ON MONDAY December 2, the PFAS Sub-committee of the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT) will hear from the Department of Defence about the effectiveness of its National PFAS Investigation and Management Program.

The chair of the PFAS Sub-committee the John McVeigh MP said the Department of Defence was at the forefront of remediation work on per-and poly-fluoroalkyl substance (PFAS) contamination in Australia.

The Department of Defence is now conducting PFAS investigation and remediation work at 28 Defence sites, with innovative water and soil treatments being delivered with the aid of expert environmental service providers.

“The question for the Sub-committee," Dr McVeigh said, “is whether these works are delivering the desired results, and being seen to do so?”

Evidence from the ANU PFAS Health study last week confirmed what Sub-committee members have seen in affected communities themselves - the levels of anxiety and uncertainty are high. This is despite the evidence that concentrations of PFAS in the environment, and hence people’s exposure, is coming down.

“With environmental regulations becoming more robust and locally based medical evidence being consolidated, reducing exposure to PFAS and its presence in water and soil is environmental best practice”, Dr McVeigh said.

“The challenge is to ensure that the Department of Defence is accountable to the public for the work being done, and that affected communities, in particular, are informed of progress, and problems, at each step of the way.”

The PFAS Sub-committee will report on the evidence taken by the end of the year and continue its ongoing scrutiny of government activity at hearings from the first sitting weeks of 2020.

Public hearing details:

Date: Monday 2 December 2019
Time: ~4:10pm to 5pm
Location: Committee Room IR4, Parliament House, Canberra.

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

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THE LATEST attempt by ASIC to improve disclosure of superannuation investment fees and costs is a welcome step forward but doesn’t go far enough to fix many of the long-running issues with RG 97, according to Industry Super Australia (ISA).

The effect is that new guidelines for the disclosure of superannuation and managed investment fees will leave consumers more confused when it comes to choosing a fund or product – not less.

Industry Super Australia’s head of research, Nick Coates said while the release of ASIC’s updated Regulatory Guide 97 (RG 97) was important to improving transparency, the new guide doesn’t deliver the clarity consumers need to make informed decisions on fees and cost comparisons.

Despite creating a number of new groupings to more clearly show fees and costs, the new guide still fails to provide a ‘net returns measure’ – a single measure incorporating the effect of fees and costs – which would allow consumers to compare apples with apples across various funds and products.

Another key issue identified by ISA in its submission to ASIC on RG 97 but not addressed in the new guide relates to platforms owned by banks and investment managers, where they are only required to disclose the cost of gaining access to a product – not the cost charged by those issuing the product.

This means consumers may believe these products are less expensive – but are unaware they will then be hit with additional fees and charges on top of what has already been disclosed.

“We know this has been a lengthy process, and while ASIC is trying to get this right, without law reform they can’t fix it, and this is a missed opportunity for consumers," Dr Coates said. “We needed to see the banks’ super fund platforms product costs all in one place so consumers could compare them against cheaper run funds – instead we have ended up with a situation where they are expected to volunteer to provide example disclosure – it’s fanciful.

“While we welcome steps taken by ASIC to improve transparency when it comes to fees and costs, this latest guide doesn’t go far enough when it comes to providing clear and simple comparisons between the bank products and other super funds, and we worry this will impact APRA’s heatmaps that are based on RG 97.

“The only way consumers can have confidence they are comparing apples with apples is to use a net returns measure. This catch-all figure means they can see exactly what they will be earning, after fees and costs.”

www.industrysuper.com

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INDUSTRY SUPER funds MTAA Super and Tasplan have today finalised an unconditional agreement to merge on October 1, 2020.

MTAA Super oversees over $13 billion in retirement savings for workers in the motor trades and allied industries. Tasplan is a multi-industry not-for-profit fund managing $10 billion in assets. 

The merger will create a combined national super fund with more than $23 billion funds under management and approximately 335,000 members. 

The decision follows a comprehensive due diligence process ensuring both parties are satisfied the agreement is in the best interest of members of both funds.  

The combined fund’s corporate and trustee functions will be based in Canberra, with satellite offices in Tasmania and other locations, in recognition of the merger’s ‘best of breed’ approach.  MTAA Super’s administration services will be moved in-house to Tasplan’s Hobart facilities.

