not contribute to super
• addressing illegal phoenixing (together with Phoenix Taskforce partner agencies) – deliberately liquidating and reforming businesses to avoid obligations
• preventing tax fraud
• dealing with illicit tobacco, duty and excise evasion
• targeting intermediaries and agents who enable black economy behaviour

www.ato.gov.au

ends