THE Australian Retailers Association (ARA) strongly supports the Federal Government in closing the Low Value Threshold (LVT) loophole for the purchase of offshore tangible goods under $1000.

Russell Zimmerman, Executive Director of the ARA said they have been working with the Federal and State Governments to reduce the low value threshold and provide a level playing field for Australian retailers.

“This is a tax equity issue and internationally-based retailers should pay their fair share of tax,” Mr Zimmerman said.

“Retailers conducting business in Australia should pay their tax just like Australian retailers currently do.”

The ARA has said this GST has been a long time coming, expressing thanks to then Assistant Treasure Bill Shorten for his commencement of the process in 2011.

“Multiple jurisdictions are already introducing similar laws as this is a global tax issue,” Mr Zimmerman said.

“This new legislation will create a fairer tax system for Australian retailers by creating a level playing field against international competitors.”

This new model may not be perfect but the ARA believes that the proposed system is the best model at this point.

“Freight companies and credit card businesses should not be responsible for collecting this tax, the onus should fall on internationally-based businesses to collect it” Mr Zimmerman said.

“Australian retailers already collect this tax in Australia, therefore it is unnecessary to complicate this process and allow international retailers to continue to exploit this legislative loophole.

“We already know that overseas retailers selling online have the capability of charging taxes as required by Australian law,” Mr Zimmerman said.

The ARA will be appearing as witnesses at the Senate Economics Legislation hearings this Friday, 21 April, to reiterate the importance of this GST.

“We strongly support this proposed GST model and will continue to work with the Government to resolve any implementation issues,” Mr Zimmerman said.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA 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 ACS, the professional association for Australia’s ICT sector, today welcomed changes to skilled migration policy in Australia, following the Turnbull Government’s plans to abolish the Subclass 457 Visa in favour of a new Temporary Skill Shortage (TSS) Visa, as a measure to address genuine skills shortages in Australia[1].

The aim of the new TSS Visa is to ensure Australian workers have priority to Australian jobs, while at the same time ensuring Australian businesses have access to temporary and critically needed talent.

ACS president Anthony Wong said, “Strengthening labour market testing was one of ACS’ key recommendations in our May 2014 submission to the Independent Review of Integrity in the subclass 457 programme[2]. We are pleased to see this is a key focus in the Prime Minister’s announcement.”

The new TSS Visa will include a strengthened training obligation for employers sponsoring foreign skilled workers to provide enhanced training outcomes for Australians in high-need industries and occupations.

“While labour market testing and training benchmarks have previously existed in the 457 Visa framework, we see tightened criteria under a TSS programme as an important signal that the Turnbull Government understands the need to treat Australia’s human capital as a strategic asset as we expedite our transition to the digital and knowledge-based economies,” Wong said.

Mr Wong further added, “Skilled migration in all its forms should be a source of competitive advantage for any country.  It should never be at the expense of the domestic labour market and attracting full workforce participation.”

The implementation of the new reforms is expected to be completed in March 2018.

About the ACS 

The ACS is the professional association for Australia's Information and Communication Technology (ICT) sector. Over 22,000 ACS members work in business, education, government and the community. The ACS exists to create the environment and provide the opportunities for members and partners to succeed. The ACS strives for ICT professionals to be recognised as drivers of innovation in our society, relevant across all sectors, and to promote the formulation of effective policies on ICT and related matters. Visit www.acs.org.au for more information.

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THE Institute of Public Accountants (IPA) suspects that another protracted trust law court case will cause the Federal Government more grief and highlight the long overdue need to reform trust tax law.

“The unfinished business of reforming trust tax laws has come back to haunt the government; it was not that long ago that the government had to make some hasty complex changes to trust laws following the land mark Bamford case,” said IPA chief executive officer, Andrew Conway.

“It looks like the government may be in the same position following a recent Full Federal Court Decision of Thomas v Commissioner of Taxation (2017) FCAFC57.

“In this particular case the taxpayer allocated dividend franking credit entitlements as it saw fit. The long established trust law principal is that franking credits must flow to beneficiaries in the same proportion as the dividend income and they cannot be specifically allocated to achieve an optimal tax outcome even if permitted by the trust deed.

