THE Victoria Tourism Industry Council (VTIC) welcomes investments in the visitor economy made by the Andrews Labor government in the 2016-17 State Budget.

VTIC is pleased to see the government follow through with significant funding allocations which align with our pre-budget submission priorities - increased visitor spending in regional Victoria, and investing in tourism assets across the state.

VTIC Chief Executive Dianne Smith said, “The benefit of drawing more international visitors to regional Victoria is huge. The Regional Tourism Infrastructure Fund and the Regional Events Fund will boost the tourism offerings across the state, encourage visitation and help create jobs in regional Victoria.”

"It would be great to see every international visitor to Melbourne going to our regions as well.”

The visitor economy currently contributes $19.6 billion to the Victorian economy and employs more than 200,000 people. With the right settings, this could grow to $34 billion and 310,000 jobs by 2020.

“Increasing the payroll tax threshold will ease the cost of doing business for the thousands of small and medium businesses in our sector. This will help the industry grow and help meet these ambitious targets,” said Ms. Smith.

Some of the key tourism investments included in the state budget are:

• $101 million Regional Tourism Infrastructure Fund, including $48.2 million for the redevelopment of the Penguin Parade Visitor Centre at Phillip Island Nature Parks;  
• $38 million over 2 years for Visit Victoria Marketing;
• $20 million over 4 years for a Regional Events Fund;
• $9 million over 2 years for Business Events;
• $66 million for the Victorian Government Business Office network, with 18 offices around the world, including five in China, as part of Victoria’s China Strategy; and
• $8 million for the Gundij Mirring Traditional Owners to implement stages one and two of the Budj Bim Master Plan, which will open this natural heritage landscape to all visitors and strengthen a bid for the national heritage landscape to receive UNESCO World Heritage listing.

The visitor economy will also benefit from the $115 million investment in the Creative State, which includes:

• $7 million to support a cultural hub for Bendigo;
• $23 million to expand and upgrade the state’s cultural collections storage, including a new facility in Ballarat;
• $50 million boost for the State Library of Victoria, Arts Centre Melbourne and Melbourne Recital Centre; and
• $14.2 million for the screen industry, including funding for the Melbourne International Film Festival

Getting around Melbourne and Victoria will also be made easier with $1.3 billion allocated to improve regional rail services and $134 million for a safety upgrade to the City Loop.

As well as giving the sector a good confidence boost, VTIC is pleased that the government has delivered some tax relief to the thousands of small businesses that contribute to the visitor economy.

VTIC will continue to advocate for strategic investment in the sector and more practical measures that lower business costs and help realise the significant jobs potential of the tourism and events industry in this state.

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 $20 billion to the state economy each year and employ more than 200,000 people.

vtic.com.au  

THE Australian Parliament’s Trade and Investment Growth Committee has released its report entitled Inquiry into Australia’s Future in Research and Innovation.

The Inquiry examined Australia’s innovation system from the creation of ideas through research and innovative thinking, to the commercialisation of these ideas.

The Chair of the Committee, Mr Ken O’Dowd MP said, “Australia faces a world of rapid change as technology creates new products, new processes, and new industries. New innovative companies are expected to significantly contribute to Australia’s economy and assist in its diversification, increasing employment and improving its global competitiveness.”

“New innovative businesses need to be flexible and globally focussed from the outset. For them, it is no longer the case that the big will consume the small—instead, the fast will surpass the slow.” Mr O’Dowd said.

The report made six recommendations:

• Emerging industries should be identified where strategic research investment could enable Australia to become a world leader.
• There should be a review of overseas models of university-business collaboration to identify strategies which could be introduced in Australia.
• Initiatives introduced as part of the National Innovation and Science Agenda should be reviewed after three years of operation to determine their effectiveness and whether the programs should be expanded.
• If a patent box scheme is introduced, it should be subject to a sunset clause after three years of operation, in addition to a review.
• The Manufacturing Finance Corporation proposal should be reviewed.
• The Advanced Manufacturing Tax proposal should be reviewed.

The report is available from the Committee’s website.

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TWO NEW initiatives designed to make investment in Australian start-ups more attractive will be in place for the 2016-17 financial year after passing the Senate.

Minister for Industry, Innovation and Science Christopher Pyne said the measures were part of the government’s National Innovation and Science Agenda, which would drive smart ideas that create business growth, local jobs and global success.

“These tax measures are designed to broaden and diversify the economy through economic policies that build growth and productivity,” Mr Pyne said.

“The Tax Incentive for Early Stage Investors and New Arrangements for Venture Capital Limited Partnerships will promote investment in innovative high-growth potential start-up companies and improve businesses’ access to venture capital.

