THE Council of Financial Regulators (CFR) has released an Issues Paper: Review of Retail Payments Regulation: Stored-Value Facilities.

The Issues Paper is part of a review into the regulatory regime for ‘stored value facilities’, which are payment products that allow users to pre-load money for future purchases (such as a travel money card).

While the CFR’s review will primarily consider how stored-value facilities are regulated, the review will also focus on identifying opportunities for improvements or clarification to other aspects of the regulation of retail payments service providers retail payments regulation. The CFR intends to provide recommendations to streamline and enhance regulation while ensuring appropriate consumer protections.

ASIC is encouraging interested stakeholders to view the CFR’s Issues Paper and consider making a submission to the review. Submissions are due by 19 October 2018. A copy of the Issues Paper and details on how to make a submission can be found on the CFR website.

The CFR review

The CFR’s review follows recommendations relating to the regulation of retail payments service providers retail payments regulation in the final report of the 2014 Financial System Inquiry and the Productivity Commission’s 2018 report following its Inquiry into Competition in the Australian Financial System.

A Working Group involving representatives of the CFR agencies – the Australian Prudential Regulation Authority (APRA), the Reserve Bank of Australia (RBA), the Commonwealth Treasury and ASIC – was established earlier in 2018 to undertake the review and to make recommendations on the regulatory framework for stored-value facilities and related services.

A particular area of interest to ASIC in the Issues Paper is ensuring the regulatory framework contains appropriate consumer protections.

Background

The CFR coordinates Australia’s key financial regulatory agencies and has the roles of contributing to the effectiveness and efficiency of financial regulation and promoting stability in the financial system. It is made up of the RBA (as Chair), APRA, Treasury and ASIC.

www.asic.gov.au

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THE Australian Retailers Association (ARA) believes August trade figures released on October 5 by the Australian Bureau of Statistics (ABS) represent the quiet boost in consumer confidence, with August seeing a 3.77 percent total year-on-year increase.

Russell Zimmerman, Executive Director of the ARA, said August’s trade figures were driven by the launch of new season products and the confidence seen in the change in Prime Minister.

“We can see there was a slight uptick in consumer confidence around August with cafés, restaurants and takeaway food services showing the strongest year-on-year growth at 5 percent,” Mr Zimmerman said.

“Clothing, footwear and personal accessories also saw a strong 4 percent year-on-year growth this August as some confidence returned to consumers after receiving their tax refunds.”

The ARA believes these strong mid-year figures are also a consequence from the psychological effect of the personal tax cuts coming into play from July this year.

“This quiet consumer confidence can be seen across various retail categories with consumers rewarding themselves with little luxuries across the market,” Mr Zimmerman said.

“Department stores saw solid growth in August with this retail category reaching 2 percent year-on-year growth - the biggest increase they’ve seen since May this year.”

Tasmania (6.20%) led the country in August trade, with Victoria (5.93%), South Australia (4.70%), New South Wales (4.28%) and the Australian Capital Territory (4.20%) not far behind. Queensland (2.39%) remained steady in August, whereas the Northern Territory (0.04%) received minimal growth and Western Australia (-0.99%) unfortunately remained in negative territory for the fourth month in a row.

“This quiet growth is somewhat comforting for all retailers across Australia, especially leading up to Christmas,” Mr Zimmerman said.

“We hope this boost in consumer confidence and discretionary spend flows through to the end of year where retailers are hoping to see their biggest trade yet.”

Monthly Retail Growth (July 2018 - August 2018 seasonally adjusted) 

Department stores (0.87%), Clothing, footwear and personal accessory retailing (0.79%), Cafes, restaurants and takeaway food services (0.70%), Other retailing (0.37%), Household goods retailing (0.20%) and Food retailing (-0.02%).

South Australia (0.78%), Tasmania (0.61%), New South Wales (0.52%), Victoria (0.23%), Australian Capital Territory (0.18%), Queensland (0.07%), Western Australia (-0.03%), and Northern Territory (-1.32%).

Total sales (0.29%).

Year-on-Year Retail Growth (August 2017 – August 2018 seasonally adjusted)

Cafés, restaurants and takeaway food services (5.01%), Food retailing (4.34%), Clothing, footwear and personal accessory retailing (4.05%), Other retailing (3.43%), Household goods retailing (2.16%) and Department stores (2.04%).

