THE Minister for Small Business and Assistant Treasurer, Kelly O'Dwyer, has released draft legislation and regulations for public consultation on resilience and collateral protection, and a policy paper on client monies.

THE Victorian Chamber’s submission to the Productivity Commission (PC) has argued that the key outcomes of its review of Australia’s workplace relations framework must be the creation of a simpler, fairer and more efficient framework that spurs economic growth, increased productivity and improved business competitiveness.
                                                                         
Victorian Chamber chief executive Mark Stone said he welcomed a number of the final report’s recommendations including:

• Aligning penalty rates on Sundays in hospitality, entertainment, retail, restaurants and cafes with Saturday rates.
• Reform to curtail the cost impost of state based public holidays in addition to the national public holidays, as recently seen with the introduction of two new public holidays in Victoria.
• An emphasis on substance rather than process for unfair dismissal claims.
• The return of upfront assessments of unfair dismissal claims in some circumstances, which would limit the time and effort spent by employers in defending unmeritorious claims.
• Recognition that the enterprise agreement approval process is overly rigid and requires reform.
• Addressing ‘strike first, talk later’ tactics that subject business to costly disruptions. The PC has recommended prohibitions and restrictions that would limit this avenue.
• The PC’s assessment that the costs involved with expanding existing portable long service schemes would not be justified, given this would effectively introduce an additional employment tax on business with no associated benefit. 

"However, the report falls short in removing costly and lengthy general protections claims, though it does propose reforms to limit the ability of frivolous and vexatious claims to proceed, and for greater powers to award costs against applicants," Mr Stone said.

"We are disappointed that our recommendation to remove the ‘complaints’ element of the expansive general protections regime was not adopted, despite our analysis revealing only one successful case in over six years that would not have attracted protection under prior legislation. The thousands of claims against employers and rise in ‘go away money’ are therefore set to continue.

"The report also misses the opportunity to recommend crucial changes to restrict access to unfair dismissal claims, including for high income earners and genuine redundancy situations.

"Despite urging the PC to remove the burden of unfair dismissal for businesses with under 20 employees, this recommendation was not part of the final report, meaning small business will continue to spend time and money defending claims rather than running their businesses," Mr Stone said.

"We now urge the government to consider the recommendations of the PC and take on the heavy lifting required to legislate much needed reforms for business."

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

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THE Victorian Chamber of Commerce and Industry has welcomed today’s release of the Andrews Government’s Major Projects Skills Guarantee.

"It is good that the government is leveraging the delivery of Victoria’s infrastructure projects to develop the skills of the next generation of workers," Victorian Chamber of Commerce chief executive Mark Stone said.

"Like the Victorian Chamber Internship Program, this measure supports the development of a skilled, adaptive and productive workforce aligned to the needs of business.
 
"Business wants to employ graduates with 'real world” work experience and this announcement will help apprentices, trainees and engineering cadets throughout Victoria get this experience.
 
"While the Major Projects Skills Guarantee will expand opportunities for apprentices and trainees, further reforms to industry purchasing policy are needed to foster jobs and enhance local industry capability and competitiveness," he said.

The Victorian Chamber’s recent submission to the Review of Victorian Industry Participation Policy (VIPP) calls for:

• Changes to government purchasing frameworks to provide small business with more timely information about genuine procurement opportunities.
• The establishment of a formal weighting system for local content in the evaluation of tenders.
• A minimum local content target for all major regional procurement projects.
• Improvements to procurement practices in the public healthcare and judicial systems to ensure there is greater transparency in the way in which tenders are advertised, evaluated and awarded.
• The streamlining of procurement frameworks currently in operation across the three tiers of government. 

"The private sector plays a significant role in the government procurement process; designing, constructing, operating and maintaining an array of infrastructure projects across the state," Mr Stone said. "Therefore, reforms must also improve the environment for business by lowering costs, reducing red tape and improving investor confidence."

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

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THE PRODUCTIVITY Commission (PC) has failed employers, employees and the Australian community by giving our unnecessarily complicated workplace relations system a free pass and not properly considering how it should be fundamentally reformed for the future.

That is the view of national resource industry employer group, AMMA (Australian Mines and Metals Association) executive director for policy and public affairs, Scott Barklamb.

