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IPA seeks answers over proposed change to SMSF audit cycle

THE Institute of Public Accountants (IPA) is working with Minister Kelly O’Dwyer and the Treasury over the proposed change to the audit cycle of Self-managed Superannuation Funds (SMSFs).

“We need to understand the policy rationale for the proposal to move to three-year cycles for SMSF audits,” said IPA chief executive officer, Andrew Conway.

“How does reducing the audit cycle enhance regulatory oversight and transparency in the SMSF sector?

“We know, that now more than ever, in the financial services space, sunlight is the best disinfectant.  Without an annual SMSF auditor oversight, how will the regulator of the SMSF sector, monitor compliance?

“These issues go far beyond the impact on SMSF auditors and speak to the very confidence and transparency of the SMSF sector. 

“Arguments around compliance costs are myopic at best as trustees are likely to be required to have a three year audit at greater total cost than the current (12 month) review.  Will the unsubstantiated audit cost-saving be worth the significant risks such a measure introduces?” said Mr Conway.

www.publicaccountants.org.au

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Business community welcomes election of Melbourne Lord Mayor, Sally Capp

VICTORIAN Chamber of Commerce and Industry chief executive Mark Stone has congratulated newly elected Lord Mayor Sally Capp on her win in the City of Melbourne by-election.

Mr Stone said the interests of business had featured strongly in the by-election campaign so it was no surprise that a pro-business candidate could capture the support of so many voters.
 
“Ms Capp is well-known to the business community through her previous senior roles with the Property Council of Victoria and the Victorian Chamber of Commerce and Industry.
 
“Melbourne’s business community will be looking to Ms Capp’s leadership to keep Melbourne a prosperous place to do business and a great place to live, work and visit,” Mr Stone said.
 
There are 16,000 businesses employing more than 450,000 people within the City of Melbourne area.
 
About the Victorian Chamber of Commerce and Industry

The Victorian Chamber of Commerce and Industry, established in 1851, is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.victorianchamber.com.au

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VTIC welcomes election of Melbourne Lord Mayor, Sally Capp

THE Victoria Tourism Industry Council (VTIC) is looking forward to working with the City of Melbourne’s new Lord Mayor Sally Capp to enhance Melbourne’s position as Australia’s number one holiday destination for domestic and international visitors.

VTIC acting chief executive Chris Porter has congratulated Ms Capp on her election and said there are many opportunities for the Council and VTIC to work together and continue to grow the City of Melbourne’s visitor economy.

“Each year tens of millions of visitors come to Melbourne, drawn to the mix of experiences on offer to tourists,” Mr Porter said.

“Melbourne is the undisputed culinary, cultural, sporting and events capital of Australia. Each year the tourism industry contributes more than $15 billion into Melbourne’s economy.

“Ms Capp’s business background will help to ensure tourism remains a focus for the Council.

“We will continue to support the City of Melbourne so that our state capital remains a vibrant, attractive and modern city that is the envy of others around the world,” Mr Porter said.

VTIC works closely with the City of Melbourne, as a Corporate Partner, to ensure that visitors to Melbourne have the best experience possible.

ABOUT VTIC

The Victoria Tourism Industry Council (VTIC) is the peak body for Victoria’s tourism and events industry, providing one united industry voice. Tourism and events are growth industries for Victoria and contribute more than $25 billion to the state economy each year and employ more than 214,500 people.

www.vtic.com.au

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AMCS welcomes Brisbane City Council’s ban on straws, balloons and bottles

BRISBANE City Council’s move to ban single-use plastic straws and water bottles and phase out helium balloons from their events is welcome news for marine life said the Australian Marine Conservation Society (AMCS).

“AMCS welcomes the move by the Brisbane City Council to ban these single-use plastics at over 50,000 of their associated events annually. This is a huge step towards reducing marine plastic pollution its impacts on our unique marine life in Moreton Bay,” said James Cordwell, AMCS marine campaigner.

“Plastic pollution has a long and wicked legacy in our oceans, breaking down into smaller and smaller unidentifiable pieces and lasting forever. This pollution flows into places like South-east Queensland’s iconic Moreton Bay. Once it enters the ocean our marine animals are entangled, suffocated and starved by it.

