Skip to main content

Business News Releases

Off-market buy-backs hidden cost

THE RECENT announcement by Telstra of a $1.5 billion share buy-back has sparked a call from the Institute of Public Accountants (IPA) for the government to review the revenue leakage generated through off market buy-back schemes.

“In this difficult, fiscal deficit environment that Australia finds itself in, it’s time to have a look at the off-market share buy-back scheme loophole that continues to reduce the Commonwealth revenue line,” said IPA chief executive officer, Andrew Conway.

“Off-market share buy-backs are different to on-market shares bought directly through the ASX. They comprise of a capital and dividend component and are offered to all shareholders on an opt-in basis. If the shares were sold on-market there would not be any dividend component and the proceeds would be generally capital gains or losses. 

“People on higher marginal tax rates receiving a dividend have to pay ‘top-up’ tax and are therefore, much less likely to participate in off-market share buy-back schemes.

“This creates an inequitable distribution of franking credits than would ordinarily be the case had the company paid the dividend equally amongst all shareholders. Off-market buybacks are mostly attractive to nil rate or low tax paying shareholders.

“For entities that pay no tax and superannuation funds paying no tax or up to 15 percent tax, share buy-backs can be a genuine benefit as they receive the additional incentive of an imputation rebate directly from the Government.

“While buy-backs may be a useful tool for corporate entities in terms of capital management, they come at a cost to the taxpayer, as Treasury coffers miss out on top up tax due to the skewed distribution of franking credits.

“Streaming of franking credits to specific classes of shareholders (ie those paying nil or low tax) is normally caught by anti-avoidance streaming rules. 

“If more major listed entities engage in off-market share buy-backs the revenue leakage cannot be ignored while we are running historically high budget deficits and likely to do so in the short to medium term.

“The Government needs to seriously consider the tax treatment of off-market share buy-backs, for the benefit of all taxpayers,” said Mr Conway.

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 with more than 35,000 members and students in over 65 countries.  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.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.  

publicaccountants.org.au

ends

The countdown is on for AIM's National Networking Day

IN LESS than two weeks, the Australian Institute of Management (AIM) will be fighting to set a new Guinness World Records™ title for the most people attending a business speed networking event (multiple venues), with a day of national networking on August 29, 2016.

Open for professionals, students, job seekers and community members, the AIM National Networking Day will celebrate ‘real’ networking, with simultaneous events taking place across the country; in Melbourne, Sydney, Brisbane, Adelaide, Canberra, Darwin and Cairns.

In this global marketplace, where virtual networking is on the rise, the importance of face-to-face rapport and networking ‘chemistry’ is more important than ever. National Networking Day is encouraging individuals to develop these ‘real networking’ skills and develop a platform for personal career development, business growth and overall better business collaboration for the future.

With seven simultaneous events taking place across the country, AIM is ready to break the record, however to achieve this the overall total of attendees must exceed the single-venue record of 1,068 participants. In 2013, AIM’s Regional Committee in Cairns broke the Guinness World Records™ title for ‘Most people attending a business speed networking event in a single venue’, with 475 people across 215 business sectors exchanging business cards in one location. So now Australia has decided it’s time to bring a new networking title down under.

The event will see 1.5 hours of speed-networking take place – where guests have three minute rounds to introduce themselves and network with a fellow attendee. To break the Guinness World Records™ title, each attendee must meet with a minimum of 20 other participants. In addition to this valuable face-to-face networking experience, guests are invited to enjoy drinks following the event.

So for those who are seeking growth opportunities, new connections, job hunting, business developing or team building, it’s the perfect opportunity to gain some real face time and expand your network.

Prices start from $55 for AIM Members, $75 for Non-Members, and $50 for full-time students.

For more information or to sign up for your local event visit the website www.aim.com.au/nnd2016.

ends

Business at the heart of the world’s most liveable city

The Victorian Chamber of Commerce and Industry is delighted that Melbourne is once again the world’s most liveable city, for the sixth year running.

Victorian Chamber Chief Executive Mark Stone AM said it was no surprise to the residents of Victoria that our capital city is a vibrant and desirable place to visit and live.

“Melbourne has an array of offerings that is unrivalled, and the Victorian Chamber congratulates the Lord Mayor Robert Doyle and the City of Melbourne on enabling us to secure this accolade again,” he said.

“Victorian businesses are at the heart of our communities, in Melbourne and around Victoria, and enable the great quality of life we all enjoy.

“Our liveability credentials play a key role in companies choosing to establish their base in Melbourne or start up and grow their businesses here, with the quality of life our city has to offer helping them to attract some of the best talent in the world.

