THE House of Representatives Standing Committee on Economics will hear from key industry bodies, as well as from a range of financial advice firms at a public hearing via videoconference on Thursday July 29, 2021, as part of its ongoing Review of the Four Major Banks and other Financial Institutions.

The chair of the committee, Tim Wilson MP, said, "These hearings are an important mechanism for the Parliament to publicly scrutinise and hold Australia’s financial advice sector to account.

"Many Australians turn to financial advisers and mortgage brokers to help them navigate important financial decisions, such as finding the right mortgage or determining how to best invest in and secure their retirement. It is essential that Australians can trust that financial advisers and mortgage brokers are always acting in their client’s best interests, rather than the interests of the adviser or any third parties.

"The committee is looking froward to hearing what lessons have been learned by the industry over the course of the pandemic and what policy changes and technological innovations have been adopted in light of the Hayne Royal Commission.

"There is ongoing anger and frustration from financial advisers about regulation surrounding their sector, the Committee will also scrutinise the justification and consequences that lead to financial advisers leaving the sector and the increasing limit of financial advice to those who cannot afford upfront payments."

Following the Financial Advice hearing, IFM Investors will appear before the committee from 4.15pm for a superannuation sector hearing.

Public hearing details

Financial Advice

Date: Thursday, 29 July 2021
Time: 9am to 3.45pm
Location: Videoconference

Superannuation

Date: Thursday, 29 July 2021
Time: 4.15pm to 5.15pm
Location: Videoconference

The hearings will be webcast at aph.gov.au/live.

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THE Joint Standing Committee on Treaties will be on a virtual road trip this week as part of the committee’s inquiry into the Regional Comprehensive Economic Partnership Agreement (RCEP).

RCEP is a regional free trade agreement between Australia and the countries of ASEAN, China, Japan, the Republic of Korea and New Zealand.

Committee chair Dave Sharma MP said, "The committee will be holding three virtual public hearings this week, including witnesses from Sydney, Melbourne, Perth, Brisbane, and Canberra. Unfortunately, COVID-19 restrictions have meant the Committee is unable to hold these hearings in-person as planned."

The committee will discuss a broad range of issues associated with RCEP, including trade in goods, intellectual property, services, health, and human rights.

Public hearing details

​Tuesday 27 July 2021
Time: 9.30am – 11.30am AEST
The program for this hearing is available online.
​The hearing can be accessed online.

Wednesday 28 July 2021
Time: 10am – 12 noon AEST
The program for this hearing is available online.
​The hearing can be accessed online.

​Friday 30 July 2021
Time: 10.30am – 12.30pm AEST
The program for this hearing is available online.
​The hearing can be accessed online.

Further information on the inquiry can be found on the inquiry website.

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THE COVID-induced Australian construction boom has led to a timber shortage that has a growing number of buyers turning to Sweetman Renewable Timbers (SRT) in an effort to shore up supply.

Australian federal and state governments have recognised the potential of the industry to help lead the post-COVID economy revival, with the latest round of government budgets directing a quarter of a trillion dollars to infrastructure projects from 2020-21 to 2023-24, Deloitte Access Economics figures show. 

The value of total building work done in Australia during the March quarter rose 3 percent to $30.4 billion compared with the previous quarter, according to the Australian Bureau of Statistics, while new homes being built jumped 40.6 percent compared to the March quarter of 2020.

The Housing Industry Association said the record volume of building has led to material shortages.

At the same time, the 2019-2020 bushfires and lack of new plantation investment over more than a decade have further exacerbated the chronic timber product supply, which is having serious implications for building and construction activity. A division of Sweetman Renewables Ltd, SRT’s sawmill and timber processing facilities in the Hunter Valley, NSW is the only hardwood sawmill between Sydney and Newcastle, and is built on the sawmilling business established by the Sweetman family a hundred years ago.

SRT’s managing director for timber, Campbell McInnes commented on the company's direction, “We are working to strengthen long-term timber products supply arrangements with major timber wholesalers, and other companies in the building products supply chain.

"This will include expanding existing hardwood sawmilling capacity, increasing the production of quality hardwood products from certified forests and plantations. We are also seeking to develop additional avenues of log supply and timber products sources.

