AUSTRALIA'S professional accounting bodies are grateful for the temporary ASIC fee relief for financial advisers announced recently by the Federal Government. However, they cannot understand why other parts of the accounting profession, which have also been hit by steep fee increases, have been ignored.

CPA Australia, Chartered Accountants Australia and New Zealand and the Institute of Public Accountants are urging the Feeral Government to extend this relief to all financial services participants, not just financial advisers.

This would provide widespread regulatory certainty while the profession awaits the review of the ASIC Industry Funding Model.

ASIC fees for financial advisers have increased by more than 230 percent over the past three years. Most financial advisers are sole traders or small businesses and cannot afford these rising costs. The total number of financial advisers now sits at just over 19,000, a loss of more than 2000 since November 2020.

Restoring ASIC fees to their 2018-19 level for the next two years comes as welcome relief for financial advisers. This decision will directly improve business viability and adviser retention rates. These are issues which also severely impact other financial services participants.

Registered company auditors, for example, have seen their registration fee more than quadruple in a short period of time. For 2020-21, the individual levy for a registered company auditor will rise to $1,127 from $208 in 2018-19. This comes at a time when auditor numbers are declining.

Insolvency practitioners are charged ASIC industry fees at a flat rate of $2,500 per year and then per 'notifiable event'. This structure makes it hard to precisely quantify ASIC fee increases. The professional accounting bodies are nonetheless aware that insolvency practitioners are finding rising fees debilitating and difficult to budget for.

The most recent announcements recognise the debilitating impact that ASIC industry fees are having on the profession and acknowledges the government’s role in controlling fee increases.

But the accounting professional bodies said it did not make sense to discriminate between participants by granting relief to some while ignoring others.

"We look forward to the review of the ASIC industry fee model in 2022 and will actively participate in the consultation process," read a statment from the professional bodies. "It will be important for this review to examine the impact of ASIC industry fees on all participants."

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THE PEAK advisory body for some of the largest providers of community care is calling on the Federal Government to mandate the vaccination of disability support workers against COVID-19 as the Delta variant continues to rip through communities.

Catholic Health Australia (CHA) has written to Prime Minister Scott Morrison and the Minister for the National Disability Insurance Scheme, Linda Reynolds, urging them to trigger a Commonwealth mandate vaccination program much like the one for residential aged care workers. 

With only about a third of disability support workers fully vaccinated, CHA members are asking for action as the Delta variant continues to spread through the community. CHA members say the ‘opt in’ model is not working and the only way to expedite the vaccination program is to make it mandatory.

The Commonwealth has already made it compulsory for residential aged care workers to get their first shot by the middle of this month and now states are requiring health workers to get vaccinated. 

CHA director of mission and strategy, Rebecca Burdick Davies said, “If mandatory vaccination is good enough for residential aged care and health care workers then surely it must be good enough for disability support workers.

“We have a duty to protect the most vulnerable in our community and we can start by requiring our staff to be vaccinated. These workers are going into people’s homes and moving around the community - it is part of their job description. Their place of work is the community and we have learned that the Delta variant spreads rapidly via mobile workforces.” 

Ms Burdick Davies said as new supplies of COVID-19 vaccines came on stream there should be no excuses for not mandating vaccine disability support workers. 

“Every day we delay is another day where people living with a disability and the people that care for them are exposed to unnecessary risk. Our members are already organising the vaccination of staff but for the minority who are hesitating for whatever reason, that hard push from government will draw a line in the sand.”

Mark Phillips, CEO of CatholicCare Sydney, said, “As vaccination levels rise and we open up our communities, it will be increasingly difficult to protect vulnerable clients and our own staff in the way that we should if we have unvaccinated workers. 

“A government mandate for vaccinations for our workers will assist us to put in place the protections that our clients, our staff and the community expect.”

Jack de Groot, CEO of the St Vincent de Paul Society NSW, said, “Vinnies is committed to the care and well-being of some of our community’s most forgotten and hidden people.  The lives of those Australians living with disability matter.  Their well-being requires a workforce that is healthy, and which strives every day to make a real difference to those living with disability.  

“Mandatory vaccination in our services should be part of the normal requirements to maintain the health and safety of our communities.” 