“The Victorian Chamber will continue to work with the City of Melbourne, State Government, and businesses and traders to ensure we continue to thrive and grow.

 “I have no doubt we will be in a strong position next year to retain our prized title as well.”

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.

victorianchamber.com.au

ends

The countdown is on – National Networking Day

IN LESS than two weeks, the Australian Institute of Management (AIM) will be fighting to set a new Guinness World Records title for the Most people attending a business speed networking event (multiple venues), with a day of national networking on August 29, 2016.

Open for professionals, students, job seekers and community members, the AIM National Networking Day will celebrate ‘real’ networking, with simultaneous events taking place across the country; in Melbourne, Sydney, Brisbane, Adelaide, Canberra, Darwin and Cairns.

In this global marketplace, where virtual networking is on the rise, the importance of face-to-face rapport and networking ‘chemistry’ is more important than ever.

National Networking Day is encouraging individuals to develop these ‘real networking’ skills and develop a platform for personal career development, business growth and overall better business collaboration for the future.

With seven simultaneous events taking place across the country, AIM is ready to break the record, however to achieve this the overall total of attendees must exceed the single-venue record of 1,068 participants.

In 2013, AIM’s Regional Committee in Cairns broke the Guinness World Records title for ‘Most people attending a business speed networking event in a single venue’, with 475 people across 215 business sectors exchanging business cards in one location.

So now Australia has decided it’s time to bring a new networking title down under.

The event will see 1.5 hours of speed-networking take place – where guests have three minute rounds to introduce themselves and network with a fellow attendee. To break the Guinness World Records title, each attendee must meet with a minimum of 20 other participants. In addition to this valuable face-to-face networking experience, guests are invited to enjoy drinks following the event.

So for those who are seeking growth opportunities, new connections, job hunting, business developing or team building, it’s the perfect opportunity to gain some real face time and expand your network.

Prices start from $55 for AIM members, $75 for non-members, and $50 for full-time students.

For more information or to sign up for your local event visit the website www.aim.com.au/nnd2016.

About AIM

The Australian Institute of Management is the peak body for managers and leaders. For 75 years, AIM has been helping professionals develop into becoming great leaders. With more than 12,000 individual and corporate Members, we believe their decisions not only impact people’s lives but are felt well beyond the workplace.

With the right tools, resources, networks and focus, these decisions can – and do – have a positive impact on society. This view is captured in AIM’s Vision: Better managers, better leaders, for a better society. For more information, visit www.aim.com.au

ends

 

Victorian Chamber chief announces COO's resignation

THE Victorian Chamber of Commerce and Industry’s Chief Executive, Mark Stone AM, today announced the resignation of the Victorian Chamber’s Chief Operating Officer, Sally Capp, who is leaving to become the Victorian Executive Director of the Property Council of Australia. 

Mark Stone said: “I would like to thank Sally for the contribution she has made to the Victorian Chamber in the time she has been with us, and along with our President and Board, I wish her all the very best in her new role with the Property Council.”

Sally joined the Victorian Chamber as Chief Operating Officer in 2014 and as a member of the Executive team has initiated and overseen a range of membership and commercial activities for the Chamber.

The Victorian Chamber will shortly commence recruitment for this position.
 
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

 

ends

Retail sales growth decline continues - ARA

THE Australian Retailers Association (ARA), is hoping this week’s interest rate cut will halt the year on year slide of retail sales growth, with Australian Bureau of Stastics data showing growth for the year to June 2016 of 2.7 percent.

Retail sales growth has been on a decline for the last six months, falling from a high of five percent in June 2015.

Month on month growth (May 2016 compared to June 2016) came in at a meagre 0.1 percent. Total retail sales for June 2016 were $25 billion.

Russell Zimmerman, ARA Executive Director, said the June figure is the combination of several factors, most predominately the lead up to the Federal Election on July 2.

“Elections are notorious for causing lower consumer confidence and depressed sales, which appears to have been the case here,” Mr Zimmerman said.

“Unseasonably warm temperatures across the nation, deflation, and world events, such as the UK’s Brexit decision and fallout, and the growing prominence of the upcoming US election, all took a toll on consumer confidence in June, and while some of these issues will cycle out in the next few months, there some retailers who are doing it tough at the moment,” he said.

Retailers in the Northern Territory and Western Australia particularly felt the pinch, with the lowest sales in at least five years, with NT experiencing a decline 0f 1.3 percent in sales, while WA managed an increase of just 0.5 percent.