“With expanded opportunities for authorised log supplies, SRT will be able to make a valuable contribution to timber products supply to wholesalers, merchants and to construction and building customers.”

Sweetman Renewables chairman John Halkett said the company had a focus squarely on quality timber production and sustainable forest and plantation management via SRT, plus its biomass to renewable energy initiatives through its Sweetman Biomass division.

"Sweetman Renewables is proud of its ability to make a meaningful contribution towards sustainability, carbon storage and renewable energy that will collectively assist climate change abatement,” he said.

As well as planning capital expenditure to improve sawmilling and timber processing productivity, SRT will have the capacity to offer a wide range of timber products through an expanded timber products supply capability that includes a collaborative arrangement with a major timber products wholesaler, with a network of wholesale facilities across Australia.

“Our increased synergies across the supply chain will assist in strengthening the commercial performance of SRT’s sawmilling and timber processing operation in the Hunter Valley. This will also bring positive regional development and employment opportunities to the region,” Mr Halkett said.

www.sweetmanrenewables.com.au

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THE Parliamentary Trade and Investment Growth Committee is continuing its program of public hearings on July 27 and 28, in relation to its inquiry into the prudential regulation of investment in Australia’s export industries.

The Committee Chair, George Christensen MP, said that, after the committee heard from export industries in the inquiry’s first hearing, the committee is interested to hear from financial and investment groups about risks and opportunities associated with Australia’s export industries.

"Australia’s export industries rely on financial institutions for investment, insurance, and to launch new projects. The committee is looking forward to hearing how these institutions can support growth in Australia’s export industries, which contribute so much to Australia’s economy," Mr Christensen said.

Witnesses include the Australian Banking Association and Australia’s Big Four banks, representatives of the superannuation and insurance sectors, unions, and investor advisory groups.

Public hearing details

Date: Tuesday, 27 July 2021
Time: 9am – 4.55pm

Date: Wednesday, 28 July 2021
Time: 10.40am – 4.15pm

Due to the public hearings being held by videoconference and teleconference, public access will be available via the live broadcast at aph.gov.au/live. Further information about the Committee’s inquiry, including the public hearing programs, is available on the Committee’s webpage.

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THE House Employment, Education and Training Committee will hear evidence from key organisations and experts based in Western Australia, New South Wales and the Northern Territory, as hearings continue for the inquiry into adult literacy and its importance.

Committee Chair, Andrew Laming MP said, "The committee continues to receive important evidence about the difficulties encountered by people with low English language, literacy, numeracy and digital literacy (LLND) skills.

"We have heard that low LLND skills have a negative impact on labour force participation, wages and productivity, and limits people’s social and civic engagement. Australians with low LLND skills may have difficulty understanding and acting on emergency warnings and health advice and may not be aware of their legal and financial rights and responsibilities," Mr Laming said.

"The committee has heard that the Adult Community Education (ACE) sector plays an important role in helping people to develop their LLND skills, but that support for ACE varies across States and Territories and much of this vital work is carried out by volunteers. The committee has also heard that stigma and shame are common reasons why people with low LLND skills do not seek assistance and support."

"The committee looks forward to examining these issues further during this week’s public hearings," Mr Laming said.

Public hearing details

Date: Wednesday, 28 July 2021
Time: 10am to 1pm (AEST)
Location: via videoconference

Date: Thursday, 29 July 2021
Time: 8.30am to 11.45am (ACST)
Location: Territory Room, Mercure Darwin Airport, 1 Sir Norman Brearly Dr, Darwin, NT

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

Further details about upcoming public hearings are available on the Committee’s website.

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MASTER BUILDERS Australia has commended the Australian Labor Party for its commitment to maintain the current settings for negative gearing and capital gains tax.

“The Opposition Leader’s pledge that Labor will not restrict negative gearing or increase capital gains tax should they win government at the next Federal Election is good news for the building industry, the economy and the community,” Master Builders Australia CEO Denita Wawn said.

“This announcement shows the Opposition’s recognition that new home building and increasing home ownership is vital to economic recovery and people’s financial security.

“With a Federal Election looming, the Opposition’s acknowledgement that restricting negative gearing and increasing capital gains tax would undermine housing supply, jobs and sabotage economic recovery is timely,” Ms Wawn said.

