More than $847.25 million in wages are estimated to be underpaid each year, affecting 1.38 million workers - in June 2022 that included approx. 16,045 NSW Northern Rivers employees believed to be owed stolen wages of est. $4.8 million

 

“Australian workers are dealing with the rising cost

of living, housing market pressures, a rental crisis,

and stagnant wage growth.

Unpaid earnings harm people who worked in good faith for their pay packet and - right now - people are having to carefully count every dollar…

More than $847.25 million in wages are estimated to be underpaid each year, affecting 1.38 million workers, or

about 11.5 per cent of the employed Australian workforce”

[McKell Institute, “Unfinished Business: The Ongoing Battle Against Wage Theft”, August 2023]

Smart Company, 22 August 2023:

Wage theft is costing Australian workers $850 million a year, demonstrating an “ingrained culture” of deliberate underpayment and the need for criminalisation at the federal level, according to a damning new report from the McKell Institute.

A fresh analysis of Fair Work Ombudsman audits stretching back to 2009 shows more than a quarter of audited businesses failed to observe the monetary obligations set out by industry awards or enterprise agreements, according to the think tank.

Its calculations show nearly 27,000 businesses were found to have underpaid approximately 1.3 million Australian workers over that time frame.

The real level of wage underpayment is likely higher, McKell Institute CEO Ed Cavanough said, as the analysis did not cover the underpayment of penalty rates, or circumstances where payment under a different award would have been more appropriate.

“This is an extraordinary amount of money being stolen and it’s unacceptable,” Cavanough said in a statement.

Wage underpayment hits businesses big and small

The report arrives against a backdrop of high-profile wage underpayments claims, with Coles, Target, and Bunnings just a few of the major brands to have revealed significant wage underpayments in recent years.

Wage underpayment also stretches deep into the small business sector, with the Fair Work Ombudsman on Tuesday revealing it has levelled nearly $85,000 in penalties against two Victorian businesses accused of underpaying young workers, as a result of its latest investigation.

The Ombudsman recently launched a spate of undercover campaigns targeting small restaurants and food court vendors deemed to offer suspiciously low-cost fare.

The McKell Institute argues laws criminalising wage theft across the board are necessary to discourage employers from deliberately withholding earnings and entitlements.

The report throws its weight behind the federal government’s upcoming industrial relations reform package, which is expected to contain legislation making wage theft a criminal offence across the board….

Read the full article here.

In the NSW Northern Rivers region there are two federal electorates, Page and Richmond.

According to the McKell Institute 29-page analysis of the economic impact of wage theft in Australia, as of June 2022:

• In the electorate of Page there were est. 1,366 non-compliant business which between them were believed to have stolen wages from 7,023 employees with a total minimum value of $4,289,664.

• In the electorate of Richmond there were est. 1,754 non-compliant businesses which between them were believed to have stolen wages from 9,022 employees with a total minimum value of $5,510,65.

The second Albanese Government budget sees Australia's healthy international credit rating remaining intact

 

After the Albanese Government's first national budget was delivered soon after winning federal government, all three major global credit rating agencies - Moody's, S&P Global and Fitch - gave Australia's financial status the thumbs up.

On 30 January 2023 Standard & Poor’s again reaffirmed Australia’s AAA credit rating.

On the heels of the second Albanese Government budget Fitch Ratings also reaffirmed the nation’s AAA credit rating on 15 May 2023:

RATING ACTION COMMENTARY

Fitch Affirms Australia at 'AAA'; Outlook Stable

Mon 15 May, 2023 - 1:37 PM ET

Fitch Ratings - Hong Kong - 15 May 2023: Fitch Ratings has affirmed Australia's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'AAA' with a Stable Outlook.

A full list of rating actions is below.

KEY RATING DRIVERS

Strong Institutions Support Rating: Australia's rating is underpinned by the country's high income per capita, as well as strong institutions and an effective policy framework, which facilitated nearly thirty consecutive years of economic growth before the Covid-19 pandemic and continues to support resilient growth outcomes amid global shocks. The recent outperformance of public finances relative to our expectations further supports the Stable Outlook.