Tasmania has continued its sales comeback, with the largest growth of all the states and territories, at 4.6 percent, followed by Victoria and the ACT with 3.9 percent and 3.8 percent growth respectively.

Following on from the trends of the last few months, household good suffered almost static growth of 0.8 percent, while food, which is under significant pressure from competition and deflation, posted 1.8 percent growth.

Department stores, however, will be rejoicing at their healthy 4.9 percent growth following a period of stagnation in the last two years, while clothing and footwear was the big winner, increasing sales by 8.9 percent.

“There are some positive changes to have occurred since June, and the ARA anticipates that this will result in a return to the higher growth of 2015, Mr Zimmerman said.

“The lowering of interest rates this week is predicted to boost confidence and provide consumers with more discretionary cash, and with the Election now behind us and producing a clear result, we’re hopeful retail will bounce back to a healthier level of growth in the coming months,” he said.

YEAR ON YEAR RETAIL GROWTH (June 2015 to June 2016 seasonally adjusted)

By category:

Food, 1.8 percent; household goods, 0.8 percent; clothing, footwear and personal accessories, 8.7 percent; department stores,4.9 percent; other retailing, 3.8 percent; cafés, restaurants and takeaway foods, 2.3 percent.

By state:

NSW, 3.2 percent; Victoria, 3.9 percent; Queensland, 1.5 percent; South Australia, 3.1 percent; Western Australia, 0.5 percent; Tasmania, 4.6 percent; Northern Territory, -1.3 percent; and Australian Capital Territory, 3.8 percent.

 

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ends

Resource industry celebrates workforce excellence

The ninth annual AMMA Industry Awards took place at Fraser’s Kings Park on Thursday evening (4 August) following the AMMA National Conference which explored workforce and employment matters across Australia’s resource industry.

About 200 resource industry professionals gathered in Perth to celebrate five organisations and two rising stars at a glittering awards ceremony recognising excellence in workforce areas including diversity, training and wellbeing.
 
As the peak body representing resource industry employers, AMMA hosts its Industry Awards every year to celebrate the pioneering people and practices behind Australia’s successful resource operations.
 
The 2016 AMMA Industry Award winners are:

  • Indigenous Employment & Retention Award: Fortescue Metals Group’s ‘Trade Up’ Program
  • Training & Development: The Mancala Group
  • Workforce Innovation Award: Compass Group’s ‘Village Life’ Program
  • Health & Wellbeing Award: New Hope Group’s ‘Live Well, Work Well’ Program
  • Australian Women in Resources Alliance (AWRA) Award: Australian Rail Track Corporation
  • Young Professional Award: Joint winners 
    • Annie Martyn, Turnaround Execution Coordinator with Viva Energy Australia
    • Jarrad Oakley-Nicholls, Employment Program Manager with Wirrpanda Foundation

AMMA chief executive Steve Knott says an AMMA Industry Award demonstrates a commitment to improving workplace practices for the benefit of the industry and the wider community.
 
“People are the backbone of the resource industry. The leadership and innovation displayed by resource employers across workforce areas such as training, diversity, and health and wellbeing is what underpins our industry as a pillar of the national economy,” Mr Knott says.
 
“This goes hand-in-hand with ensuring our industry is one that the brightest minds in this country gravitate to; where career opportunities are rewarding and where employee wellbeing is top priority.
 
“The record number of award nominations received this year is testament to the resource industry’s ongoing commitment to workforce and operational excellence in the face of challenging market conditions.”
 
Mr Knott also congratulates the joint winners of AMMA’s Young Professional Award: Viva Energy’s Annie Martyn and the Wirrpanda Foundation’s Jarrad Oakley-Nicholls.
 
“Annie and Jarrad exemplify the exceptional talent rising within the resource industry. The leadership, ingenuity and professionalism they have displayed within a relatively short period of time makes them both worthy of an AMMA Young Professional Award,” Mr Knott says

www.amma.org.au

ends

Government extends funding for women in resources mentoring program

HUNDREDS of women are set to benefit from an innovative online mentoring program developed to help boost gender diversity in the resource industry following today’s funding commitment from the Australian Government.

Addressing a room of resource industry employers at the AMMA National Conference in Perth, Minister for Employment and Minister for Women, Michaelia Cash, announced an additional $490,000 to ensure the successful Australian Women in Resources Alliance (AWRA) e-Mentoring Program continues until at least mid-2018.
 
The program has already connected more than 200 women with experienced male and female mentors thanks to ongoing funding from the Commonwealth since 2013.
 
AMMA’s executive director of industry services, Tara Diamond, said the government’s extended funding would support the resource industry to be more competitive through workforce diversity.
 
