The Australian Taxpayers' Alliance today released a policy paper outlining five proposals for economic recovery in a post-COVID-19 Australia.

The ATA recommends:

1. Deregulation: Use cuts to red tape as a fiscal stimulus to jump-start the economy post-COVID-19.
2. Decentralisation of Power: Shrink the government back to its original size and put more power into the hands of the Australian people.
3. Taxation: Implement structural tax reform and get rid of government waste caused by inefficient and costly taxes.
4. Domestic Economy: Promote local manufacturing by making Australia globally competitive, not by instituting protectionism policies.
5. Superannuation: Keep the increased superannuation flexibility and give Australians more power over their retirement savings.

"Through this plan, we aim to identify waste so that the government can contain the deficit -- without increasing the burden on taxpayers or harming the economy," ATA policy director, Emilie Dye said.

“Policymakers can use this crisis to pinpoint weaknesses in Australia's tax and regulatory systems and then use the current momentum to push real structural reforms.

"Australian politicians have a choice: they can tax more, regulate more, and otherwise expand their powers, or they can use this disaster to restructure our tax and regulatory codes and put more power in the hands of the people.

"COVID-19 has disrupted people's lives, the economy, and government coffers in ways no one could have predicted. Policymakers have had to institute dramatic changes. But as we ease back into normalcy, we cannot become compliant,” said Ms Dye. “An overly authoritarian government and a dangerous debt still threaten the Australian public. Australian politicians need to make smart reforms now.”

[Read the full policy here]

Emilie Dye commented on each policy point: 

Deregulation: Use cuts to red tape as a fiscal stimulus to jump-start the economy post-COVID-19

“Cutting red tape can act as one of the most effective forms of fiscal stimulus. By reducing regulation, we can cut costs for both businesses and taxpayers.

“Regulation is the kryptonite of innovation. Businesses need all the strength they can get to recover from this crisis, and our government agencies need to focus all their resources on recovery.

“COVID-19 has revealed regulations Australia doesn't need, like restrictions on operating hours and redundant licenses that do not make consumers any safer. The state and territory government would be stepping backwards if they were to reinstate these archaic restrictions.”

Decentralisation of Power: Shrink the government back to its original size and put more power into the hands of the Australian people

“Australians have lost many of their fundamental rights during this crisis, and the state police departments have collected millions in fees for their governments. With on the spot fines and judge only trials, Australians have been treated like criminals who need to prove their innocence.

“We need to return to being a society that treats people as innocent until proven guilty. Australian's deserve to have their voices heard both in Parliament and in the courtroom.”

Taxation: Implement structural tax reform and get rid of government waste caused by inefficient and costly taxes

“Over the years, Australia has collected a cocktail of taxes, some of which are toxic to the economy. By cutting wasteful and inefficient taxes like the stamp duty, payroll tax, and the corporate tax, the government could spur economic growth and increase the tax take in other areas.

“To contain the debt, the government doesn't need to tax more; it needs to tax smarter.”

Domestic Economy: Promote local manufacturing by making Australia globally competitive, not by instituting protectionism policies

“COVID-19 uncovered the corpse of our manufacturing industry. Australia faced painful supply chain shortages that showed our nation's over-dependence on China.

“Instead of arguing for policies that would supposedly ‘protect’ Australian industry from foreign competition, we should make Australia globally competitive. Australian businesses don't have a fighting chance against foreign corporations, because we have handicapped ourselves with high taxes, unnecessary regulations, and inefficient bureaucracies.”

Superannuation: Keep the increased superannuation flexibility and give Australians more power over their retirement savings

“We can walk away from COVID-19 with a healthier, more resilient Australia, or the government can rigidly attempt to manage the lives and finances of every Australian. It's time we gave Australians power over and access to their own superannuation funds.

“Only individual Australians know best how to save and spend their own hard-earned money. Scott Morrison has temporarily allowed Australians to access up to $10,000 of their super tax-free. Let's make that change permanent.”

