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Technology Investment Roadmap identifies carbon capture as a low emissions tech priority

THE CO2 Cooperative Research Centre (CO2CRC) has welcomed the Federal Government’s embrace of science and technology as the pathway to accelerating low emissions technologies and its identification of carbon capture utilisation and storage (CCUS) as a priority low emissions technology.

CO2CRC chief executive, David Byers said the Technology Investment Roadmap provided a "powerful endorsement of the potential for CCUS to play a vital role in meeting the dual challenge of supplying more energy but with fewer emissions".

Mr Byers said, “As International Energy Agency executive director, Dr Fatih Birol declared earlier this year: ‘When we consider the scale of the energy and climate challenge, the critical importance of carbon capture is inescapable.’

“In that context, Australia is well-placed to be a world leader in CCUS. Recent project activity demonstrates to the nation that CCUS is not a dream for the future but a reality today,” Mr Byers said.

“The world’s largest commercial-scale carbon dioxide injection project commenced in August 2019 at Gorgon LNG on Barrow Island, off the northwest coast of WA. Gorgon is now progressively ramping up to full capacity of up to 4Mtpa of safe and permanent storage of CO2. 

“Santos is at an advanced stage of examining a large-scale commercial carbon capture and storage (CCS) project to be located in the Cooper Basin with a scalable potential to store up to 20 Mtpa of CO2 per year.

 “The launch of the Hydrogen Energy Supply Chain pilot project in Victoria has been another leap forward for CCUS in Australia. The CarbonNet Project is investigating the feasibility for a commercial-scale, multi-user CCUS network in Gippsland that will inject CO2 -- including that ultimately produced from commercial-scale hydrogen production -- into deep underground, offshore storage sites in Bass Strait. In January, CarbonNet reached an exciting phase with the conclusion of a successful offshore drilling appraisal well at the Pelican site.

“Finally, COAL21 is examining the development of a commercial scale CCUS project in Queensland’s Surat Basin with a final investment decision to begin construction of a $150 million carbon capture plant at the Millmerran Power Station scheduled for later this year.

“Together, this project activity demonstrates once again that CCUS is not experimental – it is a proven technology, currently being deployed, storing millions of tons of CO2. On a global scale, more than 200 million tonnes of CO2 have been captured and injected deep underground since the 1970s. One project - the Sleipner CCS operation in Norway has separated and injected about one million tonnes of CO2 per year since 1996," Mr Byers said.

“Today, 19 large scale CCS facilities are operating globally and another four are in construction.

The challenge is to continue to improve the cost-effectiveness of CCUS and develop the right policy settings for further investment.  

“The value of CCUS is its versatility as a technology. Its applications extend to industrial processes such as cement, iron and steel. Emissions in these sectors are hard to abate due to inherent process emissions and high temperature heat requirements.

"Earlier this month, Equinor, Shell and Total signed off on the Northern Lights Project - a plan to build a carbon capture network that will capture 5 million tonnes of CO2 per year from various industrial sites including a major Norwegian cement production plant and a large waste to energy plant in Oslo. CO2 emissions will be transported via ship and pipeline to an offshore storage reservoir in the Northern North Sea. Final go ahead for the project is subject to Norwegian Government investment and regulatory approvals,” he said. 

Mr Byers also highlighted the $194 billion export value of Australia’s coal, LNG and iron-ore resources in 2018-19.

“It is in Australia’s national interest to take advantage of all our natural energy resource endowments to enhance economic prosperity. CCUS has an important and unique role to play in reducing emissions from industrial processes vital to Australia’s economy like gas processing, steel and cement production

“CCUS can play a vital role in helping Australia achieve continued economic prosperity while meeting international emissions reductions commitments. The reality is that, over the long-term, there is unlikely to be a cost-effective emissions reduction response without CCUS.

