Showing posts with label government policy. Show all posts
Showing posts with label government policy. Show all posts

Tuesday 14 May 2019

Quality of Australian television & radio will take a dive under a re-elected Morrison Government



The ABC is facing "inevitable" job cuts and programming disruption if the Morrison government is returned to power, the national broadcaster's new managing director has warned.

In his first interview in the new job, David Anderson told Radio National's Patricia Karvelas that planning for two possible budget scenarios was at the top of his to-do list, after establishing a new leadership team.

One of those options is a budget in which the ABC's indexation funding is frozen for the next three years.

"If the Coalition is returned, then we have an $84 million budget reduction over the next three years," Mr Anderson said.

"Having been through a number of budget reductions to this point, I don’t see how we can avoid staff cuts and, I think, disruption to our content. I think it’s inevitable."
None of the options available for finding $84 million in savings were great, he said.

Friday 10 May 2019

“Welfare-to-work” is now a billion-dollar industry which consistently fails vulnerable jobseekers



The Guardian, 4 May 2019:

“Welfare-to-work” is now a billion-dollar industry. Providers compete for the lucrative contracts, worth $7.6bn to the taxpayer over five years when the last round was signed in 2015.

Proponents for the privatised system argue the model is much cheaper and boasts a better cost-to-outcome ratio.

But myriad reports – including recent findings from a Senate committee and a government-appointed panel – have found the most disadvantaged jobseekers are being left behind.

In 2002, a Productivity Commission report that was largely supportive of the then-new privatised model still warned “many disadvantaged job seekers receive little assistance … so-called ‘parking’”. That practice still occurs under this name today, according to employment consultants who spoke to Guardian Australia for this story.

When a person applies for Newstart, they are assigned a Jobactive provider and placed into one of three categories ordered by the level of assistance they might need: streams A, B and C.

The outlook for the most-disadvantaged jobseekers is bleak: only a quarter will find work each year. Overall, 40% of those receiving payments will still be on welfare in two years. While Jobactive has recorded 1.1 million “placements” since 2015, one in five people have been in the system for more than five years.

New data provided to Guardian Australia by the Department of Jobs and Small Business shows about 1.9 million people have participated in Jobactive between July 2015 and 31 January 2019. In that time, 350,000 – or 18% – have been recorded gaining employment and getting off income support for longer than 26 weeks.

And of those 350,000, only 35,852 – or 10% – had been classified as disadvantaged in Stream C.

Since Lanyon was placed on Jobactive, he’s had eight job interviews and sent in about 150 applications. Eighteen months ago he says he slept in his car and showered at a homeless shelter after finding work close enough to take but too far away for a daily commute.

He knows his chances of getting back into work diminish each day he’s out of the workforce.

Thursday 4 April 2019

NSW Office of Environment and Heritage is being dissolved. More truthful version – the regions are being scr$wed over to allow Berejiklian Government’s mates a freer hand to develop coastal NSW to death




A government spokeswoman said the restructuring would enable the administration "to better serve the people of NSW".

"For the first time, we have a combined Energy and Environment portfolio and this new structure will ensure the government can take a holistic approach to this issue," she told the Herald. "The functions currently performed by OEH will continue.”

Among staff, though, the worry was that the oversight separately developed and funded for years would now be subsumed in the expanded Planning cluster, with job losses one consequence.

Rob Stokes, a former environment minister, returns as Planning Minister as part of the government's post-election reshuffle. Matt Kean will be the new Energy and Environment minister….

One senior staffer told the Herald OEH had often provided a dissenting view to Planning, such as when new housing projects in the Sydney Basin threatened the dwindling natural reserves. Remaining koala corridors, for instance, were among the habitats at risk.

Work that had previously been conducted by inhouse OEH experts was already being diverted to external consultants - a process staff worry will accelerate with the bureaucratic overhaul now under way.

"There has already been a strong shift away from the environment having its own voice already," the staffer said.

Penny Sharpe, acting Labor leader and environment spokeswoman, said NSW had now become the only state in Australia without an environment department.
"One of the first acts of the Premer - after talking a lot about the environment during the election - is to abolish the Office of Environment," Ms Sharpe said.

"This is a terrible outcome for the environment of NSW and it's a betrayal for [voters]," she said.  "We know it was a very important, top-order issue for many, many people."

The environmental problems facing the state include more than 1000 plant and animal species threatened with extinction, an 800 per cent increase in land-clearing during the past three years, and waterways "that are in crisis", Ms Sharpe said.