CHA members include, among others, St Vincent de Paul NSW, St Vincent de Paul Queensland, Catholic Healthcare, CatholicCare, Ozcare, St John of God Healthcare, and St Vincent’s Health Australia.\

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THE Accommodation Association today thanked the NSW Government for unveiling its Roadmap to Freedom for the fully vaccinated, especially given the important lead-in timeframe which will allow hotels and motels to properly prepare.
 
The NSW Roadmap and the very clear communication of the threshold trigger of 70 percent double vaccinated, plus the framework under which reopening would be delayed or restrictions reimposed, is exactly what the Association has been asking for on behalf of members and their teams.

Accommodation Association CEO Dean Long said, “Our sector is one of the hardest hit and the fact that we now have a Roadmap to Reopening in NSW with clarity on what’s involved and when we are all able to start living and operating a bit more normally is very welcome.
 
“Hotels and motels can’t just throw open their doors and open their rooms on the day restrictions lift. They need time to prepare, to bring back the team, to provision up and to put all the necessary systems in place to deliver the best and safest experience for guests and for staff," Mr Long said.
 
“Getting back to a more normal life as soon as possible and as safely is possible is in all our interests so please get fully vaccinated as soon as possible and encourage those around you to do the same so that we hit that magic 70 percent threshold as soon as possible.”

QUEENSLAND renters are urging the State Government to fix their proposed new tenancy laws, so everyone has the chance to live in a safe and stable home – whether they own it or not.
 
Tenants Queensland CEO Penny Carr said the proposed laws did not go far enough in protecting the rights of Queensland renters, who are contacting the community organisation in increasing numbers.
 
“Every day, we speak to hundreds of Queensland tenants worried about fast-rising rents, lack of property availability, inadequate maintenance to their home and the increased risk of being evicted,” she said.   
 
“Unfortunately, the Queensland Government is not listening. Despite feedback from organisations like ours and tenants, the government’s Community Support and Services Committee ‘rubberstamped’ the proposed laws earlier this month.
 
“Parliament will now consider the proposed new laws, and we are running out of time to get our rental laws right. This is about creating stability for Queensland’s 1.8 million renters and giving families the protection they need to be safe and secure in their homes.”
 
Queenslander Janine [surname withheld] knows just how difficult it is to secure safe and stable housing for her family. She is just one of many tenants willing to share their stories.
 
After receiving an eviction notice at the end of their lease, Janine and her family have applied for 12 rental properties without success. The real estate agent immediately re-advertised the rental home in Brisbane’s northern suburbs with a substantial rent increase.
 
Janine described trying to find another home for her family as an absolute nightmare.
 
“We had lived in our home for nearly three years, made good friends in the community, and our neighbours are like family. Now we have had to leave, for no good reason,” she said.  
 
“We would have happily paid the extra rent if it meant avoiding the hassle of moving, especially with a young family.
 
“The real estate agent never raised any concerns with us until the last inspection. Then, they complained about the state of the house as we had baby gates and other children’s items out.”
 
Before they knew it, the family had a notice to leave without grounds. The real estate agent did not offer them the option to pay the increased rent to stay.
 
The Queensland Government’s proposed new laws fail to improve stability for renters, according to Tenants Queensland. They maintain the status quo by the late inclusion of ‘the end of a fixed term’ as a ground to end a tenancy. Rather than achieve greater stability, renters will face a longer list of ‘no-fault’ reasons they can be evicted.
 
Only by chance, Janine’s family were finally able to secure another rental property. Janine made a well-timed phone call to an agent who had just received notice from another tenant wanting to break their lease.
 
While the family were able to keep a roof over their heads, they were forced into debt to pay for the moving costs. 
 
Being faced with potential homelessness has had an enormous impact on her family, and Janine still cannot understand why they were given the notice to leave. 
 
“We lived there for almost three years, always paid our rent on time, and the property manager never previously raised any issues with us,” Janine said.
 
“It just doesn’t seem fair that a property manager can push us out of our home when we’ve done nothing wrong. I can’t think about what might have happened to us if we hadn’t been lucky enough to find another house. It’s just too scary.”  
 
 
 
BACKGROUND 

• Queensland’s record low vacancy rates. Almost two-thirds of local government areas in Queensland recorded their lowest or equal lowest rental vacancy rates in the June 2021 quarter. Read more.
   
