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Superannuation needs reform says ACOSS

SUPERANNUATION tax concessions must be reformed to reduce inequality and ensure government assistance is targeted to those who need it the most, according to the Australian Council of Social Service (ACOSS). 

With one in eight people in Australia living in poverty and the cost of living crisis continuing to bite, the Federal Government is right to scrutinise unaffordable, unfair tax breaks for the wealthiest in our society, ACOSS CEO Cassandra Goldie said. 

She said superannuation concessions "cost the community an eye-watering $52 billion a year -- money that could be used to reduce poverty and fund essential public services such as health and aged care".

Ms Goldie welcomed the Treasurer’s move to legislate an objective for superannuation to make sure the system is equitable and sustainable.

“The Treasurer is absolutely right to be concerned about the ballooning cost and inequity of tax breaks for superannuation, which do not benefit people on the lowest incomes,” she said.

“The system has become a tax avoidance scheme that allows people who are already very well off, who are mostly men, to build up huge balances that are more than enough for a decent retirement and often passed on to adult children.

“Today at the Senate Inquiry into poverty, I urged the government to do more to assist the millions of people who are struggling to afford the essentials of life such as rent, food, energy and medicines.

“To provide a fair and inclusive society we must make the right choices about who needs more government help and who needs less. Scrutinising unfair super tax breaks is a useful place to start.”

ACOSS presented what it called 'key facts' at the hearing that summed up the situation today:

  • Superannuation tax concessions cost the Budget $52 billion a year, almost the cost of the Age Pension ($55 billion);

  • Most of the benefit of superannuation tax breaks goes to the highest 20 percent of people by income; and

  • Once a fund member retires, the investment income of their account is completely tax free. This is not sustainable when governments are already struggling with the costs of quality health and aged care.

www.acoss.org.au

 

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New approaches to gambling harm minimisation

THE House Standing Committee on Social Policy and Legal Affairs will hold public hearings on Tuesday, February 28 and Wednesday, March 1 as part of its inquiry into online gambling and its impacts on those experiencing gambling harm.

Chair of the Committee, Peta Murphy MP said, "On Tuesday, we will hear from researchers and state and territory governments about the effectiveness of current online gambling harm minimisation measures, and new approaches that may be necessary to reduce harm.

"We have heard strong evidence calling for further restrictions on gambling advertising, and state and territory governments have suggested they are open to considering further reforms to limit the exposure of children and young people to gambling advertising. Further restrictions on gambling advertising are opposed by broadcasters, such as commercial radio and audio, who will also be appearing on Tuesday," Ms Murphy said.

On Wednesday, the committee will scrutinise the current regulation of simulated gambling and gambling-like activities in interactive games, as well as the effectiveness of current counselling and support services to address online gambling harm.

Ms Murphy said, "There is growing concern in Australia, and internationally, about the increasing accessibility of loot boxes in video games and social casino games on mobile devices and their potential to introduce children and young people to features that resemble gambling.

"The committee will hear from researchers and industry about these games and whether changes to legislation or the classification system are required to reduce the risks of harm to children and young people," she said.

"On Wednesday, the committee will also hear from counselling and support services to learn more about the effectiveness of current gambling services and barriers to seeking help. This evidence will be critical to the committee making practical and informed recommendations to ensure that people are able to access the help they need, when they need it," Ms Murphy said.

Programs for the committee’s upcoming hearings are available on the inquiry website here.

The hearings will be live streamed on the APH website: www.aph.gov.au/live.

Public hearing details

Date: Tuesday, 28 February 2023Time: 8:30am to 4:10pm AEDTLocation: Committee Room 2R1, Parliament House, Canberra

Date: Wednesday, 1 March 2023Time: 8:30am to 4:10pm AEDTLocation: Committee Room 2R1, Parliament House, Canberra

Further information about the inquiry, including published submissions, hearing dates and transcripts, are available on the inquiry webpage.

 

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Treaties Committee to consider ILO violence and harassment convention

THE Joint Standing Committee on Treaties will hold a public hearing today into the International Labour Organization Convention concerning the elimination of violence and harassment in the world of work (No. 190).