About the ATA

The Australian Taxpayers' Alliance is the nation’s largest grassroots advocacy group representing the everyday Australian taxpayer. Through our campaigns, we fight to oppose over-regulation, wasteful spending and burdensome taxes. ATA's mission is to transform our nation and build a better, freer, and more prosperous Australia.

www.taxpayers.org.au

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THE Joint Committee of Public Accounts and Audit will be holding a public hearing for its Inquiry into Cyber Resilience, based on Auditor-General’s Report No. 13 (2019-20), Implementation of the My Health Record System, and Report No. 1 (2019-20), Cyber Resilience of Government Business Enterprises and Corporate Commonwealth Entities.

The public hearing is scheduled for Tuesday, May 19..

The Committee will also be holding public hearings for its Inquiry into the Defence Major Projects report, Auditor-General’s Report No. 19 (2018-19), and Auditor-General’s Report No. 22 (2019–20), Future Submarine Program—Transition to Design.

The public hearings are scheduled for the following dates:

-       Wednesday, May 20, which will consider in detail Auditor-General’s Report No. 22 (2019-20) and related matters

-      Wednesday, May 27, which will examine Auditor-General’s Report No. 19 (2019-20) and related matters

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

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MANY EXPATS are likely to face “unexpected tax complications” because of the lockdown restrictions, warns the CEO of one of the world’s largest independent financial advisory and services organisations.

The warning from Nigel Green, chief executive and founder of deVere Group, which operates in 100 countries globally, comes as many nations around the world are beginning to ease the measures put in place to reduce the spread of Covid-19.

Mr Green said, “Many expats, and others who live outside their countries of origin, have found themselves stuck in other countries where they don’t normally reside due to the widespread lockdown measures, the closure of national borders, and almost no commercial flights.

“And despite the easing of some restrictions in some places, the current situation might not change for a while yet, especially due to the situation in the aviation and wider travel sector.

“People stranded in different jurisdictions could find that their residency status changes," Mr Green said. "Being stuck somewhere you hadn’t planned to be for an extended period of time could mean that you inadvertently become a tax resident there.  

“This could impact your tax planning strategies which, in turn, could affect other personal finance matters including retirement planning, estate planning and trusts. 

“The potential for unexpected tax complications is high, especially as each jurisdiction has its own individual regimes and regulations when it comes to cross-border tax planning.  Also because it is widely predicted that taxes are expected to rise.

“Those who feel they might be affected should seek expert cross-border financial advice sooner rather than later to mitigate any nasty surprises.”

Despite some reports to the contrary, the deVere Group CEO affirms that it is not just the very wealthy who could be hit by the impact of lockdowns on tax positions.

“There’s potential for a significant number of those who live and work or retire outside their country of origin.

“Typically there will be a series of legitimate solutions to reduce being hit with tax complications.  But to avoid burdensome, complex and costly issues arising, the sooner those who could be impacted seek advice, the better.”

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THE COMMERCIALl construction sector is facing a devastating downturn due to the impact of COVID-19 unless governments act to provide stimulus.

Denita Wawn, CEO of Master Builders Australia said, “Commercial construction activity is forecast to severely decline. Compared to our previous forecasts Master Builders now expects commercial building activity to be 15.7 per cent lower in 2020/21 and 11.5 per cent lower in 2021/22.

“The lockdown has obliterated private sector demand in the economy and a gradual easing of restrictions is not going to replace that demand, so governments need to act.

“The impact on the commercial construction sector (as well as residential construction) is severe because the majority of projects are not publicly funded,” Ms Wawn said.

“There are 459 projects in Master Builders’ reports on the current pipeline of potential commercial building projects in Australia. Most of these projects, 314 (68 percent) are private sector funded projects, 108 (23 percent) are public sector projects and 37 (8 percent) are public private partnerships; 43 percent of all projects cost more than $50 million, 24 percent are under $50 million and the cost of 33 percent of the projects is unknown,” she said.