• Renting families. Over one-third (36%) of Queensland households rent and families with children make up the largest renting household cohort (43%). Read more.
   
• About Make Renting Fair in Queensland. Make Renting Fair in Queensland is an alliance of organisations that support progressive reform of our renting laws so that all Queenslanders can make the place they live in their home, whether they rent or own. https://makerentingfairqld.org.au/
   

Tenants Queensland advocates for all Queensland tenants who live in rental accommodation, including caravan park and boarding house residents. TQ runs a free, state-wide advice service for Queensland tenants.

 https://tenantsqld.org.au/

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BOOSTING industry capability to implement the NSW Government’s building reforms has required targeted research to understand the current state of digital use among designers and contractors.

This research, conducted by Western Sydney University under the direction of the Office of Building Commissioner, surveyed 542 NSW class 2 (multi-unit) building sector professionals. 

It has confirmed that while increased digitalisation in design was improving quality and standards, the cost of software and licenses was a barrier for smaller businesses. 

The survey found 57 percent of builders and 48 percent of designers were still in a basic stage of digitalisation, dealing largely in PDF document formats. 

NSW Building Commissioner, David Chandler OAM, said the new research would help both policymakers and the industry itself understand the current spread of digital capabilities in construction. 

“We now have data on the industry’s current state of digital maturity which provides us with a baseline to work from," Mr Chandler said.

“Regulators need to take industry capability into account when putting in place laws and standards, and understand that the construction industry is driven by small businesses.

“We want NSW’s industry to be at the forefront of innovation and able to use every possible lever to increase its productivity. Digital technology can unlock many opportunities from helping to eliminate errors and deliver complex projects within budget and time, to supporting better communication between clients and contractors,” Mr Chandler said.

Association of Consulting Architects Australia vice president, Agi Sterling said most small practices simply could not afford the expense of constantly retraining staff on top of the cost of purchasing software for $10,000 to $20,000.

“Software vendors need to be conscious of the capacity of small design and construction companies to be able to pay upfront license costs and provide the wrap-around services to support staff, so that businesses are able to realise the benefits,” Ms Sterling said.

Office of the Building Commissioner program manager, Yolande Nyss, supported this concern highlighting that the research confirmed the class 2 design and building industry was predominantly made up of small businesses. 

“Moving towards a digitalised marketplace we need to appreciate that 80 percent of the industry are small businesses with less than 20 employees and so we need to be conscious of the practical challenges that they face,” Ms Nyss said.

Dean of Engineering at Western Sydney University, professor Mike Kagioglou, said the study would assist industry to develop its digital capability. 

"It is always a pleasure when collaboration between academia, industry and government results in high-impact, high-quality research. This influential study has great potential for positive changes in practice,” Prof. Kagioglou said.

“I very much look forward to this research realising its full potential through continued close collaboration between all parties.” 

The Industry Report on Digitalisation of Design and Construction of Class 2 Buildings in New South Wales was completed by the University of Western Sydney’s Centre for Smart Modern Construction.

To view the report: https://www.nsw.gov.au/building-commissioner/how-digital-ready-construction-industry

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THREE of Australia’s key economic regulators – the Australian Prudential Regulatory Authority (APRA), the Australian Securities and Investments Commission (ASIC), and the Australian Competition and Consumer Commission (ACCC) – will appear before the House of Representatives Standing Committee on Economics at a public hearing on Friday, September 10, 2021.

In the first part of the hearing, the committee will take evidence from all three regulators in support of its inquiry into the implications of capital concentration and common ownership in Australia. This will be one of the first public hearings in support of this new inquiry.

Common ownership refers to when institutional investors simultaneously own shares in competing firms, which can pose a risk to competition. The committee will investigate the extent of common ownership of publicly listed companies and the impact on investment decisions, competition, consumer harm and market behaviour.

Committee Chair Mr Tim Wilson MP said, "Common ownership has implications for investors and competition. We need to be sure we are empowering citizens as investors and customers, and not organised capital. The committee is looking forward to hearing the views of the ACCC, ASIC and APRA on this important topic."

The committee will use the second part of the hearing to continue its public review of the 2020 Annual Reports of both APRA and ASIC, following a similar hearing on March 29, 2021.

"When ASIC and APRA appeared before the committee earlier this year, we were keen to understand how they had responded to the COVID-19 pandemic, and to the associated economic stimulus measures taken by government," Mr Wilson said.