Tasmania (6.20%), Victoria (5.93%), South Australia (4.70%), New South Wales (4.28%), Australian Capital Territory (4.20%), Queensland (2.39%), Northern Territory (0.04%) and Western Australia (-0.99%),

Total sales (3.77%).

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is Australia’s largest retail association, representing the country’s $310 billion sector, which employs more than 1.2 million people. As Australia’s leading retail peak industry body, the ARA is a strong pro-active advocate for Australian retail and works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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THE Queensland Media Club, representing the Queensland Parliament Media Gallery and the Media Entertainment and Arts Alliance, will host the principals of the 10 projects that will change Brisbane at a luncheon on Monday, 8 October, 2018.

The principals will speak about their projects and how they will benefit the Queensland capital:

1. Graeme Newton, CEO, Cross River Rail ($5.4 bil)

2. Geoff Hogg, Queensland Managing Director, Queens’ Wharf ($3.6 bil)

3. Harvey Lister, Chairman and CEO, Brisbane Live ($2 bil)

4. Matthew Beasley, Office Development Queensland, Waterfront Precinct ($1.4 billion)

5. Gert-Jan de Graaff, CEO, Brisbane’s New Runway ($1.3 bil)

6. Richard McLachlan, Development Director, Herston Quarter ($1.1 bil)

7. Andrew Thompson, Project Director, West Village ($1 bil)

8. Cr Adrian Schrinner, Deputy Mayor and Chairman, Brisbane Metro ($944 mil)

9. Luke Fraser, CEO, Howard Smith Wharves ($200 mil)

10. Roy Cummins, CEO, Brisbane International Cruise Terminal ($158 mil)

The Media Club will explore the links between the projects and ask how they might benefit Brisbane’s economy, particularly the tourism economy by supporting Brisbane as a destination and not just a gateway to other places.

The luncheon will include a live media conference with members of the Queensland Parliament Media Gallery.

The Queensland Media Club is the official political, business and media forum of the Queensland Parliament Media Gallery.

Contact:

Emily Anderson
Three Plus
M: 0422 855 862 | T: 07 3167 1200
E: This email address is being protected from spambots. You need JavaScript enabled to view it.

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THE Institute of Public Accountants (IPA) intends to push for radical policy change to improve the small business productivity landscape in Australia through the recommendations contained within its 2018 Australian Small Business White Paper released last week.

The White Paper, produced in partnership with the IPA Deakin SME Research Centre, is heavily focused on Australia’s declining productivity levels and provides policy solutions for the small business sector to help arrest this decline.

“In fact, never before has there been such an assembly of informed academic research, together with practitioner insights, purely focused on small business productivity, growth and prosperity; much needed ingredients for our economic wellbeing and future living standards," said IPA chief executive officer and White Paper co-author, Professor Andrew Conway.

The White Paper encompasses 12 topics: productivity, regulation, taxation, SME financial markets, workplace relations, job creation and job destruction, innovation, competition policy, family firms, internationalisation, mental health, and, digitisation and cybersecurity.

“Our primary message to policy makers is; think big, get out of the way of entrepreneurs, and watch small business truly drive productivity."

IPA's Big Vision recommendations are:

1. Broaden the base and lift the rate of GST (subject to the appropriate equity measures).

2. Cut direct taxes.

3. Undertake a zero-base design of a thoroughly modern taxation system.

4. Reform and simplify the personal income tax scale.

5. Standardise a company tax rate at 25 percent.

6. States and territories to be held accountable to the Intergovernmental Agreement on Tax Reform to eliminate payroll tax and stamp duties. These revenues could be channelled into a state infrastructure fund to grow the economy.

7. Commit an incoming federal government to hold a small business summit within the first six months of assuming office.

8. The Prime Minister should form and chair a small business advisory council to provide direct policy input and options to the government to inform the COAG agenda with a core focus on productivity.

9. The federal Small Business Minister should remain a permanent position in Cabinet, preferably with its own department.

10. The federal government should facilitate small businesses joining global value chains to remain competitive and access global markets.

“Again, we need to ensure that the small business sector that is so vital to the Australian economy and standard of living, is well supported, encouraged and liberated to grow,” Prof. Conway said.

For more detail on the Australian Small Business White Paper go to: https://www.publicaccountants.org.au/news-advocacy/small-business-white-paper

publicaccountants.org.au

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THE Australian Space Agency has formally entered into Memorandums of Understanding (MoUs) with counterpart agencies in Canada and the United Kingdom, as part of the Coalition Government’s plan to launch a vibrant new space industry in Australia.

