Showing posts with label jobs. Show all posts
Showing posts with label jobs. Show all posts

Friday 10 February 2017

Not content with last year's omnibus bill, Turnbull unleashed his inner b@stard on the poor again in 2017


Pick a paragraph, almost any paragraph - if you are from a working class family someone you care about is likely to find themselves affected.

The First Omnibus Bill……

Turnbull Government, Budget Savings (Omnibus) Bill 2016 as passed by both the House of Representatives and the Senate on 15 September 2016, assented to 16 September 2016:

Summary
Amends:
the Higher Education Support Act 2003 to establish a minimum repayment threshold for HELP debts of two per cent when a person’s income reaches $51 957 from the 2018-19 financial year; and replace the Higher Education Grants Index with the consumer price index for the purposes of indexing all grants and regulated student contribution amounts; the Higher Education Support Act 2003 and Income Tax Assessment Act 1997 to discontinue the HECS-HELP benefit from 1 July 2017;
the Social Security Act 1991Social Security (Administration) Act 1999Farm Household Support Act 2014 and Income Tax Assessment Act 1997 to discontinue the job commitment bonus;
the Australian Renewable Energy Agency Act 2011 to reduce the agency’s available appropriation;
the Private Health Insurance Act 2007 to pause the income thresholds for the Medicare levy surcharge and the government rebate on private health insurance for a further three years from 1 July 2018;
the National Health Reform Act 2011 to abolish the National Health Performance Authority; the Aged Care Act 1997 to: increase the secretary’s compliance powers in relation to reviews of care recipient appraisals submitted by aged care providers to receive Commonwealth subsidies;
abolish adviser and administrator panel arrangements; and require approved providers to notify the secretary of certain changes to any key personnel in certain circumstances;
the Age Discrimination Act 2004Dental Benefits Act 2008 and Human Services (Medicare) Act 1973 to close the Child Dental Benefits Schedule from 31 December 2016 and establish the Child and Adult Public Dental Scheme from 1 January 2017;
the Social Security Act 1991Social Security Legislation Amendment (Newly Arrived Resident’s Waiting Periods and Other Measures) Act 1997 and Farm Household Support Act 2014 to remove the exemption from the 104 week newly arrived resident’s waiting period for new migrants who are family members of Australian citizens or long-term permanent residents;
the Social Security Act 1991Social Security (Administration) Act 1999 and Student Assistance Act 1973 to cease the student start-up scholarship payment from 1 July 2017;
five Acts to apply an interest charge to outstanding debts owed by former recipients of social welfare payments who have failed to enter into, or have not complied with, an acceptable repayment arrangement;
five Acts to enable the making of departure prohibition orders to prevent certain social welfare debtors from leaving the country;
the A New Tax System (Family Assistance) (Administration) Act 1999Paid Parental Leave Act 2010Social Security Act 1991 and Student Assistance Act 1973 to remove the six-year limit on welfare debt recovery; the Social Security Act 1991 and Veterans’ Entitlements Act 1986 to provide that parental leave payments and dad and partner pay payments are included in the income test for income support payments;
the A New Tax System (Family Assistance) Act 1999Income Tax Assessment Act 1936 and Social Security Act 1991 to change the way fringe benefits are treated under the income tests for family assistance and youth income support payments and for related purposes; the Social Security (Administration) Act 1999 to align carer allowance and carer payment start day provisions;
the A New Tax System (Family Assistance) Act 1999 and Paid Parental Leave Act 2010 to pause indexation for family tax benefit (FTB) Part A, the primary earner income limit for FTB Part B and the Paid Parental Leave income limit for a further three years from 1 July 2017;
the Social Security Act 1991 and Veterans’ Entitlements Act 1986 to remove the pension income and assets test exemptions currently available to pensioners in aged care who rent out their former home and pay their aged care accommodation costs by periodic payments;
the A New Tax System (Family Assistance) Act 1999 and Social Security Act 1991 to remove the exemption from the income test for FTB Part A recipients and the exemption from the parental income test for certain dependent young people receiving youth allowance and ABSTUDY living allowance;
the Social Security Act 1991 to provide that certain persons cannot be paid social security payments when they are in psychiatric confinement because they have been charged with a serious offence;
six Acts to prevent new recipients of welfare payments or concession cards from being paid the energy supplement from 20 March 2017;
the Income Tax Assessment Act 1997 to reduce the refundable and non-refundable rates of the tax offset available under the research and development tax incentive for the first $100 million of eligible expenditure;
six Acts to require larger entities to provide payroll and superannuation information at the time it is created through the single touch payroll reporting framework; and
the Military Rehabilitation and Compensation Act 2004 to create a single appeal path for the review of original determinations made by the Military Rehabilitation and Compensation Commission.