Fiscal Performance Improves: On a general government (GG) basis, we forecast the fiscal deficit to narrow to 1.2% of GDP in FY23 (ending June 2023), from 3.8% in FY22, on consolidation at the federal and aggregate state level. The federal government is set to achieve its first underlying cash surplus in 15 years at 0.2% of GDP in FY23, from a 1.4% deficit in FY22, according to the FY24 budget on 9 May. This is well below the 1.5% of GDP FY23 deficit forecast in the October 2022 budget due to robust revenue from a strong labour market and buoyant commodity prices, combined with spending restraint.

Slight Deficit Widening: We forecast a slight widening of the GG deficit to 1.6% of GDP in FY24. Still, we expect a slightly lower federal underlying cash deficit in FY24 than the budget, as we forecast higher commodity prices and nominal GDP growth. The federal budget shows a return to a modest 0.5% of GDP underlying cash deficit, against a 1.8% forecast in the October 2022 budget. The commitment in the budget to save most of the revenue windfalls over the five-year budget horizon signals a commitment to prudent fiscal management.

Structural Fiscal Challenges: We forecast GG debt to tick up slightly to 49.7% of GDP in FY25, from a Fitch-estimated 49.1% in FY23 (AAA median 36.3%), before gradually trending down. Slowing nominal GDP growth, moderating commodity prices and structural spending pressures, particularly from the National Disability Insurance Scheme (NDIS), are expected to push the GG deficit up to 2% of GDP in FY25, before narrowing.

The government took some initial steps to address structural pressures in the FY24 budget through revenue measures and adjustments to NDIS. Even so, longer-term pressure remains in the absence of additional structural reforms.

GDP Growth Moderating: We forecast GDP growth to ease to 1.5% in 2023 from 3.6% in 2022. Higher interest rates and still-elevated inflation will weigh on consumer spending, although households could use their savings buffers to smooth consumption. Services exports are showing a strong recovery, while the rebound in the Chinese economy provides a modest benefit. Net inward migration has recovered rapidly after the border reopening, which should support the economy's resilience and help alleviate labour constraints.

Tightening Cycle at its End: We believe that the Reserve Bank of Australia has reached the end of its tightening cycle following its 25bp policy rate hike earlier this month to 3.85%. This represents a cumulative 375bp policy rate increase since May 2022. Inflation was high at 7% in 1Q23, but is past its peak. We forecast inflation to drop to 3.5% by end-2023, but services inflation could prove persistent.

Household Debt Risks Limited: Australian households, which have one of the highest levels of debt to disposable income (around 188%) among 'AAA' peers, are likely to face pressure from rising debt-servicing burdens. Transmission of rates has been relatively fast, as about 75% of households with mortgages are currently on floating-rate mortgages and most of those with fixed-rate loans are set to roll on to higher rates in the next two years, mainly in 2023.

We expect rising rates to dampen consumption, rather than pose financial stability risks. Prudent mortgage serviceability buffers instituted by regulators mean most households have been assessed at rates around prevailing levels. Sizeable household assets (5.7x the value of debt), including a large build-up in liquid financial assets in the past few years, and mortgage pre-payment by many households should cushion rising debt-servicing burdens. A solid labour market and our expectation that unemployment remains low, should also limit potential stress.

House Prices Show Resilience: Australian house prices are down 8.0% through April 2023 from their April 2022 peak (on the heels of a 26% rise from March 2020). Recent months have seen a modest rebound in prices, particularly in Sydney. We now see a 10% (from 15%-20% previously) peak-to-trough fall in house prices, with some possibility of further weakness in 2023. The peak in the interest rate cycle, combined with strong housing demand, in part from a recovery in inward migration, will be supportive.

Strong Banking Sector: Fitch believes banks are well-positioned to manage risks due to strong capital positions, resilient profitability and sound underwriting standards. Asset quality is likely to deteriorate only modestly from a strong initial position (0.7% non-performing loan ratio). Fitch's stress test of Australia's four major banks in July 2022, with a scenario of a 5% default rate and 30% fall in house prices, well beyond our baseline, resulted in losses that did not exceed 0.3pp of risk-weighted assets or 10% of pre-impairment operating profit.

External Finances: The external finance profile remains weak compared with peers, but is improving on sustained current account surpluses. We forecast the surplus to be relatively stable at 1.4% of GDP in 2023 as strong goods and services exports offset higher income payments. External financing risks are limited despite high net external debt of around 47% of GDP (AAA median 22% net creditor position). Banks have reduced their reliance on external funding over the past decade and funding needs are well-managed. Households have accumulated large equity asset holdings in the past several years.

