Saturday 11 February 2017

There would be a particularly nervous class of Australian investors right now - perhaps even Mr. Harbourside Mansion himself


The Guardian, 11 February 2017:

The founders of Mossack Fonseca, the law firm at the centre of the Panama Papers scandal, were arrested in Panama City on Thursday as the country’s attorney general launched a probe into their alleged connections with Brazil’s sprawling Lava Jato corruption scandal.

Juergen Mossack and his colleague Ramon Fonseca, a former adviser to Panama’s president Juan Carlos Varela, were taken into custody and transferred to police cells in the capital overnight for further questioning on Friday, their defence attorney Elías Solano was quoted telling reporters.

Panamanian prosecutors raided the offices of Mossack Fonseca on Thursday. In a press conference on Kenia Porcell, Panama’s attorney general, said she had information that identified Mossack Fonseca “allegedly as a criminal organisation that is dedicated to hiding money assets from suspicious origins”. 

She said the firm’s Brazilian representative had allegedly been instructed to conceal documents and to remove evidence of illegal activities related to the Lava Jato case.

“Put simply, the money comes from bribes, circulated via certain corporate entities to return bleached or washed to Panama,” said Porcell. She explained charges had been formulated against four individuals, including the Mossack Fonseca partners. 

Porcell thanked the authorities in Brazil, Ecuador, Colombia, Peru, Switzerland and the United States for their part in a collaboration which she said began over a year ago.

The Panama Papers, which consist of millions of documents belonging to Mossack Fonseca and leaked in April 2016, provoked a global scandal after showing how the rich and powerful used offshore corporations to avoid paying taxes.


Prime Minister Malcolm Turnbull's merchant bank Turnbull & Partners received an estimated $3 million in 1995 and 1996 from the sales of shares held through offshore companies administered by notorious Panama law firm Mossack Fonseca.

Turnbull & Partners received up to $7 million from share sales and advisory fees from Mr Turnbull's time as a director of a listed mining company, Star Mining, which had an interest in a Siberian gold deposit.

Documents obtained by The Australian Financial Review, which first revealed Mr Turnbull's link to a Mossack Fonseca company last month, show heavy selling of Star Mining shares by offshore companies in 1995 after a series of favourable decisions by Russian politicians and bureaucrats boosted the Star Mining share price.

One of the key figures who helped obtain Star's Siberian  mining leases, Ludmila Melnikoff, accuses Star director Ian MacNee, who died in 2008, of paying bribes of more than $US2 million to secure these decisions.

Dear Australia,.......Love, America



The Age shared some letters it received after 28 January 2017:

Please share with the good people of Australia our deepest and sincerest apologies for the behaviour of the man who now occupies the White House. ("Donald Trump will 'respect' deal made with Prime Minister 'Trunbull'", February 3)
As an American citizen, who has spent a lifetime in government service, who has lived through the administrations of Eisenhower, Kennedy, Johnson and beyond, I can tell you that we have never had such an oaf in office before.  I am so sorry.  To PM Turnbull, please accept our apologies.
Please, never forget, He does NOT represent the views and attitudes of the American people.  He is a minority president who lost the popular vote by approximately three million votes.  He barely won the electoral college by 42,000 votes in states where over 400,000 voters were purged from the rolls and were not permitted to vote. It will get worse before it gets better ... brace yourselves, we're all in this together.
Robert Mikol, Fairbanks, Alaska


Dear Australia,
I am so very sorry that we have elected such a boor and ignoramus as our president, and that he has chosen to insult such a good friend as you have been to us.  As you probably know, most of us did not vote for this so-called person, but through bad luck and electoral peculiarities we are stuck with him. I just want all of you to know that we love and appreciate Australia, and that we are horrified and embarrassed at his daily hissy-fits. You, of all people, should never have been at the receiving end of one of his tantrums. Please bear with us and accept our heartfelt apologies.
Love America.
Kyle Riggs, Ashland, Oregon 

Come now, can anyone be surprised by anything that Donald (Tweety) Trump says and does? Weren't you watching and listening to his performance during the campaigns and election for the presidency?  It's P.T. Barnum Goes to Washington. Malcolm Turnbull should not feel too upset that his call to the White House ended abruptly.  Anything that runs beyond 140 characters stretches beyond Tweety's attention span.
Bill O'Reilly, Hastings on Hudson, New York

I would like to apologise to the people of Australia and their Prime Minister for any offence given by our current President. This apology for the words and actions of a defective human being, are for both current events and for all future episodes of intellectual and civilised lapses.
Robert Pike, Fremont,California

On behalf of the 70 million voters in America who did NOT vote for Donald Trump, please accept our sincerest apologies for his behaviour. Americans, regardless of political stripe, admire, respect and love your country. Aussies rock!!
Dean Starr, Libertyville, Illinois

I woke up this morning, and read a brief account of Trump's phone conversation with your Prime Minister this week.  I was and am in shock.  I apologise (even though I know I really don't have to for myself) for what happened.  I have never been so embarrassed and so ashamed to be an American.  And I am crying deep tears of sorrow and anger.
Know that there are millions of Americans marching and protesting and writing letters in defiance of this president and this new administration, and we hope beyond hope that their tenure will be short, and the world can regain some of it's sanity.
I'm sorry.
Jack Leishman, Ashland, Oregon

I wanted add my apology to the Australian people for the embarrassing actions by our new president. Australia collectively is one of our closest and cherished friends and it pains me that Trump's treatment of your government, country and people is behaviour beyond belief. Keep the faith as we fight here toward minimising Trump's damage or removing him completely from office.
Bruce Barnes, Atlanta, Georgia