“The banning of these straws, balloons, and plastic water bottles, along with the forthcoming implementation of Queensland’s Plastic Bag Ban and Container Deposit Scheme, are very encouraging steps for Queensland. These are crucial moves to put an end to an era of these highly damaging items from impacting on our marine environment.

“With this announcement, and as stewards of an incredible marine natural heritage, Queenslanders are again proving we can be a national leader in turning the tide against harmful plastic pollution.”

www.marineconservation.org.au

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Inaugural Defence Export Forum meeting

THE FEDERAL Government’s vision of a strong, resilient and internationally competitive Australian defence industry took another step forward yesterday with the inaugural meeting of the Defence Export Forum in Canberra.

The meeting was chaired by the Australian Defence Export Advocate, David Johnston and brought together Commonwealth agencies, state and territory governments, and industry peak bodies.

Defence Industry Minister Christopher Pyne said the states and territories are important partners in achieving the government’s vision for Australian defence industry.

"The Defence Export Forum will help deliver a collaborative approach, allowing us to coordinate export advocacy efforts across all levels of government and industry, minimising duplication of resources,” Minister Pyne said.

The Forum was an important initiative of the Defence Export Strategy released on 29 January 2018, which set out a comprehensive approach to delivering an export system to plan, guide, grow and measure defence exports.

The inaugural meeting follows the opening of the Australian Defence Export Office on 23 April 2018.

Minister Pyne said the opening of the Export Office and the establishment of the Defence Export Forum shows that the government is delivering on what it says.

“We are delivering what Australian defence industry needs to achieve export success, become more sustainable and more internationally competitive, all in support of Australia’s Defence capability,” Minister Pyne said.

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Ensuring foreign investors pay their fair share of tax - Treasury

THE FEDERAL Government is continuing to protect the integrity of Australia's corporate tax system – ensuring foreign investors don't have a competitive advantage over Australian investors.

Today it released exposure draft legislation and explanatory material for public consultation on the tax treatment of stapled structures to give effect to the policy announced on 27 March 2018.

This puts into action targeted integrity rules designed to neutralise the tax benefits of stapled structures.

An increasing number of foreign investors have sought to convert trading income into more favourably taxed passive income through the use of stapled structures. When combined with existing concessions used by foreign pension funds and sovereign wealth funds, some foreign investors are currently paying tax rates of 15 percent, or in some cases, far less.

The proposed amendments in the announced package will ensure that:

  • trading income that is converted to passive income will be taxed at the corporate tax rate;
  • foreign investors will no longer be able to use multiple layers of flow-through entities (i.e. trusts and partnerships) to 'double gear' their investments to generate more favourably taxed interest income;
  • foreign pension fund withholding tax exemption for interest and dividends is limited to portfolio investments only;
  • a legislative framework is created for the existing tax exemption for foreign governments (including sovereign wealth funds), and limit the exemption to passive income from portfolio investments; and
  • investment in agricultural land will not be able to access the 15 per cent concessional MIT withholding tax rate.New, Government-approved nationally significant infrastructure assets may be eligible to access the 15 per cent concessional withholding tax rate for managed investment trusts for 15 years. This will ensure continued support for the development of nationally significant infrastructure assets that enhance the productive capacity of the economy and drive long term economic growth.

To minimise the impact of these changes on existing investments, the proposed amendments include transitional arrangements of seven years (for ordinary business staples) and 15 years (for economic infrastructure assets).

The stapled structures package is an important integrity measure, and the Turnbull Government is committed to introducing legislation as soon as possible. To maximise time for consultation, draft legislation will be released in stages, starting today.

The released exposure draft legislation contains the first four proposed amendments in the package. Draft legislation on the agricultural MIT changes and the conditions stapled entities must comply with to access the infrastructure concession and/or transitional arrangements will be released in due course.

The exposure draft legislation and explanatory materials are available on the Treasury website.

The Federal Government is encouraging all interested parties to make a submission.

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Cyber security, startups and a contest of ideas feature at CeBIT

A CYBER Security Conference and future-focused StartUp Conference rounded out the three days of Asia Pacific’s largest business technology exhibition, CeBIT Australia which was held at ICC Sydney this week.