Wednesday 3 April 2019

It is likely to be tears before bedtime for many regional communities as Berejiklian Government restructures government departments



Government News, 2 April 2019:   
 
The NSW government will abolish key agencies including the Office of Local Government, the RMS and Jobs NSW under sweeping changes to the structure of the NSW public service.

A memo from the Department of  Premier and Cabinet obtained by Government News says the Office of Local Government, along with the Office of Environment and Heritage, will cease to be independent entities and their functions will be absorbed by a Planning and Industry Cluster.

The cluster will cover areas such as long term planning, precincts, infrastructure, open space, the environment and natural resources.

The RMS, coming under the Transport Cluster, will also be scrapped as a separate agency and as will Jobs NSW, which will be merged into the Treasury Cluster…..

Local Government NSW President Linda Scott said the peak would be seeking assurances from the new local government minister, Shelley Hancock, and the Premier, that local governments would be appropriately resourced within the new cluster.

“We’d hope, for example, that the inclusion into a larger cluster will facilitate real analysis of the massive amounts of data collected by Government, which should be shared with the sector to help them deliver great outcomes for the public good,” she told Government News.

“Local governments welcome a new opportunity to work with the State Government to set housing targets with local governments, not for them – to rebalance planning powers by working in partnership with councils and their neighbourhoods on planning decisions that affect them.”

However she said the appointment of Ms Hancock was a stand-alone Local Government Minister was welcomed and had long been advocated for by LGNSW.....

The memo says the structure of the public service will also incorporate the following clusters: Stronger Communities, Customer Service, Health; Premier and Cabinet, Transport, Treasury  and Education.

The following clusters will cease to exist by July 1:  Finance, Services & Innovation; Industry; Planning & Environment; Family and Communities; and Justice.

The Secretaries Board will be expanded in members to accommodate more senior public servants to “effectively drive implementation of the Government’s priorities”.

New appointments under the restructure:
Michael Coutts-Trotter – Secretary, Families & Community Services & Justice
Jim Betts – Secretary, Planning and Industry
Glenn King – Secretary, Customer Service
Simon Draper – Chief Executive, Infrastructure Australia

NOTE:
The Grafton Loop of the Knitting Nannas Against Gas and Greed will be holding a knit-in on Thursday 4 April 2019 at 1pm to peacefully protest the abolition of the NSW Office of Environment and Heritage. It will be held outside the electoral office of Nationals MP for Clarence Chris Gulaptis at 11 Prince Street, Grafton and interested people are welcome to attend.


Tuesday 2 April 2019

Morrison Government still refusing to tackle rising greenhouse gas emissions



The Guardian, 31 March 2019:

Cuts to carbon emissions from vehicle efficiency standards have been left out of government projections for meeting Australia’s Paris climate commitments, indicating the policy has been shelved.

The office of the transport minister, Michael McCormack, said the government had not made a decision on “how or when” standards to cut carbon pollution from vehicles might be implemented.

After almost five years of submissions a spokesman said the government “is not going to rush into a regulatory solution” with regards to vehicle emissions.

New data shows Australia’s emissions from transport are soaring and projected to be 82% higher in 2030 than they were in 1990.

Australia lags behind the rest of the world in setting vehicle efficiency standards, with most countries in the OECD adopting policies to reduce emissions and improve the efficiency of cars.

The ministerial forum on vehicle emissions was set up under the Turnbull government in 2015, and stakeholders are frustrated at the lack of progress.

Fact sheets produced by the government that set out how it intends to reach Australia’s emissions reduction targets under the Paris agreement suggest any policy on vehicle emissions standards has been abandoned.

In 2015, the government produced a graph indicating it expected to achieve cuts of about 100m tonnes between 2020 and 2030 through vehicle emissions standards.

The government’s latest climate package contains no mention of this, and projects only about 10m tonnes of abatement through an electric vehicle strategy, with no reference to vehicle emissions standards....


Thursday 14 March 2019

Did Morrison & Co send your chance of getting a decent pay rise up in smoke?



“Brace yourselves Australia — everyday things are about to cost more, and your chance of a pay rise has gone up in smoke[News Corp Journalist David Ross writing in news,com,au, 8 March 2019]

Well it had to happen. After five and a half years of an Abbott-Turnbull-Morrison Coalition Government the nation has reached what is known as a per capita recession.

