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Public hearing: 'Are we getting a fair go from the ATO?'

THE House of Representatives Committee on Tax and Revenue will be holding a public hearing for its inquiry into the Commissioner of Taxation Annual Report 2018-19.  

The Committee will hear from Nina E. Olson, executive director of the Center for Taxpayer Rights and former United States taxpayer advocate, who will offer a valuable international perspective on tax administration.

Chair of the Committee, Jason Falinski MP, said the Committee was interested to learn more about the taxation system of the United States and the ways in which the United States Internal Revenue Service assists vulnerable taxpayers.  

"The Committee has a strong interest in taxpayer engagement with the tax system and ensuring that people with low tax literacy or vulnerable taxpayers are not unfairly treated in a complex system of self-assessment. We look forward to hearing about the approach of the United States and the taxpayer advocate in this regard," Mr Falinski said.

Further information about the inquiry is available on the Committee’s website.

Public hearing details

Date: Thursday, 13 August 2020
Time: 8am to 9am
Location: Committee Room 2R1, Parliament House, Canberra (via video/teleconference)

The hearings will be broadcast live at aph.gov.au/live.

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Devastating day for Virgin pilots and Australia's aviation industry

VIPA, the association for Virgin Group pilots, said it was devastated at today’s announcement that in excess of 30 percent of the Virgin pilot group will lose their jobs.

This decision impacts pilots flying the wide body (B777 and A330, internationally) and ATR72.  At this stage VIPA is unsure of the impact upon the B737 Virgin fleet.

The total number of pilots who will be made redundant is likely to be approximately 400 of the 1400 remaining VA Group pilots.  VIPA represents more than half of these pilots, who have more than 20,000 years of flight experience between them.

“The knock-on effect this decision will have on the economy is significant; including future skills shortages, loss of technical experience and the inability to retain skilled Australian pilots,” VIPA president John Lyons said today.

“The Federal Government has let down these Virgin employees and the Australian aviation industry as a whole by not providing specific support, as well as the travelling public – this is the exact opposite action that governments in the US, UK and Europe have taken.

“Given the specialist nature of these roles, our workers’ skills are not easily transferable and take years to secure, so they dedicate their careers to these jobs. This is devastating news for them, but also very sad news for the Australian public at large who will undoubtedly see an increase in fares and decrease in services as a result.”

VIPA, in conjunction with the ACTU, worked very hard as a group to maximise as many jobs as possible were kept and to ensure that full entitlements would be paid for those made redundant.

VIPA will maintain pressure on Bain to keep its commitment to establish and fund Virgin Australia as a sustainable and successful business if required during recovery.

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Sale of AAP formalised

THE SALE of Australian Associated Press (AAP) to a consortium of impact investors and philanthropists has been formally completed, ending 85 years of ownership by Australia’s major publishing groups.

The national news agency will continue to provide a trusted breaking news service with a team of journalists and photographers, most of whom have joined the new organisation from the legacy business.

The AAP name and brand will be retained.

New AAP CEO Emma Cowdroy welcomed the finalisation of the agreement.

"The successful sale has ensured that AAP has not only survived but that it now has the opportunity to thrive," Ms Cowdroy said.  "Our backers and the board are united in our determination to continue AAP's critical role as the source of truly independent news for all Australians. 

"The value of independent journalism for the benefit of our society has never been more important and the new-look AAP will be underpinned by this philosophy."

Bruce Davidson, the outgoing CEO after 10 years in the role, wished the new owners every success.

“The legacy of the news agency is in good hands and I’m delighted that the spirit of AAP will live on into the future.”

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Today's COVID-19 inquiry public hearing rescheduled to 3.30pm AEST

TODAY'S public hearing for the parliamentary inquiry into the impact of COVID-19 on Australia’s defence, trade and international relations by the Foreign Affairs, Defence and Trade Committee will be held at 3.30pm AEST, an hour earlier than previously scheduled.

Details of the hearing, which will feature witnesses from the CSIRO, are on the Committee website.

Public hearing details

Date: Tuesday 4 August
Time: 3.30-4.30pm AEST
Location: By teleconference

The hearings will be audio streamed live at aph.gov.au/live.