“We appreciate the efforts of the Shadow Minister for Housing and Homelessness, Jason Clare MP, to discuss this issue with Master Builders since the last Federal Election.

“Master Builders looks forward to continuing working with him to advance other policies that promote the accessibility of homeownership to all Australians and increase the supply of an appropriate mix of housing options, including social and affordable housing,” Ms Wawn said.

www.masterbuilders.com.au

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CASUALLY EMPLOYED hair stylists are set to receive a pay rise for working weekends, after Hair Stylists Australia, the SDA, and Hair and Beauty Australia reached an agreement they will present to the Fair Work Commission.

Under the agreement, a total increase of about $5.75 per hour will be added to weekend casual rates. The pay rise will be implemented gradually during 2022 and 2023. This means a casual hair stylist working a full eight-hour days over the weekend would take home an extra $92.

The agreed position will now be presented to the Full Bench of the Fair Work Commission on July 28. The Australian Workers Union, which founded and supports Hair Stylists Australia, lauded the agreement as a stride forward for the working rights of hair stylists.

"By standing up and joining their union, hair stylists have shown they can take on their bosses and win themselves a pay rise," AWU national secretary Daniel Walton said.

"All casual hair stylists who work weekends will see their pay rise off the back of this decision. Before this case started, bosses thought they could cut the wages of Australian hair stylists, instead they will now be raising them.

"As qualified tradespeople, Australian hair stylists are underpaid and undervalued for the work they do. While in the long term we want to achieve much more, we should nevertheless recognise this decision as historic because hair stylists were able to stand up for themselves at the Fair Work Commission and win a genuine advance.

"If hair stylists continue to get behind their union this will be just the first of many wins to come."

Hair Stylists Australia ambassador Rachael Yarwood, who works as a causal senior stylist in suburban Sydney, said the result fixed an inequity in the system.

“My colleagues, who were permanent, earned exactly the same as me on our Saturday shifts, and it never seemed fair. If they took time off, they were still paid. But if my son was sick, or if I went on holiday, I got nothing. I thought casuals were supposed to be paid more to make up for that,” Ms Yarwood said.

“Without casual loading, my Saturday pay is only $2 more. I don’t know how many people would give up their weekends for an extra $2 an hour.

"We’re just standing up for ourselves and saying: ‘This isn’t fair. Why are we the only trade that’s being paid like this?’ I’m really glad that HSA has helped us finally make it right.”

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JAPAN plans to double its renewable energy target for 2030 and, at the same time, halve its use of gas, a move that could pull the rug out from Australia’s already flimsy gas-led recovery plans, according to the Climate Council.

“Japan is one of Australia’s biggest export markets for LNG. This development could undermine the Federal Government’s support for new gas earmarked for export,” Climate Councillor and energy expert Madeline Taylor said.

“The government has allocated tens of millions of dollars into opening up new gas basins like the Beetaloo basin in the NT and the Bowen and Galilee basins in Queensland, but it’s not clear this spending is necessary, given the growing uncertainty around having buyers for this gas,” Dr Taylor said. 

The revised figures, laid out in a draft plan by Japan’s Ministry of Economy, Trade and Industry, report renewables should account for 36-38 percent of power supply in 2030, double the 18 percent level in March 2020. 

Meanwhile, the share of liquefied gas in Japan’s energy mix is set to drop by almost half from 37 percent today to around 20 percent in 2030. 

“Japan’s revised energy plans come months after US President Joe Biden’s Leaders Summit on Climate, where Japan pledged to slash emissions 46 percent from 2013 levels by 2030, up from its earlier goal of 26 percent,” Dr Taylor said. 

“In contrast, Australia has not adopted a binding net zero emissions target, nor has it raised the ambition of its 2030 target, which is well below scientific recommendations. Japan’s move shows global momentum for climate action is accelerating. This creates economic risks for Australian LNG exports, which represent up to 82 percent of Australian gas production. 

“As one of the sunniest and windiest countries on earth, Australia could be generating and exporting renewable energy to meet rising global demand. The government must accelerate progress towards a renewables-powered economy instead,” Dr Taylor said.

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