“Australia’s resource industry is heavily male-dominated, with women comprising just 17 per cent of the national workforce compared to 46 per cent across all industries,” Ms Diamond said.
 
“Despite a challenging operating environment, the resource industry still employs almost 100,000 more people compared to 10 years ago, and opportunities abound for women to play a greater role in the industry’s growing production capacity.
 
“As the only national program offering mentoring to women via an online platform, AWRA e-Mentoring is breaking down the barriers that in the past have prevented some women receiving valuable professional guidance, such as remote locations and non-traditional work schedules.
 
“The program will continue to be a critical part of the resource industry’s multi-faceted approach to support the career development of women across multiple occupations, particularly technical and trade roles in which women have been traditionally underemployed.
 
“A key focus for AWRA over the next two years will also be to facilitate greater mentoring opportunities for women from culturally diverse backgrounds, including Indigenous Australians.”
 
Minister Cash said the government is committed to support a range of private sector initiatives that support women to succeed in traditionally male dominated roles and industries.
 
“This program is an example of what can be achieved by government collaborating with the private sector to obtain mutually beneficial outcomes.” Minister Cash said.
 
“To truly empower women’s workforce choices, we must remove barriers for women to enter and succeed in traditionally male dominated industries, such as the resource industry.
 
“I congratulate AMMA on this program, which is supporting women to succeed in a male dominated industry and promoting greater choice and opportunity for Australian women. Such partnerships are essential if we are to obtain greater workforce equality and in turn, reduce the gender pay gap”
 
AWRA is a national initiative facilitated by Australia’s peak resource industry employer group AMMA (the Australian Mines and Metals Association).

ends

AMMA National Conference - Resource leaders urge government to kick-start workplace relations reform

AUSTRALIA’S resource industry has used its annual national employment conference to urge the Turnbull Government to put ‘fundamental workplace relations reform’ back on the political agenda.

Speaking at the 2016 AMMA National Conference today in Perth, the association’s Chief Executive Steve Knott said it was ‘disappointing’ that the government failed to respond to the Productivity Commission’s recommendations on workplace relations reform during the election campaign.
 
He reiterated the need for the Coalition to pursue changes beyond the double dissolution triggers of the Australian Building and Construction Commission (ABCC) and a new Registered Organisations Commission.
 
“Fundamental reform of our workplace relations laws cannot be put on the backburner,” Mr Knott said at today’s Conference.
 
“The government’s commitment to combating union lawlessness and corruption is positive, but to assume this should be the last word on workplace reform would do Australian employers, employees and the wider community a profound disservice.
 
“Stopping at the five workplace relations bills foreshadowed by the government should not be acceptable. There are additional, widespread and longstanding problems with our workplace system that need to be addressed.
 
“AMMA is calling on the government to pursue its clearly foreshadowed changes while simultaneously implementing the Productivity Commission’s recommendations to improve Australia’s workplace relations framework.”
 
Referencing Tuesday’s rate cut by the RBA and the threatened downgrading of Australia’s AAA rating by the major international credit rating agencies, Mr Knott warned ‘significant micro and macro-economic reforms’ are needed to stop the momentum for further downgrades.
 
“Australia is stuck in a period of domestic political and reform inertia, and we have become an increasingly costly and complex place to do business,” said the AMMA boss.
 
“Unless we can begin to change this, we can expect upwards pressure on borrowing rates with consequential adverse impacts on both consumer spending and living standards.
 
“The AAA credit rating wake-up call and a historic low cash rate simply reflect what most in business already know. Put simply, Australia desperately needs to lift our competitiveness.
 
“In our industry the decision on where to invest capital largely rests on costs versus returns, political stability and the right policies for doing business.  It is imperative that we present a more attractive platform for investment to secure the $254bn worth of potential major resource developments in Australia that are in limbo, yet to achieve final investment decision.”
 
The 2016 AMMA National Conference features resource industry CEOs and ‘people managers’ exploring employee relations, human resources, leadership, culture and development topics. Click here for a full transcript of AMMA Chief Executive Steve Knott’s opening address.

ends

Last chance for tickets to the 2016 eftpos ARA Australian Retail Awards

RETAILERS looking for opportunities to network, learn from other successful retailers and celebrate the cream of the crop in the industry are encouraged to purchase tickets for next week’s 2016 eftpos ARA Australian Retail Awards.

The annual Awards breakfast, to be held at Melbourne’s Grand Hyatt next Wednesday, August 10, will see Australia’s top retailers for 2016 crowned, with audience members to be inspired by keynote speakers who have trodden the retail path.