“It seems the decision in the Full Federal Court has allowed a taxpayer franking credits to flow to beneficiaries not in a way the legislation was intended to operate, underscoring the odd outcomes that can still arise with trusts. 

“The distribution of franking credits to beneficiaries independently of the related dividends goes against established principles.

“Franking credits should ordinarily flow to the shareholder who received the dividend but this seems to be different in this case.

“After many years of trust tax reform discussions and various court rulings there is still a considerable degree of uncertainty in our tax system when it comes to trusts and the need to reform remains, especially in light of the fact that many businesses use trusts as the vehicle to operate their business,” said Mr Conway.

publicaccountants.org.au

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QUEENSLAND Resources Council chief executive Ian Macfarlane has released a statement on the abolishment of 457 visas in relation to the mining and resources industries in Australia.

"The natural resources sector is no longer a significant employer of 457 visa holders, with further recent decreases since the mining construction boom days," Mr Macfarlane said.

"Those that are employed possess highly specialised skills and experience, particularly, university degrees. The QRC welcomes Prime Minister Malcolm Turnbull saying we’ll only take the best and brightest from overseas.

"The total number of 457 visas given to workers in the mining industry in 2015/16 was a quarter of that of industries with health services and a fraction of the hospitality industry.

"Last financial year, 457 visa holders in the Queensland mining industry decreased by 26.5 percent. Hospitality, health care, education, construction, manufacturing, IT and professional services are the big users of 457 visas.

"QRC is working with the resources industry to build the numbers of young people taking up a resources career.

"The QRC’s own Queensland Minerals and Energy Academy (QMEA) builds educational capacity and skills in local regions by facilitating a range of both professional and vocational STEM experiences for students and their teachers from years 7 to 12.

"Growing the skills base in communities is a great investment for the company and the locals and is a valuable part of resource companies’ social and economic responsibilities in the areas where they operate."

www.qrc.org.au

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RESOURCE industry employers welcome any Australian Government moving to ensure our nation’s skilled migration systems are fit for our current economic circumstances and have the full confidence of the Australian public.

In this context, today’s replacement of the 457 Visa program with a new temporary immigration program will help ensure skilled migrants, and the significant contribution they make to our nation, is no longer trivialised and leveraged for cheap political point-scoring.
 
However, it should be recognised that the 457 Visa program has worked as intended. The system was built to be responsive to changes in our economy and fluctuating labour demand, and has delivered on this objective.
 
The resource industry is one sector that has seen a dramatic change in labour demand and skills availability in recent years.
 
The same temporary skilled migration programs that were critical to filling crippling skills shortages during the major project investment and construction boom, have more recently seen numbers drop to almost non-existent, as skills and labour pressures have eased.
 
Department of Immigration figures show the resource industry as making 6,630 applications for 457 visas in 2011-12, falling to 2,600 in 2013-14 and just 230 in 2016-17.
 
Clearly, any groups characterising the 457 Visa program as detracting from Australian job opportunities have been misinformed at best, and acting mischievously at worse.
 
If today’s announcement is at all effective at silencing the cheap politics and scaremongering that has taken place around temporary skilled migration in recent years, AMMA would welcome that outcome.
 
But overhauling a responsible skilled immigration policy that has proven highly responsive to labour demand and supported nation-building projects, is hardly the type of ‘big picture’ policy thinking that will address Australia’s pressing employment and economic challenges.
 
The government’s attention would be better directed at tackling Australia’s job-killing workplace relations system which, unlike 457 visas, has proven to be a major barrier to competitiveness and employment growth.
 
Learn more about the resource industry’s campaign for workplace relations change.

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THE Queensland Resources Council supports the State Government’s move to seek federal funding to build new infrastructure to emerging gas producing areas.

QRC chief executive Ian Macfarlane said the announcement today would pave the way for more gas supply into the east coast market from the Bowen and Galilee Basins. 

“It’s common knowledge the eastern seaboard of Australia is facing a gas shortage and instead of putting their head in the sand the government is looking at how to fix the problem,” Mr Macfarlane said. 

“This is another proactive step by the Queensland government following an announcement of new land releases in the Surat Basin for gas exploration.”