“Over 4,500 startups are missing out on equity finance each year. These measures will help startups get access to crucial funding to grow their startup.

“Investors, venture capital funds and innovative companies in all industries will benefit from these measures,” he said. 

The Tax Incentive for Early Stage Investors gives tax concessions to eligible early stage investors who invest in qualifying companies. The concessions include a capped 20 percent non-refundable tax offset and 10 year capital gains tax exemption for investments.

The New Arrangements for Venture Capital Limited Partnerships provide a range of changes that will improve access to capital and make investing in venture capital more user-friendly and internationally competitive.

www.innovation.gov.au.

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THE House of Representatives Environment Committee today presented its report into the Register of Environmental Organisations, a government scheme that enables eligible environmental organisations to receive tax-deductible donations.

The report centres on the administration of the Register, and how the Register supports communities to take practical action to improve the environment. The Committee has identified some key areas of possible reform of the Register, including measures relating to:

• the operation of the Register;
• activities undertaken by organisations listed on the Register; and
• the integrity of the current regulatory framework for registered organisations.

The Committee acknowledges the high level of public interest in the inquiry, having received over 685 submissions and a significant volume of correspondence. A substantial portion of this evidence originated from organisations currently listed on the Register. In recognition of this strong interest in the inquiry, the Committee undertook an extensive program of public hearings and site inspections around Australia, to hear firsthand about the range of environmental work being supported by the Register.

The Committee’s report is accompanied by a dissenting report from the Labor members of the Committee, and additional comments from the Member for La Trobe, Mr Jason Wood MP.

A full copy of the Committee’s report can be found on the inquiry’s website 

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THE Joint Standing Committee on Treaties  last week tabled two reports, with the first focussing on treaty activity regarding fisheries, marine safety and taxation, while the second summarised material from the recent seminar marking 20 years of the Committee’s work.

Committee Chair Luke Hartsuyker MP said the first report recommended ratification of an agreement designed to strengthen the Niue Treaty on fisheries surveillance and law enforcement in the South Pacific.

“The treaty will provide another avenue for preventing illegal, unreported and unregulated (IUU) fishing in the region, which depletes fish stocks through overfishing and poses a serious threat to food security in our region,” Mr Hartsuyker said.

“Australia plays a key role in maritime surveillance in the region and is committed to supporting regional cooperation on maritime security. This agreement will help us to maximise our operational reach and effectiveness in monitoring illegal activity, such as IUU fishing.”

Mr Hartsuyker said the report also included two new International Maritime Organization codes which will improve ship safety and protect the marine environment.

“The Polar Water Code will ensure that ships operating in polar waters are built to withstand the conditions, while the IGF Code will provide an international standard for ships using low-flashpoint fuels,” he said.

Mr Hartsuyker said the final treaty in the report is a new taxation agreement with Germany aimed at curtailing tax evasion.

“Australia and Germany have taken the opportunity to update and modernise an existing treaty by incorporating the Organisation for Economic Co-operation and Development (OECD) /The Group of Twenty (G20) recommendations to prevent base erosion and profit shifting,” he said.

“By including these provisions in the treaty we hope to promote the work of the OECD and create a precedent for future treaties.”

Mr Hartsuyker said the Committee also presented a second report, which summarised material from the recent seminar held to mark 20 years of the Committee’s work.

“The report contains a full transcript of the presentations delivered at the seminar, reflections on the Committee’s work, an assessment of its performance and useful statistical data,” he said.

“The seminar provided some thought provoking ideas on the Committee’s future direction and I am confident that the information included in this report will prove useful to experts, academics and students of the treaty making process in Australia.”

The reports are available on the committee’s website: http://www.aph.gov.au/jsct or by contacting the committee secretariat on (02) 6277 4002.  

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THE Standing Committee on Indigenous Affairs today tabled an interim report as part of its Inquiry into Educational Opportunities for Aboriginal and Torres Strait Islander students.

Although the Committee did not have an opportunity to fulfil its planned hearing program, issues raised by the community were so significant that the Committee resolved to release interim findings and recommendations for the Minister’s urgent consideration.

The Interim Report recommends that:

• ABSTUDY be overhauled and redesigned with the new system being fully operational by 30 June 2017
• the Government rectify the current gender imbalance in Commonwealth funding provided to Indigenous girls’ and boys’ programs, and ensure that future grants are gender equitable
• the Minister for Indigenous Affairs re-refer the inquiry to the Committee in the new Parliament so to ensure that the Committee may finish this vital work. 

Further information on the inquiry, including a full copy of the report is available on the Committee website at www.aph.gov.au/educationalopportunities.  

