INDUSTRY bodies Industry Super Australia and Women in Super say the stage two tax cuts should be matched by a change to the Low-Income Superannuation Tax Offset (LISTO) in a move that would add tens of thousands of dollars to the retirement savings of more than 700,000 women.

The LISTO was aligned with the tax-free threshold and 19 percent tax bracket and matches superannuation guarantee contributions – but the tax cuts have moved those brackets up the scale. But the LISTO rate has stalled at $37,000 taxable income and the maximum tax refunded is $500 a year, seeing hundreds of thousands of women left behind.

More than 1.2 million Australians would see a boost in their super savings by increasing the LISTO to cover workers earning up to $45,000.

The changes would benefit 705,000 women who would take home 60 percent of the extra payments – making women the biggest winner from the measure. Each worker would get about $400 an extra on average.

“On average women are still retiring with almost half the amount of super than men," Industry Super Australia chief executive Bernie Dean said. “This proposal will put more money into women’s super-balances early in life – going someway to bridge the gender pay gap that unfortunately persists in retirement."

The Budget tax reform moved the 19 percent tax bracket to $45,000 and has lowered the tax concession to 3.5 cents in the dollar, dramatically reducing the incentives to contribute to super for hundreds of thousands of Australians, most of whom are women.

Industry Super Australia and Women in Super say the LISTO cap needs to be immediately increased to $640 to maintain the integrity of the measure. The LISTO should also increase in line with the legislated lifts to the Super Guarantee.

The LISTO is important to ensure lower income earners receive some tax relief for saving for retirement," Women In Super chair Catherine Wood said. “It can never match the $10,000 plus annual tax break received by high income earners, and the government should at least maintain the integrity of the provision which impacts over half the female workforce.”

“Young women on lower incomes have had to access their superannuation to get them through the pandemic. The least the government can do is to keep the LISTO relevant.”

More than 200,000 women under 30 would get the super boost, providing vital early career contributions that make the biggest difference to the final nest egg. The changes could lead to a 30-year-old woman earning $40,000 being up to $56,170 better off at retirement.  

Women would get $291 million of the super tax refunds and the proposal would provide $488 million in super tax breaks to those earning less than $45,000. It would be a much-needed super boost after women withdraw about $14 billion from super under the government’s early release scheme and ISA analysis shows a quarter of female applicants effectively drained their balance.     

Data suggests that many women become eligible for the tax break about the time they leave the workforce or reduce hours to raise children. About a third of all new recipients of the proposed LISTO increase would be women in their 20s and 30s.

This is also the stage in life when the gender super gap widens - the average super balance gap of women doubles from 15 percent less than men at 30 to 30 percent less once a woman reaches her 40s.

ends

VOTERS in marginal Queensland seats are willing to support political parties at this month’s State Election that commit to policies supporting Queensland and Australian contractors ahead of foreign multinationals.

An exclusive poll for Australian Owned Contractors (AOC) of more than 500 voters across 12 marginal Queensland electorates revealed that 90 percent of voters in these key seats wanted to stop the foreign domination of Queensland major infrastructure projects.

Voters in these key electorates feel so strongly about the issue that 49 percent indicated it would influence their vote at the State Election, with a further 34 percent saying it might influence their vote.

Currently, more than 80 percent of infrastructure projects in Queensland in excess of $100 million were awarded to foreign owned contractors.
AOC recently publicised research that shows five out of Queensland’s six biggest transport infrastructure projects – worth $8.9 billion – have been awarded to foreign owned companies in the last five years.

AOC director Scott Power said at a national level, 95 cents in every dollar spent by governments on major infrastructure projects ($500 million-plus) goes to foreign multinationals.

“Voters in key marginal seats want our politicians to change the rules and provide more opportunities for local companies to build Queensland,” Mr Power said.

“Queenslanders are not happy that profits are flowing overseas. They want Queensland and Australian owned business to take part in head contracts and deliver more of the state’s infrastructure.”

The polling also revealed that 79 percent of voters in these seats were unaware that all of Australia’s major construction companies were now foreign owned and 63 percent were unaware that most major contracts were being awarded to these major companies.

“This is why the AOC has embarked on our Let Us Build Queensland campaign,” Mr Power said.

