THE Queensland Resources Council supports the State Government’s move to seek federal funding to build new infrastructure to emerging gas producing areas.

QRC chief executive Ian Macfarlane said the announcement today would pave the way for more gas supply into the east coast market from the Bowen and Galilee Basins. 

“It’s common knowledge the eastern seaboard of Australia is facing a gas shortage and instead of putting their head in the sand the government is looking at how to fix the problem,” Mr Macfarlane said. 

“This is another proactive step by the Queensland government following an announcement of new land releases in the Surat Basin for gas exploration.”

The State Government is asking for funding from the Federal Government through the Northern Australia Infrastructure Facility (NAIF).

“NAIF funding for gas pipelines is a good idea to release stranded gas,” Mr Macfarlane said.

“Once again Queensland is leading the way in securing the energy security of Australia.”

In another positive sign for the resources industry geologists have unearthed evidence of platinum and gold as well as Rare Earth Elements (REE) in the state’s mineral rich north west.

“These types of minerals are used in new technologies including batteries, mobile phones and solar panels,” Mr Macfarlane said.

“Last year the QRC launched its ‘Resourcing Innovation’ campaign about the importance of minerals for new cutting edge technologies and Queensland’s contribution to the future of these technologies will be significant with the potential of this discovery.”

The QRC also backs the continued funding of the Great Artesian Basin Sustainability Initiative (GABSI).

“The GABSI initiative preserves the artesian basin waters and protects artesian water pressures for the graziers industry.”

www.qrc.org.au

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THE Institute of Public Accountants (IPA) has commended the Government’s move for small business to gain access to most tax concessions by moving the small business threshold from $2 million to $10m.

“Moving the small business threshold goal post is long overdue and while it doesn’t apply to small business capital gains tax concessions, many small businesses will appreciate having access to the suite of small business concessions (eg lower company tax rate, $20K instant asset write off),” said IPA chief executive officer, Andrew Conway.

“The small business threshold has not been indexed since it was introduced so an uplift is warranted but it is a pleasant surprise for it to be raised to $10m as announced in last year’s budget.

“This means that small businesses with a turnover of up to $10m will now have certainty on tax concessions that will be applied for this current financial year as they apply from 1 July 2016. 

“Entities with a turnover of up to $10m are more likely to generate greater economic benefits as they are generally employing entities, compared to the 61 percent of entities with a turnover below $2m which do not employ staff.

“This is a great result for small businesses considering that the measures had stalled in the Senate until the last sitting day before the Federal budget,” said Mr Conway.

publicaccountants.org.au

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TODAY, the Joint Standing Committee on Treaties tabled its report on two treaties with France that will work to support the Future Submarine Program.

Framework Agreement concerning Cooperation on the Future Submarine Program

The Agreement provides the international legal framework for the Government’s Future Submarine Program. The Agreement provides for the transfer of French Government-owned information relating to the design, build, operation and sustainment of the Future Submarine to the Australian Government.

It also notes the importance of Australia’s efforts to maximise Australian industry involvement in the design, build and maintenance of the Future Submarine and provides opportunities for Australian and French industry cooperation in the project.

Committee Chair, Stuart Robert MP said the Future Submarine Program is a $50 billion investment in Australia’s submarine capability and represents the largest defence acquisition in Australia’s history.

“The Committee strongly supports the proposed Agreement however, it is merely the first step in ensuring Australia’s national interests in the FSP are protected and maximised. The proposed Agreement provides a solid starting point to overcome some of the critical and costly issues that have been experienced in other defence acquisition projects.

“The Committee, as a result, recommends that the Parliament proceed with binding treaty action. However, the Committee makes recommendations to Government that will ensure the implementation of the Agreement maximises Australian interests in this important program," Mr Robert said.

Agreement regarding the Exchange and Protection of Classified Information

The Report also presents the Committee’s review of an agreement with France for the exchange and protection of classified information.

 “As with previous classified information exchange agreements, the Committee’s review seeks to ensure that Australian classified information provided to France, or a French contractor, is handled appropriately, is sufficiently protected and is accessed only by those duly authorised,”

“The Committee expresses its concern that Australia’s chosen contractor for the Future Submarine Program, DCNS, did not have sufficient processes to prevent the unauthorised access of classified information on another project, the submarine fleet for the Indian Government. The Committee understands DCNS has rectified this. Further, the Committee recommends the Government bring forward as a matter of urgency its work program to enable continuous vetting, namely connecting state and federal law enforcement with the vetting agency”. Mr Robert said.

The Committee’s report is available from its website.

The Chair and Deputy Chair will speak to the report in the House of Representatives when parliament resumes in May.

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THE Australian Retailers Association (ARA) said the retail trade figures released today by the Australian Bureau of Statistics (ABS) represent a lower than expected growth for the industry with 2.68% total growth year-on-year.

 Although the February retail figures are lower than expected ARA Executive Director, Russell Zimmerman said this moderate growth is disappointing for a number of areas within the retail sector.

“We are starting to see discretionary spend impacted in these figures with the exception of cafes, restaurants and takeaway food services,” Mr Zimmerman said.

Clothing, footwear and personal accessory retailing saw a disappointing increase of 0.85% year-on-year, a distinct drop from last month’s increase of 5.18% year-on-year given the hot weather to throughout the Eastern seaboard.

A consolation to these modest figures is the slow but steady improvement in supermarkets with a 3.78% increase year-on-year as consumers allocate more of their spending on essential food items.

February trade figures remain steady across the board with all states showing a steady growth. New South Wales (3.28%) and South Australia (3.94%) lead the pack with stable year-on-year growth. While Victoria (2.62%), Queensland (2.79%), Tasmania (2.73%), Australian Capital Territory (2.34%), Northern Territory (1.15%) and Western Australia (0.38%) also show a moderate growth for February sales.

“Although we are experiencing a cooling off period in retail sales, we are confident that the reduction in the company tax rate for businesses with an annual turnover of less than $50 million will benefit hundreds of thousands small and medium-sized businesses, their employees and the broader Australian community,” Mr Zimmerman said.

“The only way to broadly grow the economy is to deliver further tax cuts to all sized businesses to grow jobs, bring inbound investment and keep Australian businesses investing in Australia".

MONTHLY RETAIL GROWTH (January 2017– February 2017 seasonally adjusted)

Food retailing (0.3%), Household goods retailing (-0.4%), Clothing, footwear and personal accessory retailing (-2.5%), Department stores (0.8%), Other retailing (0.0%) and Cafes, restaurants and takeaway food services (0.0%). Total sales (0.1%).  

New South Wales (0.4%), Victoria (-0.3%), Queensland (-0.2%), South Australia (0.1%), Western Australia (-0.7%), Tasmania (-0.5%), Northern Territory (0.4%) and Australian Capital Territory (-0.5%).

YEAR-ON-YEAR RETAIL GROWTH (February 2016 – February 2017 seasonally adjusted)

New South Wales (3.28%), Victoria (2.62%), Queensland (2.79%), South Australia (3.94%), Western Australia (0.38%), Tasmania (2.73%), Northern Territory (1.15%) and Australian Capital Territory (2.34%).

Food retailing (3.69%), Household goods retailing (1.12%), Clothing, footwear and personal accessory retailing (0.85%), Department stores (-2.96%), Other retailing (2.21%) and Cafes, restaurants and takeaway food services (5.90%). Total sales (2.68%).  

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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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