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CSIRO to appear before COVID-19 inquiry

WITNESSES from CSIRO will give evidence at a public hearing on the organisation’s work in vaccine research, data services and advanced manufacturing capabilities in response to the pandemic.

The hearing is part of the parliamentary inquiry into the impact of COVID-19 on Australia’s defence, trade and international relations by the Foreign Affairs, Defence and Trade Committee.

Senator David Fawcett, Chair of the Committee, said that in addition to its research work, CSIRO had provided valuable services to Australian State and Federal Governments during the pandemic.

Senator Fawcett said, “CSIRO is doing valuable work in support of global efforts to find a vaccine for COVID-19. But it is also helping governments to understand and manage the pandemic in a variety of ways.

"Their work in supporting the rapid development of advanced materials for use in the manufacturing of face masks and the testing of respirators against Australian standards has been invaluable.”

Full terms of reference for the inquiry are on the Committee website.

Public hearing details

Date: Tuesday 4 August
Time: 4.30-5.30pm AEST 
Location: By teleconference 

The hearings will be audio streamed live at aph.gov.au/live.

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Just Cuts welcomes additional financial support from Victorian Government

JUST CUTS, the largest hairdressing network in the Southern Hemisphere, has welcomed the announcement from Victorian Premier Daniel Andrews of additional financial support for businesses forced to close under the introduction of tougher restrictions in Melbourne and across the state.

Hairdressers are included in the business group required to cease operations from 11:59pm on Wednesday August 5 for the next six weeks.

The Premier yesterday announced businesses in regional Victoria could apply for a $5,000 grant while those in Melbourne and Mitchell Shire can apply for up to $10,000 in recognition of spending longer under restrictions.

Just Cuts CEO Amber Manning said, "The health of our clients, stylists and team has always been central to everything we do at Just Cuts. We understand the need to take these steps including the necessity of shutting down businesses however there is the undeniable and growing tension small business owners, including our salon owners, face in having to continue to cover all the other incoming bills including rent.

“The Victorian Government’s move to offset some of this on impacted businesses via the additional grants is most welcome notwithstanding the fact that not all of our owners are eligible, including a number who have been in business for less than 12 months. There is still a significant strain on our small business owners and unfortunately it’s only going to continue so we need to be exploring additional measures such as assistance with payroll tax.

“The reality is we need all State, Territory and the Federal Government to continue to move on stimulus and support measures to help us all get through this.

“We have continued to adapt as a network including by adapting online so that our owners are rebated for online purchases and we are promoting gift vouchers for clients to use when our Victorian salons are able to reopen. We are grateful for the ongoing support of our loyal clients and the ongoing professionalism and commitment of our teams.”

About Just Cuts

Just Cuts is the largest hairdressing chain in the Southern Hemisphere. There are 2500 fully qualified stylists in the Just Cuts Australian network, predominantly in shopping centres, and 3500 globally. Just Cuts has 190 salons across all states and territories of Australia, 28 salons in New Zealand and six in the UK. Just Cuts salons continue to operate including in Victoria with all the necessary recommended hygiene steps in place.

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National Redress Scheme second interim report: focus areas determined

THE Joint Select Committee on Implementation of the National Redress Scheme has agreed that the next stage of its ongoing inquiry and second interim report will give close examination to the following areas:

  • Ongoing survivor experience;
  • Operation of the National Redress Scheme, including decision-making frameworks and processes;
  • Provision of legal advice to survivors;
  • Survivor and institution participation in the scheme; and
  • Responses from jurisdictions and others to the Committee’s first interim report.

The Committee is currently receiving submissions to inform the second interim report and anticipates that public hearings will take place in September 2020. A program of public hearings will be made available in due course from the website.

The Committee is aware that its inquiry work will be taking place at the same time as the legislated two year anniversary review of the National Redress Scheme currently being supported by the Department of Social Services.

The Committee wishes to clarify that the two processes are separate, the legislated two year anniversary review will report to government, and this Joint Parliamentary Committee will continue to report to the Parliament.

The Committee wishes to assure survivors who participate or contribute to the second interim report that all requests for confidentiality will be respected.