ESG - Governance: Australia has an ESG Relevance Score (RS) of '5[+]' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. Theses scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in our proprietary Sovereign Rating Model. Australia has a high WBGI ranking at 91.2, reflecting its long record of stable and peaceful political transitions, well established rights for participation in the political process, strong institutional capacity, effective rule of law and a low level of corruption.

Read the full assessment at:

https://www.fitchratings.com/research/sovereigns/fitch-affirms-australia-at-aaa-outlook-stable-15-05-2023

Cartoon of the Week

 

Two panels of a strip cartoon by First Dog On The Moon

Nine perspectives on the Albanese Labor Government 2023-24 Budget

 

Only eight of the following nine opinions might be said to have been offered in good faith. I leave it to the reader to decide which one is lacking that element ......

FIRST - Leader of the Opposition & Liberal MP for Dickson Peter Dutton, interview transcript excerpt & Twitter post, 10 May 2023:

Well, Tom, I think you’re better off to look to the independent commentary that’s taken place. Chris Richardson, for argument’s sake, a highly respected economist, he said that he thought the Reserve Bank Governor was done with the baseball bat, and he thinks that this budget will incline the Reserve Bank to increase interest rates again.

So, under this budget, at the very least, we know that interest rates will be higher and for longer, which is going to be a double whammy for Australian families. They’re already $25,000 worse off under this government. There was nothing for them in the budget last night.

This energy crisis, and this cost of living crisis, that’s been created by Mr Albanese and the Labor Party they, you know, it’s ok for the Prime Minister – he doesn’t feel the impact of this – but for families, they are struggling at the moment big time and there’s nothing at all for them in this budget.

@PeterDutton_MP

SECOND - Prime Minister & Labor MP for Grayndler Anthony Albanese, media release excerpt, 10 May 2023:

This budget builds stronger foundations for a better future. It does three things: provides cost-of-living relief, makes our society fairer, and secures our economy for the future.

That’s why it:

• Gives up to $500 of energy bill relief to more than 5 million households,

• Helps more than 11 million Australians see the doctor for free,

• Increases Jobseeker, Austudy and Youth Allowance by $40 a fortnight,

• Makes unprecedented investments in renewables, manufacturing and training,

• And delivers the first surplus in 15 years.

After a decade of waste and mismanagement under the Liberals, we’re making responsible and disciplined choices that will put our economy and society on a stronger footing.

Our approach to this has been all about helping Australians under pressure right now, while building for the long term.

THIRD - Dr Remy Davison, Jean Monnet Chair in Politics and Economics, Faculty of Arts, Monash University media release,10 May 2023:

“The 2023-24 budget’s centrepiece is a $15 billion cost-of-living package and a return to surplus for the first time since 2007.

“But this is not the kitchen-sink, big-spending budgets of yore. Budgets now must be lean, mean, with much less green.

“But the core reason why spending has been wound back is due to the “I” word. Yes, inflation.

“This is a high-wire balancing act. On the one hand, the Treasurer was compelled to ameliorate the cost-of-living crisis, particularly for precarious, low-income earners. On the other hand, Jim Chalmers could not resort to the direct fiscal injections that characterised the Rudd and Morrison governments during the global financial crisis (GFC) and the COVID-19 pandemic, respectively.

“Instead, the Treasurer has been compelled to implement a degree of austerity. An expansive budget would run counter to the monetary discipline the RBA has enforced, with 11 interest rate increases in the past 12 months.

“The modest $4 billion surplus is a flash in the pan; a nod to inflationary pressures. A deficit of $13 billion is already forecast for 2024-25, although deficits will be lower for the next several years.

“Despite the surplus, there’s still an underlying structural deficit. In other words, in the absence of windfall revenues from high resources prices and virtually full employment, recurrent budgetary outlays will exceed revenues going forward, unless explicit cuts are made.”

FOURTH - Dr Blair Williams, lecturer in Politics & International Relations, Monash University, media release,10 May 2023:

“The Albanese government has framed the 2023-24 budget as one that leaves no one behind, which includes a $14.6bn cost-of-living package. However, for many struggling Australians, who are forced to choose between paying the bills, rent or putting food on the table, this may not be enough.