"As the Technology Investment Roadmap points out, Australia is also well-placed to leverage its CCUS scientific and industry knowledge and experience to help neighbours in the Asia-Pacific region meet their low emissions targets.” he said.

www.co2crc.com.au

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Beware of COVID-19 stimulus fraudsters says TPB

THE Tax Practitioners Board (TPB) is warning the community and businesses to take extra care when seeking assistance in accessing the Federal Government’s COVID-19 stimulus measures.

This follows the identification of a growing number of complaints and intelligence about fraudsters posing as tax experts, providing misleading advice and support relating to COVID-19 stimulus benefits, often provided on a ‘no benefit – no fee’ basis.

The arrangements are often promoted through social media channels, claim to offer advice and support along with unnecessary services in a subscription or locked-in contract. Some of these arrangements involve businesses with thousands of clients. T

he organisations involved may claim that the advice being provided is ‘assured’ by a registered tax agent. That advice may be incorrect and breach the Tax Agent Services Act (TASA).

The TPB will prioritise investigations into organisations who have been involved in such conduct.

Often, an agreement may require the client to provide personal or confidential information including Tax File Numbers or MyGov ID logins. Unregistered service providers however, often have poor IT and security controls and are susceptible to identity theft.

TPB chair, Ian Klug said, "We are investigating organisations operating in this way to establish how, and which, services are being provided and whether they are in contravention of the law.

"We are concerned about protecting the consumers of taxation services as we know the accuracy of the advice given by unregistered agents is not reliable and there is no safe way to ‘assure’ advice by an unregistered tax adviser simply by involving a registered agent on the fringe of the business. Incorrect advice may prevent the full amount of the benefit from reaching its intended recipients.

"Also, incorrectly received benefits may have to be repaid and recipients may be liable for penalties and interest."

TPB is urging community to check whether their tax practitioner is registered on the public register at www.tpb.gov.au/onlineregister and follow the TPB’s tips when seeking taxation or COVID-19 stimulus advice.

Mr Klug said, "If you are not a registered practitioner and your business is engaged in providing advice or services related to any of the COVID-19 stimulus benefits such as Jobkeeper, Cash Boost or Early Release from Super, you are in breach of the TASA and may be liable for a civil penalty imposed by the Federal Court."

Any small business or individual unwittingly caught up in unfair contracts with businesses offering ‘assured’ tax services should seek legal advice.

If buisness leaders become aware of a potential scam or unregistered tax practitioner, report the situation to the TPB either This email address is being protected from spambots. You need JavaScript enabled to view it. or by calling 1300 362 829 (select option 5). All reports will be treated in the strictest confidence, Mr Klug said.

 

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_au, Facebook and LinkedIn.

 

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Dreamworld commends govt on tourism funding boost

DREAMWORLD today welcomed the joint announcement by Queensland Premier, Annastacia Palaszczuk, and State Development, Tourism and Innovation Minister Kate Jones of an extra $50 million to help support the tourism industry and, in particular, the state's iconic theme parks.

“There is no doubt the past few months have been incredibly difficult for all Australians and our industry has certainly experienced this as well," Dreamworld chief executive officer, John Osborne said.

"A cash injection of the kind described in the announcement by the Premier and Minister Jones is most welcomed and will greatly assist us as we move into the post COVID-19 environment," Mr Osborne said.

“We are pleased the government has recognised the significant role our parks play in both the tourism and local economies, and Dreamworld looks forward to working with the government to ensure our businesses recover, unite and grow stronger post COVID-19."

www.dreamworld.com.au

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Small business confidence crashes 53 points in 14 days as Coronavirus hits

EVEN BEFORE the COVID-19 pandemic, Australia’s small businesses were feeling stressed by the bushfire devastation and every day cost pressures.

Data from the Sensis Business Index, which measures small business confidence, shows a massive drop in confidence in just two weeks as the reality of Coronavirus hit Australia. Confidence fell from positive 40 on March 10 to negative 13 on March 24.

“Australia’s small businesses were feeling the squeeze before the impact of the Coronavirus hit,” said Sensis CEO John Allan. “But the massive fall in confidence in just a matter of 14 days, while not a surprise, was the fastest drop in the 25-year history of the survey."