Further detail on each focus area is available on the Committee website.

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APRA, ASIC to appear before House Economics Committee

THE Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) will appear before the House Economics Committee at a public hearing on Wednesday, August 5, 2020 as part of the committee’s reviews of the 2019 APRA Annual Report and 2019 ASIC Annual Report.

Chair, Tim Wilson MP, said, "Despite COVID-19 we are getting on with the job — the hearing will provide the committee with the opportunity to scrutinise APRA and ASIC on their performance and operation.

"The COVID-19 pandemic has created unprecedented disruption and uncertainty in the financial sector. Now, more than ever, it is essential to maintain strong prudential regulation and ensure fair and transparent dealings to safeguard financial stability and consumer trust in the financial sector."

"The committee will scrutinise APRA on how it promotes financial stability through the prudential regulation and supervision of ADIs, insurers and superannuation licensees and will scrutinise ASIC on its enforcement strategy and supervisory approach.

"ASIC’s capability is of particular interest after recent data exposed errors in their SMSF fact sheet that should have been identified with basic critical reasoning."

Public hearing details

Date: Wednesday, 5 August 2020  
Time: 11am to 1.45pm
VIDEOCONFERENCE

11.00am

12.20pm

1.45pm

Australian Securities and Investments Commission

Australian Prudential Regulation Authority

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The hearing will be broadcast live at aph.gov.au/live.

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Ombudsman’s Insurance Inquiry inundated by survey responses

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said there had been an overwhelming public response to the Insurance Inquiry since it was launched last week.

“My office has already received over 150 survey responses and a number of submissions in relation to this inquiry and we anticipate that number to grow,” Ms Carnell said..

“While we are only in the early stages of the inquiry, it is clear the small business community supports the work we are doing in this area.”

The inquiry follows a growing number of complaints from small businesses who have either been denied insurance or priced out of the market.

“Over the coming months, we will be investigating the practices of the insurance industry that impact small businesses and examining whether small business insurance products are fit for purpose,” Ms Carnell said.

“I’m particularly concerned about a number of cases where small businesses with current insurance policies have been subjected to major changes that have reduced their coverage without their consent, and with no refund of premiums. Our inquiry will look at this in more detail and consider if these practices amount to Unfair Contract Terms.

“We remain very keen to hear from small and family businesses that have faced difficulties with their insurance provider," Ms Carnell said.

“I encourage these businesses to share their experiences by completing our online survey or emailing my office via This email address is being protected from spambots. You need JavaScript enabled to view it. by 30 August, 2020.

“We also welcome submissions from industry stakeholders, which can be emailed to This email address is being protected from spambots. You need JavaScript enabled to view it. by 21 August, 2020.”

A final report is expected to be released in December.

www.asbfeo.gov.au

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FSC on sustainability, mental health and early intervention

AS LIFE INSURANCE awareness week and the Financial Services Council (FSC) life insurance summit comes to an end today, the key take outs from the week is that the sustainability of the industry is on a knife edge with the rise of mental health claims being a major contributing factor.

FSC senior policy manager for life insurance, Nick Kirwan said, “In Minister Jane Hume’s opening remarks, she outlined that the government was willing to consider allowing life insurers to pay for treatment as an early intervention measure, particularly in relation to mental health-related claims."

This week the FSC released life insurance claims data from 2019 confirming mental illness is now the highest cause of claim for total permanent disability (TPD) and the third highest for income protection. Together, life insurers paid $1.24 billion in 2019 to over 9,500 Australians for these mental health claims

“If this reform were to be legislated it would allow life insurers to reduce the cost of mental health claims, improving the sustainability of the industry and reducing the cost for life insurance customers," Mr Kirwan said.

“Early intervention helps consumers recover from mental health issues, and consumers that recover quicker in turn helps the industry manage its sustainability and affordability – it’s all linked.

“We want a healthy and sustainable life insurance sector with the three A’s for consumers: availability of products; affordability of cover; and assurance that every valid claim will be paid,” Mr Kirwan said.

Lifeline on 131 114, Beyond Blue on 1800 512 348.

 

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 15.6 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.