"While recommending some useful changes to elements of our current employment laws, today’s 1229 page PC report fails to deliver a proper plan for how our workplace relations system can best support jobs, productivity and competitiveness in Australia’s 21^st Century economy," Mr Barklamb said.

"The PC fails to address how uncoordinated, excessive regulation is harming our competitiveness as a place to do business, invest and create jobs. Australia is the only country in the world to overlay awards, agreements, minimum standards and regulation of day-to-day relations between employers and employees.

"Unions are also artificially placed at the centre of our workplace laws when just 11% of private sector employees join them. 

"Australia’s business community recommended a raft of positive ideas to the PC to genuinely reform our workplace relations system and expected the PC to deliver options for meaningful change. Anything less risks failing not only existing employers and employees, but young people whose future livelihoods hinge on this generation’s will to properly address serious national challenges," Mr Barklamb said.

"The PC’s 21 pages of recommendations do contain some positive ideas that will improve our workplace relations laws and that will be supported by employers.

"However, the PC needed to do more than blithely conclude our overall system is not in need of fundamental repair. It is very disappointing the PC appears to have made only piecemeal, uncoordinated recommendations across a limited subset of areas, rather than thinking about how our workplace relations system could be improved.

"AMMA and its members welcome the Minister for Employment, Senator Michaelia Cash, opening a period for further input to government on how the PC’s report and recommendations should be progressed. We will use planned roundtable discussions to further advocate the national benefits of more meaningful reform, as well as engage with the PC’s specific recommendations.

"AMMA will encourage the Turnbull Government to put jobs, investment, productivity, growth and our future living standards at the centre of how it proceeds following the PC report, and we welcome the Minister’s prioritisation of these concerns as she released the report today," he said.

"Genuine workplace reform can deliver real benefits for Australia. For instance, independent research showed that key workplace reforms advocated by AMMA could support resource sector productivity growth of up to 5% and investment growth of 8%, add $30.9 billion to Australia’s GDP and create 36,000 additional jobs."

www.amma.org.au

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THE Australian Retailers Association (ARA) has come out in support of the Productivity Commission’s Workplace Relations Framework final report, which emphasises the need for penalty rates need to be set at an economically viable level to support further retail and economic growth while creating more jobs.

Russell Zimmerman, ARA Executive Director, says retailers are happy to have determination of penalty rates left to the Fair Work Commission (FWC) as the ARA has a case currently before the FWC that we believe will influence a reduction in retail penalty rates to a more viable level to more create jobs.

“The ARA, along with the Master Grocers Association is engaged in a review of the General Retail Industry Award 2010 (GRIA), with the view to reducing costs for retailers who trade on Sundays,” said Mr Zimmerman.

The ARA is pushing for a reduction in Sunday penalty rates from 100 percent, known as double time, to 50 per cent, or time and half for retail workers. The ARA is not seeking to remove penalty rates, but instead to have penalties set at a more viable level to allow for the creation of more jobs.

“The recommendation that Sunday penalty rates for retailers should be aligned with Saturday rates is an important step in the recognition that rates are not currently viable for retailers,” he said.

“The retail industry is seeking a moderate reduction, not an abolition. We propose a reduction to allow retailers more flexibility around employment of staff to be able to compete in the 24/7 global marketplace we now find ourselves in.

“The fast food and restaurant industry Awards are both significantly lower than the GRIA for Sunday penalties at just 50 percent, and we would like to see the GRIA brought down to match this.

“The decision on standards such as penalty rates have always been made by independent arbitrators and this is a process the ARA will continue to support, as long as it remains fair and within a reasonable framework,” Mr Zimmerman said.

Retailers fully support the recommendations of the Productivity Commission’s report and look forward to working with the Government and its arbitrator the FWC to achieve these objectives.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 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.

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THE Australian Retailers Association (ARA) is encouraging shoppers to hit supermarkets and other fresh food retailers this weekend and early next week to avoid the traditional last minute rush for Christmas groceries expected on Wednesday and Thursday.

Fresh food, perishables, alcohol, and other groceries, along with last minute gift purchases will be top of shopper’s lists this week as Aussies stock up on food and beverages for Christmas entertaining, or to tide them over on Christmas Day when stores may be closed.