This hasn’t occurred since the Howard Government’s last full year in power.

Almost sixty per cent of Australia’s Gross Domestic Product comes from consumer spending and five and a half years of deliberate wage suppression by both the federal government and the business sector means the majority of consumers have little to spend.

The economy has been markedly slowing under Scott Morrison’s economic policies, first as federal treasurer then as prime minister.

Annual growth has now fallen to just 2.3 per cent according to the Reserve Bank.

This slowing has a cascade effect.



Friday 8 March 2019

Twenty-eight climate scientists, academics & former heads of energy companies tell the world that Morrison and Co are lying to the Australian people


Proud to be a signatory to this statement from @climatecouncil. Between us, we have devoted 600 years to this issue. Last week's announcements are not enough to get us to meet our lousy Paris Target. That target, by the way, isn't even nearly enough to ensure a safe climate.”  [Tim Baxter, Twitter, 4 March 2019]

Climate Council, 4 March 2019:


Dozens of the country’s leading climate and energy experts – including climate scientists, academics and former heads of energy companies – have signed a joint statement stressing that without further action Australia will not meet its 2030 pollution reduction target.


Wednesday 6 March 2019

What one woman from Australia intends to tell the United Nations about the Morrison Government's war on low income women with young children


“We know that poverty is unpleasant; in fact, since it is so remote, we rather enjoy harrowing ourselves with the thought of its unpleasantness, but don't expect us to do anything about it. We are sorry for you lower classes, just as we are sorry for a cat with the mange, but we will fight like devils against any improvement of your condition. We feel that you are much safer as you are. [George Orwell, 1933, “Down and Out inParis and London”]

If ever Australia’s captains of industry and, those elected members of the two conservative political parties they support. ever knew a period of poverty it is now so long ago that an abundance of personal income has driven all thought of it from their memories.

Thus it takes a lone woman to bring to the notice of the United Nations some of the economic and human rights injustices perpetrated by Prime Minister Scott Morrison & Co on single mothers with young children. 


Imagine having to get someone else to provide proof you aren’t shagging anyone on a regular basis and that even if you are, you aren't getting financial support. Your own word isn't good enough any more.

That’s what happens to single mothers in Australia if they want to be eligible for welfare.

There’s a lot that goes wrong for single mums in Australia. They already have difficult lives, managing kids, jobs and life on their own. And on top of all that, there are a whole range of compliance tasks in order to get benefits, from signing endless forms to applying for a ridiculous number of jobs, a huge task all on its own.

It's a miserable life for a single mother on welfare in Australia, so hard that one woman, Juanita McLaren, has decided to take her complaint all the way to the United Nations. She says the way Australia treats single mums breaches human rights and now, the Special Rapporteur on extreme poverty and human rights, Philip Alston, will be hearing from her directly at a UN Women’s conference in New York next week.

In fact, he will be presenting by her side. Huge honour and some of us might have put that on our credit cards. She had to crowdfund to get there.

McLaren, who has also had to get proof she’s not in a financially-bound relationship in order to be eligible for Newstart, worked full-time when her kids were little. Then her husband, who was the primary carer, left the family and now lives overseas.

“I just hit a wall and headed into casual work because there was always something happening with the kids.”

She had to ditch her part-time studies because she couldn’t manage financially on Newstart even though her studies were a pathway to getting better work.

Benefits were erratic and in one case, took eight weeks to arrive – finally some money arrived on Christmas Eve. She entered the wrong year on a form (who else has mixed up their birth year with the current year?) and was told it couldn’t be corrected over the phone.

It was all the little things on top of the poverty that motivated her to make a complaint.

In some respects, McLaren is fortunate. She’s had steady part-time work for a couple of years now, which is slightly seasonal. She remains registered for Newstart because of the off-season.

But it’s the constant battle with Centrelink, with managing her family and money, with being forced to apply for hopeless work she doesn’t want, that forced McLaren to turn to the UN. So far, it’s the Australian government and the UN in a deadlock about what’s harmful to single mothers.

For years now, Terese Edwards, the CEO of the National Council for Single Mothers, has campaigned for better financial support for her members. Edwards helped McLaren write her complaint, which was the first individual complaint using the optional protocol of the Convention on the Elimination of Discrimination Against Women; and will be at her side when she speaks at the conference…..

Cassandra Goldie, the CEO of the Australian Council of Social Services, says single mothers are easy to target and easy to vilify.