“Welfare has been increased by a minimum of $40 a fortnight, with more for those aged over 55. While it is particularly welcome to see an increase to the Youth Allowance - the largest since 1998 - this will still leave many young Australians trying to make do with less than $50 a day.

“This budget marks a clear departure from the ‘blokey’ Coalition budgets of previous years, with the focus instead moving to the care economy and women’s economic participation.

“Expanding access to the Single Parenting Payment is a welcome move, which will predominantly benefit single mothers. Likewise, the 15 per cent pay rise for aged care workers is a much-needed move, as the pandemic has made quite clear. However, while the government has made early childhood education more affordable and accessible, early childhood educators are still largely earning minimum wage.”

FIFTH - Associate Professor Johnson George, Centre for Medicine Use and Safety, Monash Institute of Pharmaceutical Sciences, media release, 10 May 2023:

“The government is investing into clamping down on the black market for vapes, which is fantastic. It’s important to ensure funding is also channelled toward helping those who have become dependent on vapes.

“Vaping addiction has become prevalent, especially among young people, so efforts need to be directed toward improving access to subsidised evidence-based treatments for vaping cessation with management support from healthcare professionals.

“When it comes to smoking, evidence-based treatment approaches and behavioural counselling have to be promoted as first line - there is no place for vaping as an evidence-based smoking cessation strategy in the management of nicotine dependence.”

SIXTH - Professor Ariel Liebman, Director Monash Energy Institute, media release, 10 may 2023:

“The refocusing of the government’s efforts on important climate change mitigation and emission reductions is heartening and very welcome. As is the recognition that consumers need relief from the exorbitantly high energy prices from recent times.

“However, much more should be invested in the emissions reduction space and that could be funded by a fully revamped Resource Rent Tax.

"The investment towards clean hydrogen is a great first step as part of an acceleration towards a ‘Net Zero’ economy. But we shouldn’t be complacent that the electricity sector transformation is simple and a lot more should be done to address complex new grid operational challenges. This requires an investment in infrastructure for both transmission and storage as well as in research and development to operate new renewables-dominated power systems.

“Australia is on the frontier of operating renewable-dominated grids and there is an urgent need to invest in the domestic development of future-proof solutions.”

SEVENTH - Professor Yiannis Ventikos, Dean, Faculty of Engineering, Monash University, media release, 10 May 2023:

On renewable energies

“The budget touches on important topics relating to technology, innovation, industry and engineering education. The emphasis on renewables, both as an overall direction with substantial resource allocated, but also specific technologies, like hydrogen, are indeed very positive steps in tackling the greatest challenge of our times.

“Universities will inevitably be the grounds where training to fill skills gaps and support innovation in renewable energy will be delivered. A clearer role, and well-defined resources for universities to deliver this would be welcome in the next iteration of this budget.”

On the 4,000 Commonwealth supported university places to support AUKUS

“A very positive uplift to the defence budget and substantial upskilling in the technical and business work force relevant to the demands stemming from the AUKUS agreement, with 20,000 new jobs, 4,000 of which will involve new training at university level, in Commonwealth Supported Places.

“It is essential that these additional university places span the spectrum, from undergraduate to masters to PhD, to create the right mix of specialisations and skills that will be necessary to support the AUKUS program.”

On manufacturing

“Support for technology and technological education to building sovereign capability, enhanced productivity and support for knowledge-intensive manufacturing would be an important and welcome addition. The core role that STEM subjects and university education plays in this front cannot be understated.”

EIGHTH - Australian Treasurer & Labor MP Rankin Dr. Jim Chalmers, Twitter, 10 May 2023:

I believe there's a generosity inherent in the Australian character that understands those doing it the toughest need the most help #auspol #ausecon #Budget2023 pic.twitter.com/hmlNQ0JwpG

— Jim Chalmers MP (@JEChalmers) May 10, 2023

NINTH - Dr Leonora Risse, Senior Lecturer in Economics at RMIT University, Research Fellow with the Women’s Leadership Institute Australia, Expert Panel Member with the Fair Work Commission, media release, 10 May 2023:

“Instead of asking “what’s in it for me?” in the Budget, we should really be asking what’s in the collective good for the economy and our society.