Angus Taylor, Federal Minister for Law Enforcement and Cyber Security opened the Cyber Security Conference, warning that organised crime has previous impacts on our society with 2 percent of Australian GDP linked to organised crime and the rates are increasing, with one in 50 economic actions related to crime, and most of them not originating from Australia.

Between 2016 and 2017 there was a 30 percent increase in global security breaches across the world, with an average of 130 breaches per company, he reported.

The solution, Minister Taylor remarked, is to focus the efforts on specific activities and work towards four major goals; to sharpen the focus on cyber infrastructure, to develop a system of national security where the government and private sector work together, to form legislation specifically for cybercrime, and to raise awareness amongst SMEs and the public on the real threats we are facing.

Budding tech entrepreneurs attended F’Up Night, on Wednesday 16 May, which featured three founders of tech businesses sharing the major mistakes they made along the way and what they learned from them.

Other highlights of CeBIT included:

  • Be.You, showcased their free BU Personal Style app that recommends your best colours, style to suit your body shape and through curated content can recommend how to tweak your wardrobe
  • TRAVLR, creators of the Bali Bible, showcased their app on the Amadeus stand, which enables travellers to use a single platform from start-to-end for all their travel directory needs
  • Design + Industry, a technology engineering consultancy on the NSW Government stand, have designed smart rechargeable wheels that can be applied across a range of industries to create effortless mobilisation
  • Rhythmotronusing XronoMorph software, exhibiting with Western Sydney University, demonstrated an interactive robotic drumming-machine, housed in a re-purposed piano
  • The launch of Everywhere Venues, which compiles business, community and sporting venues for ease of hire to the public

First time exhibitor 8x8 joined CeBIT Australia this year due to the focus on innovation. Brendan Maree, VP for Asia Pacific, said people were coming to CeBIT to see what is new to keep developing their competitive advantage.

"We've met lots of people who are looking for cloud technologies, so we have met the right type of people here for our business, and that has driven some really good opportunities for us," said Mr Maree.

PitchFest 2018, saw ten StartUps go head-to-head in a ‘shark-tank’ style competition, where a panel of four entrepreneurs judge the winning company.

Deputy Premier and Minister for Small Business John Barilaro said the quality of finalists for PitchFest was outstanding, which demonstrates how the StartUp sector is creating innovative solutions to improve all sectors of the economy.

Ping Data took out the top prize of PitchFest, winning a prize package valued at over $20,000; comprising of a fully-paid exhibition stand at CeBIT Australia 2019, three Square Contactless and Chip Readers from Vodafone, a Norton Small Business-10, which protects 10 devices for 12 months, a $10,000 USD Alibaba Cloud credit valid for one year, three months free co-working space at Tank Stream Labs in Sydney, a one-year membership to TIE Sydney, and ongoing support and mentorship. 

"Ping Data has been assisted by the NSW Government-backed Jobs for NSW to develop its technology and was one of nine NSW finalists for PitchFest, so this is a great result for our technology sector," said Mr Barilaro.

Harvey Stockbridge, managing director, Hannover Fairs – organisers of CeBIT Australia, said CeBIT Australia 2018 has been a remarkable success.

“We’ve been able to reveal a variety of powerhouse companies and StartUps, both domestically and internationally at CeBIT, and we are thrilled with the new connections and business opportunities that have already been ignited here.

“CeBIT plays a vital role in bringing together investment, talent and ideas under one roof, with a platform designed to engage.

“Many of the initial conversations taking place at CeBIT will translate into exciting new businesses, jobs and solutions that we will all benefit from,” said Mr Stockbridge.

www.cebit.com.au

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Halogen lights set to disappear from retail shelves, says lighting industry peak body.

HALOGEN lights will disappear from Australian retail stores in the next 12-24 months as the world moves to LED lights, Australia’s peak lighting industry body announced today.

Lighting Council Australia has warmly welcomed the recent COAG Energy Council Minister’s meeting, which endorsed a new regulatory approach for next-generation LED lighting in Australia.

The lighting industry, which provides 4500 manufacturing jobs across Australia in a highly competitive global market, had been facing a significant increase in compliance costs arising from a Commonwealth Department of Environment proposal to be made under federal law.

“The earlier proposal would have been a disaster," Lighting Council Australia CEO Richard Mulcahy said.

