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ATA demands transparency for government spending

THE Australian Taxpayers’ Alliance, the nations’ largest grassroots advocacy group representing taxpayers, today applauded the work of Senator James McGrath and seconded his call for greater government transparency especially when it comes to spending tax dollars.

“The Australian people deserve to know exactly how their money is spent,” said ATA policy director, Emilie Dye. “When we don't know how our money is being spent it is hard to hold politicians accountable.

“It seems like every month a new politician is embroiled in controversy for having misused taxpayer dollars on expensive trips or to prop up their political campaigns. Ralph the Rorter takes the fall and the rest of our pollies sigh in relief and continue business as usual.

"Australia needs a zero tolerance policy for corruption, but as the system works now most know they can get a away with fudging the books in their favour. Instead, anyone should be able use google to find exactly how every department and every politician spends their money.

“Australians should not have to spend money on freedom of information reports. This opaque bureaucratic system was made by the politicians for the politicians," Ms Dye said.

“Journalists, think-tanks, and advocacy groups provide an important check on government, but they can’t do their job if pollies hide behind poorly designed government websites and bureaucratic rules."

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Submissions open for 2020 ANZIIF Australian Insurance Industry Awards     

SUBMISSIONS are now open for the 17th Australian Insurance Industry Awards, hosted by the Australian and New Zealand Institute of Insurance and Finance (ANZIIF).

This is the insurance industry’s night of nights, celebrating the accomplishments of individuals and businesses in Australia.  The awards will take place at The Star Event Centre in Sydney on August 27, 2020.

"The Australian Insurance Industry Awards bring the industry together to reflect on the year that was, and celebrate the success and accomplishments of Australia’s most talented individuals, innovators and organisations contributing to the growth of the insurance industry," said Prue Willsford, CEO of ANZIIF.

"We are currently seeing the largest legislative change to financial services in 30 years following the Hayne Royal Commission. It is incredibly pleasing to see proactive collaboration from industry in tackling challenges and contributing to building professional standards.

"This is something that deserves to be celebrated and our awards are the perfect platform. I encourage you to apply and participate in this wonderful celebration of our industry."

ANZIIF has introduced a new category for 2020 – General Insurance Claims Team of the Year. This award recognises a claims team that has demonstrated excellent technical skills, strong claims results and outstanding customer service during 2019.

2020 ANZIIF Australian Insurance Industry Awards categories:

  • Small Broking Company of the Year
  • Life Insurance Company of the Year
  • Medium Broking Company of the Year
  • Insurtech of the Year
  • Large Broking Company of the Year
  • Professional Services Firm of the Year
  • Authorised Representative Network of the Year
  • Service Provider to the Insurance Industry
  • Underwriting Agency of the Year
  • Excellence in Workplace Diversity and Inclusion
  • General Insurance Claims Team of the Year
  • Insurance Learning Program of the Year
  • Small General Insurance Company of the Year
  • Young Insurance Professional of the Year
  • Medium General Insurance Company of the Year
  • Insurance Leader of the Year
  • Large General Insurance Company of the Year
  • ANZIIF Lifetime Achievement Award

 Submissions close Friday, May 1, 2020. 

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Committee to inquire into emissions reporting bill

THE House of Representatives Standing Committee on the Environment and Energy has called for submissions on the National Greenhouse and Energy Reporting Amendment (Transparency in Carbon Emissions Accounting) Bill 2020.

The Bill was referred to the Committee by the House of Representatives on February 27, 2020 for inquiry and report.

The Bill, sponsored by Andrew Wilkie MP (Member for Clark), seeks to amend the National Greenhouse and Energy Reporting Act 2007, to set a regular schedule for quarterly emissions reporting by the relevant Minister, and to capture scope-three emissions in all reporting obligations.

This would expand reporting to include emissions occurring in the wider economy, or internationally, as a consequence of the activities of a facility, from sources not owned or controlled by that facility’s business.