“The high inflationary landscape means that the Government needed to restrain its overall spending for the sake of the economy, while targeting its cost-of-living relief to essential household items among the most financially vulnerable.

“The risk that additional financial support will add fuel to the inflation fire is a valid concern, but this cost-of-living relief can be thought of as a protective cloak to shield the people who are already closest to this flame.

“The fact that this support is targeted towards essential items among low-income groups, rather than a broad-based cash handout, and can be delivered in instalments over time rather than a lump-sum, takes the edge off these inflationary risks.

“The Budget accelerates progress towards gender equality through multiple initiatives, including by expanding a gender lens across the Budget more broadly.

“It reports that key policy measures were subject to gender impact assessments, and this is reflected throughout the Budget documents.

“As an informative example of applying a gender lens, the Budget’s analysis of JobKeeper recognises that women make up most recipients over the age of 55 years who will benefit from the additional support.

“The Budget also recognises that men remain the main beneficiaries of government investment in apprenticeships programs and has highlighted that the Australian Skills Guarantee will include more initiatives to address gender inequality issues in apprenticeships.

“This gender lensing approach complements the approach of the Victorian Government, which already has a Gender Responsive Budgeting Unit set up in the Victorian Treasury and illustrates that Victoria has been the leading jurisdiction on this best practice initiative.”

Albanese Government will implement in full the Fair Work Commission 15% rise in wages for est. 250,000 nurses & direct care workers in aged care sector

 

The Saturday Paper, Post, daily news email, 4 May 2023:

A centrepiece of next week’s budget will be a $11.3bn commitment to raise aged care workers pay by 15%.

What we know:

• During the election, Labor promised to provide a wage increase to aged care workers, and the Fair Work Commission last year decided this should be 15% (SMH).

• After attempting to stagger this increase over two years, Aged Care Minister Anika Wells has confirmed it will be implemented in full from July at a cost of $11.3bn over four years.

• Wells described the pay boost as “historic” and said it would help to address gender pay inequality.

• For a registered nurse the increase will equate to almost $200 a week more, with their annual wage growing to more than $78,000.

• Personal care staff will receive an extra $7300 a year, or $141 a week.

• The federal government also hopes the pay increase will attract workers to the sector and help to meet its election promise of having nurses in aged care homes 24-7.

• Recent reports found that this policy could lead to a shortfall of about 25,000 workers in the next two years.

• Aged care is now the government’s fifth biggest expense with costs jumping by $5bn to $26.9bn this financial year (The Conversation).

• The sector has drawn much criticism, with staff overworked, underpaid and poorly equipped (The Saturday Paper).

The 60 day script for medication treating chronic stable medical conditions was first recommended in August 2018 - it finally arrives in September 2023

 

RACGP: 60-day dispensing a win for Aussie patients

Royal Australian College of GPs

The Royal Australian College of General Practitioners (RACGP) has warmly welcomed the federal Government’s decision to put patients first and make medicines cheaper and easier to access.

It comes following the Minister for Health and Aged Care Mark Butler’s announcement today doubling the amount of medicine a pharmacy can dispense to a patient to up to 60 days’ worth for more than 320 medicines on the Pharmaceutical Benefits Scheme. This effectively halves the dispensing fees for these medicines.

Currently, patients are limited to a 28- or 30-day supply, forcing them to take more trips to the pharmacy for medications for stable conditions. The changes, which will come into effect on 1 September, will save patients up to $180 a year on medications for chronic conditions including heart disease and hypertension.

RACGP President Dr Nicole Higgins said it was a momentous day.

“This is a win for patients,” she said.

“Cost of living pressures are placing tremendous strain on households across Australia, so there has never been a more important time to save patients money and time. Patients with a range of chronic conditions including heart disease will be able to save up to $180 a year and that will make a huge difference for so many households.

“This announcement shows the tide is finally turning. In 2018, the Pharmacy Benefits Advisory Committee recommended increasing the maximum dispensed quantities of common medications from one to two months’ supply. This change has been recommended because it is in the best interests of patients, and I am pleased that the Government has heeded the expert advice.”

Dr Higgins urged the nation’s leaders to remain steadfast.

“Beware of scare campaigns,” she said.