The Second Omnibus Bill……

Turnbull Government, Social Services Legislation Amendment (Omnibus Savings and Child Care Reform) Bill 2017, presented in the House of Representatives, 8 February 2017:

A Bill for an Act to amend the law relating to family assistance, social security, paid parental leave, veterans’ entitlements, military rehabilitation and compensation and farm household support, and for related purposes


This bill contains the following Schedules:
1. Payment rates
The family tax benefit Part A standard fortnightly rate will be increased by $20.02 for each FTB child in the family aged up to 19. An equivalent rate increase, of around $19.37 per fortnight, will apply to youth allowance and disability support pension recipients aged under 18 and living at home. These increases will apply from 1 July 2018.
2. Family tax benefits Part B rate
From 1 July 2017, the Bill will introduce a reform to family tax benefit Part B that removes entitlement to FTB Part B for single parent families who are not single parents aged 60 or more or grandparents or great-grandparents, from 1 January of the calendar year their youngest child turns 17.
3. Family tax benefit supplements
This Schedule will phase out the family tax benefit Part A supplement for families with an adjusted taxable income of $80,000 a year or less by reducing it to $602.25 a year from 1 July 2016, and to $302.95 a year from 1 July 2017. It will then be withdrawn from 1 July 2018. The family tax benefit Part A supplement has already been withdrawn for families with an adjusted taxable income over $80,000 a year under the Budget Savings (Omnibus) Act 2016. The family tax benefit Part B supplement will also be phased out. It will be reduced to $302.95 a year from 1 July 2016, and to $153.30 a year from 1 July 2017. It will then be withdrawn from 1 July 2018.
4. Jobs for Families Child Care Package
The purpose of Schedule 4 is to introduce key aspects of the Jobs for Families Child Care Package, as announced in the 2015-16 and 2016-17 Budget. The Schedule will, through the introduction of a new Child Care Subsidy and other enhancements, deliver a simpler, more affordable, more flexible and more accessible child care system for families.
5. Proportional payments of pensions outside Australia
This Schedule reduces from 26 weeks to six weeks the period during which age pension, and a small number of other payments with unlimited portability, can be paid outside Australia at the basic means-tested rate. 4 After six weeks, payment will be adjusted according to the length of the pensioner’s Australian working life residence.
6. Pensioner education supplement
This Schedule ceases pensioner education supplement from the first 1 January or 1 July after the day the Act receives Royal Assent.
7. Education entry payment
This measure ceases the education entry payment from the first 1 January or 1 July after the Act receives Royal Assent.
8. Indexation
This Schedule implements the following changes to Australian Government payments:
· maintain at level for three years from 1 July of the first financial year beginning on or after the day this Act receives Royal Assent the income free areas for all working age allowances (other than student payments) and for parenting payment single; and
· maintain at level for three years from 1 January of the first calendar year beginning on or after the day this Act receives Royal Assent the income free areas and other means test thresholds for student payments, including the student income bank limits.
9. Close the energy supplement to new welfare recipients
This Schedule ceases, from 20 September 2017, payment of the energy supplement to recipients who were not receiving a welfare payment on 19 September 2016 and closes the energy supplement to new welfare recipients from 20 September 2017.
10.Stopping the payment of pension supplement after six weeks overseas
This Schedule will stop the payment of pension supplement after six weeks temporary absence overseas and immediately for permanent departures.
11.Automation of income stream review processes
This Schedule will allow for the automation of the regular income stream review process by enabling the Secretary to require income stream providers to transfer a dataset to the Department of Human Services (DHS) on a regular basis. 5
12.Seasonal horticultural work income exemption
Schedule 12 to the Bill provides a social security income test incentive aimed at increasing the number of job seekers who undertake specified seasonal horticultural work, such as fruit picking.
13.Ordinary waiting periods
This Schedule makes amendments to extend and simplify the ordinary waiting period for working age payments.
14.Age requirements for various Commonwealth payments
This Schedule provides that young unemployed people aged 22 to 24 would no longer be eligible for newstart allowance or sickness allowance until they turn 25 years of age and would, instead, be able to claim and qualify for youth allowance. To enable this, youth allowance for all types of people who can satisfy the activity test, will be available to people who have not yet reached 25.
15.Income support waiting periods
This Schedule introduces a four-week waiting period, for job ready young people who are looking for work, to receive income support payments. During this fourweek period, job seekers under 25 years of age who have been classified as job ready (Stream A) by the Job Seeker Classification Instrument will also be required to complete assigned activities, through a new program, RapidConnect Plus, that will help them prepare for and find work.
16.Other waiting period amendments (Rapid Activation of young job seekers)
This Schedule implements the Rapid Activation of young job seekers 2015-16 Budget measure.
17.Adjustments for Primary Carer Pay
This and the following Schedule introduce the revised arrangements for the Paid Parental Leave scheme announced in the 2015-16 Mid-Year Economic and Fiscal Outlook and previously introduced in the Fairer Paid Parental Leave Bill 2016, which will now be withdrawn. The measure is changed in that the maximum PPL period for which a person may be paid parental leave pay is increased from the current 18 weeks to 20 weeks. The measure will commence on the first 1 January, 1 April, 1 July or 1 October that is 9 months after the date the Act receives royal assent, with an earliest commencement date of 1 January 2018.
18.Employer Opt-In (PPL) Schedule
18 removes the employer paymaster role in administering the Paid Parental Leave scheme.

Australian Financial Review graphic, 9 February 2017:


A Plea to see reason……

Australian Council of Social Service (ACOSS), media release, 8 February 2017:

ACOSS urges Parliament to reject latest attempt to cut incomes of poorest in new Omnibus Bill

ACOSS today urged the Federal Parliament to stand firm against measures in the new Government Omnibus Bill that will cut the incomes of some of the poorest people, including families, to fund child care reforms.