I've been lucky to travel extensively through Australia, enjoy its people, its beauty, and its culture. In the process, I made some very dear friends. The childish, reactionary, petulant behaviour of Trumplethinskin does not represent who or what most Americans are. His unhinged rants and tweets are a product of a seriously diseased mind. To put it in simple terms, terms which even he may comprehend - WE APOLOGISE!
Robert Kezelis, Palos Heights Illinois

Dear People of Australia and Prime Minister Turnbull,
I apologise for the boorish behavior of Mr. Trump. I have no idea how we raised him so poorly.
Steven Miles, Minneapolis, Minnesota

Tweet of the Week



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:

NBN roll out is still a dog's breakfast


Tasmanian Times on 5 February 2017 reminding Australia that the National Broadband Network (NBN) roll out is still a dog’s breakfast:

Letter to the Editor on the NBN
Alex Ratkai
05.02.17 6:45 am

We (in part of Nobelius Drive) have been experiencing constant loss of internet services since November 2015. When it is working, the speed is slower than cable internet- often taking between 10 and 30 minutes to view my mail, though we have high speed ADSL. Last July we received communication that the NBN was now available in Nobelius Drive. There was a Telstra truck parked near the shopping centre in Legana. With joy, I immediately went and signed up, with the promise that the NBN will be connected within a couple of weeks. In a couple of weeks’ time we received a call that part of our street wasn’t being connected, including us. I asked why and also for an indication of a time frame within which we may get it, asking whether it is weeks, months or years. Absolutely no commitment has been given. I was told that the local Telstra substation cannot handle the increased telephone and internet volumes and they aren’t able to do anything. They promised a fast internet service, when I signed up, delivering it for only a few years. Now we are left with no internet service often also an extremely poor or failing telephone service. We are in despair and no one seems to want to help. We live in an advanced country with a third world telephone and internet service. Is that what our country is to look forward to???
Help, someone help.

Baird may be gone but mining versus farming land conflicts remain


NSW Dept. of Industry: Energy and Resources:
On 1 December 2016, the Mining and Petroleum Legislation Amendment (Land Access Arbitration) Act 2015 was commenced to reform the land access arbitration framework. It introduced a range of improvements in line with recommendations of the 2014 Walker Report. Read more about the Walker Report.....

In line with the recommendations of the Walker Report, the Act requires the holder of the prospecting title to pay the reasonable costs of a landholder’s participation in negotiating the access arrangement (section 142).

To ensure these costs do not become uncontrollable at the stage of negotiation, they have been capped at $1,500 for exempt prospecting operations and $2,500 for assessable prospecting operations (both exclusive of GST). The explorer must pay the GST amount in addition to the landholder’s capped costs. Caps are set out in a Ministerial Order published in the NSW Gazette.

No cap has been set on the reasonable costs payable by an explorer at mediation and arbitration as these processes can vary substantially depending on the circumstances. The explorer must still cover the landholder’s costs in making the access arrangement during these stages of the process.

The particulars of each case at mediation and arbitration are to be considered in the determination of reasonable costs at these stages. Nothing in the legislation prevents a titleholder from paying an amount above these caps. If parties cannot come to an agreement on reasonable costs, the arbitrator or the courts will make this determination.


The Land, 9 December 2016:

NEW regulations to balance mining and gas development against private property rights threatens to cause perverse outcomes, pushing landholders to lock the gate and head straight to court.

An alliance of Cotton Australia and NSW Farmers, Irrigators and Country Women’s Association (CWA) hit out at the caps on costs to be borne by mining and gas explorers, saying they fall short, leaving landholders potentially thousands of dollars out of pocket.

The group issued a statement “calling out the NSW government” and putting it on notice ahead of a compulsory review of the new regulations, set to kick off in six months. 

“The caps announced by the NSW government are a far cry from the actual costs likely to be incurred,” said NSW Farmers president Derek Schoen.
NSW CWA president Annette Turner said “unfortunately, (the regulation) fails to live up to the promise of a balance between landholders and resource companies”.

To be continued.....

Thursday 9 February 2017

The 'Archie Bunker' of Clarence Valley has offered his head for public washing again...


The ‘Archie Bunker’ of Clarence Valley John Ibbotson has offered his head for public washing again…..

Letter to the Editor, The Daily Examiner, 2 February 2017, page 9:

No science to it aka Climate sceptic's howlers insult to mainstream science

A good general knowledge implies knowing a fair bit about a wide range of subjects but it can also mean not knowing enough about anything specific in order to become to become an authority. John Ibbotson and climate science is a classic example.

Because of his lack of knowledge John's letters have a tendency to contain scientifically indefensible howlers.

From the many, an Ibbotson clanger highlights reel would include (and I paraphrase):
1. "CO2 is a harmless, benign compound!"
2. "Ocean acidification is impossible because sea water is alkaline!"
3. "Velocity ratio for a wind turbine is an absurdity!" and so on.

No doubt with some prompting, John's grasp of climate science has improved over time, but it still begs the question: is it too easy to believe you are absolutely correct when you don't, won't or can't understand the basic science which would show that you are just simply wrong?

The kindest thing that can be said about John's letters on climate is that his offerings on other topics (apart from maybe being too frequent), are more or less based on fact.

In his latest climate letter (DEX Jan 1) John quite graciously confirms that the last two decades for the planet have been abnormally warm but he will be most disappointed to learn that contrary to his assertion I am decidedly of any colour other than green.

In fact I am just a very average DEX reader who is more than willing to defend mainstream science from unjustified denigration by self-indulgent sceptic opportunists such as John Ibbotson, the esteemed Viv Forbes and others.

Ted Strong, Seelands