“A recent Westpac report found that pharmacies are reaping record profits, with the total consumer spending in pharmacies rising from $92.5 million in July 2019 to more than $123 million in January this year. Also, despite what you hear from the Pharmacy Guild, there is no evidence of a shortage of the medications that are included in today’s announcement. Some pharmacy owners may be concerned that they will lose retail sales; however, at the end of the day cheaper access to lifesaving medications must come before retail sales, it’s as simple as that.”

The RACGP President said that the was plenty more to be done.

“My aim is for today’s announcement to be just the beginning,” she said.

“Let’s go even further and extend the length of prescriptions for patients with stable chronic conditions. The RACGP also supports further investigation of the benefits to patients in changing the $1 discount rule. It effectively stops pharmacies from discounting medicines that cost more than the current co-payment of $30 by more than $1. When you consider that in New Zealand the patient contribution is as little as $5 for most items, you have to ask whether we can do better here.

“I’m also focussed on reforming the Pharmaceutical Benefits Scheme prescribing system to reduce administration time and free up GPs to do what they do best – care for patients. Right now, the system is too cumbersome and time-consuming. If it was streamlined, GPs would be able to spend more time with patients rather than admin work. As a GP myself in Mackay, that sounds like a winning combination to me.

“It’s also vital that the Government overhauls Australia’s anti-competitive pharmacy ownership and location laws, which inflate costs for patients. The rules appear to be focussed on protecting pharmacy owners rather than increasing patient access to cheaper medicines.

“Today is a great day for Australian patients. The tide is turning, and patient well-being is front and centre – right where it should be. Mark my words, this is just the beginning.”

A recent poll of more than 1,000 GPs who answered the question: “Do you think your patients would benefit from doubling dispensing times to 60 days?” found a staggering 85% said “yes”.

~ ENDS

List of medications possibly being considered for inclusion in 60 day script scheme can be found at:

https://m.pbs.gov.au/industry/listing/elements/pbac-meetings/pbac-outcomes/2022-12/Increased-Dispensing-Quantities-List-of-Medicines.pdf

 

BACKGROUND

AUGUST 2018 PBAC OUTCOMES – OTHER MATTERS, excerpt:

The PBAC considered a list of PBS medicines taken from the Pharmaceutical Benefits Schedule that are indicated for the treatment of chronic conditions. Based on an assessment of clinical safety and ongoing cost-effectiveness, the PBAC recommended that 143 medicines (348 PBS items) were acceptable for listing with increased maximum dispensed quantities (approximately 60 days or two months’ supply per dispensing). The list of medicines accepted by the PBAC as suitable for additional PBS items with increased dispensing quantities (Proposal 2) is available on the PBS website.

Long COVID aka post-acute sequelae of COVID-19 (PASC) in 2023: no you are not imagining it nor being a malingerer. However research is in its infancy with regard to your often debilitating illness

 

First the good news. On 24 April 2023 the Minister For Health & Labor MP for Port Adelaide Mark Butler announced that The Australian Government will provide a further $50 million from the Medical Research Future Fund (MRFF) for research into post-acute sequelae of COVID-19 (PASC) – commonly known as Long COVID.

Bringing the Long COVID research funding pool to a total of $66.6 million and proving that parliamentary committee's can sometimes galvanise government.

The following is a slightly more mixed message, as at this stage prevention of Long COVID seems to rely on the implementation of public health measures the states and territories have long since abandoned in practice.

April 2023
CANBERRA

The 213-page report to the Australian Parliament by the House of Representatives Committee on Health, Aged Care and Sport can be read and downloaded at:

https://parlinfo.aph.gov.au/parlInfo/download/committees/reportrep/RB000006/toc_pdf/SickandtiredCastingalongshadow.pdf

The Committee accepts the World Health Organisation (WHO) definition of Long COVID as being the continuation or development of new symptoms 3 months after the initial SARS-CoV-2 infection, with these symptoms lasting for at least 2 months with no other explanation. Debilitating symptoms can be wide ranging with over 200 being recorded by WHO.

It further accepts that the number of people in Australia who were diagnosed with COVID-19 and were at risk of or possibly went on to develop Long COVID could be anywhere between 228,039 to 2,280,399 individuals. The difficulty in tying down a more definitive figure when it comes to the number of Long COVID suffers is apparently hampered by the paucity of data which has been collected to date.

