MASTER BUILDERS Australia is bitterly disappointed with Labor’s pledge to ramp up the tax burden for thousands of small and medium building businesses. 

Denita Wawn, CEO of Master Builders Australia said, “Labor’s decision to abolish tax cuts for SME builders turning over $10-$50 million per year will deal a harsh blow to SME builders, many of them family businesses.” 

“It’s a retrograde step at the expense of local builders and local jobs in local communities around the country,” she said. 

“Building projects are highly capital intensive and the cost of labour, materials and equipment mean that there are many ‘mum and dad’ businesses with an annual turnover of more than $10 million,” Ms Wawn said. 

“This means that the tax cuts which Labor has committed to repealing are particularly important for our members, the people they employ directly and the sub-contractors they engage,” she said. 

“Turnover should not be confused with profit. SME builders typically operate on tight margins and do not take home anything like $10 million,” Denita Wawn said. 

“Labor should understand that there are more SMEs in the building and construction industry than any other sector of the economy,” she said. 

“Our industry employs in 1 in 10 Australians and in the last few years has been one of the most important sources of skilled jobs growth. SME builders are at the forefront of this and employ most of the 1.2 million jobs in the construction industry workforce,” Ms Wawn said.

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THE Australian Retailers Association (ARA) believes that an Australia that fights against illicit trade and supports our region to do the same, is a safer Australia.

The ARA-commissioned report, The Global Illicit Trade Environment Index, showed that as a nation, Australia performed well, ranking fifth globally (against 84 countries) showcasing the success of Australia’s national policies and initiatives in combating illicit trade.

However, an ARA spokesperson said, those involved in illicit trade are not bound by borders, so the effectiveness of Australian government policy needs to extend beyond our country borders.

"And with today being the United Nations International Day Against Drug Abuse and Illicit Trafficking, a focus on a regional collective effort is even more important," the ARA spokesperson said.

"The new Index found some 60 percent of our top import partners from the Asian region, rank in the bottom 50 percent of countries assessed."

Russell Zimmerman, executive director of the ARA, said stepping up to the plate to help our Asia-Pacific trading partners presents a compelling opportunity for Australia to focus on global risk-areas to reduce illicit trade. 

“Eighty percent of Australian two-way trading partners are from the Asia-Pacific region, and Asia’s historic association with being a world supplier of illicit goods also cannot be overlooked,” Mr Zimmerman said. 

“Australia and New Zealand are well-placed to leverage our close relationship to inform a collaborative approach towards Asia-Pacific trade, alongside other high performers such as Japan and South Korea, in assisting our regional neighbours to improve.” 

The ARA has been actively working with various government organisations, as well as forming the Australians to Stop Counterfeiting and Piracy (AUSCAP) industry group to stop the illegal trade in consumer goods. 

Combined with their recent initiative to combat the illicit tobacco trade, which in 2017 was estimated to cost the Government some $1.91 billion in lost excise revenue alone, the ARA believes this new report demonstrates that Australia can, and should be keeping its foot on the throat of illicit trade, spreading its experience and lessons learned with international trade partners.

The report highlights 10 of Australia’s top 15 import sources as being members of the Asia-Pacific region, all who vastly differ on the spectrum of the Report Index – ranging from New Zealand ranking 4th, to Indonesia ranking 68th.

Following these results, report author Chris Clague, managing editor Asia and global editorial lead of Trade and Globalisation, outlines the fact that the poor governance of Free Trade Zones in Asian economies is a major contributor to illicit trade.

“Free Trade Zones represent an area in which international cooperation is key and balancing the reason for the zone with the importance of protecting against illicit is a difficult equation,” Mr Clague said. 

“They present a space in which illicit trade can be intercepted before entering markets and are an important component of supply chains.” 

The ARA conceded that while illicit trade causes unacceptable damage to legitimate businesses, it was also at the centre of many of the most challenging crises facing our world. 

“The ARA are fiercely committed to protecting Australian businesses by stamping out global illicit trade. This will not only protect Australian commercial interests, but also keep our country safer,” Mr Zimmerman said.

To access The Global Illicit Trade Environment Index click here. 

About the Australian Retailers Association: 

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041. 

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TODAY 10 coal producers – among them Australia’s largest coal producers – have filed an application to join the judicial review application commenced by Aurizon Network against the Queensland Competition Authority (QCA) in the Supreme Court of Queensland.

The coal producers who have applied to join the judicial review application are:

• AngloAmerican
• BHP Mitsubishi Alliance and BHP Mitsui Coal
• Coronado
• Glencore
• Idemitsu
• Jellinbah Mining and Lake Vermont Resources
• Peabody, and
• Yancoal.

Aurizon Network commenced the judicial review application on 30 April 2018.

Aurizon Network stated at the time it commenced the application:

“Aurizon Network has today applied to the Supreme Court of Queensland for the Judicial Review of the Queensland Competition Authority’s (QCA) Draft Decision on the 2017 Draft Access Undertaking (UT5) for Aurizon’s Central Queensland Coal Network (CQCN) on the basis of apprehended bias. This application results from the QCA Chairman, Professor Roy Green also being the Chairman of the Port of Newcastle in NSW, part of the Hunter Valley coal supply chain. Aurizon Network is seeking Judicial Review of the Draft Decision on the basis that it was affected by legal error because the Queensland Competition Authority did not afford procedural fairness to Aurizon Network due to Professor Green’s conflict of interest and the apprehension of bias.”

The coal producers have an interest in the application by virtue of their interests in, among other things, the process giving rise to the QCA’s draft decision and the outcome of the QCA’s final decision on UT5.

It is not yet known when the coal producers’ application will be heard by the Court.

www.qrc.org.au

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THE House of Representatives Standing Committee on Economics tabled the report of its Review of the Australian Prudential Regulation Authority (APRA) Annual Report 2017.

The report provides a summary of issues raised at the public hearing with APRA in Canberra on March 28, 2018.

During the hearing, the committee scrutinised APRA on its work on issues of governance, risk management and culture in financial institutions. In particular, the committee examined measures to reinforce sound lending practices and ensure that Australian banks remain prudentially strong.

The chair of the committee, Sarah Henderson MP, said, "While APRA has been working on improving responsible lending practices in the Australian financial sector, there is still a lot of work to be done in this area."

The Government has been taking action in a number to areas to enhance APRA’s prudential oversight tools. Recent measures have included: 

• the Banking Executive Accountability Regime (BEAR)
• introducing new crisis management powers to empower APRA to better address crises in Australia’s financial system, and
• proposed changes to superannuation, which will improve governance and transparency in the industry.

The BEAR will take effect from July 1, 2018, for the major banks. There will be a measured transition for smaller institutions. 

Ms Henderson said, "The BEAR will provide mechanisms to make senior bank executives more accountable and subject to additional oversight by APRA."

"Strengthening accountability measures for senior executives was a key recommendation of the committee's Review of the Four Major Banks.’

The report and hearing transcript are available at: www.aph.gov.au/economics 

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