“This is the latest attempt by the Government to push through harsh cuts that will rip $7 billion from the social security budget. It includes previously rejected ‘zombie’ measures, such as the five-week wait for unemployment payments, further cuts to family payments, and abolition of the energy supplement, which will slash the incomes of two million future recipients of income support,” said ACOSS CEO Dr Cassandra Goldie.

“The so-called concessions the Government has made will be wiped out by other changes in the Bill, leaving many low-income people worse off.

“Of course we all want greater support for families to get better quality childcare but it cannot be funded on the backs of some of the most disadvantaged people in our country.

“This is not the way to build a strong community – caring for each other through all stages of our lives has served our nation well. This new bill risks weakening our social fabric.

“The increase to the Family Tax Benefit Part A for families with children by $10 a week does not make up for cuts to the supplements. A sole parent with two children aged 13 and 15 will still lose between $14 and $20 per week, or around $1,000 a year.

“Although this is less of a hit than under the previous proposal, it will still severely impact single parents, most of whom are struggling to keep a roof over their heads and feed their children as well as provide for them in the new school year.

“We are concerned the new Bill also includes unfair measures previously and repeatedly rejected by Federal Parliament and the broader community, such as making young people who become unemployed wait five weeks to receive income support.  This measure will not create jobs and merely punishes people who lose one.

“Abolishing the energy supplement will cut between $4-$7 a week from people on the lowest incomes, including pensioners, students, families, and people locked out of paid work.

“We have been consistent in our opposition to any watering down of paid parental leave and oppose any weakening of the current system, which currently ranks second to last in the OECD.

“This zombie Bill would only serve to increase poverty and inequality in Australia and Parliament must reject it,” Dr Goldie said.

More information on ‘zombie’ measures:

Thursday 5 January 2017

Next time a man tells you that there is a level playing field.........


Many older Australian women alive today reached retirement age without any superannuation savings. Some will still do so into the future if they have predominately engaged in unpaid work during most of their working-age life.

Superannuation was first paid in the mid‑1800s as a benefit to certain employees in the public service and larger corporate organisations. Invitation to join what were then a limited number of superannuation schemes was predominately restricted to males at professional/managerial level. Full benefits upon retirement could be taken as a lump sum. By 1915 super earnings were exempt from taxation [taxreview.treasury.com.au].

As recently as the late 1960s women often faced an employment bar on marriage and/or once wed were forced to withdraw from any superannuation scheme they may have had the good fortune to be previously eligible for. [Paxton, JA, July 2014, Women and Superannuation: The Impact of the Family Law Superannuation Regime, p.23]

Superannuation was fairly uncommon in Australia until the 1970s, when it began to be included in industrial awards.

In 1985, only 39 per cent of the workforce had superannuation—24 per cent of women and 50 per cent of men had access to super.
At that stage, superannuation coverage was concentrated in higher paid white collar positions in large corporations and, in the public sector.

Superannuation became a major component of Australia's retirement system following the introduction of the Superannuation Guarantee in 1992. The Superannuation Guarantee requires employers to contribute a percentage of an employee's earnings into a superannuation fund, which the employee cannot access until they reach the superannuation preservation age. For most employees, superannuation coverage expanded following the introduction of compulsory superannuation.

In 1993, 81 per cent of employed Australians were covered by superannuation and the gender gap in superannuation coverage had narrowed, with 82 per cent of employed men and 78 per cent of employed women covered by superannuation. The employer contribution rate has increased over time, from 3 per cent in 1992 to the current rate of 9.5 per cent. 
[Economics References Committee, April 2016, 'A husband is not a retirement plan': Achieving economic security for women in retirement, p.6]

The superannuation industry, including the Commonwealth's defined benefit funds, may prefer to forget past practices. There was a time when women were forced to leave their super fund on marriage and, as a result, were deprived of unvested benefits. The winners then were long-term (usually permanent) employees, predominantly male, who reaped their full entitlements on retirement……
It wasn't too long ago that during a family breakdown, women who sacrificed a career to bring up a family were unable to access their partner's vested super benefits. Family law changes now allow women to access a fair share of their former partner's superannuation.  [The Sydney Morning Herald, 6 March 2016]

The table below shows the disparity between men's and women's superannuation balances over time across all age groups.

[Economics References Committee, April 2016, 'A husband is not a retirement plan': Achieving economic security for women in retirement, p.9]

Wednesday 14 December 2016

Industry Super/CBUS report "Overdue: Time For Action On Unpaid Super" published November 2016


How much super should you have right now and how much do you really have?

The Industry Super/CBUS report Overdue: Time For Action On Unpaid Super was published in November 2016.

The report states:

Introduced in 1992 at three per cent in lieu of a wage increase and as a means of boosting retirement savings, the Superannuation Guarantee (SG) is now a matter of right.

Today, employers are required to contribute at least 9.5 per cent (up from 9.25 per cent in 2014) to the superannuation accounts of every worker earning $450 plus a month.1

In doing so, Australia has amassed a $2.1 trillion savings pool that, in shifting economic winds, increasingly holds both the nation and its people in good stead.