She says it’s not just impoverishment that has been relentless, it is the way in which both autonomy and agency have been removed from single mothers in direct contrast to what’s happening in the aged care sector. And she’s not just talking about the ridiculous requirement to get someone else to guarantee your relationship status.

Here’s some shocking news: One in three sole parents and their children are living in poverty according to the latest ACOSS-UNSW Poverty report. In just two years, the rate of poverty amongst unemployed single parents rose from 35 per cent to 59 per cent.

Hopefully, the United Nations will also examine the Morrison Coalition Government's punitive ParentsNext policy.

Canberra Times, 3 March 2019:

“I don’t know how you do it!” we say to them, and in the next breath: “Here, let me make it harder for you.”

This attitude is stitched into the heart of a welfare program called ParentsNext, which can require some single parents on the parenting payment to report to the state that they have taken their children to improving activities, such as swimming lessons or story time at the local library.

If they don’t comply, they can have their payments cut off, often with no notice, and no clear line of appeal. The arbiter of complaints is also the provider, the company privately contracted by the government to administer the program.

Some mothers have reported being asked to provide photographs as proof they have attended the child-focused activities. Others report the provider phoning the library, or the local pool, to verify their attendance.

Librarians as monitors, swimming instructors as social police: it’s a level of surveillance and control that would make Orwell twitch.

The program has faced a barrage of criticism from welfare groups, and was the subject of a Senate inquiry last week.

Peter Davidson, senior adviser to the Australian Council of Social Service, says the program was previously "less heavy handed”.

I spoke to one single mother-of-three this week, 32-year-old Sarah, who had a positive experience of the program in its previous incarnation. She had a good case worker who helped her into a small business course, assisting her to set up her own florist’s business. Now she is earning some income and intends to get off the parenting payment as soon as possible.

But in July 2018, the Coalition government (then led by Malcolm Turnbull) extended the program from a smaller pilot to about 70,000 single parents, 95 per cent of them women. In its expanded form, the “targeted compliance framework”, which applies to other payments such as Newstart, was imposed on ParentsNext. It is language that would make Orwell’s fingers itch.

Davidson says about a fifth of single parents on the program have had their payments suspended.

Parents are put on participation plans, ranging from vocational training to taking their children to a playgroup or "story time". This muddies the waters between the practical objective of helping women back into work after the child-rearing and the insidious policing of their parenting.

The result is bureaucrats invigilating parents from a moral, child-welfare stance, making payments dependent on proof that parenting is being done correctly.

This is a qualitative difference from other “mutual obligation” welfare requirements, because it is not about getting people off taxpayer money. It is predicated on the assumption that parents (read: mothers) on welfare must not be as “good” as other parents.

These measures assume that the poor have different social standards than the middle class, who know the correct way to nurture children, with story time and swimming classes.

They are also cruelly detached from the chaotic reality of raising small children, where leaving the house with everyone fed and clothed is itself an achievement, but one that almost never runs to time. Some days, the bad days, it doesn’t happen at all.

This kind of compliance-and-penalty system stems from the belief that the poor are not just unlucky, but they are fundamentally different from other people; that they lack the correct values, and the rectitude to pull themselves up. This is not so far from the Victorian-era belief that Orwell upturned with his memoir: that poverty is a moral failing.

This attitude can exist only when you wilfully ignore the fact that the majority of Australians will rely on government support at some stage in their lives, with millions of us slipping in and out of the safety net as our circumstances change.....

Australian Parliament, Senate Community Affairs References Committee, Inquiry into ParentsNext, including its trial and subsequent broader rollout, public hearing, Melbourne, 27 February 2019, excerpts:

Ms Edwards [Chief Executive Officer, National Council of Single Mothers and their Children]: It is unfettered power. It is shown up in a lot of ways, even as to participants' knowledge about signing a participation plan. The participation plan is like the blueprint for the engagement. You have your goals on your participation plan and then, from that, you have the flow of your activities that are meant to support those participation goals. In theory, you're allowed 10 thinking days after meeting and developing your participation plan. What we discovered in our survey which supported what women were telling us was that they would sign it in that meeting, and they would sign it because they were so compliant because the person they were sitting in front of had the power to affect their life, in terms of their payment but also in terms of their commitments. What is not well known by participants is: there is no minimum weekly activity requirement, like mutual obligations. But, because women are so aware of those mutual obligations, they start thinking that they have a similar sort of level that they must do, and they won't upset the provider because the provider can determine the activities; they can breach them—and, as Jenny said, in the blink of an eye they can breach. If the participant disagrees with the breach, the person who umpires that is the provider—they decide whether they have operated appropriately or not. There is not one independent body that manages or oversees that process. So that is why women are compliant—they're in this, and it's like they've gone down this slippery slope into hell and the only way they can come out is if they sign and do what's required. They won't upset a provider.