“The campaign provides Queenslanders and Australians the opportunity to ensure their voice is heard by signing our petition.”

AOC is calling for Queensland and Australian politicians to change the rules and ‘unbundle’ infrastructure projects into smaller packages so Queensland and Australian companies can bid for them.

If a large contract ($500 million-plus) cannot be broken up, AOC is calling on the government to ensure that Australian companies are still able to play a role alongside foreign multinationals through procurement practices that ensure local industry sustainability.

www.letusbuild.com.au

ends

A SURVEY of 600 small business owners from Color Of Change and  the small business organisation Main Street Alliance has revealed disproportionate pandemic impact on black American businesses, a flawed Paycheck Protection Program and the devastating outcomes of continued government inaction

In the US, critical federal coronavirus relief legislation remains stalled in negotiations between lawmakers and the White House.

Barring swift and decisive action by Congress to provide direct grants to black small business owners, the poll indicated black small businesses were on the brink of extinction, with 46 percent either already forced to close or planning to close within the next six months.

The new nationwide poll surveyed 600 small business owners representing a range of demographics on the impact of COVID-19 on their businesses as well as their views of federal coronavirus relief measures. Coupled with the findings of Color Of Change’s previous Paycheck Protection Program poll released in May, and stories from Main Street Alliance members this Fall, the results of the new survey clearly reinforce the dire need for both improved and immediate government relief in order to save black small businesses and the communities they prop up.

“Our new poll emphasises what so many black small business owners already know: unless Congress works quickly to pass new relief legislation and address the racial inequities that exist within current relief measures, a disproportionate number of black small businesses will shutter forever,” Color Of Change president Rashad Robinson said.

“Small businesses are the cornerstone of our communities. The devastating consequences of these closures will ripple throughout black communities and last for generations. Our federal government can no longer wait to bring immediate, accessible relief to black small businesses.”

Black-owned businesses not only generate billions of dollars for the economy annually and create thousands of jobs but also provide critical avenues of upward mobility and independence for black people, generate monetary support for racial justice causes, and create physical spaces where employees and community members can engage in meaningful activism.

In fact, the new survey shows black and Latinx owners are more likely than Asian and white owners to be engaged in a range of community activities. Additionally, black small business owners are most likely to make statements in support of racial justice causes at 46 percent, in comparison to 24 percent of Latinx owners, 21 percent of Asian owners, and 14 percent of white owners.

The decimation of black small businesses therefore threatens not only individual black people and families but entire communities and racial justice movements.

Beyond illustrating the unanimous need for relief, the survey also indicates that any new measures must better address the needs of black small businesses. The results paint a picture of how the Paycheck Protection Program (PPP) and other federal relief measures present too many barriers to access and offer insufficient support to black businesses.

Despite being more likely to apply for PPP support, black small business owners had to wait longer to hear back about their application and were less likely to receive the amount of assistance they requested. Only 33 percent of black PPP applicants received a response within two weeks, whereas 50 percent of Latinx and 44 percent of white recipients heard back in two weeks. Further, only 37 percent of black small business owners received the amount of assistance they requested.

The inequities and hurdles baked into the PPP application process and existing legislation have fueled sentiment among small business owners that COVID relief measures were not designed to help them. Across racial and ethnic subgroups, the poll shows that a majority of small business owners believe COVID-19 relief packages were passed in the interests of major corporations rather than small businesses and working people. Black owners were most likely to believe this, with 77 percent agreeing.

“As Senate Republicans scramble to push through the installation of a new supreme court justice, the stakes of this moment couldn’t be higher for millions of small businesses and working families across our nation suffering financial devastation from the ongoing economic impacts of COVID,” said Amanda Ballantyne, executive director of Main Street Alliance.

“Our polling results are clear on what small business owners believe they need to succeed. With the right investments in long term federal relief designed to rebuild our struggling small business sector, we can not only stem the tide of economic loss, we can rebuild our economy and put ourselves on a path to a more equitable and sustainable economy where small business owners and working people can thrive. But we do not have months to wait.”

The survey shows that while grants are a priority across business groups, black business owners were most likely to see federal grants as a top priority compared to other racial groups, indicating the need for direct grants rather than loans as well as measures like PPP set-asides for businesses with 10 or fewer employees — a category an overwhelming majority of black businesses fall under. 