Committee Chair, Josh Wilson MP said, “The Convention is the first international agreement to address the pervasive problem of violence and harassment in the world of work, including gender-based violence and harassment.”

The scope of the Convention is broad, extending beyond traditional workers and covering persons regardless of their contractual status, working arrangements, or the type of violence and harassment to which they may be subject. The Convention requires the adoption of an ‘inclusive, integrated and gender-responsive approach’ to preventing and eliminating violence and harassment in the world of work, which binds the individual elements of the Convention together.

“The Australian Government advises that Australia’s law, policy, and practice is already consistent with the Convention’s obligations, but in keeping with its accountability function the committee will examine this and other issues during the public hearing,” Mr Wilson said.

Public hearing details

Date: Monday, 27 February 2023Time: 1.45pm – 4pm AEDTLocation: Committee Room 2R1, Parliament House

The hearing can be accessed online and the program for this hearing is available on the Committee website, along with further information about the inquiries.

 

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PJCIS reports on committee activities for 2021-22

THE Parliamentary Joint Committee on Intelligence and Security (PJCIS) has today tabled its Annual Report of Committee Activities 2021-2022. The report covers the financial year from July 1, 2021 to June 30, 2022.

Over the review period the committee undertook a significant volume of work across 21 inquiries and presented 17 reports on a range of complex national security matters. The Committee’s work included scrutiny of bills before Parliament, statutory reviews of legislation, two administration and expenditure reviews of the intelligence agencies, reviews of terrorist listings, and two policy inquiries.

The committee’s activities for the review period ceased in April 2022 with the end of the 46th Parliament.

Chair of the committee, Peter Khalil MP, said, "Effective parliamentary oversight of the intelligence community, undertaken by the PJCIS, is a crucial part of Australia’s democratic infrastructure.

"I acknowledge the work of the Committee in the 46th Parliament, which managed a high workload in a diligent and bipartisan manner, to fulfil the important oversight and inquiry functions of the committee.

"I look forward to reporting on the work of the Committee in the 47th Parliament in due course."

Further information on the functions and role of the committee as well as a copy of the report can be obtained from the Committee’s website.

 

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Public hearing held featuring experts on foreign influence laws

THE Parliamentary Joint Committee on Intelligence and Security heard evidence yesterday from a range of expert witnesses for the Review of the Foreign Influence Transparency Scheme Act 2018.

The committee heard from a range of witnesses, including former Prime Minister Malcolm Turnbull AC, Katherine Mansted from the ANU Security College, Alex Joske, and Australian universities and higher education representative bodies. The committee also heard from key government agencies: ASIO, the Department of Home Affairs and the Attorney-General’s Department.

“The Foreign Influence Transparency Scheme (FITS) is the first pillar of sunlight in Australia’s framework for countering foreign interference," PJCIS Chair Peter Khalil MP said.

"The FITS allows for public scrutiny of legitimate influence activities that foreign governments or entities might be conducting in Australia, or through the activities of Australians. 

“The committee has received mixed evidence regarding the operation, effectiveness and implications of the scheme since it commenced in 2018. This public hearing [allowed] the PJCIS to hear from affected entities, as well as expert witnesses regarding the grey area that exists between foreign influence and foreign interference, and whether the FITS is operating as the transparency spotlight it is intended to be.

"The committee will then test that evidence with the Attorney-General’s Department as the Department that administers the FITS.” Mr Khalil said.

Further information on the review and the FITS Act can be obtained from the Committee’s website.

 

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ATO changes 'working from home' deductions

THE Australian Taxation Office (ATO) has refreshed the way that taxpayers claim deductions for costs incurred when working from home. According to the ATO, the changes better reflect contemporary working from home arrangements.

Assistant Commissioner Tim Loh said taxpayers can now choose one of two methods to claim working from home deductions: either the “actual cost” or “fixed rate” method. "Only the fixed rate method is changing," Mr Loh said.

The revised fixed rate method applies from July 1, 2022 and can be used when taxpayers are working out deductions for their 2022-23 income tax returns.

"First things first, make sure you are eligible to claim working from home expenses," Mr Loh said. "To claim your working from home expenses, you must be working from home to fulfil your employment duties, not just carrying out minimal tasks, such as occasionally checking emails or taking calls. Also, you must incur additional expenses as a result of working from home.