However, two new reports suggest some employers are undermining the system by not meeting their payment obligations. Separate analyses conducted by Industry Super Australia (ISA) and by Tria Investment Partners for Cbus indicate the non-payment of superannuation entitlements could be widespread and, in dollar terms, increasingly significant. These findings suggest further work is needed to fully understand the scale of this problem with consequential changes in ATO audit activity.

It also states:

Responsibility for ensuring SG payments are made rests almost entirely with individual employees.

High levels of disengagement, low levels of financial literacy and extreme information asymmetry mean that employees are ill-equipped to determine or address SG non-compliance.

Those most at risk of not having their SG contributions paid are younger, lower income earners working in industries with high levels of casualisation and sham contracting, including construction, cleaning and hospitality.

Small and medium-sized businesses are least likely to pay SG.

And that:

While individual experience may vary enormously, average impact of SG non-compliance is the loss of 7 months of contributions for a person earning the average wage in 2014.

Put baldly this report highlights the fact that Without action unpaid super will reach $66 Billion by 2024.

Key points in the report:

Two new reports suggest retirement incomes are being undermined by employers who are not meeting their Superannuation Guarantee (SG) obligations on behalf of workers.

These reports estimate that employers failed to pay at least $3.6 billion in SG contributions in 2013-14. The two components of the combined estimate are:

• Underpayment of SG for PAYG employees and sham contractors which Industry Super Australia (ISA) estimates was at least $2.8 billion in 2013-2014
• Unpaid superannuation for workers employed in the cash economy which separate research by Tria Investment Partners for Cbus estimates added an additional $800 million.

This equates to 30 per cent of workers not being paid part or all of their compulsory super.

Younger workers, low income earners and workers in the construction, hospitality and cleaning industries were most likely to miss out on superannuation.

On average, affected workers missed out on $1,489 or almost 4 months of superannuation contributions.

Using Tria’s projections and its own, ISA estimates that unless action is taken, unpaid superannuation will amount to over $66 billion by 2024.

These estimates are conservative - using a compliance benchmark of 8.5% of assessable income rather than the statutory rate of 9.25% in 2013-14. If these estimates took into account a loophole that allows employers to count employees’ voluntary contributions, via salary sacrifice, towards their SG obligations, the problem would be greater.

Government action is warranted. It should:

• Urgently investigate these new estimates
• Undertake detailed analysis of the types of industries and employers that do not pay SG
• Adequately resource the Australian Tax Office (ATO) to recover unpaid SG
• Immediately close the loophole that allows employers to count salary sacrifice amounts towards their SG obligations
• Investigate the feasibility of introducing real-time payment, reporting and compliance of SG using new Single Touch Payroll (STP) technology
• Introduce a direct, clear, enforceable mechanism for superannuation funds to recover unpaid SG from employers on behalf of members
• Retain existing penalties against employers who fail to pay SG and introduce stronger penalties, including personal liability for directors of companies that do not meet those obligations
• Extend the government safety net that protects unpaid wages and entitlements when a company becomes insolvent to protect unpaid superannuation.

The full report can be downloaded here.

Thursday 8 December 2016

How the Clarence Valley council rates and charges fight played out at the end of 2016


It would be foolish to think that the issue of Clarence Valley Council rates and charges has been permanently settled since the local government election in September this year.

The constant pressure of cost-shifting by state and federal governments means that regional councils in particular are prone to financial stress.

The fact that during previous elected terms Council in the Chamber appears to have agreed to expenditure which exacerbated this situation is regrettable but remains something that has to be faced. 

I await the beginning of the 2017 local government year with interest.

The current state of play……

The Daily Examiner, 19 October 2016:

NEW Clarence Valley Mayor Jim Simmons has used his casting vote twice to ensure his council applied for a special rate variation.

At Tuesday's council meeting a Mayoral Minute calling for an organisation review of the council and a general manager's report outlining a Fit for the Future Improvement Plan and Special Rate Variation were fiercely debated.

The Mayoral minute ostensibly called for the appointment of a consultant to review the council's organisation, but quickly moved to debate on the SRV.

In his minute the mayor said the council needed make an application for an SRV in case it becomes necessary once the review was completed.

In debate he repeatedly stressed this was not an application for an SRV. He said this could only happen at budget time in June next year.

But for some councillors the SRV was totally off limits.

Councillors Peter Ellem and Greg Clancy said they would not vote in favour of any motion in favour of an SRV.

And Cr Andrew Baker said an SRV was an admission the council was not prepared to do the hard work in balancing the budget.

The voting was Crs Jason Kingsley, Richie Williamson, Arthur Lysaught and Jim Simmons in favour.
Against: Crs Baker, Ellem, Clancy and Debrah Novak.

The Daily Examiner, 1 December 2016:

CLARENCE Valley Council has missed its State Government-imposed deadline to submit a plan to show it will become Fit for the Future.

At an extraordinary meeting in Maclean yesterday, councillors voted down a staff-prepared proposal which included an application for a 9% special rates variation.

The deadline for the council to submit its proposal to the Office of Local Government was midnight last night, which the council general manager Scott Greensill said could not be met.

The gallery was filled with council staff, who came to see the outcome, which according to information in the report to the meeting could result in the loss of 63 jobs at the council over the next nine years.