A summary of key takeaways here.

Methodology:

Lake Research Partners designed and administered this survey that was conducted online nationwide between August 31 and September 16, 2020. The survey reached a total of 600 small business owners with oversamples of 100 black small business owners, and 100 Latinx or Asian American or Pacific Islander small business owners. The sample was drawn from an online panel of small business owners and respondents were screened to be the current owner of a small business in the US, who operates and makes decisions for the business, operates a for profit business, and employs 0-49 employees including themselves and excluding contractors, with a  cap of 25 percent of respondents who employed one person before the pandemic and currently employ one person. To ensure the data reflects attributes of the actual population of small business owners in the US, the base sample was weighted by gender, region, age, race, and number of employees prior to the COVID-19 pandemic. The sample of black small business owners was weighted by gender and age. The sample of Latinx and Asian American Pacific Islander small business owners was weighted by gender, region, race, and number of employees prior to the COVID-19 pandemic. The overall margin of error for the entire sample is +/- 4.0. 

About Color Of Change

Color Of Change is the nation’s largest online racial justice organisation. It helps people respond effectively to injustice in the world around them. As a national online force driven by over 7 million members, Colour of change moves decision-makers in corporations and government to create a more human and less hostile world for black people in America. www.colorofchange.org.

About Main Street Alliance

The Main Street Alliance is a national network of small business coalitions working to build a new voice for small businesses on important public policy issues. Main Street Alliance members are working throughout the country to build policies that work for business owners, their employees, and the communities they serve. www.mainstreetalliance.org.

ends

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has urged big businesses to report their payment times to small business suppliers as soon as possible, with the Payment Times Reporting Scheme to come into effect from January 2021.

Ms Carnell said it was important that businesses with an annual turnover of $100 million-plus heed the intention of the legislation early.

“These new laws represent important progress at a time when Australian small businesses are hurting and need to be paid on time to survive,” Ms Carnell said.

“I am strongly encouraging the 3,000 businesses this legislation applies to, to do the right thing and comply with the payment time reporting requirements as soon as possible. Big businesses should act quickly to be up front and honest about the time it takes to pay their small business suppliers.

“Delaying compliance until penalties apply would be unacceptable," Ms Carnell said. “While we support the Payment Times Reporting Scheme as a step in the right direction, it won’t solve the problem of late payment times on its own.

“The latest CreditorWatch data for September shows businesses are being paid an average of 37 days overdue – an increase of more than 200 percent on this time last year. This is having a devastating impact on small businesses, particularly those hit hard by the COVID crisis.

“That’s why my office continues to call for legislation requiring SMEs to be paid in 30 days. This is the more effective way to drive meaningful change in business payment performance across the economy," she said.

“Cash flow is king for small businesses and when small businesses are paid on time, the entire economy benefits.”

www.asbfeo.gov.au

ends

THE Queensland Resources Council (QRC) has welcomed a $45 million State Government pre-election commitment to a new future skills initiative to encourage closer partnerships between high schools and industry-related job opportunities.

“The Queensland Government has already been a vital partner in our 80-strong Queensland Minerals and Energy Academy (QMEA) under the Gateway to Industry Schools Program and this funding will further boost the capacity of some of our partner schools to set young people onto trade and STEM career pathways,” QRC chief executive Ian Macfarlane said.

“QMEA schools from across the state would benefit from the promised new facilities that will support the development of skills in engineering, hospitality and the emerging hydrogen industry, and prepare students for the skills demanded by our sector,” he said.

These include:

• Dysart State High School – $900,000 for commercial standard kitchen facilities
• Chinchilla State High School and Tara State College - $4.8 million for engineering annexe and equipment to support training opportunities in local mining, gas and electrical industries
• Bowen State High School - $1.4m upgrade to aquaculture facility
• Pimlico State High School - $1.4m enhanced aquaponics infrastructure
• Gladstone State High School –  $2m for training for emerging hydrogen industry
• Roma State College - $1.5m for infrastructure for animal husbandry and agricultural studies
• Glenala State High School - $2.25m upgrade to trade training centre for four schools
• Rockhampton State High School - $2.5m for aquaculture research centre facilities
• Dalby State High School - $2.5m upgrade to rural/industrial manufacturing facilities
• Clermont State High School - $1.3m for commercial kitchen and industry- standard facilities
• Cloncurry State School - $500,000 upgrade to welding and metal work facilities
• Mackay Northern Beaches State High School – $1.2m for engineering, early childhood, arts and information/digital media/technology/business training facilities
• Thuringowa State High School - $1.2m science labs refurbishment.