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IMPROVING health and nutrition in Australia’s neighbourhood is the subject of the first report of the inquiry into the role of development partnerships in agriculture and agribusiness in promoting prosperity, reducing poverty and enhancing stability in the Indo-Pacific region released by the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT).

The chair of the JSCFADT’s Foreign Affairs and Aid Sub-Committee, Dr Sharman Stone MP, said a major focus for the inquiry has been the so-called ‘double burden’ of malnutrition.

“This is when there is a coexistence of both under and overnutrition – which has a high cost to Indo-Pacific countries. Undernutrition is one of the largest causes of child mortality in children under five years. Stunting in children, which can be a sign of inadequate nutrition can cause irreversible developmental problems. Overnutrition and obesity on the other hand can cause non-communicable diseases such as diabetes and coronary disease,” Dr Stone said.

Undernutrition is a severe problem for some of Australia’s nearest neighbours with child stunting rates high, for example in Timor-Leste and Papua New Guinea. At the same time globally, of the top ten countries with the highest rates of overweight and obese adults, nine are Pacific island nations.

“The double burden of malnutrition in the Indo-Pacific region, especially in Pacific Island countries threatens the health of individuals, and the growth of regional economies,” Dr Stone said. “The scale of these problems and the tragic outcomes cannot be underestimated. The high rates of diabetic related amputations in some of these Pacific countries is not only a tragedy for individuals it’s also placing pressure on already stretched health services,” Dr Stone said.

The importance of local agriculture, the promotion of local cuisines and the role women can play in achieving better dietary outcomes for their families are some of the issues explored in the report as possible means to combat this health crisis and improve the nutritional health of our neighbours.

The report makes a range of recommendations to address the double burden of malnutrition, looming as a malnutrition crisis. In particular it needs promoting though a more co-ordinated and targeted approach by all stakeholders in the region.

The full report, information about the inquiry, including copies of submissions and public hearing transcripts, can be found on the committee’s website at www.aph.gov.au/jfadt.

NATIONAL retail spending saw a 3.6 percent growth (year-on-year) in March 2016, according to the Australian Bureau of Statistics (ABS), with household goods standing out with a 5.8 percent increase (year-on-year).

The ARA believes this reported figure can be attributed to television shows like My Kitchen Rules encouraging consumers to purchase new household products demonstrated by these programs.

ARA Executive Director Russell Zimmerman said the soft sales figures are a sign that the retail sector is still facing challenges. With the pending Federal election also weighing on sales and confidence creating uncertainty business and consumers are looking for real economic leadership.

Peak retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted monthly retail trade figures (month-on-month) reported today by the ABS. Year-on-year retail sales sit at 3.6 percent, highlighting soft retail sales growth in a number of categories.

The boost from the RBA interest rate cut along with Federal Budget tax cuts are what the Doctor ordered to boost consumer and business confidence.

“Overall, the sales figures in March illustrate that consumers are still holding on to their purse strings and discretionary spending remains tight with there being little doubt an extended Indian Summer has impacted on department store sales with deflation hitting food sales," Mr Zimmerman said.

"Year on year figures provide the most accurate measure of the sector’s performance and are the figures used by most retail businesses in their own reporting. March 2016 sales showed a 0.4 percent increase over February 2016 (month on month).

“Overall, the figures may be a reflection of consumer nervousness in discretionary spending due to instability with the Federal election and weak indicators from overseas. The federal election couldn’t come soon enough to restore certainty.

“Retailers are facing significant cost pressure at the moment with this week’s Federal Budget and interest rate cut being a positive, we are also needing the Government and Opposition to step in and increase consumer confidence by showing strong economic leadership and reform as part of their election campaigns,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (February 2016 – March 2016 seasonally adjusted)

Household goods retailing (0.1%), Other retailing (0.4%), Food retailing (0.6%), Clothing, footwear and personal accessory retailing (1.1%), Cafes, restaurants and takeaway food services (0.0%) and Department stores (-0.5%).

Northern Territory (-0.2%), South Australia (0.2%), Australian Capital Territory (-0.6%), Victoria (0.5%), Tasmania (0.6%), Western Australia (0.7%), New South Wales (0.4%) and Queensland (0.2%). 

YEAR-ON-YEAR RETAIL GROWTH (March 2015 – March 2016 seasonally adjusted)

Household goods retailing (5.8%), Cafes, restaurants and takeaway food services (3.0%), Food retailing (2.9%), Clothing, footwear and personal accessory retailing (5.2%), Other retailing (3.6%) and Department stores (1.7%).

New South Wales (4.9%), South Australia (3.1%), Tasmania (3.8%), Victoria (5.3%), Australian Capital Territory (6.9%), Western Australia (1.2%), Queensland (0.9%) and Northern Territory (1.1%).

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $300 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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