Ms Davidson: They don't even know about that 10-day period. With the lack of information that people are provided, they don't know about the 10-day thinking period.

Senator WATT: The way the system is supposed to work is that people are supposed to have 10 days to have a think about the proposed plan before they commit to it.

Ms Edwards: Which implies that it's two people having a mutually equal conversation about: 'What would actually help you get to where you need to go?'

Senator WATT: Yes, but, in fact, many people feel pressured to sign there and then?

 Ms Edwards: Yes, and then what else is happening, which is where the providers are working outside of their guidelines, is that they will unilaterally change activities and times. 

Senator WATT: The providers will?

Ms Edwards: Yes. And they will do that in writing, they will do that in phone calls and they will do that in texts......

Ms Buckland [Private capacity]: I'll give you an example, and it's a complicated one, because there are many issues with it, but I was contacted by a woman who had a newborn baby—she'd had it the day before. She should be exempt from ParentsNext—

CHAIR: It's supposed to apply at the very most when the baby's six months.

Ms Buckland: Yes. So it's from 34 weeks pregnant to the child being six months that there's an exemption. She wasn't able to speak to anyone about her exemption. She was still expected to mark her attendance at an activity; she was expected to attend an appointment one-week post birth. I think that there are obviously inherent issues with that kind of system. Her payments were suspended.

CHAIR: With a newborn?

Ms Buckland: With a newborn baby......

Prof. Croucher [President, Australian Human Rights Commission]:….

The commission's submission identifies five key problems with the compliance framework of ParentsNext. I will briefly remark on two of these problems. First, the detrimental effect of punitive compliance can be unjustifiably harsh. Many of Australia's most valuable parents and children rely on the parenting payment to afford basic day-to-day essentials. This includes single mothers living on or below the poverty line. Yet, under ParentsNext, these struggling families face automatic payment suspensions. This can happen for a single instance of noncompliance with a program requirement, despite having a reasonable excuse like a sick child. In the worst cases, their parenting payment can be reduced or cancelled.

Without money to provide adequate food, clothing and shelter for your family, how can human rights be realised? How can there be human dignity? Poverty erodes the enjoyment of many human rights, such as access to education, health care and participation in public life. The current operation of ParentsNext risks further entrenching poverty and inequality in Australia. It already risks reducing a parent's resilience to the complex challenges they already face, including homelessness, domestic violence and mental illness.

The commission is also concerned that there are insufficient safeguards to prevent inappropriate compliance action. For example, some punitive financial measures are automatic. Others can be made by private commercial service providers rather than by public officials.

Secondly, the claimed success of ParentsNext is not appropriately evidence based. On the basis of the evaluation of the program to date, it is not possible to conclude that the program is achieving its aims or that it has had a positive effect which outweighs the detriment of undermining the right to social security. For example, the department's evaluation of the trial program relied heavily on a survey of participants, but it didn't disclose how many people participated in the relevant survey, and it's unclear whether the sample size was statistically significant. The design and methodology of the survey were not disclosed. The department's evaluation also draws many positive conclusions about the efficacy of the program—for example, that it increases chances of employment. However, many of these conclusions are based on the opinions of survey participants rather than on objective data.

Lastly, the commission is seriously concerned about the discriminatory impacts of the program. ParentsNext is only applied to a small and targeted proportion of people receiving the parenting payment. Women and Indigenous Australians are disproportionately affected, with women comprising approximately 96 per cent of the 68,000 participants and Aboriginal and Torres Islander people approximately 19 per cent.

The human right to social security should be enjoyed equally by all, regardless of sex, race or age. Australia's domestic legislation, such as the Racial Discrimination Act 1975 at the Commonwealth level, also protects the right to equality and nondiscrimination. It is unfair that the parents who are required to participate in ParentsNext are at risk of losing essential support, while the majority of parenting payment recipients can access their social security without meeting the additional onerous obligations of ParentsNext.....