Australian consumers are expected to spend almost $19 billion on grocery items this Christmas, up 2.5 percent on last year. The ARA ‘s top seller predictions for groceries in the next week include boxed chocolates, confectionary, ham, turkey, seafood, chips, dips and crackers.

“The sharing of meals and drinks with friends and family is a huge part of an Australian Christmas, and as a result, retailers of both food and drink products fare very well over the period,” Russell Zimmerman, Executive Director of the ARA, said.

“Fresh foods in particular, as well as alcohol are big sellers in the five days to Christmas, with many consumers also stocking up for Boxing Day parties and gatherings in anticipation of the day of no trade on Christmas Day.

“We recommend all consumers hit the stores early next week to avoid the queues that inevitably form in stores at this time of year and ask that shoppers remain patient as retail staff manage the increased number of customers,” Mr Zimmerman said.

Seafood will be one of the most popular fresh foods, as Australians continue their tradition of a cold lunch to counter the warmer southern hemisphere weather.

Sydney Fish Markets is expecting more than 100,000 shoppers to visit the market in the 36 hours from 5am December 23 to 5pm December 24, with more than 660 tonnes of seafood, including 130 tonnes of prawns to be sold.

“Seafood is one of those items that cannot be as easily purchased in advance, but there are many seafood retailers who will be taking orders well in advance of Christmas Eve and Christmas Day to ensure customers don’t miss out. We advise shoppers to take advantage of retailer’s pre-order offers, whether for seafood, turkey or hams wherever they can,” Mr Zimmerman said.

ARA ROY MORGAN PRE-CHRISTMAS 2015 SALES PREDICTIONS

November 15 - December 24, 2015

2015 Pre-Christmas Sales Growth by State

(ARA/ROY MORGAN)

2015 Pre-Christmas Sales Growth by Category

(ARA/ROY MORGAN)

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $284 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.

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RECOMMENDATIONS to bolster Victoria’s higher education sector by strengthening our position in the international education market are among the priorities of the Victorian Chamber of Commerce and Industry’s Higher Education Taskforce report.

“Victoria’s international education sector is valued at $5.74 billion, making it one of our most valuable sectors,” said Victorian Chamber Chief Executive Mark Stone.

“It is timely that higher education providers, business and policy makers continue to work together to ensure our education capabilities and global reputation are strong and growing.”

Victoria’s higher education sector, which includes universities and private providers, is diverse, competitive and internationally recognised as delivering high-quality graduates and leading-edge research. 

However, global competition in education services is intensifying and action is needed to make Victoria a more attractive destination for international students.  Several barriers need to be addressed to ensure we remain competitive.  These include student transport and healthcare costs, accommodation affordability and difficulties getting “real world” industry experience.

Recommendations to address these barriers and grow Victoria’s competitive position in the international education market are a key focus of the Victorian Chamber’s Higher Education Taskforce Report, Strengthening the competitiveness of Victoria’s higher education sector. They include:

• Extending the public transport concessions international students receive to include short-term tickets across all fare zones in Victoria, so they have the same discounts as domestic students. 
• Encouraging universities to develop dedicated, user-friendly systems to help international students and graduates find internships and longer-term employment.
• Improving student accommodation across the state, facilitating affordable close-to-campus and on-campus options for international students.
• Promoting the use of global health insurance policies issued through universities which provide coverage for services that would otherwise be an additional cost for international students.
• Removing the obligation of government agencies to only recruit graduates who are Australian citizens or permanent residents.
• Encouraging higher education providers to develop a module for international students which teaches them about diversity, appropriate communication methods and culture in the workplace.

“Adopting these measures will make Victoria more attractive for inbound students; enhance their learning experience, lower their living and study costs, and strengthen their pathways to skilled employment,” said Mr Stone.

Other priority areas highlighted in the report include:

• Driving innovation by broadening and deepening university-industry research links.
• Increasing productivity and employability by more closely aligning graduate skills with employer needs.
• Enhancing student access, learning and employability.

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

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THE Federal Government should seriously consider de-registering the CFMEU and the MUA after the unions this week threatened crippling and unlawful strikes at a national level. according to a statement by national resource industry employer group Australian Mines and Metals Association (AMMA) chief executive Steve Knott.