“An additional $80 million worth of red tape would have raised consumer prices and have seen job losses in one of Australia’s few remaining viable manufacturing industries.”

The dispute was the subject of an intervention by Minister Frydenberg after significant industry representations.

“Minister Frydenberg saw that there was a problem with the proposal and instructed his Department to rework the policy on the basis of real industry consultation.  The end proposal, which was endorsed by COAG recently, was a very reasonable compromise that will align Australian regulations with those applied overseas.

“Minister Frydenberg should be applauded for his leadership. We are also extremely grateful for the support provided by Prime Minister Turnbull on this issue.

“Additionally, Minister Frydenberg has taken a significant step in reducing Australians’ home electricity bills”, explained Mr Mulcahy in reference to the agreed ban on halogen lights which is expected to save Australian consumers $1 billion over the next decade.

“Halogen lamps use between three and five times as much electricity as new generation LED technology.  As an industry committed to strong environmental outcomes, we’re pleased to play a major role in taking pressure off household and business budgets.”

The Minister will be opening Lighting Council Australia’s office at Suite 5, 191 Riversdale Rd, Hawthorn at 10:30am this morning.

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Resources industry pledges support for domestic violence prevention

QUEENSLAND’s resources industry has reaffirmed its support for efforts to prevent family and domestic violence with the launch of the Palaszczuk Government’s #bystander campaign.

Minister for Prevention of Domestic and Family Violence Di Farmer said workplaces were on the front line of the fight against domestic violence and she was thrilled with the work being done across the resources industry to make a difference.

“Having major industry bodies like the Queensland Resources Council backing our domestic violence bystander campaign is important, and it shows great leadership," Ms Farmer said.

“We have long said fighting domestic violence is everybody’s business.

“Support from the Queensland Resources Council and from major employers like Rio Tinto is an important part of ending this scourge on our community for good.”

Queensland Resources Council chief executive Ian Macfarlane said the industry welcomed the continued implementation of the recommendations of Dame Quentin Bryce’s Not Now, Not Ever report and the launch of the bystander campaign.

“As the representative body for an industry that supports one in eight Queensland jobs, the QRC has been active with its members to ensure we 'do something' ourselves. I have directed that our 2016 family and domestic violence toolkit for our Members be updated to reflect the new campaign,” Mr Macfarlane said.

“QRC is prepared to be engaged with the Government on any future initiatives to prevent family and domestic violence.

“I am proud that our industry is not only working to prevent family and domestic violence within Queensland, but around the country and the world.

Last month, at the prestigious Resources Awards for Women, conducted by the Queensland Resources Council (QRC) and voluntary group Women in Mining and Resources Queensland (WIMARQ), Rachel Durdin of Rio Tinto was named Gender Diversity Champion.

Based in Brisbane, Rachel has led Rio Tinto’s response to family and domestic violence including Rio Tinto’s decision to pursue White Ribbon Workplace accreditation and contributed to the development of Rio Tinto Australia’s guidance note addressing protections for individuals at risk of or experiencing family and domestic violence, which includes new leave arrangements, flexible working arrangements, family rooms, should employees need to attend work with children, emergency accommodation and financial assistance.

Mr Macfarlane said upon receiving the Award, Ms Durdin made the powerful statement that “We want an industry free of fatalities and we want a community free of violence”.

www.qrc.org.au

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Best and most innovative technologies on the showfloor of CeBIT Australia 2018

THIS week, CeBIT Australia will showcase the latest innovative global technology changing the way we do business. Explore the future of driverless transport, the latest in rugged mobile technologies able to endure even the harshest of elements, an ultra-modern escape room experience, and more all on the exhibition showfloor, from 15-17 May at ICC Sydney.

The incredibly human-like FaceMe chatbots are designed to respond to customer service needs with empathy and personalisation. They look like humans and are equipped with the ability to change their facial expressions in line with the context of the conversation. Showcasing the 'next wave of digital employees', the highly-interactive chatbots are powered through a sophisticated AI platform, soon to be rolled-out across service-based establishments such as banks.

