THE Queensland Resources Council has welcomed Federal Labor’s commitment to new resource discoveries as a boost for the state’s mining industry, but it has urged Labor to be clear on its position for the future role of coal.

QRC chief executive Ian Macfarlane said Queensland had a huge potential, particularly through the North West Minerals Province, to develop the new economy minerals so essential for the global growth in renewable energy technology, electric vehicles and battery storage.

“Prior to the election, the QRC urged the Coalition and Labor to embrace this opportunity, and we welcome the announcement by Opposition Leader Bill Shorten today,” he said.

“Any investment in additional investigation for resources, like $75 million for a road map for a new generation of mines, will help deliver new discoveries, new investment, new exports and new jobs for Queensland.”

Mr Macfarlane said in 2017-18, metals contributed $9.3 billion to Queensland’s gross regional product and supported more than 50,000 full-time equivalent jobs or the equivalent of 2 percent of Queensland’s workforce. The metals sector also contributed $370 million in royalties.

“Through policy and infrastructure – and fittingly the Townsville to Mount Isa rail line that is so important to that region reopens today after devastating floods earlier this year – we can grow that contribution to Queensland and Queenslanders,” he said.

Mr Macfarlane said he welcomed the role of CSIRO and Geoscience Survey in Federal Labor’s commitment, and he hoped there would be a prominent role for the State Government’s Queensland Geological Survey.

“CSIRO and Geoscience Australia are internationally renowned, so I welcome their planned role in Labor’s initiative. It dispels some of the criticism of their role in assessing the Carmichael Coal project’s Groundwater Management and Monitoring and Groundwater plan,” he said. 

Mr Macfarlane said the contribution of metals continued to be dwarfed by the role of coal in the Queensland economy – coal contributed $43.4 billion to the Queensland economy and more than 215,000 full-time equivalent jobs or 9 percent of the state’s workforce.  Coal royalties paid to the Queensland Government were $3.8 billion in 2017-18 and are expected to exceed $4 billion this financial year.

“During this Federal election campaign, where winning Queensland seats is so crucial, no Party should be vague about their commitment to coal,” he said. 

“All parties, vying for Queensland support, should be clear on their own support for the development of new coal mines, particularly in the Galilee Basin, and the continuation of existing mines producing both thermal and metallurgical coal.”

www.qrc.org.au

QRC report on 2017-18 economic contribution of metals: https://www.qrc.org.au/wp-content/uploads/2018/11/2018_Metals_Contributions.pdf

QRC report on 2017-18 economic contribution of coal https://www.qrc.org.au/wp-content/uploads/2018/11/2018_Coal_Contributions.pdf

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INDUSTRY super fund, Vision Super, announced today they have hit $10 billion in funds under management.

Vision Super CEO Stephen Rowe said that while it was nice to achieve milestones, the number wasn’t really the focus.

“We’ve doubled our funds under management, from $5 billion to $10 billion in just five years, through organic growth and strong returns,” Mr Rowe said. “We’ve achieved this at the same time as paying out $1.25 billion worth of lifetime pensions and defined benefit lump sums to our retiring members.

“Hitting $10 billion is testament to the hard work and principled approach of our Investment team and our growth team, but it’s really just another number – what we’re focused on is returns for Vision Super’s members.

“Our default Balanced growth option has top quartile returns over the medium-term and has beaten the median over one, three, five and seven years – those are the really important numbers that mean more money in members’ accounts when they retire.

“Our members trust us to with the incredibly important role of looking after their retirement savings – and that trust is reflected in strong contributions and roll ins, which have contributed to us achieving $10 billion.

"We’re looking to grow significantly over the next few years - $10 billion is a nice milestone, but I’m hoping we hit some even bigger ones in the near future.”

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“THE PROPOSAL by the Labor Party to increase capital gains tax by 50 percent is an unjustified slug on retirees who have invested in growth assets to fund their living expenses,” said Mr Strandquist, acting president of the Association of Independent Retirees.

“Self-funded retirees rely solely on returns from their investments to provide income to live. These returns can come from interest, share dividends, franking credits, property rents and the sale of investment assets,” said Mr Strandquist.

He said when retirees sell shares or other growth assets, the discounted net capital gains are added to their income for the year in which they sold the investment. They pay tax on this income for the year even though the capital growth of the assets may have been realised over 20 years or more.

“The Labor Party’s proposal to increase tax on capital gains by 50 percent will mean a substantial reduction in the investment returns for retirees who have saved their entire working lives so that they don’t have to rely solely on the government aged pension,” Mr Strandquist said.

The purchase and sale of assets is an important process for retirees, he said, as most investment strategies rely on adjusting portfolios to minimise risk and maximise the growth of investments. In addition, during the retirement years, it is necessary to sell down assets such as shares and property to provide income for living expenses and to fund aged care accommodation.

“Unlike the loss of franking credit refunds, there will be no pensioner exemption for the 50 percent hike in capital gains tax. All individual investors who purchase investment assets like shares and property after January 1, 2020 will pay 50 percent more tax on their future capital gains,” Mr Strandquist said.

“Together with the loss of franking credits refunds, no negative gearing for pre-owned properties and other proposed tax changes, it is clear that the Labor Party thinks retirees are a soft target. But, with the increase in capital gains tax, retirees won’t be the only group funding the many spending initiatives the Labor Party has announced,” Mr Strandquist said.

www.independentretirees.com.au

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IN THE WAKE of the Hayne Recommendations, the Global Compact Network Australia (GCNA) is hosting 250 delegates from some of Australia’s leading businesses at its inaugural conference from April 30 to May 1, to discuss how to rebuild trust in corporate Australia.

GCNA executive director Kylie Porter said the expectation for leadership has shifted away from government institutions to business, and more specifically business leaders.

“It is crucial that businesses come together to discuss how they will demonstrate that they have a social licence to operate while simultaneously acting in the best interest of their shareholders,” she said.

“At the conference we will discuss how companies have the opportunity to rebuild trust through sustainable and responsible business practices, and how businesses can shift their culture to be one founded on ethics and purpose over profit.”

Participants will hear from renowned speakers including Gillian Triggs (former president of the Australian Human Rights Commission), Professor John Ruggie (former special adviser to UN General Secretary Kofi Annan and author of the UN Guiding Principles on Business and Human Rights) and Emmanuel Lulin (chief ethics officer of L’Oreal).

The speakers will address the need for business leaders to speak out on social and environmental issues and challenge existing business norms; rebuilding trust through a human rights lens and the social component of ESG; and what the ethics revolution means for businesses in Australia and globally.

Trust will also be explored through the lens of businesses becoming leading authorities on policy debates, such as anti-corruption regulation and climate change, and on topics such as trust in digital technology, the role of the circular economy and the power of Indigenous reconciliation.

“Australian corporates need to demonstrate how they are shifting their focus to building robust cultures that drive purpose and enable organisations to thrive. We hope that the GCNA’s conference will allow business leaders to understand what levers they can pull to balance the pillars of responsible business and ethics with the expectations of profit to regain trust in corporate Australia,” said David Cooke, chair of the GCNA.

Venue: The Arts Centre, 100 St Kilda Road, Melbourne

Date: 12pm on April 30 to 5.30pm on May 1, 2019.

http://www.unglobalcompact.org.au/2019conference

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