"These threats are an attempt to coerce prosecutors into dropping charges against 101 construction employees being pursued over illegal strikes in Perth in 2013," Mr Knott said. "The threats must be scrutinised by the government and condemned by the leadership of the ALP and ACTU.

"Government, employers and the broader community need to stand united. We cannot allow any group in our society to continually break the law and then threaten illegal strike action to force a government regulator to back down.

"It is beyond belief that in the 21^st Century the CFMEU, MUA and their respective members are oblivious to the fact that illegal industrial action may result in organisational and/or individual prosecutions and fines.

"An avalanche of evidence in recent months highlights that it may be time to take away the privileges these organisations receive as registered industrial organisations. These privileges include default bargaining representation rights, extensive powers to enter worksites, special standing before the Fair Work Commission, and lesser fines and penalties than corporations."

Mr Knott said recent examples of illegal action included:

• Thousands of unionists walking off their jobs in Melbourne to protest against two senior CFMEU officials being charged with serious blackmail offences uncovered by a Royal Commission;
• Hundreds of CFMEU members downing tools in Brisbane and rallying in support of a fellow unionist who was charged with assaulting a female building developer; and
• The Federal Court imposing penalties of $151,000 on the CFMEU and a number of its officials for their role in illegal blockades during the Grocon dispute in 2012 – this came after the CFMEU agreed to pay Grocon $3.55m in damages in June this year.

"The FWBC Inspectorate has a record number of cases currently in court (52 as of August) and almost 90% of these cases have the CFMEU or CFMEU officials named as respondents," Mr Knott said. "It is no surprise that Federal Court Judge, Justice Christopher Jessup, last month condemned the CFMEU’s culture as one in which breaking the law has become normalised.

"The threat from the CFMEU and the MUA is also the first sign of the damage that will be created by the planned amalgamation of the two unions.  Legal action against construction employees has nothing to do with the maritime industry or the employers and wider community that will be harmed by any MUA strikes in support of their law-breaking mates at the CFMEU.

"It is 2015, not the 1970s. If the militant minority of Australia’s trade union movement continually refuses to recognise this, they strengthen the case of those who argue that deregistration is the only way to end their calculated and contemptuous law breaking."

www.amma.org.au

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ELIMINATING inefficient elements of state taxes, such as the payroll tax threshold and conveyancing duties on the transfer of properties, would add a third of a percent to Australia’s GDP, says Victoria University economist John Madden.

Professor Madden from the University’s Centre of Policy Studies will join a leading panel of economic experts examining Tax Reform in a Modern Federation at the next Melbourne Economic Forum tomorrow.

He will assess the economic gains from proposed state and federal tax reforms.

“There are clear economic gains to be had from these reforms but they would only have a minor impact on the budgetary problems of the federal and state governments,” he said.

“The government faces a considerable fiscal task that requires substantial tax increases to meet planned public expenditures. Economic modelling suggests that increasing the payroll tax rate would be less damaging to the economy than an increase in the GST rate.”

The Turnbull government has pledged to place tax reform at the top of the policy agenda but the hardening of positions on tax reform from unions and business underscores the difficulty the government will face in achieving consensus on a tax package.

Other speakers at the Melbourne Economic Forum include:

• Professor Ross Garnaut, Professorial Research Fellow in Economics, University of Melbourne
• Professor John Daley, Chief Executive Officer, Grattan Institute
• Professor John Freebairn, Ritchie Chair of Economics, Department of Economics, University of Melbourne
• Professor Miranda Stewart, Director, Tax and Transfer Policy, Australian National University
• Laureate Professor Emeritus Cheryl Saunders, Director of Studies, Government Law, Co-Director of Studies, Public and International Law, Melbourne Law School, University of Melbourne.

 
The Melbourne Economic Forum is a joint collaboration between Victoria University and the University of Melbourne. It is run in association with the Australian Financial Review.

Tax Reform in a Modern Federation

When: Thursday 17 December, 11am to 2pm
Where:  University of Melbourne: Woodward Conference Centre, Level 10, Law Building, 185 Pelham Street, Carlton.

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