These MoUs will help all three nations develop their respective space programs and take advantage of the rapidly-expanding global space industry.
 
Minister for Industry, Science and Technology, Karen Andrews MP, welcomed the MoUs, signed overnight by the head of the Australian Space Agency, Megan Clark AC, president of the Canadian Space Agency, Sylvain Laporte, and chief executive of the United Kingdom Space Agency, Graham Turnock.
 
“Forging international partnerships is vital to building Australia’s space industry and ensuring our businesses can compete on the world stage,” Ms Andrews said.
 
“These agreements with counterpart space agencies in Canada and the United Kingdom will increase opportunities to work together and share information, technology and personnel between our nations.
 
“They represent a significant step in Australia’s journey with fellow spacefaring nations, and will help to grow the capability and competitiveness of our domestic space sector.”
 
Dr Clark said the signing of these new strategic agreements reflects the Australian Space Agency’s commitment to boosting international partnerships with government agencies.
 
“These signings provide a further positive contribution that cooperation in space science, research, technology, services, applications and international governance can bring.”
 
“Growing existing relationships with the United Kingdom on the likes of CSIRO’s NovaSar satellite project, Airbus’ Zephyr solar-powered unmanned aircraft and Canada’s cooperation in Earth Observation with Geoscience Australia provides more opportunity to jointly identify projects like these that can be supported and developed in both countries.”
 
The signing of the new MoUs took place at the International Astronautical Congress (IAC) being held this week in Bremen, Germany. The IAC is an annual meeting of international space agencies and industry, and was hosted for the second time in Australia in 2017.
 
As part of the 2018–19 Budget, the Federal Government is investing $41 million over four years to establish and operate Australia’s first-ever national space agency.

The Federal Government is also investing more than $260 million to develop world-leading core satellite infrastructure and technologies, including better GPS for Australian business and regional Australians and improved access to satellite imagery.

The Space Agency’s focus will be on fostering international space partnerships and opening the door for local businesses to compete in the global space economy, helping to drive job growth.
 
More information on the Australian Space Agency is available at space.gov.au.

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THE Australian Securities and Investments Commission (ASIC) is offering assistance for farmers and related businesses suffering financial hardship as result of the current drought.

ASIC is offering relief from various company-related fees that may be payable and providing information about financial counselling services that are available to those affected.

ASIC Commissioner John Price said, "Unfortunately, the current drought is particularly severe, causing financial hardship to many. ASIC is keen to offer whatever assistance we can to ease that burden and ensure that affected people can access resources to assist them during this challenging time."

ASIC may be able to review fees or waive late fees that a company has incurred, or provide alternative payment options for companies affected by the drought and facing financial hardship.

Those wanting fee relief need to include in their application details of their company, a contact person and their current situation. They will also need to provide ASIC with evidence supporting their application.

ASIC also reminded the farming community that free financial counselling is available to people, including farmers and related small businesses, struggling with debt. Details of free financial counsellors are on ASIC’s MoneySmart website and can be downloaded here.

Details of how to apply for fee relief are on ASIC’s website.

Anyone struggling with debt can call the free National Debt Hotline on 1800 007 007.

ASIC has also prepared a guide on how people can help a friend or family member who is facing financial hardship, which is available from ASIC’s MoneySmart website or can be downloaded here.

www.asic.gov.au

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AUSTRALIA’s resources and energy exports are now worth more than a quarter of a trillion dollars, anchored by strong forecasts for Queensland’s major commodities including coal, LNG, bauxite, copper and zinc.

Queensland Resources Council chief executive Ian Macfarlane said the record figure of $252 billion, in the September Resources and Energy Quarterly, was testament to the hard work of the Queensland resources industry.

“Our resources and energy exports have been powering our state and our national economy for the better part of two decades,” Mr Macfarlane said.

“But our success is no accident or just good luck. The huge benefits from the resources sector come through long-term planning, hard work from almost 300,000 Queenslanders, and our ability to attract investment dollars.

“Importantly, these latest figures further debunk the myths spread by those who want to see the entire resources industry shut down.

“No amount of wishful thinking from anti-resources campaigners can erase the numbers that show strong demand for both metallurgical and thermal coal, our LNG and other commodities that form the building blocks of our modern societies, including bauxite, copper and zinc.