Tuesday 5 March 2019

The graphs that expose Australian Prime Minister Scott Morrison's climate change policy propaganda


Australia has a monumental problem. 

Since September 2013 the Australian Government, first under Liberal prime ministers Abbott and Turnbull and then under current Australian Prime Minster and Liberal MP for Cook Scott Morrison, has failed to implement effective national climate change mitigation measures.

This has left the nation with an est. 695 million tonnes (or 2.9 billion tonnes) of greenhouse gas emissions it has to reduce/abate by 2021-2030 in order to meet its international obligations.

Ever since he successfully ousted the last Liberal prime minister in a 'palace coup' Morrison has been telling the world that this country will meet its Paris Agreement targets "at a canter" and that national greenhouse gas annual emissions are falling.

Both he and his ministers talk of greenhouse gas emission levels falling per capita or per head of population. All that means is that the Australian population is growing at a slightly faster rate than national emission levels are rising. It doesn't mean greenhouse gas emissions are falling.

On 25 February 2019 Morrison announced his Climate Solutions Package - mostly a rehash of old Liberal-Nationals climate policies and as yet unrealised infrastructure projects - which he rather misleadingly states will "reduce greenhouse gases across the economy".

After this 'solutions' initiatives announcement the Minister for Energy and Liberal MP for Hume Angus Taylor went on national television claiming Australia's national greenhouse gas emissions had fallen by "over 1 per cent" - omitting to point out that this quarter to quarter seasonally adjusted weather normalised change did not result in an overall decrease in total greenhouse gas emissions for the year to September 2018. 

In August 2015 the then Abbott Government, in which Scott Morrison was a cabinet minister, also misspoke when it told the United Nations that its "direct action" plan was successful and that:

The target is a significant progression beyond Australia’s 2020 commitment to cut emissions by five per cent below 2000 levels (equivalent to 13 per cent below 2005 levels). The target approximately doubles Australia’s rate of emissions reductions, and significantly reduces emissions per capita and per unit of GDP, when compared to the 2020 target. Across a range of metrics, Australia’s target is comparable to the targets of other advanced economies. Against 2005 levels, Australia’s target represents projected cuts of 50 to 52 per cent in emissions per capita by 2030 and 64 to 65 per cent per unit of GDP by 2030. [my yellow highlighting]


For this to be a genuine reduction which will help alleviate the effects of climate change it means this 695 million tonnes of greenhouse gas emissions that are in the earth's atmosphere right now have to be removed by abatement action on Australia's part between 2019 and 2030.

At the United Nations 2018 Climate Action Summit (COP24) it was pointed out to all member countries that attempting to use old credits from the Kyoto Protocol as carryovers when accounting for ongoing emission rates will not actually bring down current global emissions levels. 

However, the Morrison Government is using old carryover credits from the Labor Government years 2008-2012 to reduce Australia's own abatement commitment by est. 368 million tonnes - bringing it down to only a 328 million tonnes reduction in greenhouse gases by 2030. Less than half of what the Australian Government actually committed to under the Paris Agreement.

The federal Dept of Environment and Energy's own data gives a more honest picture of where Australia stands on bringing down greenhouse gas emissions since 2013 than does Morrison's dodgy accounting tricks.


4. Trend emissions levels are inclusive of all sectors of the economy, including Land Use, Land Use Change and Forestry (LULUCF). Removing LULUCF from caluclations will result in higher trend levels.

Only three of the eight sectors in this graph show any real improvement since 1990 and even these become somewhat static after 2013.



When it comes to the year 2018 from 1 January to 30 September, the Financial Review reported on 28 February 2019 that:

Increases in greenhouse gas emissions from growing liquefied natural gas exports, although offset by lower emissions from electricity, pushed Australia's overall carbon pollution up by nearly 1 per cent in the year to September….

Greenhouse gas emissions were up by 4.6 millon tonnes, or 0.9 per cent, in the year to September last year to 536 million tonnes, according to the quarterly update of Australia's National Greenhouse Gas Inventory.

The gains from big declines in emissions from the electricity sector (3.2 per cent) and agriculture (3 per cent) were negated by the 5.8 per cent increase in mining and manufacturing, especially LNG exports (up 19.7 per cent), steel production (up 10 per cent) and aluminium production (up 5.5 per cent).

"Growth in LNG also strongly impacted fugitive emissions due to the flaring and venting of methane and carbon dioxide. An increase in 10 per cent in steel production in particular affected industrial process emissions," the report said…..