Fund Chairs, John Brumby of MTAA Super and Naomi Edwards of Tasplan, said the merger was driven by shared values and a desire to secure better member outcomes.

“Our organisations have a lot in common. We were both recently awarded Platinum status by SuperRatings as ‘best value for money’ funds, and we both have a strong focus on excellence. By combining our strengths, we are creating a multi-industry fund providing quality, customised service to members and employers across the country,” said Ms Edwards.

The combined fund’s scale will provide efficiencies that can be passed on to members through improvements to products and services, low fees and strong returns.

“Scale will help drive efficiencies and provide greater buying power,” said Mr Brumby. “This merger will enable us to negotiate top quartile investment management fees and take advantage of fee scale discounts. This means better value for money for our members.”

The merger comes as super funds face increased pressure to ensure they have sufficient scale to provide competitive products and services into the future. 

The Chairs believe the merger will achieve a significant capability uplift and place the fund in a highly competitive position both now and into the future.

“The current political and legislative landscape will likely mean an increase in super fund mergers over the next few years,” they agreed. “By merging now, MTAA Super and Tasplan have chosen to be on the front foot and stay in control of our destiny, and member outcomes.

Completion of the merger coincides with the conclusion of Mr Brumby’s final term as Chair of MTAA Super.  Mr Brumby said, “I’m very proud of what MTAA Super has achieved in my nine years as chair. We’ve built a robust, resilient and strongly performing fund through strong governance and risk management, improved investment performance and a proactive compliance regime. We’ve improved our services to members and employers, while also keeping downward pressure on fees and costs This merger is an important continuation of a journey we’ve been on for a while now. I have no doubt it will lead to positive retirement outcomes for members now and well into the future.” 

Ms Edwards, who has been chair of Tasplan since 2011, will stay on as chair of the new combined board. Having led Tasplan through several mergers which have seen the fund grow from $2.4 billion to just over $10 billion, she brings invaluable experience and leadership to the process. 

“I would like to acknowledge the extraordinary contribution of John to the success of MTAA Super over the last 9 years,” said Ms Edwards.” Under John’s chairmanship, MTAA Super has become a top quartile performer, year after year, as well as a highly regarded corporate player and contributor to the motor trades sector.  John will leave a very strong legacy when he retires next year and it will be a privilege to follow in his footsteps.”

On completion of the merger, Leeanne Turner, current CEO of MTAA Super, will assume the CEO role of the new fund to ensure continuity of leadership. Wayne Davy, current CEO of Tasplan Super, will continue in that role until merger completion date, working closely with Ms Turner to ensure a smooth transition.   

Ms Turner and Mr Davy said their focus will now be on making sure the transition is as smooth as possible for members and employers.

“We’ve got a bit of work to do to consolidate our systems and processes. We’re confident this can be done with minimal impact to members. At the end of the day members and employers can still expect to receive quality support and services face-to-face, over the phone and online. That will never change.”

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“THE REJECTION of the Ensuring Integrity Bill by some members of the Senate crossbench is a bitter blow for the building and construction industry,” Denita Wawn, CEO of Master Builders Australia said yesterday.

“Master Builders thanks those senators who defied construction union bullies and thugs to support the Bill and the rule of law.

“The thousands of small builders and tradies that are victims of construction union bullying will be gutted by this. They deserve an explanation from those senators that rejected the Bill about why they voted to let the bullies win,” Ms Wawn said. 

“The action of these senators will give the green light to construction unions and their officials to continue to bully, harass and coerce small business people to sign up to union deals and it’s our members and the community that will pay the price. 

“Master Builders will continue to fight for measures to combat the toxic culture of bullying in the construction unions,” Ms Wawn said. 

“Today’s vote is a setback, but we’re not going anywhere. Bullying is not tolerated in the community, and it should not be tolerated on construction sites.

www.masterbuilders.com.au

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INSTITUTE of Public Accountants (IPA) chief executive officer, Andrew Conway, set the scene at today’s opening of the IPA’s annual national congress in Adelaide today.