Mayor Jim Simmons, who spoke in favour of the plan, used his casting vote to defeat the proposal.

His reasoning was that a councillor missing from the meeting, Cr Greg Clancy, was a strong opponent of the SRV proposal.

"This proposal would only be voted down at the next meeting in December, so I will vote against it now," he said.

Cr Andrew Baker foreshadowed a lengthy nine-point motion during question time. An amendment from Cr Karen Toms reduced this to eight points when he agreed to remove a section relating to council's tourism services.

This became the motion on the defeat of the officer's recommendation……

Cr Peter Ellem supported Cr Baker's motion.

He said the opposition to it was coming from a rump of the former council and council staff who had failed to listen adequately to the new members of council and the public.

He said the job losses and figures in the report were designed to scare councillors into voting in favour of an SRV, which he said the community could not afford.

That final Council resolution set out below is one that was amended by Williamson/Lysaught during the preceding motion vote which occurred sometime between 3.10pm and 4.06pm.

The Mayor adjourned the meeting at 4.06 pm and resumed at 4.13 pm.

COUNCIL RESOLUTION – 13.063/16
Baker/Novak

That Council:
1. Adopt a Fit for the Future Continual Compliance Policy for immediate implementation and a Nil-Deficit General Fund Budget Policy for 2017/18 and subsequent years with each General Fund Budget to encompass at least:
a. Operating Performance Ratio at or better than breakeven to satisfy Benchmark 1.
b. Building and Infrastructure Renewal at or better than 100% to meet or exceed Benchmark 3.
c. Infrastructure Backlog Ratio of 2% or less to satisfy Benchmark 5, after an initial utilization of
$17.7 million of own Capital Reserves is applied to infrastructure backlog reduction by the
actions required at 3 and 4 below.
d. Asset Maintenance Ratio of 100% or more to meet or exceed Benchmark 5.
e. Already-adopted efficiency measures, revenue increases, expenditure reductions and other
measures adopted for financial sustainability purposes.

2. Commence Fit for the Future Continuing Compliance immediately by:
a. Adjusting the 2016/17 adopted budget deficit by any amounts realised from the adoption of
this resolution and,
b. Adjusting current budget projections to include the results of a Business Case review of the
Depot Rationalisation Project that is to include current known costs and projections together
with the items at 7a, 7b and 7c below and with this revised business case to be reported to
Council February 2017 and,
c. Implementing the actions required in following Sections 3 to 8 inclusive.

3. Adopt a Fleet Financing Policy that requires all fleet renewals and acquisitions to be financed by external commercial financing where item cost is prorated monthly over the planned economic life of the asset.

4. Create an Infrastructure Backlog Accelerated Reduction Reserve of $17.7 million by the transfer of all of the Fleet Reserve Fund of $10 million or such other final amount when calculated and by additional capital to emerge from the adoption of the Fleet Financing Policy and:
a. Apply Internal Fleet Hire funds emerging from this Fleet Financing Policy estimated: $3.53m
remaining 6 months 2016/17, $3.33m 2017/18, $1.1 million 2018/19, $0.41 million 2019/20,
$0.14 million 2020/21 for an estimated total $8.6 million over 54 months and subject to final
calculation amount to be inserted here to firstly reach the $17.7 million required for the
Infrastructure Backlog Accelerated Reduction Reserve amount and then to apply to other
Benchmark shortfalls and,
b. Apply fleet disposal income funds emerging at end of economic life disposal of fleet items
estimated at $8 million over 48 to 60 months and subject to final calculation amount to be
inserted here to firstly reach the $17.7 million required for the Infrastructure Backlog
Accelerated Reduction Reserve amount and then to apply to other Benchmark shortfalls.

5. After accounting for the adopted forecast reductions that will result from depot rationalisation  natural attrition and other adopted efficiency savings measures, develop a workforce model that results in no nett reduction of adjusted workforce numbers with such model to be developed by inclusion of selected reductions to consultant and contract engagements in favour of maintaining at least current Council FTE workforce numbers.

6. Receive a report to the February 2017 Ordinary meeting and to subsequent meetings as necessary with such report to include:
a. Options and variations available for delivery of this resolution and,
b. Effects of implementation on subsequent budget forecasts and,
c. The capability and constraints of this resolution being implemented by existing Council
management expertise alone and,
d. The likely cost and benefit of further resolving the implementation of this resolution by the
engagement of external administration services.

7. Adopt a Business Case Reporting to Council Policy for pre-acquisition reporting on all proposed capital acquisitions of $100,000 or above to show all financial costs and benefits and alternatives if any with each report to include:
a. The Cost of Funds using best commercial borrowing rates available to Council at the time
and,
b. The Cost of Funds using best commercial investment rates available to Council at the time
and
c. Any depreciation amounts attributable to the expected life of the acquisition.

8. Make a Fit for The Future Submission to the Office of Local Government showing the amended budget results and forecasts resulting from adoption of this resolution Sections 1 to 7 inclusive together with any other already-adopted future savings and revenue-increase measures to be implemented by Council to achieve financial sustainability.