Chair of the Committee Ted O’Brien MP said, "If the Bill were to come into effect, we would effectively see emissions generated internationally from the use of our exported fossil fuels included in Australia’s national inventory of greenhouse gas emissions.’

Submissions to the inquiry will be accepted until March 20, 2020. The Committee intends to hold public hearings which will be announced in due course on the inquiry website.

Submissions must be relevant to the terms of the Bill. Details about the Bill and how to make a submission are available on the inquiry website.

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International Women's Day a good time to consider superannuation - Ombudsman

AHEAD of International Women’s Day on Sunday, March 8, the Australian Small Business and Family Enterprise Ombudsman Kate Carnell said the gender gap in superannuation "needs to be addressed".

“It’s staggering that in 2020, one in three women are retiring with zero superannuation,” Ms Carnell said. “The average super balance for women aged between 45 and 54 is about $114,000 versus $180,000 for men in the same age bracket.

“Women have an average retirement fund of $196,000 while men finish up their working lives with more than $310,000. While the number of women becoming small business owners has grown significantly in recent years, many are still not making regular contributions to their super.

“We know that small business owners tend to rely on their business to be their super, putting money into their business instead of their super funds," Ms Carnell said. 

“The strategy is often to ultimately sell the business and use the proceeds to fund retirement, but that’s very risky – particularly for women who statistically speaking, are less likely to grow their business.

“Our Small Business Counts report shows more than half of Australia’s small business owners have reported taxable incomes of less than the minimum wage, which makes it tough to pay super," Ms Carnell said.

“But even a small amount put away now – with compounding interest – is better than later in life.

“This International Women’s Day, let’s celebrate the fact that women are fantastic entrepreneurs but it is critical women consider their future now and make regular contributions to superannuation.”

www.asbfeo.gov.au

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Alarming new data paints grim picture for SME payment times

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said fresh data reveals small and medium sized businesses are waiting far too long to get paid.

A survey of 1200 SME owners across the nation, conducted by East and Partners on behalf of Scottish Pacific, has found SMEs are waiting an average of 56 days to be paid.

“The smaller the business, the harder they are hit by late payment times,” Ms Carnell said.

“While businesses with $10-$20 million revenue wait an average of 40 days to get paid, smaller businesses with $1-$10 million revenue are waiting an average of 66 days.

“The research shows that at any given time, SMEs have a third of their revenue tied up in outstanding invoices. That’s money they could be spending on growing their business.

“The bottom line is that all businesses should be paid within 30 days," she said.

“Over the past few weeks we have seen both Telstra and Rio move to 20-day payment terms for their small business suppliers and there is no reason why other big businesses can’t do the same.

“Our Supply Chain Financing Review has revealed the voluntary Supplier Payment Code is just not working.

“Formal recommendations will be made in the final report to be handed down in the coming weeks," Ms Carnell said.

“In the meantime, the Federal Government is consulting on its draft Payment Times Reporting Framework legislation that will require big businesses to be more transparent about their payment times.

“Businesses and interested parties have been given the opportunity to provide their feedback on this proposed reform which is designed to drive cultural change in business payment performance in Australia.”

www.asbfeo.gov.au

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Coronavirus disruption and tips for small business

AUSTRALIA's largest accounting body, CPA Australia has released tips for small businesses facing the possibility of significant disruption from the likely spread of coronavirus or COVID-19.

CPA Australia spokesperson Paul Drum said COVID-19 will be a shock to many businesses that could place their immediate future in serious jeopardy, and there is no way of knowing how long this pending crisis will last.

“For many businesses, likely moves by governments to contain the public health risk may result in a sudden fall in demand for products and services, labour shortages and supply disruptions," Mr Drum said.

“Businesses must assume that health authorities will ask people to stay home to contain the spread of COVID-19, or that large numbers of people will voluntarily stay home. This will result in people consuming less and purchasing in different ways. It will also impact staff availability, especially for businesses where employees cannot work from home.