"The committee is looking forward to following-up on some of these questions. It is important that the Australian people have insight into the steps that our regulators are taking to promote resilience within the Australian economy during this time of uncertainty."

The full terms of reference for the inquiry into common ownership and capital concentration are available on the committee’s website.

Public hearing details

Date: Friday, 10 September 2021
Time: 9am to 4.30pm
Witnesses: ASIC, APRA, ACCC

Due to health and safety concerns relating to the COVID-19 pandemic, this hearing is not currently scheduled to be open for public attendance. Interested members of the public will be able to view proceedings via the live webcast at aph.gov.au/live.

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THE Tax Practitioners Board (TPB) and the Professional Standards Councils (the ‘Councils’) have signed a landmark Memorandum of Understanding (MoU).

The MoU will help guide the collaboration, cooperation, and mutual assistance between both organisations with the objective of promoting the integrity of the tax profession.

Speaking about the MoU, TPB chair, Mr Ian Klug AM, said the MoU was significant as it would help signal valuable ways that the TPB and the Councils would work together in the future.

"We welcome the creation of the MoU as it establishes a framework for greater collaboration with the Councils. Through it we hope to achieve shared goals, minimise duplication and provide increased consumer protection for the legislative schemes that we administer," Mr Klug said.

Chair of the Councils, John Vines OAM, said the creation of the MoU supported the efforts of the Councils and TPB to work together to ensure services are delivered to consumers by competent and ethical tax professionals. 

"This first MoU with the TPB fulfils the Councils’ strategic commitment to streamline regulatory efforts with peer regulators for better consumer protection outcomes. The MoU reflects a partnership approach to creating opportunities to share insights and to work with professional associations in a flexible and streamlined way that enhances community confidence," Mr Vines said. 

Mr Klug added that the MoU recognised the important role the Councils had played in their shared commitment to the recently formed Tax Practitioner Governance and Standards Forum (TPGSF).

The formation of the TPGSF was a key recommendation following the independent review of the TPB and the Tax Agent Services Act 2009. The TPGSF includes representatives from professional associations, the TPB, the Australian Taxation Office and the Councils. 

Mr Vines welcomed the opportunity for the Councils to contribute to the work of the Forum. 

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_au, Facebook and LinkedIn.

About the Professional Standards Councils

The Professional Standards Councils and its agency, the Professional Standards Authority, work to improve professional standards and protect consumers of professional services across Australia. The Professional Standards Councils are independent statutory bodies established in each state and territory. They have specific responsibilities under professional standards legislation for assessing and approving applications for, and supervising the application of, Professional Standards Schemes.  LinkedIn and Twitter.

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A MILESTONE has been reached in the Cbus Super and Media Super merger, with the two funds signing a Successor Fund Transfer (SFT) deed.

The merged fund, set to launch in the second half of FY2022, will manage over $70 billion in funds for around 850,000 members.

Under the SFT, Cbus will retain the Media Super brand to communicate with members in the print, media, entertainment and arts, and broader creative industries, whilst investment, management and back office functions will be shared.

Media Super chair Susan Heaney said, “In an environment where the complexities of regulatory change, investment opportunities and member demand for digital and advisory services are growing, it is becoming increasingly difficult for smaller superannuation funds to remain cost-competitive and provide members with more choice and opportunity to grow their retirement savings.

“By belonging to a much larger fund, Media Super members will gain investment opportunities at a lower cost and benefit from a portfolio of products and services that will help improve their retirement outcomes.

“Our members have much in common with Cbus members in terms of the nature of their work. Many are self-employed, others work on fixed-term contracts or in casual employment. Like the construction sector, their workplaces are often changing and can be disrupted.

“By keeping the Media Super brand, our members can be confident that they will still have a voice within the larger fund, and that our focus and support for those employed in the print, media, entertainment and arts sectors will be maintained.”

Cbus chair Steve Bracks said Cbus has an impressive track record, returning for members 9.25 percent on average each year for the last 37 years.

“Since 2017 Cbus has reduced our investment fees by $400 million, demonstrating the value of scale to members’ bottom line," Mr Bracks said.

“Together Cbus and Media Super can deliver more for members, delivering the tailored, industry-specific products members need with greater scale and efficiencies.”

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