The State Government is asking for funding from the Federal Government through the Northern Australia Infrastructure Facility (NAIF).

“NAIF funding for gas pipelines is a good idea to release stranded gas,” Mr Macfarlane said.

“Once again Queensland is leading the way in securing the energy security of Australia.”

In another positive sign for the resources industry geologists have unearthed evidence of platinum and gold as well as Rare Earth Elements (REE) in the state’s mineral rich north west.

“These types of minerals are used in new technologies including batteries, mobile phones and solar panels,” Mr Macfarlane said.

“Last year the QRC launched its ‘Resourcing Innovation’ campaign about the importance of minerals for new cutting edge technologies and Queensland’s contribution to the future of these technologies will be significant with the potential of this discovery.”

The QRC also backs the continued funding of the Great Artesian Basin Sustainability Initiative (GABSI).

“The GABSI initiative preserves the artesian basin waters and protects artesian water pressures for the graziers industry.”

www.qrc.org.au

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THE Institute of Public Accountants (IPA) has commended the Government’s move for small business to gain access to most tax concessions by moving the small business threshold from $2 million to $10m.

“Moving the small business threshold goal post is long overdue and while it doesn’t apply to small business capital gains tax concessions, many small businesses will appreciate having access to the suite of small business concessions (eg lower company tax rate, $20K instant asset write off),” said IPA chief executive officer, Andrew Conway.

“The small business threshold has not been indexed since it was introduced so an uplift is warranted but it is a pleasant surprise for it to be raised to $10m as announced in last year’s budget.

“This means that small businesses with a turnover of up to $10m will now have certainty on tax concessions that will be applied for this current financial year as they apply from 1 July 2016. 

“Entities with a turnover of up to $10m are more likely to generate greater economic benefits as they are generally employing entities, compared to the 61 percent of entities with a turnover below $2m which do not employ staff.

“This is a great result for small businesses considering that the measures had stalled in the Senate until the last sitting day before the Federal budget,” said Mr Conway.

publicaccountants.org.au

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TODAY, the Joint Standing Committee on Treaties tabled its report on two treaties with France that will work to support the Future Submarine Program.

Framework Agreement concerning Cooperation on the Future Submarine Program

The Agreement provides the international legal framework for the Government’s Future Submarine Program. The Agreement provides for the transfer of French Government-owned information relating to the design, build, operation and sustainment of the Future Submarine to the Australian Government.

It also notes the importance of Australia’s efforts to maximise Australian industry involvement in the design, build and maintenance of the Future Submarine and provides opportunities for Australian and French industry cooperation in the project.

Committee Chair, Stuart Robert MP said the Future Submarine Program is a $50 billion investment in Australia’s submarine capability and represents the largest defence acquisition in Australia’s history.

“The Committee strongly supports the proposed Agreement however, it is merely the first step in ensuring Australia’s national interests in the FSP are protected and maximised. The proposed Agreement provides a solid starting point to overcome some of the critical and costly issues that have been experienced in other defence acquisition projects.

“The Committee, as a result, recommends that the Parliament proceed with binding treaty action. However, the Committee makes recommendations to Government that will ensure the implementation of the Agreement maximises Australian interests in this important program," Mr Robert said.

Agreement regarding the Exchange and Protection of Classified Information

The Report also presents the Committee’s review of an agreement with France for the exchange and protection of classified information.

 “As with previous classified information exchange agreements, the Committee’s review seeks to ensure that Australian classified information provided to France, or a French contractor, is handled appropriately, is sufficiently protected and is accessed only by those duly authorised,”

“The Committee expresses its concern that Australia’s chosen contractor for the Future Submarine Program, DCNS, did not have sufficient processes to prevent the unauthorised access of classified information on another project, the submarine fleet for the Indian Government. The Committee understands DCNS has rectified this. Further, the Committee recommends the Government bring forward as a matter of urgency its work program to enable continuous vetting, namely connecting state and federal law enforcement with the vetting agency”. Mr Robert said.

The Committee’s report is available from its website.

The Chair and Deputy Chair will speak to the report in the House of Representatives when parliament resumes in May.

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