“As part of a comprehensive risk management strategy there are a range of actions small businesses should consider taking now to prepare them for COVID-19, to place them in the best possible position to navigate through the crisis and prepare to take advantage of the recovery,” Mr Drum said.

Small businesses should consider the following advice:

  • Keep up to date with official information on COVID-19 and any directions public health authorities may issue
  • Update your financial statements
  • List possible impacts on your business of COVID-19, estimate the financial impact and develop mitigation strategies
  • Perform a financial health check on your business
  • Re-do your budgets with new assumptions
  • Act now to improve cash flow
  • Increase online sales
  • Put in place a contingency plan
  • Talk to key suppliers
  • Identify employees with critical skills for your business and make sure they can continue working or can be replaced
  • Do a reality check on your business
  • If you find yourself in financial difficulty, seek professional advice early.

The full list of CPA Australia’s tips, including additional detailed information can be found here:

https://www.cpaaustralia.com.au/~/media/corporate/allfiles/document/training/detailed-tips-for-small-business-on-covid-19.pdf

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Childcare limits stop professional women returning to work: AIPM report

REDUCING workforce disincentives facing professional, university educated women could add up to 12 million working hours to the economy annually -- the equivalent of an extra 6,500 highly talented women in the Australian workforce.

A report prepared by the Australian Institute of Project Management (AIPM), to coincide with International Women’s Day, identified eight imperatives for improving gender equity in senior industry levels.

It found that reforming federal government childcare policy would encourage many female executives to stay in the workforce full-time after starting a family – boosting gender equity and the GDP.

The reform is crucial, said  AIPM CEO Elizabeth Foley, because six in 10 Australians still work in industries that are dominated by one gender.

“AIPM’s membership comes predominantly from project-based organisations in male dominated industry groups, such as mining, construction, manufacturing, information, media and technical services,” she said..

“Women represent just 22 percent of our members. This reflects the male dominance of project management-based industries, and doesn’t reflect the available female skills and talent out there.”

Ms Foley said childcare reforms introduced in 2018 by the Federal Government presented significant disincentives to women from professional backgrounds returning to work after having children.

“Under the current settings, if combined family income exceeds the set upper limits by just one dollar, the amount provided by the Child Care Subsidy Scheme plunges by at least half and in some circumstances by more than half,” she said.

“These built-in financial cliffs really exacerbate the work disincentives facing younger working mothers, dissuading them from working more than three days a week.

“And that’s a real pity, because it’s only by working full time that they can properly achieve career mastery.”

The AIPM’s report identifies changes required to bring gender equity to the workplace.

As well as childcare reform, they include building a work culture that values women, closing gender-defined gaps in pay and superannuation, and breaking down the gender dominance (both male and female) that characterise many industries.

“In Australia, only 25 percent of the ASX-listed executive leadership team are women,” Ms Foley said.

“At that level, the gender pay gap averages 21.3 percent – meaning women are being paid almost $26,000 less each year than men filling identical roles and carrying identical responsibilities.”

https://www.aipm.com.au/resources/reports/gender-equity-in-the-workplace

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Missing middle should be developer focus

WITH INSOLVENCIES at an all-time high, and the continued risk of constructing high-rise unit blocks, it is essential developers focus on the ‘missing’ middle ring, employ a sustainable business model and address imbalances in the property market, according to RiskWise Property Research CEO Doron Peleg.

This has never been more important, he said, as figures show building approvals, especially in Sydney, are on the increase.

According to the latest figures from the HIA, building approvals in November reached their highest level since March 2019, up by 11.8 percent due, predominantly, to a surge in NSW.

Figures show, in seasonally adjusted terms, building approvals for the month of November 2019 increased in NSW (+52.8 per cent), South Australia (+3.8 per cent) and Queensland (+1.0 per cent).

However, RiskWise’s Mr Peleg said an increase in approvals did not necessary bode well for the property market as indicated by the record number of developer insolvencies.

ASIC reports the number of construction businesses that went into external administration rose from 371 in the September quarter of 2018 to 514 in 2019. Meanwhile, over the 2018-19 financial year, 556 construction companies went under, 101 more than the previous financial year.