Cr Williamson and Cr Lysaught left the meeting at 4.41 pm prior to the voting taking place. [my red bolding]

Voting recorded as follows
For: Simmons, Ellem, Novak, Toms, Baker
Against: Kingsley

Tuesday 6 December 2016

Australian Competition & Consumer Commission (ACCC) final decision on the proposed sale of APN News & Media regional newspapers to News Corp due on 8 December 2016


The proposed date for announcement of the Australian Competition & Consumer Commission (ACCC) final decision on the proposed sale of APN News & Media regional newspapers to News Corp is 8 December 2016.

Consideration of the sale is occurring against this backdrop………

Financial Review, 8 November 2016:

News Corporation will rip $40 million in costs out of its Australian publishing arm in 2016-17, some of which will come from job cuts, as the Rupert Murdoch-controlled company deals with falling advertising revenue and a shift to digital.

Advertising revenue at News Corp Australia fell 11 per cent in local currency in the first quarter, which was relatively similar to the same period last year, News Corp chief financial officer Bedi Singh told investors on Tuesday morning during the company's financial results call.

Circulation revenue increased on a local and reported currency basis. News Corp reports in US dollars.

"While we continue to benefit from the cost-reduction program that News Australia announced in the second half of fiscal 2016, which totalled around 5 per cent of the cost base, we are now embarking on further cost initiatives," Mr Singh said.

"We expect an additional Australian dollar $40 million in cost savings this fiscal year while we continue to push digital initiatives more broadly."

It is understood that these costs will come across the local business and will include redundancies. News Corp's Australian publications include The Australian, The Daily Telegraph and The Herald Sun. News Corp shares finished Tuesday 1.3 per cent higher at $16.11 in local trade.

It comes as News Corp has begun offering redundancies at The Wall Street Journal and is planning for $US100 million ($130 million) in annual savings by the end of 2017-18.

Proprint, 24 November 2016:

Less than two weeks after it announced a company-wide cost slashing strategy, News Corp Australia has started canvassing the idea of voluntary redundancies to its staff, encouraging those interested to put their hands up before its redundancy programme begins.

Industry union Media Entertainment and Arts Alliance (MEAA) says it is aware News Corp management had begun gauging staff interest in redundancies.

The inevitable job cuts are a by-product of News Corp’s slowing advertising revenue, which forced the publishing giant to push its $40m cost saving strategy to staff.

In a response to News Corp’s redundancy agenda, the MEAA says it has rallied behind affected editorial staff, and had previously made an effort to ensure forced redundancies are not on the cards.

“MEAA has called on News Corp Australia to confirm that there will be no forced redundancies as part of its latest round of cost savings measures. It is particularly frustrating that the announcement of the redundancies came within hours of voting opening for a new enterprise bargaining agreement negotiated between News Corp and MEAA members over many months – with the company’s management never once indicating that further job losses and cost savings measures were imminent,” the MEAA states.

The Australian, 12 September 2016:

News Corp’s planned acquisition of APN News & Media’s Aust­ralian Regional Media newspaper business will result in up to 300 job losses as back office synergies are sought to secure the future of ­quality journalism in the affected ­regions.

The cuts are expected to be implemented over an initial phase, provided the deal is approved by shareholders and the competition watchdog, and a subsequent round of cost cuts once News Corp has had more time to assess the ARM operations across regional Queensland and northern NSW.

However, there are no plans to shut ARM titles, which ­include The Gympie Times, The Chronicle in Toowoomba and the Ballina Shire Advocate, provided they remain profitable…..

ARM recorded a 42 per cent drop in earnings before interest, tax, depreciation and amortisation to $3.4m for the six months ended June 30, on revenues of $89m, which were down by 6 per cent.

APN announced its ARM sale plans in February as part of its ­efforts to focus its business on the more lucrative radio and outdoor advertising sectors.

News Corp should benefit from picking up extra printing plants. It distributes The Australian and The Courier-Mail throughout Queensland from presses in Brisbane and Townsville. The acquisition included presses in Yandina, Warwick and Rockhampton, which will cut the distribution costs, although APN closed a printing plant in Toowoomba last year.

The ARM newspapers were ­divested by News Corp as part of its acquisition of The Herald & Weekly Times group in 1987.

Thursday 17 November 2016

The 7th Overcoming Indigenous Disadvantage report released today


Australian Government, Productivity Commission, 17 November 2016:

In April 2002, the Council of Australian Governments commissioned the Steering Committee to produce a regular report against key indicators of Indigenous disadvantage. The Steering Committee is advised by a working group made up of representatives from all Australian governments, the National Congress of Australia's First Peoples, the Australian Bureau of Statistics and the Australian Institute of Health and Welfare.

The Overcoming Indigenous Disadvantage report measures the wellbeing of Australia's Indigenous peoples. The report provides information about outcomes across a range of strategic areas such as early child development, education and training, healthy lives, economic participation, home environment, and safe and supportive communities. The report examines whether policies and programs are achieving positive outcomes for Indigenous Australians.

The most recent edition of the report is, Overcoming Indigenous Disadvantage: Key Indicators 2016, released on Thursday 17 November 2016.

ABC News, 17 November 2016:

The report points to a failure of policy and oversight, with the commission estimating only 34 of 1,000 Indigenous programs are been properly evaluated by authorities.