“There have been record production volumes at BHP and Anglo American’s metallurgical coal operations. Met coal production is forecast to grow by 11 percent between 2017-18 and 2019-20, driven largely by the resurgence in the Queensland coal sector.

“Metallurgical coal exploration is also on the way back up. We again congratulate the Queensland Government for the release of more than 500 square kilometres for exploration across the Bowen, Surat and Galilee Basins.

“Our region also wants more thermal coal, and Australia is in the ideal position to supply it.

“For example, the report points to 11 coal-fired power plants due to come into operation in Japan over the next two to three years. They have a combined capacity of 4.5GW which is the equivalent of about eight per cent of the generation capacity of Australia’s national electricity market.

“Strong demand for LNG is being met in part through the Queensland coal seam gas industry, which supplies gas for Australian users and delivers export earnings, all the while delivering $387 million in access agreements with Queensland farmers and landholders.

“Queensland’s other powerhouse commodities are also in line for significant growth, notably zinc. Queensland will help drive a 50 percent increase in zinc production through New Century Resources’ newly re-opened Century mine.

“The Queensland resources sector has created 10,000 jobs over the past year – that’s a new job every 40 minutes. The figures released today reinforce why it’s so important we continue to back our resources sector, for the jobs and local investment it creates.

“We look forward to working with the Federal Government on the implementation of recommendations from the Resources 2030 Taskforce to further strengthen our sector.”

www.qrc.org.au

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THE Federal Court has ordered that Equifax Australia Information Services and Solutions Pty Ltd (Equifax) pay penalties totalling $3.5 million for misleading and deceptive conduct and unconscionable conduct in relation to credit report services following joint submissions by Equifax and the ACCC.
 
Equifax admitted it breached the Australian Consumer Law (ACL) in 2016 and 2017, when its representatives made false or misleading representations to consumers during phone calls.
 
Equifax told consumers that its paid credit reports were more comprehensive than free reports it had to provide under the law, when in fact they contained the same information.
 
“Equifax’s conduct caused people to buy credit reporting services in situations when they did not have to. Consumers have the legal right to obtain a free credit report under the law,” ACCC Commissioner Sarah Court said.
 
Equifax also admitted it told consumers they would be charged a single ‘one-off’ or ‘one-time’ payment, but failed to disclose that payments for its paid credit report packages would automatically renew unless consumers opted out.
 
“We considered it unacceptable that consumers were denied the knowledge and proper opportunity to opt out of recurring charges from Equifax,” Ms Court said.
 
Equifax also told consumers that the credit score provided in its paid credit reports was the same credit score used by credit providers when that was not always the case.
 
In respect of three vulnerable consumers, Equifax also admitted that it acted unconscionably by using unfair sales tactics and making misleading representations during telephone calls.
 
“It is appalling that Equifax used unfair sales tactics on consumers who were vulnerable,” Ms Court said.
 
“Consumers have a right to receive accurate information from credit reporting companies when they seek advice or services.”
 
“This result sends a strong message to businesses that making misrepresentations and acting unconscionably against consumers will not be tolerated,” Ms Court said.
 
The court also ordered, by consent, that Equifax establish a consumer redress scheme which will allow affected consumers to seek refunds for a 180 day period.
 
Affected consumers should contact Equifax directly by phone on 1800 958 378 or at www.equifax.com.au/contact to seek a refund.
 
The penalties ordered were based on admissions made by Equifax and joint submissions on penalty made by Equifax and the ACCC.
 
According to the Privacy Act 1988, consumers are entitled to access their credit reporting information for free once a year, or if they have applied for, and been refused, credit within the past 90 days, or where the request for access relates to a decision by a credit reporting body or a credit provider to correct information included in the credit report.

The Court has ordered, by consent, that Equifax contribute $100,000 towards the ACCC’s legal costs
 
More information on how to access free credit report can be found on the Office of the Australian Information Commissioner’s webpage: https://www.oaic.gov.au/.
 
BACKGROUND
 
Equifax is Australia’s largest consumer credit reporting agency, holding an estimated 85 percent market share in the consumer credit reporting market.
 
In February 2016, Veda Advantage Pty Ltd was acquired by Equifax Inc. (NYSE:EFX) and its Australian operations were subsequently rebranded under the Equifax name.
 
On March 16, 2018, the ACCC instituted proceedings against Equifax Australia.

www.accc.gov.au

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