THE Government’s response to the Financial System Inquiry has put the spotlight on ethical investment according to the Institute of Public Accountants (IPA).

In its response, Improving Australia’s financial system, the Government has stated that they ‘will examine how best to foster growth of impact investment in Australia to support private and for-profit investment funds being directed to projects with a social or environmental purpose’.

“The concept of social conscience investment is an area that we should all be making an effort to embrace; it creates win-win opportunities for investors and society,” said IPA chief executive officer, Andrew Conway.

“If investors can attain a relatively healthy return on their investments, why not do so in projects that deliver greater social outcomes.

“The Government’s announcement to develop legislative amendments to provide greater certainty for private ancillary funds wishing to invest in social impact bonds is to be commended.

“Consumer demand and superior financial performance have driven a huge growth in ethical investment around the world, including Australia,” said Mr Conway.

Also known as responsible investment and by other names, this sector is experiencing rapid growth around the world. In the US, for example, there was a 76% growth rate between 2012 and 2014, which means that 18% of the US$36.8 trillion in total assets under management is involved in ‘Sustainable and Responsible Investment’. 

Polling released by the Responsible Investment Association Australasia 2015 benchmark report found that 69% of Australians believe it is important that super funds make responsible investments and avoid harmful investments.

www.publicaccountants.org.au

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VECCI Chief Executive Mark Stone said last week his organisation "called on the Andrews Government to embrace our ideas to create meaningful and sustainable employment in Victoria by bolstering the Back to Work scheme". The move has borne fruit.
 
"Following a subsequent meeting with Tim Pallas, Treasurer of Victoria, I now applaud the Andrews Government for listening to business and taking quick and decisive action to strengthen the scheme," Mr Stone said.

"In addition to increasing the incentive for employers to take on new workers, today’s announcement to enhance employee skills will provide a much needed and lasting boost to Victorian business."
 
Mr Stone said the scheme will be strengthened by:

• Increasing payment amounts available to employers: Payments will be increased from $750 - $2,000 to $5,000 - $12,000. Plus an additional $2,000 - $4,000 towards accredited training for new employees in any eligible category.
• Broadening eligibility criteria: The definition of long term unemployed will be halved from 52 weeks to 26 weeks. A range of additional groups will also be included such as Aboriginal unemployed persons, disability pensioners and drought-affected farm households.
• Broadening eligibility for subsidised training: Participants who already have higher level qualifications will now be eligible for subsidised training at a lower level qualification than already held and will also be eligible for targeted fee relief.
• Reconnect Pilot Program: This program will specifically target assistance to young early school leavers helping them take the first steps to further education and into the workforce. 

"I again commend the Treasurer and the Hon Steve Herbert MP, Minister for Training and Skills, on their willingness to engage with business," Mr Stone said.

"VECCI looks forward to continuing to work with government and business to get more people into work sooner and reduce Victoria’s unemployment rate."

The Victorian Employers Chamber of Commerce and Industry (VECCI), established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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THE Australian Government is calling on organisations that are well connected in their community to tender to deliver services especially designed to get young early school leavers into jobs.

Minister for Employment, Senator Michaelia Cash today released the Request for Proposal for Transition to Work 2016-2020. The Transition to Work service will target those aged 15 to 21 who are out of work and not engaged in education.

"The Government is committed to ensuring that every Australian who can work is able to find work," Minister Cash said.

"The best form of welfare is work.

"This is particularly the case with young Australians – they are the future of the nation, our businesses and our economy, however they are over represented in the unemployment figures.

"The Australian Government is not prepared to stand by while a generation of young Australians remain without gainful employment.

"Early intervention can mean the difference between a young person taking their first steps into productive and happy working lives – or entering a life of welfare dependency.

"That’s why we’re investing $322 million in the Transition to Work service, to find the best organisations to deliver results for both young people and taxpayers," Minister Cash said.

The Government has taken on board feedback received on the Transition to Work Service Exposure Draft to support greater flexibility for service providers and young people looking to access the service.

The Transition to Work service will provide intensive, pre-employment support to improve the work readiness of young people and to help them into work (including Apprenticeships and Traineeships) or education.

The service will be rolled out between January and April 2016 and it is expected that providers will leverage off their existing knowledge and experience in the youth sector to enable young people to become more work-ready.

"A recent survey by the Department of Employment of 3,000 Australian employers found many young people require support to acquire the core skills that employers require," Minister Cash said.

"This includes improving literacy and numeracy skills, engaging in the workplace and understanding the value of working in a team situation."

"Employers also mentioned that young people need to better tailor their application to the position for which they are applying."

To address these issues organisations will be expected to deliver individually tailored services for young people to help them move into work or further education.

Providers will be required to have regular contact with participants and assist them with a range of services including:

• developing a Job Plan setting out the types of services the participant will receive and the activities the job seeker will undertake to improve their work readiness
• assistance with vocational skills development, for example support to address language and literacy issues, to undertake training relating to a specific job, as well as practical skills such as gaining a driver’s licence
• help to improve foundation skills such as the ability to work in a team, communication skills, motivation, reliability and willingness to work
• assistance in career advice, preparing a résumé and developing job applications and
• coaching in interview techniques and personal presentation.

Providers will also be expected to work closely with employers and will be able to offer an Australian Government wage subsidy of up to $6500 over 12 months to assist employers with the costs of hiring and training an eligible young person.

Information sessions for interested organisations will be held in Perth and Sydney (26 October), Adelaide (27 October), Hobart (28 October), Melbourne (29 October), Brisbane (30 October) and Canberra (2 November).

Tenders close at 5.00 pm Australian Eastern Daylight Time (AEDT), 1 December 2015.

To register for an information session or to obtain the tender documents visit https://www.ivvy.com/event/TTWRFP/

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THE Chairman and other Executive Members of the Australian Prudential Regulation Authority (APRA) will appear before the House Economics Committee on Friday 23 October in Parliament House, Canberra.

The Chair of the committee, Craig Laundy MP said ‘that the ongoing scrutiny of APRA is an important part of the committee’s oversight role. Some of the issues that will be examined include APRA’s new reporting standards for the superannuation industry, the increased capital requirements for Australian residential mortgage exposures by authorised deposit taking institutions (ADIs), and the new disclosure requirements for ADIs under the Basel III framework.’

On 9 December 2014 APRA issued advice to all ADIs outlining measures to reinforce residential mortgage lending practices. The committee will scrutinise APRA on the effectiveness of these measures.

APRA noted that ‘given the currently very strong growth in investor lending, supervisors will be particularly alert to plans for rapid growth in this part of the portfolio. For example, annual investor credit growth materially above a benchmark of 10 per cent will be an important risk indicator that supervisors will take into account when reviewing ADIs’ residential mortgage risk profile and considering supervisory actions.’

The committee will seek an update on how this particular measure is working to curb investor lending.

Public Hearing Details:

Committee: House of Representatives Economics Committee
Venue: Committee Room 1R3, Parliament House, Canberra
Date: Friday, 23 October 2015.
Time: 9.30am to 12.30pm
Webcast: The hearing will be webcast live on www.aph.gov.au/live

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