In addition, 169 NSW-based construction companies went into administration, receivership or a court-ordered shutdown in the June quarter which was the highest number since the September quarter in 2015.

According to CreditorWatch, the construction sector also topped the list for recovery court actions Australia-wide and in NSW, court actions for recovery in the third quarter of 2019 were 35 percent higher than the comparable quarter of 2018.

Mr Peleg said there had already been numerous cases of lots approved for development and subsequently sold at a loss, especially in light of the construction defect reports.

“And if you are losing 20 percent, you are lucky. We are really talking about millions of dollars,” he said.

“The point is developers are at risk of insolvencies and this means they need to mitigate this risk by ensuring they have a sustainable business model, focus on the ‘missing’ middle ring and address imbalances in the property market.

“Focusing on the missing middle is by far more of a solution than taking the risk of off-the-plan high-rise development.”

Mr Peleg said population growth, job creation, improving economies and good infrastructure that Sydney and Melbourne were experiencing would draw people to these cities and, therefore, increase demand for property, with population forecasters expecting both to hit the eight million mark by 2050.

In addition, he said in the current environment of already high prices it would be more difficult for owner-occupiers to compete with property investors, especially given the current environment of low interest rates and low out-of-pocket expenses. 

“We expect to see investors increase their activity in the market as it is currently well below peak and this will put further pressure on dwelling prices and housing affordability,” he said.

“But it must be remembered that family suitable units in the middle rings are more attractive to owner-occupiers looking for larger floor space, lower price per square metre and smaller unit blocks. These are, effectively an alternative dwelling to houses, which are, in many areas, unaffordable.

“These imbalances in the market cannot be resolved without a strategic solution and co-ordinated plan by all levels of government.

“In the meantime, what it means for developers is they should be focused on developing the middle rings with family-suitable accommodation close to transport hubs and schools. There are actually many areas that have a great potential and carry a low risk, it is only a matter of business strategy and proper risk management practices.”

www.riskwiseproperty.com.au

ACCC Report confirms insurers shouldn't play doctor

TODAY's ACCC report into private health insurers paints a disturbing picture of deceptive behaviour and declining affordability and value driving the industry’s current ‘death spiral’.

It also casts a shadow over today’s calls by the nation’s largest health insurers to remove current rules protecting patient access to the best and latest medical technology.

The ACCC report cites multiple examples where the big corporate insurers have tried to deny their customers access to essential medical treatments, while at the same raising patient premiums and out of pockets.

Thanks to the ACCC report, this alleged tendering ‘policy reform’ from private health insurers has therefore been today exposed as nothing but a front to put profits before patients.

The ACCC report is also further proof as to why it is not just unethical, but medically unsafe, for private health insurers to be given more power than doctors when it comes to making decisions in the best interest of patients.

The likes of Medibank, Bupa, NIB and HCF have already undermined consumer confidence in their own products through their 'smash and grab' approach to keeping their businesses afloat.

The Federal Government cannot afford for private health insurers to also now undermine patient confidence in their doctors.

This will not only spell an end to private health insurance as we know it, but irreparable damage Australia’s health system as a whole.

Key quotes from the ACCC report:

“The costs of private health insurance continued to be of concern to consumers.” (p1)

“In 2018  –19, private health insurance participation rates continued to decline, while average gap payments for in-hospital and extras treatment increased.” (p1)

“Cumulative premium increases have been higher than inflation and wage growth in the past five years, indicating that households with private health insurance are contributing an increasing proportion of their incomes to paying premiums. (p1)

“When gap payments have been incurred by consumers for hospital treatment, these increased on average by 1.9 percent, with an increase of almost 4 percent for extras treatment. (p5)

“The ACCC instituted proceedings in the Federal Court on 2 September 2019 against Medibank Private Limited trading as ‘ahm’ (Medibank), alleging that Medibank falsely represented to members holding ahm “lite” or “boost” policies, who were making claims or enquiries, that they were not entitled to cover for joint investigations or reconstruction procedures, when in fact their policies covered these procedures. (p21)