From ultra-smart robots to smart buildings, Advantech Australia will demonstrate the latest in intelligent smart buildings designed to enhance sustainability and efficiency. In a special CeBIT Australia first, Norton by Symantec will launch its first ever hardware product, the Norton Core Router. Designed to protect all the home's smart devices from cyber threats, the router is ambitious in both design and function and begs to be showcased rather than hidden behind the home TV. Demonstrations of this new product will be held on their stand. The story of Norton Core will be told through an Australian first visual hologram prototype on a 1.4m x 1m display.

Harvey Stockbridge, managing director, Hannover Fairs Australia, said driverless vehicles are always a popular attraction, this year will be no different.

"There's no disputing the rise of driverless vehicles. In fact, some claim that by 2030, most vehicles on Australian roads will be automated. Accordingly, driverless transport will make its mark again on the showfloor of CeBIT Australia. We also have a range of exhibitors bringing with them the latest technology in their industry, from holographic displays, to coding classes and digital employees, there are many avenues looking at the future of business technology," said Mr Stockbridge.

EasyMile and the Australia and New Zealand Driverless Vehicle Initiative (ADVI) presents the ultimate in-house fleet management solution for transporting up to 15 passengers and travelling up to 45km/h, the EZ10 driverless shuttle challenges the ideas of driverless automation.

A first on the showfloor, Maxo Telecommunications, will give attendees the chance to compete in an interactive escape room experience 'Escape Your Telco'. The highly anticipated Atlassian Code Lab sees classes run each day, where visitors can learn the basics of coding.

"The showfloor of CeBIT Australia is always buzzing with activity and an air of excitement, that's because it really is thrilling to get a taste of what's to come. Some of the innovations on display this year are truly revolutionary.

"It's humbling that so many great innovators of the industry choose CeBIT Australia to show-off their amazing advancements. It's an honour to be able to provide CeBIT Australia as a platform for this purpose," Stockbridge added.

CeBIT Australia 2018 is happening at ICC Sydney next week, with leading international keynotes, conference streams, and two stages on the showfloor, the Innovation stage and the FutureTech stage, covering everything from IoT to machine learning and AI.  

For more information – including an overview of the CeBIT Australia 2018 presentations, speakers and events – visit cebit.com.au 

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The ARA welcomes new Tobacco Taskforce to tackle organised crime

THE Australian Retailers Association (ARA) has welcomed the Federal Government’s unveiling of a new Tobacco Taskforce to deal with the increasing threat of organised tobacco crime in Australia.

As part of Tuesday’s Federal Budget, the Federal Government announced the Australian Border Force (ABF) and Australian Taxation Office (ATO) will work together to dismantle illicit tobacco supply chains.

The Government says the increased ability to gather intelligence and disrupt criminal gangs involved in illicit tobacco will be able to raise $3.6 billion in additional revenue over the next four years.

Executive director of the ARA, Russell Zimmerman, said the new Illicit Tobacco Taskforce was significant for retailers across the country. The announcement follows continued advocacy by the ARA to highlight the effects of the Black Economy and illicit trade for retailers.

“It is encouraging to see the Federal Government take a step in the right direction when it comes to fighting organised tobacco crime in this country,” Mr Zimmerman said.

“For some time, we have been calling on a coordinated national strategy to ensure all arms of Government work together to investigate and dismantle the sophisticated criminal syndicates that import, grow and sell illicit tobacco.”

The ARA are concerned the 1.2 million retail workers in Australia are left most vulnerable to crime and abuse as they work on the frontline on a daily basis.

“Illicit tobacco is a serious problem for retailers, as we are seeing a significant increase in forced break-ins from criminals who want to get their hands on tobacco products and sell them on the Black Market,” Mr Zimmerman said.

“Young people are also in danger as gangs are importing illicit tobacco from overseas and selling them on the streets to anyone who wants them.”

The ARA recently teamed up with the Australian Lottery and Newsagents’ Association (ALNA), Master Grocers Australia (MGA Independent Retailers) and the Australian Association of Convenience Stores (AACS) to support workers in the retail industry and reduce the effects of illicit tobacco on the community.

Mr Zimmerman said the crackdown on illicit tobacco is particularly welcoming following the release of last week’s KPMG report that found illicit tobacco now represented 15 percent of the total tobacco market in Australia, a significant increase from the previous year.

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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