"No matter which method you use, make sure to keep records. This will give you more flexibility to choose the method that gives you the best deduction at tax time depending on your circumstances."

Mr Loh said these changes would provide benefits for those using the revised fixed rate in 2022-23.

"Items that are difficult and tedious for everyday Aussies to calculate actual work-use, like phone, internet and electricity expenses, are included in the revised rate," he said. "Assets and equipment that typically give taxpayers a bigger deduction, such as technological items and office furniture, are not included in the revised rate and need to be claimed separately.

"Another benefit is that you no longer need a dedicated home office to use the fixed rate method."

Mr Loh reassured taxpayers who have not kept records so far this income year that transitional arrangements are in place for 2022-23.

"From 1 July 2022 to 28 February 2023, we’ll accept a record which represents the total number of hours worked from home -- for example a four-week diary. From 1 March 2023 onwards, taxpayers will need to record the total number of hours they work from home.

"And remember, you can’t claim for things like coffee, tea, milk and other general household items, even if your employer may provide these kinds of things for you at work."

Revised fixed rate method

The revised fixed rate method can be used from the 2022-23 income year onwards. The changes are:

Rate

  • The cents per work hour has increased from 52 cents to 67 cents.

What’s covered by the rate

  • The revised fixed rate of 67 cents per work hour covers energy expenses (electricity and gas), phone usage (mobile and home), internet, stationery, and computer consumables. No additional deduction for any expenses covered by the rate can be claimed if you use this method.

What can be claimed separately

  • The decline in value of assets used while working from home, such as computers and office furniture.
  • The repairs and maintenance of these assets.
  • The costs associated with cleaning a dedicated home office.

Home office

  • The revised fixed rate method doesn’t require taxpayers to have a dedicated home office space to claim working from home expenses.

Record keeping

  • Taxpayers need to keep a record of all the hours worked from home for the entire income year – the ATO will not accept estimates, or a fpur-week representative diary or similar document under this method from March 1, 2023.
  • Records of hours worked from home can be in any form provided they are kept as they occur, for example, timesheets, rosters, logs of time spent accessing employer or business systems, or a diary for the full year.
  • Records must be kept for each expense taxpayers have incurred which is covered by the fixed rate per hour. For example, if taxpayers use their phone and electricity when working from home, they must keep one bill for each of these expenses.

Actual cost method

The actual cost method has not changed. Taxpayers can claim the actual work-related portion of all running expenses.

This includes keeping detailed records for all the working from home expenses being claimed, including:

  • all receipts, bills and other similar documents to show taxpayers have incurred the expenses, a record of the number of hours worked from home during the income year (either the actual hours or a diary or similar document kept for a representative 4-week period to show the usual pattern of working at home).
  • a record of how taxpayers have calculated the work-related and private portion of their expenses (for example, a diary or similar document kept for a representative four-week period to show the usual pattern of work-related use of a depreciating asset such as a laptop).

The ATO wants to remind taxpayers that if they are claiming their actual working from home expenses, they cannot claim a deduction for expenses which have already been reimbursed by their employer.

More information

No matter which method is used, if taxpayers purchase assets and equipment for work and it costs more than $300, they cannot claim the full amount immediately. For each of these items, the deduction must be claimed over a number of years and the work portion claimed, known as decline in value or depreciation.

The ATO has online calculators to help taxpayers work out the decline in value of assets and equipment purchased. There is also the myDeductions tool in the ATO app, which can help keep track of expenses.

Taxpayers needing assistance or advice about claiming working from home expenses can also seek the assistance of a registered tax professional.

More information about working from home, including example calculations, is available at ato.gov.au/home

 

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Review supports passage of Referendum legislation

THE Parliament’s Electoral Matters Committee has recommended that the Referendum (Machinery Provisions) Amendment Bill 2022 be passed, if amendments are made to strengthen enfranchisement and participation in the referendum, particularly of Aboriginal and Torres Strait Islanders, and clear, factual and impartial information is made accessible to all voters.

Tabling the report last week, Committee Chair Kate Thwaites MP said the inquiry and the legislation were focused on technical aspects of conducting a referendum.