The report goes on to inform government that:

At this stage it does seem that specific treatments require more evidence of benefit before being specifically recommended, but this will become clearer over time. Certainly, most of the care needs to be provided by the primary care system, such as by GPs, nurses, and allied health professionals.

We will need to help schools, universities, and workplaces adapt to allow the gradual return of people with long COVID. We will also need to train health professionals in how to diagnose and manage long COVID patients.

Mental health issues are clearly an area of concern too, particularly as many suffering from long COVID are aged between 20 and 50 years old and have many concerns, such as family and/or work responsibilities, which place additional stresses on them.....

It is also of concern that women seem more likely to be affected by long COVID than men.

The Committee is also of the view that when it comes to infectious disease and its aftermath:

the development of a national Centre for Disease Control (CDC) within the Department of Health and Aged Care would be the most appropriate mechanism for data collection and linkage with the states and territories.

Likewise, there is much that we do not understand about the virus, such as the fact that it is likely changing from being an acute pandemic virus to now an endemic form.

Research will be very important in helping us understand the best ways and means of managing its ongoing effects, particularly including long COVID. Research should include individuals from Aboriginal and Torres Strait Islander communities, culturally and linguistically diverse communities and other high-risk groups including those who are immunosuppressed.

A research program should be established to nationally coordinate and fund research into long COVID and COVID-19 generally. This could be led by the Department of Health and Aged Care — ideally the CDC — and should be the for the longer term.

Clearly, there has been a number of issues raised about reducing transmission of COVID19, such as improving air quality to reduce aerosol spread and this also has reference to broader health outcomes and requires investigation. 

In addressing the prevention of Long COVID the report states quite clearly:

The committee received evidence that emphasised that the best way to prevent long COVID is to prevent an initial COVID-19 infection.

For example, Professor Margaret Hellard, Director of Programs at the Burnet Institute, argued that while we don’t have a full understanding of long COVID, the most effective way to avoid it is to ‘try and stop COVID and reduce the number of COVID infections.

This position is supported by the National Clinical Evidence Taskforce on COVID-19 (NCET), which recommended the Australian Government clearly communicate to the public and to health care providers ‘that prevention of COVID-19 is the most-effective method of preventing long term health issues’ resulting from the virus.

However, this is difficult to achieve without access to other preventative methods given the highly infectious nature of current Omicron variants circulating in the community.

The NCET summarised:

With the shift away from mandated mask use and regular reporting of COVID-19 cases, and the recent removal of the requirement for isolation following confirmed infection, people may have the highly inaccurate impression that COVID-19 is “over”. There is a lack of messaging that potential health risks related to COVID19 continue to be relevant and that vaccines, mask use in crowded indoor spaces, testing and isolation are still a valuable way to decrease the transmission of SARS-CoV-2, and mitigate the impact of long COVID.

The importance of mask wearing, physical distancing, hygiene and taking other health precautions when visiting high-risk settings cannot be underestimated.

However, the enforcement of these health measures is largely at state and territory government discretion, and to varying extents, now a matter of individual responsibility.

As for the Committee’s view on COVID-19 vaccination:

Booster doses of the COVID-19 vaccine are important to prevent waning immunity against the rapidly mutating COVID-19 virus.

On 8 February 2023 the Hon Mark Butler MP, Minister for Health and Aged Care, announced that from 20 February 2023 all adults who have not had a COVID-19 booster or a confirmed case in the past six months are eligible for a COVID-19 booster, irrespective of how many doses that person has received. Additional boosters for people under the age of 18 have not yet been announced, except where children aged 5 to 17 have health conditions that would put them at risk of severe illness.

Although COVID-19 vaccines are widely available and accessible, data suggests that many people are not electing to receive additional doses for which they are eligible. Professor Crabb AC suggested that this may be due to people becoming less aware of the risks associated with COVID-19 infections as the pandemic continues and commented on a general lack of motivation experienced by many people who received their first two doses but ‘don’t see the benefit’ in receiving booster doses......

The Committee made 9 recommendations to government which can be found on xxi & xxiv of the report.

Largest superannuation fund dedicated to Australia's health and community services sector calls for proposed legislated Objective of Super to "include a commitment to close the gender super gap to ensure Australia’s retirement system does not entrench inequity".