Productivity Commission deputy chair Karen Chester told the ABC's AM program the findings are a wake up call for all levels of government about the reality of Indigenous wellbeing and whether the $30 billion budget is being properly spent.

"You want to know that money is being spent not just in terms of bang for buck for taxpayers, but that we're not short-changing Indigenous Australians," Ms Chester said.

"Of over a thousand policies and programs, we could only identify 34 across the whole of Australia that have been robustly and transparently evaluated.

"At the end of the day, we can't feign surprise that we're not seeing improvement across all these wellbeing indicators if we're not lifting the bonnet and evaluating if the policies and programs are working or not."

The report is being billed by the commission as "compulsory reading" and the most comprehensive report on Indigenous wellbeing undertaken in Australia….

But Ms Chester says it was now up to state, territory and federal governments to take the report on board to determine what is working and what is failing.

"I think the clock has been ticking for a while already," Ms Chester said.

"We have the data, we have the analysis and we know what indicators are linked to the others."

While the report includes case studies of examples of "things that work", it says the small number available underscores the lack of Indigenous programs that are being rigorously evaluated for effectiveness.


Key points

 This report measures the wellbeing of Aboriginal and Torres Strait Islander Australians, and was produced in consultation with governments and Aboriginal and Torres Strait Islander Australians. Around 3 per cent of the Australian population are estimated as being of Aboriginal or Torres Strait Islander origin (based on 2011 Census data).

 Outcomes have improved in a number of areas, including some COAG targets. For indicators with new data for this report:
– Mortality rates for children improved between 1998 and 2014, particularly for 0<1 year olds, whose mortality rates more than halved (from 14 to 6 deaths per 1000 live births).
– Education improvements included increases in the proportion of 20–24 year olds completing year 12 or above (from 2008 to 2014-15) and the proportion of 20–64 year olds with or working towards post-school qualifications (from 2002 to 2014-15).
– The proportion of adults whose main income was from employment increased from 32 per cent in 2002 to 43 per cent in 2014-15, with household income increasing over this period.
– The proportion of adults that recognised traditional lands increased from 70 per cent in 2002 to 74 per cent in 2014-15.

 However, there has been little or no change for some indicators.
– Rates of family and community violence were unchanged between 2002 and 2014-15 (around 22 per cent), and risky long-term alcohol use in 2014-15 was similar to 2002 (though lower than 2008).
– The proportions of people learning and speaking Indigenous languages remained unchanged from 2008 to 2014-15.

 Outcomes have worsened in some areas.
– The proportion of adults reporting high levels of psychological distress increased from 27 per cent in 2004-05 to 33 per cent in 2014-15, and hospitalisations for self-harm increased by 56 per cent over this period.
– The proportion of adults reporting substance misuse in the previous 12 months increased from 23 per cent in 2002 to 31 per cent in 2014-15.
– The adult imprisonment rate increased 77 per cent between 2000 and 2015, and whilst the juvenile detention rate has decreased it is still 24 times the rate for non-Indigenous youth.

 Change over time cannot be assessed for all the indicators — some indicators have no trend data; some indicators report on service use, and change over time might be due to changing access rather than changes in the underlying outcome; and some indicators have related measures that moved in different directions.

 Finally, data alone cannot tell the complete story about the wellbeing of Aboriginal and Torres Strait Islander Australians, nor can it fully tell us why outcomes improve (or not) in different areas. To support the indicator reporting, case studies of 'things that work' are included in this report (a subset in this Overview). However, the relatively small number of case studies included reflects a lack of rigorously evaluated programs in the Indigenous policy area.

Monday 7 November 2016

Australia still losing full-time employment positions and the Turnbull Government still denying reality of the job market




20 October 2016

Shift to part-time employment continues

Monthly trend employment in Australia increased slightly in September 2016, according to figures released by the Australian Bureau of Statistics (ABS) today.

In September 2016, trend employment increased by 3,900 persons to 11,959,500 persons - a monthly growth rate of 0.03 per cent. This is down from the monthly employment growth peak of 0.28 per cent in September 2015. Trend part-time employment growth continued, with an increase of 11,800 persons, while full-time employment decreased by 7,900 persons.

”The latest Labour Force release shows further increases in part-time employment. There are now 130,000 more persons working part-time than in December 2015, while the number working full-time has decreased by 54,100 persons," said the Program Manager of ABS' Labour and Income Branch, Jacqui Jones.

The trend monthly hours worked increased by 2.2 million hours (0.1 per cent), though it is still below the high in December 2015.

The trend unemployment rate decreased slightly (by less than 0.1 percentage points) to 5.6 per cent, and the participation rate decreased 0.1 percentage points but remained steady at 64.7 per cent in rounded terms.

Trend series smooth the more volatile seasonally adjusted estimates and provide the best measure of the underlying behaviour of the labour market.

The seasonally adjusted number of persons employed decreased by 9,800 in September 2016. The seasonally adjusted unemployment rate for September 2016 decreased by 0.1 percentage points to 5.6 per cent, and the seasonally adjusted labour force participation rate decreased by 0.2 percentage points to 64.5 per cent.

More details are in the September 2016 issue of Labour Force, Australia (cat. no. 6202.0). In addition, further information, including regional labour market information, can be found in the upcoming September 2016 issue of Labour Force, Australia, Detailed - Electronic Delivery(cat. no. 6291.0.55.001), due for release on 27 October 2016. 