"Above all, the legislation intends to modernise the referendum process and bring it into line with how recent federal elections have been conducted," Ms Thwaites said.

The committee recommended that the legislation be passed, but also that:

  • The Government consider any amendments to support increased enrolment and participation in the referendum, particularly of Aboriginal and Torres Strait Islander people, including in remote communities.
  • The Government consider any amendments which ensure ​
    • clear, factual and impartial information is made accessible to all voters as part of the referendum process; and
    • clear, factual and impartial information is provided in appropriate formats for Aboriginal and Torres Strait Islander voters, and people from culturally and linguistically diverse backgrounds.

Read the full report link.

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Committee to hold first public hearing into the implications of severe weather events on the nation’s road network

THE House of Representatives Standing Committee on Regional Development, Infrastructure and Transport is commencing public hearings for the inquiry into the implications of severe weather events on the national regional, rural, and remote road network.

Exploring planning, engineering, and construction standards to strengthen road resiliency across Australia was the focus of the opening public hearing on February 16, 2023, with Austroads, the member association of Australian and New Zealand transport agencies.

Chair of the Committee, Luke Gosling OAM, MP, said, "The hearing is an opportunity to hear from Austroads about the effects of climate change and natural disasters on the national road network, and the role of the Austroads Guides in promoting a national approach to best practice road design to enhance infrastructure resiliency and support our communities and industries."

The committee intends to hold further public hearings and interested parties are encouraged to make a written submission to this inquiry relating to any or all of the inquiry terms of reference by February 28, 2023.

Further information about the inquiry, including published submissions and hearing transcripts, will be available on the inquiry web page.

 

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Long COVID inquiry to speak with peak bodies, medical researchers and ventilation experts

A PUBLIC HEARING will be held on Monday, February 20, at Cabrini Hospital in Malvern, Melbourne, as part of the House Health Committee’s inquiry into long COVID and repeated COVID infections.

Professor Brendan Crabb AC, the Burnet Institute’s director and chief executive, will appear to further unpack what medical researchers know so far about long COVID and repeated COVID infections.

The public hearing will also hear from peak bodies, other medical researchers and ventilation experts about the effects of long COVID and repeated COVID infections on patients, health workers and schools.

Chair of the Committee, Mike Freelander MP said, "The committee is looking forward to travelling to Melbourne to hear from organisations and researchers who have played central roles throughout the COVID pandemic.

"The committee is interested in hearing about how we may be able to reduce the risk of COVID in highly social settings such as schools, including by investigating the role of ventilation," Dr Freelander said. "We are also looking forward to speaking to peak bodies to better understand how long COVID and repeated COVID infections are impacting Australia’s primary care capability."

Deputy Chair of the Committee, Melissa McIntosh MP said, "COVID is serious, and the committee is asking for expert evidence on preventative measures and issues with multiple reinfection.

"Throughout our inquiry we have repeatedly heard about the importance of preventative strategies such as mask wearing, social distancing and ventilation. We intend to canvass these measures in more detail at this public hearing."

Further information about the inquiry, including the terms of reference and published submissions are available on the Committee’s website.

Public hearing details

Date: Monday, 20 February 2023Time: 8.30am–5pm AEDTLocation: Cabrini Hospital Education and Training facility, 154 Wattle Road, Malvern, Victoria

Program

8.30am–9.10am: Professor Brendan Crabb AC, Director and CEO, Burnet Institute9.10am–9.50am: Public Health Association of Australia (PHAA)9.50am–10.30am: Royal Australian College of General Practitioners (RACGP)10.30am–11am: Break11am–11.40am: Associate Professor Robyn Schofield, University of Melbourne11.40am–12:20pm: Professor Lidia Morawska, Queensland University of Technology (by videoconference)12.20pm–1.20pm: Break1.20pm–2pm: Professor Geoff Hanmer, Director, OzSAGE2pm–2.40pm: Professor Jeremy Nicholson, Director, Australian Phenome Centre2.40pm–3.40pm: Break3.40pm–4.20pm: COVID Safe Schools Inc (by videoconference)4.20pm–5pm: Australian Education Union5pm: Close

Audio of the hearing will be broadcast live at aph.gov.au/live.