Mr Macfarlane said QRC members already invest more than $1 million each year in the QMEA to ensure resources companies have the skilled people they need to operate safely and successfully.

He said investing in training for young people to encourage them to work in the resources sector was more important than ever, because of the vital role the mining and gas industries were playing to support Queensland’s economic recovery from COVID-19.

“The QRC has also welcomed the state government’s commitment to a Queensland Resources Industry Development Plan to steer future growth in our sector,” Mr Macfarlane said.

“This plan includes extra support for STEM skills and a commitment to employ more industrial design and technology teachers, which will be of critical importance to the success of the government’s future skills initiative,” he said.

www.qrc.org.au

ends

CHIEF EXECUTIVE of the Queensland Resources Council (QRC),  Ian Macfarlane has welcomed 50 extra resources-related construction jobs created by Senex Energy in its new $30 million Roma North expansion announced today.

“This announcement couldn’t have come at a better time,” Mr Macfarlane said. “Senex’s decision to increase its gas production near Roma in south-west Queensland by 50 percent is just the sort of investment confidence Queensland needs to bolster the economy as it recovers from the COVID-19 induced downturn.

“I congratulate Senex on its latest announcement, which adds to the 250 construction jobs and $400 million investment committed to completing its Atlas and Roma North projects in the Surat Basin over the past 18 months, benefiting more than 50 businesses in the region,” he said.

“The resources sector has kept Queensland afloat during the COVID emergency contributing $74 billion over the past year to the State Budget and $56.5 billion – or almost 80 percent – of Queensland’s total exports.

“And making that possible are the 372,000 hard-working men and women employed in Queensland’s resources sector whose families and communities benefit every day from the financial security and job opportunities our sector provides.”

www.qrc.org.au

ends

THE Queensland resources industry has continued to deliver its 80 percent share of the state’s export earnings over the past 12 months despite the disruptions to international markets and commodity prices, according to new trade data.

QRC chief executive Ian Macfarlane said over the 12 months to August 2020, the 372,000 Queensland men and women working in resources helped deliver $56.5 billion -- or 79.25 percent -- of the state’s total export earnings of $71.3 billion.

“Queensland export earnings have been impacted by COVID-19, with total export earnings down by $16 billion compared to the previous 12 months, but we’ve still contributed 80 percent of total exports ,” Mr Macfarlane said.

“Export sales to overseas customers are critical to our prosperity at home in Queensland.  As a result of the men and women working in resources following COVID-safe practices, our industry is keeping the Queensland economy strong and continuing to contribute to a resources-led COVID recovery.

“The world needs what Queensland has, but we also need to have long-term, stable policy and royalty settings to ensure the resources industry can continue to invest, employ and export at the level we currently do, and on which our state economy depends.”

Queensland’s resource exports across key commodities over the 12 months to August 2020 are led by metallurgical and thermal coal at $33.2 billion, liquefied natural gas at $13.8 billion and minerals at $9.5 billion.

Link to Queensland Treasury export data update.

www.qrc.org.au

ends

THE Bureau of Meteorology has released its Severe Weather Outlook for October to April, showing an increased risk of flooding for eastern Australia and tropical cyclones in the north, with roughly average potential for heatwaves and severe thunderstorms.

The current La Niña is likely to bring more rain to eastern and northern Australia, with some drought affected areas already seeing rainfall deficiencies ease and water storage levels increase.

La Niña also suggests an earlier than normal arrival for the first rains of this year's northern wet season and an earlier monsoon onset for Darwin.

While recent decades have seen a decline in the number of tropical cyclones in our region, Bureau climatologist, Greg Browning, said this summer was likely to buck that trend.