The first survey respondents were in early March but as time progressed the stark reality of COVID-19 hit Australia’s small businesses quickly with sentiment changing mid-survey. At the start of March, 29.7 percent of SMBs had seen no impact on their business with 35.6 percent expecting to see an impact in the coming months. 

By the third week of March, 32 percent had seen a severe impact, 35 percent had seen some impact and 26 percent were expecting an impact.

“The extraordinary speed of the change in confidence is not something we’ve ever witnessed before; it was as if a speed train had hit the majority of small-medium businesses in Australia with 47 percent surveyed now worried about the future," Mr Allan said..

 

4 to 10

March

11 to 17

March

18 to 24

March

Confident about the future

54%

40%

34%

Neither confident nor worried about the future

31%

24%

19%

Worried about the future

14%

36%

47%

Confidence Index – net balance

+40

+4

-13

“Despite the realities of lockdown, more than one-third (34%) of small businesses were showing resilience and still confident about the future, suggesting they are hopeful about a quick bounce back post lockdown,” Mr Allan said.

Small businesses across the country were not confident about the economy going into lockdown: 64 percent believed the economy had contracted and 30 percent believed it had stalled; 60 percent believe the economy will be in worse shape in 12 months.

Around the country

In terms of the state and territory economies, 57 percent of SMBs believe their state economy is shrinking, and 35 percent believe it is at stand still.  South Australian SMBs were most pessimistic with 67 percent feeling the SA economy was shrinking.

“ACT small businesses were the most confident (47.3% were confident) while South Australian SMBs were the most pessimistic (52.3% not confident).”

In the March quarter nearly one-third (30%) of SMBs saw the value of their goods or services decline and 44 percent reported that the prices they pay for goods and services they use increased during the quarter.

SMB Confidence:

State

Confident

Not Confident

Australia

38%

40%

Victoria

38.1%

43.9%

NSW

37.7%

38.2%

QLD

36.3%

41.9%

SA

26.9%

52.3%

Tas

46.3%

34.8%

WA

40.2%

35.5%

ACT

47.3%

27%

NT

40%

31.4%

Survey Details:

The Sensis Business Index is based on 1,015 online interviews conducted between March 4 and 28, 2020 with small and medium business proprietors or managers employing up to 199 people. This sample is drawn from metropolitan and major non-metropolitan regions throughout Australia with targets set for location and industry on page 36. Glow is responsible for fieldwork and Dynata for sampling.

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ASIO questioning powers under Committee scrutiny

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has commenced a review into the effectiveness of the Australian Security Intelligence Organisation Amendment Bill 2020. The bill review was requested by the Minister for Home Affairs in a letter to the Committee available here.

The Bill amends the compulsory questioning framework in the ASIO Act by:

  • enabling ASIO’s continued use of questioning warrants, but removing its ability to use questioning and detention warrants;
  • replacing the existing detention framework with a more limited apprehension framework; 
  • enabling the use of questioning warrants in relation to espionage, politically motivated violence (including terrorism) and acts of foreign interference; 
  • providing the power for a police officer to conduct a search of a person who is apprehended in connection with a questioning warrant; and
  • permitting ASIO to seek a questioning warrant in relation to minors aged 14 to 18 years old, but only where the minor is themselves the target of an ASIO investigation in relation to politically motivated violence 

The Committee requests submissions to the inquiry by Friday June 26, 2020.

Prospective submitters are advised that any submission to the Committee’s inquiry must be prepared solely for the inquiry and should not be published prior to being accepted by the Committee.

Further information about making a submission to a committee inquiry can be found at the following link.

Further information on the inquiry can be obtained from the Committee’s website.

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ATA publishes a five point policy proposal for a post-COVID-19 Australia

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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Public Hearing: Cyber resilience and defence major projects

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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Expats hit with tax planning complications due to lockdowns says deVere

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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Commercial construction forecast to suffer steep decline - Master Builders

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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Caravans, camping tipped to lead tourism recovery

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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Caravans, camping tipped to lead tourism recovery

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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