“The ACCC instituted proceedings in the Federal Court in May 2017 against NIB alleging it contravened the ACL by engaging in misleading or deceptive conduct, unconscionable conduct and making false or misleading representations. The proceedings arise from NIB’s alleged failure to notify members in advance of its decision to remove certain eye procedures from its ‘MediGap Scheme’ in 2015. Under the MediGap Scheme, members had previously been able to obtain these eye procedures without facing out-of-pocket costs when doctors participated in the scheme.” (p22)

“As noted in the ACCC’s 2017-18 Private health insurance report to the Australian Senate, the PHIO released a report into hospital policy changes announced by Bupa in February 2018, in which benefits would no longer be paid for a range of services previously covered under its basic and mid-level hospital policies. (p23)

www.accc.gov.au

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Showcase your products in the Australian Pavilion at CIIE 2020

AUSTRALIAN Made Campaign partner, Oz-Town, is hosting an Australian Pavilion at this year's China International Import Expo (CIIE) and is inviting Australian manufacturers to register their interest.

Branded with the iconic Australian Made logo, the Oz-Town Australian Pavilion aims to provide an effective platform for Aussie exporters to showcase their genuine Australian products and connect with buyers, retailers and distributors.

Hosted by the Ministry of Commerce for the People's Republic of China and the Shanghai Municipal People's Government, CIIE is an annual Chinese trade fair and the world's first import-themed national-level expo. This year it will be held in Shanghai China from November 5-10, 2020. 

With the support of the Australian Made Campaign (AMCL), Oz-Town plans to establish an Australian Pavilion with areas dedicated to Food & Agriculture, Lifestyle and Health & Medical.

Oz-Town will arrange for several China-based business partners to attend the Australian Pavilion, while also hosting several 'business matching' events to connect exhibitors with buyers and retailers.

In 2019, more than 80 China-based businesses (buyers/retailers) visited the Oz-Town Australian Pavilion. Oz-Town also arranged several 'business matching' events, resulting in US$100m worth of sales contracts.

This opportunity is suitable for exporters of Australian products looking to break into or grow their market share in China.

An Oz-Town CIIE webinar will be held on on March 18 at bit.ly/AustralianPavilion.

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Regional fact-finding starts in Tassie

A FEDERAL Parliament inquiry into regional Australia is starting its investigations by touring and meeting with regional business and community members in Tasmania.

House of Representatives Select Committee on Regional Australia Chair Tony Pasin saidTassie was the perfect place to start an inquiry into the regions.

"We want to hear about what works, and what doesn’t," Mr Pasin said.

"We will be visiting local success stories in the Launceston and Hobart areas, including innovative economic development group Bell Bay Advanced Manufacturing Zone and startup hub Enterprize.

"In Hobart, we will explore the 'MONA effect' and hear about how regional areas can benefit from tourism dollars – and the challenges such a shift can create," he said.

Roundtable discussions on Regional Business and Regional Community will be held in Launceston, and a roundtable discussion on Regional Tourism will be held in Hobart.

Community members are encouraged to attend and speak to the Committee as part of the roundtable discussions, and can contact the secretariat for more information.

Information on the Committee’s work, including submissions and public hearing programs, may be found on the Committee’s webpage.

Regional Business Roundtable

Date: Wednesday, 11 March 2020
Time: 10.30am to 11.45am
Location: George Town Library Hub, 12 Elizabeth St, George Town

Regional Community Roundtable

Date: Wednesday, 11 March 2020
Time: 2.30pm to 3.30pm
Location: Macquarie House, 92 Cameron St, Launceston

Regional Tourism Roundtable

Date: Thursday, 12 March 2020
Time: 1pm to 3pm
Location: Eros Room, Museum of Old and New Art, 655 Main Rd, Berriedale

The roundtable discussions will be broadcast live at aph.gov.au/live.

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