According to the 2021 Census, more Northern Rivers Region residents worked in health care and social assistance than any other industry. A total of 22,893 people to be exact - of which 17,582 were women.

It is likely that more than a few belong to this industry union.

HESTA CEO Debby Blakey

Super objective must focus on eliminating gender super gap: HESTA

______________________________________________

HESTA

______________________________________________

31 March 2023

HESTA has called for the objective of super to include a commitment to close the gender super gap to ensure Australia’s retirement system does not entrench inequity and that future reforms deliver better outcomes for women and low-income earners.

In its submission to the Federal Government’s consultation on legislating the objective of super, the $70 billion industry super fund strongly supported the proposed wording of the objective. With almost 80% of HESTA members women, the Fund has called for the explanatory materials to the legislation in relation to ‘equity’ to clearly reference the elimination of the gender super gap and the need to avoid entrenching or creating inequity for women, Aboriginal and Torres Strait Islander peoples and those on low incomes.

HESTA CEO Debby Blakey said clarifying the objective in this way could help keep future super reform focused on tackling the structural inequities that prevented women from receiving the full benefits of super.

“HESTA strongly supports the need to enshrine in law an objective of super that focuses on achieving dignity and equity in retirement, and this goes hand in hand with closing the gender super gap,” Ms Blakey said.

“Our super system is world class, but its design continues to disadvantage certain groups, including women, many of whom continue to experience an intolerable level of economic insecurity in retirement.

“Crystallising the legislative objective of super to include eliminating the gender super gap and avoiding further inequity will help ensure future reforms address super’s gender blind spot and make our retirement system fairer for all Australians.”

HESTA’s submission recommends implementing a Gender Superannuation Impact Assessment to evaluate how future reform contributes to eliminating the gender super gap as well as to assess Australia’s progress in this respect. The Fund has also called for ‘dignified retirement’ in the explanatory materials to refer to a retirement that promotes financial security and wellbeing.

The gender super gap remains a significant issue, with factors such as the gender pay gap and career interruptions due to caring responsibilities causing Australian women to still retire on average with around a third less super than men.1

HESTA has long advocated for measures to help close the gender super gap, including paying super on the Commonwealth Parental Leave Pay scheme and the introduction of a super “carer credit” for unpaid parental leave. The Fund has also sought reform to the Low Income Super Tax Offset and other tax concessions to improve equity and fairness in the super system.

“As a priority, we want to see super paid to workers taking paid leave to care for children because this will help make our retirement system fairer for all Australians and take an important step forward in addressing the gender super gap,” Ms Blakey said.

“Unpaid caring work make an enormous difference to our economy and to the health and wellbeing of families. It’s time our super system recognised this important contribution.”

HESTA recommendations on legislating an objective of super

HESTA recommends that:

1. The explanatory materials to the legislation should provide further definitional context to the concept of a “dignified retirement”, being one which promotes “financial security and wellbeing in retirement” through a standard of living that:

• is supported by retirement income sufficiently above the Age Pension (or other government support);

• supports a person’s ability to economically and socially participate in the community; and

• is consistent with community expectations.

2. The explanatory materials to the legislation in relation to “equity” should clarify the importance of promoting workforce and community participation and ensuring superannuation system settings do not entrench or create inequitable outcomes, including for women, low-income earners and Aboriginal and Torres Strait Islander peoples.

3. The explanatory materials to the legislation in relation to “equity” should expressly include the objective to eliminate the gender superannuation gap, so that women fully benefit from our superannuation system.

4. Robust additional accountability mechanisms are enacted, to ensure future superannuation policy changes are properly judged against their compliance with the objective, and there is periodic review of the performance of the system against the objective of superannuation. This should include a “Gender Superannuation Impact Assessment” being conducted, both when new policies are proposed and periodically, to measure progress towards eliminating the gender superannuation gap.

ENDS

[1] KPMG (2021). The Gender Superannuation Gap – addressing the options.

About HESTA

HESTA is the largest superannuation fund dedicated to Australia’s health and community services sector. An industry fund that’s run only to benefit members, HESTA now has more than one million members (around 80% of whom are women) and manages close to $70 billion in assets invested around the world.