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Bulk carrier detained after seafarers intimidated, underpaid and forced to sail for 14 months

THE DETENTION of a Hong Kong-flagged vessel allowed to cart alumina along Australia’s coast amidst accusations of abuse and intimidation shows the Federal Government’s fundamentally flawed regulation of coastal shipping is leading to the extreme mistreatment of vulnerable workers and violation of their human rights, according to the Maritime Union of Australia.

The bulk carrier Unison Jasper was bringing alumina to the Tomago Aluminium smelter when it was detained by authorities in the Port of Newcastle following allegations that crew members were abused, intimidated and forced to sign contract extensions which would have kept them on board for up to 14 months, well beyond the legal maximum of 11 months.

The Unison Jasper had been operating under a temporary license issued by the Australian Government to undertake coastal shipping between the ports of Gladstone and Newcastle.

Massive underpayment of wages were discovered when the vessel docked in Brisbane earlier in July, resulting in crew members being paid US$93,000 they were owed. Once the vessel left port, the Burmese seafarers were allegedly intimidated by ship officers to hand back the wages in question to ship management. Another US$60,000 in owed wages has been uncovered by inspectors from the International Transport Workers’ Federation in Newcastle.

The MUA and ITF are working with agencies, including the NSW Police, Border Force, the Australian Maritime Safety Authority and the Port of Newcastle, to have the workers paid the wages they are owed and have them safely repatriated to their home country. The MUA believes that the captain is in no condition to sail the ship after himself being at sea for 14 months and that the entire crew should be replaced. 

MUA National Secretary Paddy Crumlin said, “What we have seen on this vessel — with seafarers intimidated, robbed of their wages, and forced to remain on board for up to 14 months — is an extreme form of exploitation that has no place in Australian waters, but risks becoming more common as authorities fail to properly regulate amidst a global crew change crisis.

“Quite frankly, the Australian Government allowed things to get this bad on the Unison Jasper. They were clearly unconcerned with the seafarers’ conditions on board when they freely issued a temporary licence to this ship just last month. This is a ship with crew who had worked for 13 months — already beyond the legal limit. This vessel already had complaints lodged to AMSA for serious breaches of seafarers’ rights. Why did they grant it a licence when all the warning signs were there? 

“This route was previously serviced by Australian vessels, crewed by local Australian seafarers, and paid Australian wages and conditions, but the last remaining Australian vessel on this run, the CSL Melbourne, was removed from service in 2016. These Australian ships have been replaced by foreign Flag of Convenience vessels, operating under temporary licenses from the Federal Government, and crewed by exploited foreign workers.”

Mr Crumlin said exploitation and abuse on ships often occurs in supply chains when those who are supposed to be responsible turn a blind eye. 

“The owners of Tomago Aluminium — which include Rio Tinto and CSL — must take action to address this extreme exploitation in their supply chain. We have the largest aluminium smelter in Australia, owned by some of the largest companies operating in the country, allowing abuse and exploitation to occur under their noses,” he said.

“The mistreatment of these Burmese seafarers is not only illegal under Australian law, it is a clear breach of the international Maritime Labour Convention. The companies which are profiting from exploitation in our waters, and indeed anywhere, should be held to account.

“In my view, the continued issuing of licenses to Flag of Convenience vessels such as the Unison Jasper, crewed by exploited seafarers, makes our Federal Government complicit in the inevitable abuse that transpires. It’s built into the system.”

Mr Crumlin said discovery that the crew had been on board for up to 14 months, far in excess of the Maritime Labour Convention maximum of 11 months, was proof that the Federal Government was also asleep at the wheel when it came to regulating Australian shipping and upholding seafarer’s human rights.

“Seven of the crew members on board the Unison Jasper have been on board for 14 months with no way to get home, with the remaining four ratings on board too frightened to re-join the ship,” he said.

“Outrageously, the company was refusing to hand over the seafarers’ passports and was attempting to dictate terms to the Australian authorities. You have to wonder how we got here.

“Australia needs to sharpen its response to the unfolding crew change crisis that is leading to more cases like these. International seafarers need to be able to leave and join ships at Australian ports. We cannot tolerate floating prisons in our waters.”

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