In his opening address to hundreds of accountant delegates, Prof. Conway made it clear where the IPA sits on many issues but also that of the profession.

“Today, we are focussed on four key factors to drive the profession forward through the decades to come,” Prof Conway said.

“Firstly, voice and a very public voice at that: We openly set discourse across many policy areas; not just for our members’ interests but that for the public interest and very much for the Australian economy.

“Together, the three professional accounting bodies, must have a single message to deliver these outcomes.  Australian citizens are facing an advice gap we have not seen before and we must arrest this situation," he said.

“Secondly, we must influence. Government is listening to our collective voices and we need to maintain the momentum to effect change.  We must continue to communicate to all stakeholders which importantly includes the 310,000-plus accountants and students who are members of the three bodies," Prof Conway said.

“Thirdly, we must demonstrate leadership within the profession.  There is no better time to be an accountant, considering the changing landscape and the challenge that presents.  We must provide guidance to accountants through the web of challenges ahead; technology, cyber security, regulatory reform, mental health and many more.

“We look forward to the decade ahead and the evolution of accountants and the profession,” Prof Conway said.

www.publicaccountants.org.au

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About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.

AT THE OPENING address at the Institute of Public Accountants (IPA) National Congress in Adelaide this week chief executive officer, Andrew Conway, said the regulatory burden on the nation was stifling productivity and growth.

“We know, we have to unshackle small business from the regulatory burden it faces if we are to address the ongoing productivity decline,” Professor Conway said.

“The SME sector is looking to accountants to hold that key to unlock that shackle. As a result, we are welcoming the whole of the profession to work in arms to support true regulatory reform; to remove the duplications, the costs and the administration burden on small business.

“Australia must have a new and innovative regulatory framework that removes duplication of effort, overlapping of responsibilities and hence, create an efficient and far more affordable model for stakeholders,” Prof. Conway said.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies. In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than 37,000 members and students in over 80 countries.  The IPA Group is the largest SME focused accountancy organisation in the world. The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants. 

www.publicaccountants.org.au

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THE Australian Prudential Regulation Authority (APRA) will appear before the House Economics Committee at a public hearing on Monday, December 2, 2019, as part of its review of the 2019 APRA Annual Report.

Chair, Tim Wilson MP, noted that "APRA appeared at a public hearing in August this year; however, the committee determined that additional information and questioning was required to properly scrutinise APRA".

"The hearing will provide the committee with the opportunity to further question APRA on its performance and operation and, in particular, how it is implementing the recommendations of the Hayne Royal Commission and the APRA capability review."

Mr Wilson said, "A common theme across the Royal Commission and capability review reports was that APRA is a strong regulator in the area of traditional financial risk, but that more work needs to be done to ensure APRA is prepared to respond to future challenges, particularly in relation to non-financial risk.

"The committee will scrutinise APRA on how it promotes financial stability through the prudential regulation and supervision of Authorised Deposit taking Institutions, insurers and superannuation licensees, and other related issues."

Public hearing details

Date: Monday, 2 December 2019
Time: 8am to 11am
Venue: Committee Room 2R1, Parliament House, Canberra

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

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AN INQUIRY into supporting Australia’s export market is exporting the work of the Federal Parliament to Sydney, where it will hold a hearing on Friday.

Trade and Investment Growth Committee chair, George Christensen MP, said the Committee would hear from exporters in the advanced manufacturing, video games, sugar, wine, seafood, tourism, transport-related safety products and financial services sectors at the hearing.

‘From tourism to video games, Australia offers a staggering range of products and services to the world,’ Mr Christensen said.

‘We are looking forward to hearing from this huge range of industries and businesses about how the government can assist them to grow their export capabilities and attract investment.’

The inquiry, which focuses on attracting investment, identifying regulatory barriers and identifying best practice in the export market, was launched in August of this year. This will be the third public hearing to be held.

More information about the inquiry, including a full program for Friday’s public hearing, is available on the Committee’s webpage.

Public hearing details

Date: Friday, 29 November 2019
Time: 9am to 3.45pm
Location: Lodge Room 2, SMC Conference & Function Centre, 66 Goulburn St, Sydney

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

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