“Master Builders is calling on National Cabinet to urgently develop a COVID-19 Action plan for the building and construction industry including measures to address the looming devastation to the forward pipeline in commercial construction.

“Logical areas where government stimulus can help build the bridge to recoveryare are where the public sector dominates, such as in education, health and defence.

“Bringing forward maintenance on government buildings is a stimulus measure Master Builders has been calling for and we commend the Department of Defence which has just announced $870 million in estate works which will bolster the confidence of construction contractors and subcontractors,” Ms Wawn said.

Other measures that Master Builders is calling for include:

• An expansion of government construction of education, health and aged care facilities.

• Extending the government guarantee for working capital loans to projects above $50 million could reduce the impact of financial risk from COVID-19 thereby softening the impact on commercial activity.
• Governments taking the lead in funding cladding rectification and asbestos remediation. Buildings requiring rectification were identified in the state and territory cladding audits and projects on government asbestos remediation lists could be fast tracked with government stimulus to prop up commercial activity and provide employment opportunities

www.masterbuilders.com.au

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THE CARAVAN and camping sector can lead the road to recovery for regional tourism with an average spend of $584 per trip according to Tourism Research Australia, and over 500,000 travellers indicating they’d take a camping trip within two months. 

This has the potential to kick-start the recovery for tourism and inject over $292 million dollars directly into the hands of regional tourism operators who rely on caravanners and campers travelling to experience a wide variety of attractions.  

The intention to go caravan and camping is significantly higher than general travel intention, with only 12 percent of the broader Australian population planning to book a holiday in the next three months, indicating that caravan and camping travellers are seven times more likely to take a holiday in the next three months than the rest of Australians.  

With restrictions beginning to ease in parts of the country, this is great news for the many regional communities who rely on this market to support local jobs. With over 711,000 registered RV’s and thousands of free-standing roofed accommodation options, it presents a massive opportunity for towns all around Australia.  

Most caravan and holiday parks have implemented COVID-19 safe guidelines already, catering for permanent residents, essential workers and stranded caravanners. 

This includes contact tracing, social distancing and increased hygiene regimes in common areas and amenities.  Unlike other accommodation they also don’t have shared lifts and lobbies or shared air-conditioning facilities.  

This economic opportunity is reflective of the pent-up demand of those that own caravan and camping product which has been sitting idle for months.

www.caravanindustry.com.au

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THE CARAVAN and camping sector can lead the road to recovery for regional tourism with an average spend of $584 per trip according to Tourism Research Australia, and over 500,000 travellers indicating they’d take a camping trip within two months. 

This has the potential to kick-start the recovery for tourism and inject over $292 million dollars directly into the hands of regional tourism operators who rely on caravanners and campers travelling to experience a wide variety of attractions.  

The intention to go caravan and camping is significantly higher than general travel intention, with only 12 percent of the broader Australian population planning to book a holiday in the next three months, indicating that caravan and camping travellers are seven times more likely to take a holiday in the next three months than the rest of Australians.  

With restrictions beginning to ease in parts of the country, this is great news for the many regional communities who rely on this market to support local jobs. With over 711,000 registered RV’s and thousands of free-standing roofed accommodation options, it presents a massive opportunity for towns all around Australia.  

Most caravan and holiday parks have implemented COVID-19 safe guidelines already, catering for permanent residents, essential workers and stranded caravanners. 

This includes contact tracing, social distancing and increased hygiene regimes in common areas and amenities.  Unlike other accommodation they also don’t have shared lifts and lobbies or shared air-conditioning facilities.  

This economic opportunity is reflective of the pent-up demand of those that own caravan and camping product which has been sitting idle for months.

www.caravanindustry.com.au

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AS PART of its inquiry into the education of students in remote and complex environments, the House Education Committee wants to know more about the impacts of the COVID-19 pandemic on home learning and teaching.

The inquiry was initially launched in December, and has received submissions from a wide range of stakeholders and experts. The Committee has outlined areas of interest, but in recent months suspended its program of hearings because of the pandemic.