"On average Australia sees 9-11 tropical cyclones each year, with four crossing the coast. With La Niña this year we are expecting to see slightly more tropical cyclones than average, and the first one may arrive earlier than normal," Mr Browning said.

"Every northern wet season has had at least one tropical cyclone cross the Australian coast, so we can never be complacent. We know that cyclones can develop at any time throughout the tropical cyclone season, which runs from November to April," he said.

"This means that communities right across northern Australia need to stay be prepared now, and stay informed from the very start of the tropical cyclone season in October, right though until April."

After the catastrophic fires of last summer, it's a very different bushfire outlook this season, with average fire potential for most parts.

"This fire season we're expecting wetter than average conditions in eastern and northern Australia, so long running large bushfires are less likely, however a wetter spring can lead to abundant grass growth, which could increase fire danger as it naturally dries during summer.

"Meanwhile, if dry conditions continue in southwest Western Australia as forecast, the potential for more fire weather days there could increase."

The Bureau's general manager of Decision Support Services, Sandy Whight, said the lower fire risk across much of Australia was no reason for complacency.

"Southern Australia is one of the most bushfire prone places in the world in any summer and it's important to remember that, right across Australia, even short periods of hot and windy weather will raise the fire risk, so communities need to have their bushfire plans ready.

"La Niña also brings more rain and increased humidity, which can mean fewer extreme heat days. But while heatwaves may not be as severe, the Bureau's advice is that in southern areas they may last longer and be more humid – both of which can increase the risk to human health. Be sure to monitor the Bureau's heatwave service, which provides information about the location and severity of heatwaves."

"The Bureau is committed to keeping Australians safe. We support emergency partners and the community to prepare for the impacts of severe weather through regular forecasts, warnings, monitoring and advice. 

"Now, more than ever, it's vital to heed the Bureau's warning to Know your weather. Know your risk."

REGIONAL SNAPSHOTS

QUEENSLAND

• La Niña is likely to bring more rain than usual, with an increased risk of widespread flooding.
• Likely to see more tropical lows and cyclones than normal.
• Earlier start to the wet season across the north.
• Average numbers of severe thunderstorms.

NORTHERN TERRITORY

• La Niña is likely to bring more (and earlier) rain than usual.
• La Niña typically means earlier onset of the monsoon, higher likelihood for more tropical lows and cyclones than usual.

WESTERN AUSTRALIA

• La Niña's impacts are not as marked in northern WA as they are in eastern Australia.
• Expect an earlier onset of the monsoon and increased risk of a pre-Christmas tropical cyclone off northwest WA.
• Increased risk of widespread flooding in the north.
• A dry spring could increase fire potential in the south.

SOUTH AUSTRALIA

• More grass growth in spring could raise the risk of grass fires in summer.
• During La Niña, heatwaves may last longer and be more humid, though there may be fewer days of extreme heat compared an average season.
• La Niña is likely to bring more rain than usual through what is usually a very dry period in SA.

TASMANIA

• Normal bushfire potential, but more grass could provide more fuel in summer.
• Extreme heat days are more likely every season, due to the impacts of climate change.
• La Niña is likely to bring an increased risk of widespread flooding for eastern Tasmania.

VICTORIA

• Increased risk of widespread flooding.
• Fewer extreme heat days but heatwaves may last longer and be more humid.
• Long running bushfires are less likely, but more grass could provide more fuel in summer.

NEW SOUTH WALES

• La Niña is likely to bring more rain than usual with an increased risk of widespread flooding.
• Heatwaves could be more humid and last for longer, especially in southern NSW.
• Normal bushfire potential, but more grass could provide more fuel in summer.

AUSTRALIAN CAPITAL TERRITORY

• La Niña is likely to bring more rain than usual with an increased risk of flooding.
• The ACT has normal bushfire potential, but people in rural areas and on the urban edge of Canberra are advised to plan for the potential of fast-moving grassfires.

The Bureau's severe weather outlook page: www.bom.gov.au/knowyourweather

The Bureau's Tropical Cyclone Season Outlook: www.bom.gov.au/climate/cyclones/australia/

More information on La Niña impacts is at: http://media.bom.gov.au/social/blog/2440/explainer-what-is-a-la-nia/
 
ends