In August 2016 there were an est. total of 179,000 full-time and part-time job vacancies in Australia, according to the Australian Bureau of Statistics. By September 2016 this figure had dropped to est. 161,1000 job vacancies, according to the Australian Government Dept. of Employment.

In September 2016 there were est. 690,900 unemployed people in Australia. An est. 20 per cent of these people were under 25 years of age.

An est. 480,400 unemployed people were looking for full-time work (est. 39 per cent of this number were females) and on average they each spent 47.1 months doing so.

An additional est. 209,900 unemployed people were looking for part-time work and, as est. 59 per cent of this number were females one could suspect that many were only seeking part-time rather than full-time work because of competing child raising/carer obligations.

Despite these figures indicating that a high number of unemployed people are competing for jobs in a shrinking pool of employment opportunities, the Turnbull Government through the Minister for Social Services and Liberal MP for Pearce Christian “inequality is a measure of difference not a measure of comparative wellbeing”  Porter insists on demonising those applying for unemployment benefits while they search for work, as well as those women who seek to lawfully access government paid parental leave payments in additional to their employer schemes so that they may return to work at an appropriate time and, single parents receiving parenting payments.

The Turnbull Government’s new policy approach based on the June 2016 Baseline Valuation Report allegedly providing a baseline analysis of lifetime welfare costs and highlighting areas of interest is not worth the paper it was printed on – as has been pointed out elsewhere.

And the example of the stay-at-home single parent of four earning more than a similar parent working full-time is nothing but a pile of political manure, as was shown it this report in The Sydney Morning Herald on 29 October 2016:

The claim, published in The Australian on Friday and backed up by Social Services Minister Christian Porter, is that single parents with four children can get payments totalling $52,523 per year if they don't work but only $49,831 after tax if they work and receive the median full-time wage…..

Former Department of Social Security analyst David Plunkett said the calculation excluded $30,916 in family tax benefits that the parent working full-time would also receive, meaning that when "apples are compared with apples", the parent would receive $80,747 if working and $52,523 per year if not working.


Ben Stiller writing in The Sydney Morning Herald on 26 September 2016 gave a telling response to this blinkered federal government’s approach to jobs ‘n’ growth:

I've now spent most of my life working with people the minister has declared there is a "moral imperative" to get off welfare, many of them living lives impacted by profound disadvantages to participation in employment. All of them people who, like me, just want an opportunity to make their life better.

Unlike me, though, they are often trying to manage multiple disadvantages associated with physical health, mental health, family breakdown, lack of education, high local unemployment rates, discrimination and stigmas.

We can choose to apply moral judgment to people so easily attributed to a budget line and described as having a "lifetime of welfare dependence". After all, almost everyone reading this is a success. We made a go of things, overcame our challenges. We pay our taxes. These people are scientifically calculated to spend their lives without bothering to get a job.

Except there aren't any new low-skilled jobs for a 19-year-old single mother with a year 10 education that structure flexible working arrangements around caring responsibilities, childcare pick-ups, court appearances to renew AVOs and night-time community centre literacy/numeracy classes. Even the "welfare dependant" strive to help their children with homework.

As for the old unskilled jobs, they've all been undermined, underpaid and offshored. The new skills needed to get a job cost tens of thousands of dollars and if you happen to pick a dodgy private provider then all that debt has gone into a worthless piece of paper.

When there are no jobs, when there are no opportunities and there is no hope for improvement we have created poverty. As St Vincent de Paul Society CEO Dr John Falzon said, "Poverty is not a personal choice." In poverty there are no choices. People do what they need to do in the world in which they live in order to survive.

I've seen people line up like cattle for hours in the rain to receive a basket of tinned food or a $20 supermarket voucher (Don't worry, Minister, they were always marked "No tobacco. No alcohol"). I've seen people pretend to be someone else to try to get an extra basket because family have come from interstate on the bus and they have nothing to feed them.

Those aren't choices made by people with options and opportunities, they are attempts to survive in a system that confuses, abuses and punishes.

I would like to take this opportunity to make one thing very clear to every politician and print or television journalist who may be tempted to continue to demonise people receiving Centrelink or Dept. of Veterans’ Affairs pensions, benefits or allowances.

They are not the only people in Australia receiving in kind or cash welfare from the federal government.

By way of example*:
* Every person or business receiving a tax concession or tax refund is receiving government welfare. 
* Everyone taking advantage of low taxing components in their superannuation arrangements is receiving government welfare. 
* Every individual who received a primary and high school education received government welfare through state/federal subsidies to schools and/or tax concession to peak religious organisations running them. 
* Every student who took advantage of deferred fee payment options during their university education years received government welfare. 
* Everyone turning up at A&E at a public hospital is receiving government welfare.
* Every parent who took their children to be immunized under the national immunization scheme received government welfare.
* Everyone with or without a a concession card who reached the annual PBS Safety Net threshold and was subsequently supplied with reduced cost/free medication received government welfare.
* Every person receiving non-income tested assistance from any government health or social program is receiving government welfare.

In other words, every single person in Australia receives government welfare – sometimes for years!

* This is not an exhaustive list of examples