Tickets for Australia’s premier retail awards and networking breakfast are still available, with retailers urged to get in quick to avoid missing out. Tickets can be purchased at http://retail.org.au/2016-retail-awards/.

Jeff Allis, Co-Founder of Boost Juice, and Daniel Flynn, Co-Founder of FMCG goods and social enterprise business, Thankyou, will also grace the stage to impart some words of wisdom, advice and motivation.

Judging of the 2016 eftpos ARA Australian Retail Awards has now wrapped up, with both runners up and winners to be announced next Wednesday at the Breakfast. The event will be emceed by ABC’s Beverley O’Connor.

A record number of Award entries were received by the Australian Retailers Association (ARA) this year, reflecting the strong culture of innovation, success, and hard work by Australian retailers.

Russell Zimmerman, ARA Executive Director, said the event is not to be missed.

“In 2016 we have some big names up for prizes, along with one of the strongest fields of independent retailers we’ve seen in the more than 50 year history of the Australian Retail Awards,” Mr Zimmerman said.

“This year’s Awards Breakfast is not to be missed, judging from the talent and skill of our entries, as well as the high quality of our keynote speakers and networking opportunities.”

2016 eftpos ARA Australian Retail Awards categories include eftpos Retailer of the Year, Shop For Shops Store Fitout of the Year, Temando Multichannel Retailer of the Year, Frontline Recruitment Retail Employer of the Year, Rest Industry Super Retail Employee of the Year, FCB Retail HR Rising Star of the Year, Pronto Software Retail Innovator of the Year, ARA Retail Institute Retail Graduate of the Year, and ARA Independent Retailer of the Year.

2016 eftpos ARA Australian Retail Awards Breakfast

When: Wednesday 10 August 2016, 7am to 9:45am
Where: Grand Hyatt, 123 Collins St, Melbourne

Tickets & pricing: http://retail.org.au/2016-retail-awards/

ARA members $60/guests $80
ARA members table of 10 $550/guest table of 10 $750

 

About the eftpos ARA Australian Retail Awards

First held in the 1970s, the eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, recognising and rewarding outstanding retail businesses, innovations, and individuals across all sectors of retail.

Relaunched in 2008, the Awards culminate in the annual 2016 eftpos ARA Australian Retail Awards breakfast at Melbourne’s Grand Hyatt on August 10.
In 2016 there are nine Awards categories, judged by an experienced and distinguished panel of impartial fellow retailers, the 2016 awards event encompasses nine categories including, eftpos Retailer of the Year, Shop For Shops Store Fitout of the Year, Temando Multichannel Retailer of the Year, Frontline Recruitment Retail Employer of the Year, Rest Industry Super Retail Employee of the Year, FCB Retail HR Rising Star of the Year, Pronto Software Retail Innovator of the Year, ARA Retail Institute Retail Graduate of the Year, ARA Independent Retailer of the Year.

To enter the Awards or purchase tickets to the eftpos ARA Australian Retail Awards Breakfast event, visit http://retail.org.au/2016-retail-awards/

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $293 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 5,000 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

ENDS

Resources conference to tackle employment and workplace challenges

TOMORROW (4 August) in Perth, Australia’s peak resource industry employer group AMMA will host its National Conference – the only annual conference dedicated to employment and workplace challenges facing the resource industry. 

Drawing a national audience of industry leaders and ‘people professionals’, the 2016 AMMA National Conference will feature a full-day program of keynote presentations and panel discussions on a range of workforce and workplace relations matters.
 
The conference comes at a time when resource industry employers are facing a range of challenges including declining project investment, commodity price slumps and a regulatory system failing to support competitiveness and productivity.
 
Open to all registered media, conference highlights include:
 
Keynote CEO Presentations

  • Graham Hunt, CEO of Broadspectrum
  • Peter Bennett, CEO of Clough
  • Nev Power, CEO of Fortescue Metals Group

Political Address

  • Minister for Employment and Minister for Women, Senator Michaelia Cash

Panel discussions

  • In-depth leadership Q&A with Graham Hunt, Peter Bennett and Nev Power.
  • Discussion on Australia’s workplace relations system and reforms that would improve the Fair Work Act featuring an all-star panel of resource industry and employment law practitioners.

Click here for the full 2016 AMMA National Conference Program.

WHEN:  Thursday, 4 August 2016        
WHERE: Fraser’s Kings Park, Perth        
CONTACT: To attend, please contact Kylie Sully on 0409 781 580, This email address is being protected from spambots. You need JavaScript enabled to view it.

AMMA - Australian Mines and Metals Association

ends