 

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2023 Australian Government Budget needed to back apprentice recruitment says ITECA

THIS YEAR'S Federal Budget must make meaningful and long-term commitments to fund apprentice and trainee recruitment, retention and support initiatives.  That’s the advice from the Independent Tertiary Education Council Australia (ITECA), the peak body representing independent providers in the skills training, higher education, and international education sectors.

“A decade ago, the then Australian Government slashed apprentice and trainee incentives directed to both commencement and completion in critical skill areas for the economy," ITECA chief executive Troy Williams said. "This saw recruitment levels crash by around 59 percent by 2019 on 2012 levels, despite efforts of some states and territories.

"This decline was only arrested with the introduction of Covid-era employment subsidies,” Mr Williams said..

With apprenticeship and traineeship numbers having grown in recent years, ITECA is calling for the Australian Government to commit to long-term incentives to ensure that employers are able to keep apprentices and trainees on throughout the course of their training.

“The duration of an apprenticeship is often four years from commencement to completion.  Government incentives that last for a year or two do not provide potential apprentices, trainees, employers or training organisations with the confidence to engage meaningfully and long-term in the ways needed,” Mr Williams said.

Consistent with ITECA’s established reputation for member-driven policy leadership, the independent skills training sector has provided recommendations to the Australian Government as part of the consultations to support the development of this year’s federal budget.

“ITECA members have advised the Australian Government that a subsidy of 30 percent be provided in the first year of apprenticeships and traineeships, without limitation by any list.  Further, ITECA members have also advised that the completion incentives be reinstated at a minimum of $5,000 to the apprentice or trainee on the completion of their training,” Mr Williams said.

The emphasis on the completion incentive is a critical component of the support mechanism, according to the ITECA membership.

“Without the completion incentive, the initial incentives are a disservice to employers in the first instance, as well as to the apprentices and trainee.  We need the Australian Government to support apprentices, trainees and employers for the duration of their training,” Mr Williams said.

To provide employers and the skills training sector with confidence, ITECA members recommend that the new arrangements be implemented over the medium-term.

“As they consider taking on an apprentice and trainee, employers need confidence that the policy settings of today will provide, as a minimum, the support available over the term of the apprenticeship and traineeship,” Mr Williams said.

Government data referenced in the ITECA State Of The Sector Report shows that over the past four years, the number of apprentices and trainees with independent Registered Training Organisations (RTOs) has grown by more than 60,000.  The report shows that there were 182,220 apprentices and trainees with independent providers, that’s 52.2 percent of all apprentices and trainees in the skills system.

www.iteca.edu.au

 

About the ITECA

Founded in 1992, the Independent Tertiary Education Council Australia (ITECA) is the peak body representing independent Registered Training Organisations (RTOs) and higher education providers.  Independent RTOs support more than 87 percent of the 4.3 million students in skills training and around 10 percent of the 1.6 million students in a higher education awards program.

 

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House Economics Committee keeps spotlight on RBA

THE House of Representatives Standing Committee on Economics will hold a public hearing with the Governor of the Reserve Bank of Australia (RBA), Philip Lowe, and other senior RBA officials on Friday, February 17, 2023.

Committee Chair, Daniel Mulino MP, said, "Since the committee’s last public hearing in September last year, the RBA has raised the cash rate one percent — a cumulative rise of 3.25 percent since the RBA started hiking rates in May 2022. Right now, inflation is the primary challenge to Australia’s economy, with the latest CPI inflation figures reaching 7.8 percent over the year to the December quarter.

"This sharp increase in rates, unprecedented in recent times, has been creating pressure across households and the economy. While the RBA’s view is that inflation is likely to have peaked around the end of 2022, there is still considerable uncertainty in the economic outlook with further interest rate increases expected in the months ahead," Dr Mulino said.

"The committee takes its scrutiny of the RBA very seriously and will continue to examine how the challenges of tackling high inflation are evolving. The RBA’s mandate of returning inflation to the 2 to 3 percent range over time is vital, and there are many domestic and global factors that will need to be addressed."

Public hearing details

Date: Friday 17 February 2023Time: 9.30am – 12.30pmLocation: Committee Room 2R1, Parliament House, Canberra

The hearing will be broadcast live at aph.gov.au/live.

 

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