"As Australian students and teachers move to the next phase, we are again inviting views – we are sure that lessons being learned help improve our understanding of a student’s education journey in remote and complex environments," said Andrew Laming MP, Chair of the Committee.

"The Committee has been examining how education meets the learning needs of students and how barriers in the education journey are overcome. The response of Australian schools to the COVID-19 pandemic, and the need for rapid adaptation to home and online learning, has clearly accelerated the importance of flexible and well-supported responses," Mr Laming said.

"We want to expand our range of evidence into specific lessons and consequences of rapid and flexible home and online learning and teaching. The Committee hopes to learn more about how these new flexible approaches might continue to be applied in remote and complex environment long after schools return to ‘normal’ face-to-face teaching," Mr Laming said.

"We also hope that some of the excellent stakeholders we’ve heard from so far might give us the benefit of their recent, COVID-19 experience so that we can take this inquiry forward."

Beyond hearing more about adaptations and solutions to challenges posed by the COVID-19 pandemic, the Committee’s areas of interest include 

• small remote schools; particularly in challenging areas like the tri-state area of central Australia;
• career counselling of remote students and means of connecting them to further education or local employment;
• challenges faced by regional schooling providers and initiatives in place;
• how families of vulnerable young children can access, enrol and remain in early learning, and the collaboration between early and primary education; 
• the performance and monitoring of those in home schooling to maintain national minimum standards; and
• access and support to deliver the Australian Curriculum (including STEM) in a flexible way, to meet local learning needs and interests of remote students, including examples of innovative ways in which the curriculum is being delivered in remote schools.

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INDUSTRY SuperFunds will invest tens of billions of dollars in Australia’s economic recovery with the aim to create or support many thousands of jobs in the years ahead.

Not only has the superannuation sector paid out about $10 billion to members who need to access their super now, they plan to invest tens of billions more in Australian business, equities, property and infrastructure, investments that support the economy and drive growth and job creation.

Industry Super Australia chair Greg Combet said, “Our funds have been helping members through the tough times and we stand ready to help get them safely back to work and the economy growing again.

“We’ve got significant funds available and plans to provide capital to solid Australian businesses and bring forward large investments in major projects and essential infrastructure that will create new jobs and sustain many more," he said.

 “We’re determined to play a key role in helping Australia’s economic rebuild, because that gets some members working again and delivers long-term returns for all.”  

Collectively Industry SuperFunds own $80 billion in Australian infrastructure, property, and other assets. One year’s capital expenditure on infrastructure created or supported 46,000 jobs.

Industry Funds have more than $28 billion earmarked to expand their infrastructure and property holdings and to invest in Australian business, driving further jobs growth. This money will fund solar farms at Darwin airport, other airport terminal expansions, rail upgrades, build shopping centres and commercial and residential developments.

With the confidence of stable superannuation policy settings and partnerships with state and federal governments these infrastructure commitments could be just the start.  

Not only do these infrastructure holdings generate jobs – but means that workers, through their super funds, get the profits from the roads, buildings, airports and seaports they built and use daily.

Since the Covid-19 downturn Industry SuperFunds have poured hundreds of millions into the balance sheets of good Australian business, this helps them to rebuild and to expand operations.

Funds have participated in the capital raising for NAB, Reece Plumbing and Ramsay Healthcare.

And there could be billions more to come, at the end of the Global Financial Crisis the superannuation funds provided a significant portion of the $120 billion in capital raised by local businesses.

Industry SuperFunds remain committed to supporting technology start-ups, SME businesses, social housing and aged care, as well as providing finance to the major banks.  

Industry super funds hold a major stake in Australia’s economic life through investments in Australian listed companies – collective owning 10 per cent of the ASX - debt markets, infrastructure, property and the wider financial system.

The super system needs a strong Australian economy to deliver for members, and the economy needs a strong super system to support its recovery. 

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