The bottom line is that in September 2013 Australia's greenhouse gas emissions stood at 515.1 Mt of CO2-e, having fallen from a high of 617.5 Mt of CO2-e in March 2007. 

However, emissions have steadily risen in the years following 2013 until in September 2016 they had reached 527.2 Mt of CO2-e, by September 2017 533.3 Mt of CO2-e, by March 2018 535.8 Mt of CO2-e and by September 2018 our national emissions were 536 Mt CO2-e.

No matter how many ways Morrison Government spokespersons attempt to present the figures, the fact remains that Australia's national greenhouse gas emissions began to fall steadily between 2007 and 2013 but once the Abbott Government removed the price on carbon and altered other Labor climate change policies they began to rise again and they are still rising.

To date the Abbott-Turnbull-Morrison Government has marched this country backwards towards national greenhouse gas emission levels not found since the end of 2012. 

How much further will they send us back in time if they govern for another three years? Will the national emissions total in 2022 be in excess of 545 million tonnes? A higher national total than that of the year the Abbott Government promised the United Nations it would reduce greenhouse gas emissions by 2030.

The Quarterly Update of Australia’s National Greenhouse Gas Inventory: September 2018 Incorporating emissions from the NEM up to December 2018 can be found here.

Wednesday 13 February 2019

Australian Tax Office Excess Franking Credits: “When people next receive their dividend refund cheque from the government, remember the government has had to borrow that money”



The Australian Government's public debt stood at an estimated $541.73 billion and growing on 8 February 2019.

On 8 February 2019 in Sydney economist Stephen Koukoulas made a short three minute statement before the House of Representatives Economics Committee ‘inquiry’ into the Labor Federal Opposition’s policy to eliminate excess franking credits.

Excess franking credits are refundable to a shareholder who receives a dividend but has no tax liability to use those franking credits against. 

It is free money - money for jam - granted to shareholders for the last eighteen years under a Liberal-Nationals federal government tax policy.

By 30 June 2015 these excess franking credit refunds were costing the federal government an est. $2.54 billion annually and, are currently estimated to be costing the Australian Government well in excess of $5.9 billion each year.

Below are the notes Koukoulas used for that oral Statement which boiled down to two issues, the cost to the budget and how the policy is distorting investment decisions from investors and lazy financial planners.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Tax policy is always riddled with trade offs.

No government wants to tax anyone more than it needs to, nor should it impose a tax regime that is unfair if it means cuts to services, a heavy tax impost on others in the community or adds unnecessarily to the budget deficit and government debt.

Labor’s policy on refundable franking credits will impact the budget bottom line by more than $5 billion a year.

Without the change, this $5 billion, or $100 million a week, means less money is available for the government to provide health care, roads, education, disability assistance and defence.

It is disconcerting that every dollar of refundable franking credits is currently borrowed by the government.

When people next receive their dividend refund cheque from the government, remember the government has had to borrow that money:

… every cent of it.

… this adds to government debt that will have to be repaid one day in the future by our children and our grandchildren.

I think this is unfair.

The policy also distorts the way we Australians invest our savings.

Many investors put money into companies that pay high, fully franked dividends regardless of the underlying strength or potential of that business.

Look at Telstra. The banks.

It is blind, uneducated and lazy investing recommended by lazy financial planners.

It is only the dividend, not the underlying strength of the business, that guides the investment decision.

This is one reason why the Australian stock market is still 15 per cent below the 2007 peak, while the US, German and Canadian stock markets are substantially higher.

None of these countries have refundable franking credits.

Investors in those countries provide finance to dynamic growth companies and strong businesses.

In Australia, such companies are often shunned by investors because they pay no or low dividends.

Investors instead place their money with what are average firms that structure their businesses according to tax policy distortions.

Imagine if the ASX was at 10,000 points, not the 6,000 point level prevailing today?

I suspect the concerns about dividend refunds would be trivial.

The Australian tax distortions mean that local entrepreneurial firms have less access to local capital.

The money is instead tied up in dinosaur companies paying high dividends.

It is one reason why so many of the 21st century technology and start up firms in Australia head overseas to pursue their business models.
This costs the Australian economy growth and jobs.

With the policy change on refundable franking credits, there will be a greater incentive to invest in companies and other assets for reasons of growth and entrepreneurial flair…

… which will be a positive for the economy and jobs …

… and it will be good for the long term future of Australia.

Thank you
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