THE Financial Services Council supports the Government’s announcement today that it will increase criminal and civil penalties for corporate misconduct in order to better protect consumers.

FSC CEO Sally Loane said: “There is no place for criminality in the financial services industry and wrongdoing should be met with the full force of the law.

“It is entirely appropriate that penalties for civil and criminal misconduct are as strong as possible.

“Consumers must have confidence that the individuals and organisations they entrust with their savings will act in the right way. Both effective enforcement of the law as well as severe punishments for wrongdoing are central to promoting better trust and confidence.”

About the Financial Services Council

The Financial Services Council (FSC) has over 100 members representing Australia's retail and wholesale funds management businesses, superannuation funds, life insurers, financial advisory networks and licensed trustee companies. The industry is responsible for investing almost $3 trillion on behalf of more than 14.8 million Australians. The pool of funds under management is larger than Australia’s GDP and the capitalisation of the Australian Securities Exchange and is the fourth largest pool of managed funds in the world. The FSC promotes best practice for the financial services industry by setting mandatory Standards for its members and providing Guidance Notes to assist in operational efficiency.

www.fsc.org.au

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THE QUEENSLAND Palaszczuk Government should ensure emission intensive and trade exposed (EITE) businesses, such as smelters, refineries and manufacturers, are exempt from the emissions and reliability requirements of the proposed National Energy Guarantee, according to the Queensland Resources Council.

Speaking after the meeting of Australia’s Energy Ministers in Canberra today, QRC chief executive Ian Macfarlane said further talks about the proposed National Energy Guarantee are due in August, and this was an important opportunity for the Palaszczuk Government to engage with EITE industries

“At a time when Queensland is achieving the strongest economic growth in the nation and exports are at record levels, it’s important that these Queensland job-generating industries are exempt as they have been under the Australian Government’s Renewable Energy Target,” Mr Macfarlane said.

“The Queensland Resources Council urges the Palaszczuk Government to use the time before the next Energy Ministers’ meeting to ensure Queensland has the strongest possible position on the NEG to put downward pressure on electricity prices, secure reliable access to electricity, support Queensland jobs and provide policy stability for investment.

“The resources industry supports a technology agnostic approach to Queensland’s energy mix of coal, gas and renewables to provide energy security, affordability and sustainability."

The Queensland Resources Council is the peak representative body for Queensland's resources industry, including major energy suppliers and users. The Queensland resources industry provides one in every $6 dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 business across the State all from 0.1 percent of Queensland's land mass.

www.qrc.org.au

THE TWO major political parties are foreshadowing divergent tax changes but it will be left to tax agents who fully understand the implications to advise their clients on what it all means, according to the Institute of Public Accountants (IPA).

“The upcoming tax season will be the last opportunity for our members before the next election to communicate what these policy changes will mean for their clients, so we want them to explain the ramifications of what is proposed for informed decision making,” said IPA chief executive officer, Andrew Conway.

Labor policies mentioned so far:

1.  A restoration of the company tax rate to the full 30% coupled with a possible lower rate for smaller corporate entities with turnover less than $2M;
2. Higher personal tax rates at the top end and lower personal tax rates at the lower end;
3. An increase in the Medicare levy to 2.5% coupled with a more generous Medicare levy arrangement for lower paid workers than currently available;
4. A prohibition on negatively gearing investment properties other than newly built investment properties;
5. A halving of the capital gains tax (CGT) discount to 25% for individuals;
6. A minimum tax of 30% on all distributions from discretionary trusts;
7. A denial of any refund in respect of excess imputation credits;
8. A new deduction (the Australian Investment Guarantee) which will enable a 20% deduction in respect of the purchase of any new eligible asset worth more than $20,000;
9. Capping of deductions for managing tax affairs to a maximum of $3,000; and
10. Whistle-blower rewards for tax evasion.

In contrast the Coalition current tax policies (prior to May Budget) are:

1. A reduced corporate tax rate for all companies eventually with a target rate of 25%;
2. A likely reduction in personal tax rates particularly for income levels up to $100,000 – the exact details are unknown but should become clearer after the May 8 budget;
3. Apart from the already announced increase to the Medicare levy to 2.5% no further change in current arrangements;
4. No change to current arrangements regarding negative gearing of investment property;
5. No change to the CGT discount which currently sits at 50% for individuals;
6. No change to the current arrangements regarding trust distributions from discretionary trusts;
7. No change to the current arrangements regarding imputation in particular, full refund of excess imputation credits; and
8. No changes in relation to depreciation - the $20,000 immediate asset write-off available to 30 June 2018 is not currently being extended by the Coalition. That may change in the May 8 budget.

“Our key concern is that none of the political parties are talking about holistic tax reform where the total tax mix is taken into consideration.  Without bold and all-encompassing reform we will still be drowning with a raft of inefficient taxes which stifle growth,” said Mr Conway. 

www.publicaccountants.org.au

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THE Queensland resources sector has helped the state achieve the strongest annual growth in trend employment in Australia based on jobs data released today.

Queensland Resources Council Chief Executive Ian Macfarlane said the Australian Bureau of Statistics has reported Queensland’s annual job growth was 4.3 percent ahead of all other States and Territories, outpacing nearest rivals the Australian Capital Territory (3.9%) and New South Wales (3.6%).

“Queenslanders are the winners with this strong growth in jobs, and I am proud the resources sector is contributing so much of this growth,” he said.

“Last financial year, direct full-time equivalent jobs in the resources sector grew by 12.7 percent to 38,150.

“Across the state, the resources sector supports one in every eight jobs.

“We are seeing more growth with online jobs site SEEK identifying a year-on-year growth of 10.3 percent of advertised vacancies in the mining and energy sectors.

“The signals for future growth are strong.”

Mr Macfarlane said while Queensland’s unemployment rate remained at 6 percent, the resources sector was determined to work with its industry and government partners to drive up opportunities and drive down unemployment.

The Queensland Resources Council is the peak representative body for Queensland's resource industry. The Queensland resources industry provides one in every $6 dollars in the Queensland economy, sustains one in eight Queensland jobs, and supports more than 16,400 business across the State all from 0.1 percent of Queensland's land mass.

www.qrc.org.au

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