Saturday 17 December 2016

Just because it is beautiful........(20)


Friday 16 December 2016

Will the Abbott-Turnbull policy horror stories never stop?


The Liberal and National parties blindly driven by ideology and riddled with far-right extremists have altered existing social policies (sometimes out of all recognition) or created new punitive policies, which are increasing the distress of the old, the disabled, the sick, low income earners, the unemployed and indigenous people.

Here is yet another bad news story about the effect of these policies……..

ABC News, 3 December 2016:

The Federal Government's remote work-for-the-dole scheme is devastating Indigenous communities, with financial penalties causing insurmountable debt and social division, a report has found.

The Australian National University researchers described Indigenous Affairs Minister Nigel Scullion's Community Development Programme (CDP) as a "policy disaster".

ANU researcher and co-author Dr Kirrily Jordan said financial penalties were being applied unfairly and an example of this could be found in the Ngaanyatjarra Lands in Western Australia.

"The rental arrears across the whole lands, across 12 communities, have gone up from $50,000 to $350,000, in the short space of time since CDP's been introduced," she said.

ANU researcher Dr Inge Kral said she had spent 30 years working in remote communities and the latest scheme had left people struggling to feed themselves.

"People with no money in families, there's no money for food, there's certainly no money for clothes — people are starving, people are begging," she said.

"The whole infrastructure around stores is collapsing because there isn't the reliable secure income coming in."

According to the ANU report, the Centrelink-based system is impractical and devised by Canberra bureaucrats who are out-of-touch with remote community life.

Ms Kral also said people in remote areas were not being properly assessed for the disability pension and could be on the phone to Centrelink for "days", with little regard for language barriers.

"We are not kidding. This is not made up. People sit there for days," she said.

"Someone told me a story the other day about a man who really should be on a disability pension.

"They're now without money, they're on an eight-week no-payment penalty, they haven't eaten for three days, they've got no money coming in and they can't effectively engage with Centrelink by themselves.".

The scheme applies to about 34,000 people, mostly Indigenous, across Australia and was introduced by Mr Scullion in July last year.

CDP increased the number of work hours required for welfare payments to 25 per week, for at least 46 weeks a year.

The last Question Time of 2016 and the last hurrah for Malcolm Bligh Turnbull?


The Guardian, 4 December 2016:

Parliament ended the year with a mixture of bang and whimper.

The whimper was the legislative “fight”. It says a fair bit about the way the government is travelling that the big political issue was the backpacker tax (important as it is for farmers, it is not one that should have caused such grief) and the passing of the Building and Construction Commission legislation. This has been so laughably altered from its original intent that the main issue for unions is ensuring the ABCC does adhere to the legislation – such as the requirement that the commissioner performs his or her functions “in an apolitical manner”.

The bang was a protest that disrupted question time.

There was, of course, a lot of hand-wringing over the protest – there always is when the left protests in Australia. After all, we had much the same response about disruption of democracy from the powers that be a couple years ago when students protested against Christopher Pyne during an episode of Q&A.

The protesters certainly did disrupt the proceedings of parliament, but they did no one any harm and were no danger to anyone. Their putting a stop to the proceedings of question time actually produced a net benefit to the nation’s IQ, even if only for three-quarters of an hour.

That’s not to say question time is unimportant or always brain dulling in its idiocy. There are times, mostly by accident, when something worthwhile does occur, but for the most part it is just a poorly scripted play performed by mediocre actors……

It should be noted that on Wednesday it took Malcolm Turnbull two sentences to deliver his answer about attacking the ALP, while on Thursday it took him three.

Notionally his answer was about the passing of the legislation to reinstate the ABCC, but perhaps because the legislation was so neutered he felt on surer ground to talk about the ALP’s faults rather than his government’s achievements.
The ABCC legislation, however, nicely encapsulated the government’s policy process – rushed, sloppy and actually failing to deliver what was intended.

The government was so desperate to get the legislation passed that it agreed to all manner of amendments – including those that were highly protectionist, made the commissioner’s position virtually untenable, and those that didn’t make a lot of sense……

How I’ll remember Prime Minister Malcolm Bligh Turnbull during Question Time in 2016:

Photo: Alex Ellinghausen

SBS News, 6 December 2016:

Voter support for Malcolm Turnbull has fallen to its lowest level since he seized power, the latest Newspoll shows.

The Coalition heads into Christmas with its two-party preferred vote up from 47 to 48 per cent but still trailing Labor, which has notched up its sixth successive lead, on 52 per cent, the poll taken for The Australian newspaper shows.

Mr Turnbull's standing has again fallen, with his rating as better prime minister dropping two points to 41 per cent, the lowest level since he toppled Tony Abbott as leader 15 months ago.

The prime minister's standing has tumbled 18 points over the course of this year.
His margin over Opposition Leader Bill Shorten, who is favoured by 32 per cent as the preferred prime minister, has dropped from a 39-point lead in January to just nine points.

The Newspoll of 1629 voters, taken from Thursday to Sunday, shows the government's primary vote has gained one point to 39 per cent and Labor's primary vote fell two points to a two-month low of 36 per cent.

The Greens remain unchanged on 10 per cent while support for independents and other parties edged up from 14 to 15 per cent.


Thursday 15 December 2016

Yet another attempt to reform Australia's political donation rules set for 2017


ABC News, 7 December 2016:

Declared donations and payments to Australian political parties is about to top $1 billion, a new analysis of data shows.

But the true figure could be triple that because donations under $13,200 do not have to be declared.

"It's very hard to know because disclosure laws in Australia are very opaque, they're not transparent," Monash University's Dr Charles Livingstone said.

"I wouldn't be surprised if it was twice or three times as much as been declared, at least."

Dr Livingstone has studied political donations and in particular how donations made by the gambling industry have influenced public policy.

He says the current laws are "corrupt, they're opaque and they undermine democracy".

The new database has been compiled by The Greens from donations and payments declared to the Australian Electoral Commission (AEC) between 1998 and 2015.

The current funding and disclosure scheme has been in place since the 1984 election, but the electoral commission website only publishes returns from 1998 onwards.

An analysis by the ABC shows tracing the source of the donations is also difficult, because more than 20 per cent of the money was funnelled through organisations called associated entities.

Labor and The Greens are expected to push for reforms to political donation laws when Parliament resumes next year.

They want a ban on foreign donations and for all donations above $1,000 to be declared…..

Donations and payments declared to the AEC between 1998 and 2015 have been collated into a central, searchable database.

It includes receipts for $994,822,181 in donations and other payments called "other receipts" or "subscriptions".

The largest corporate donors over the 17-year period were:

Queensland Nickel Pty Ltd — $21,664,196
One of Clive Palmer's companies, now in liquidation, has donated to his own political party and to the Liberal and National parties.

Mineralogy Pty Ltd — $14,692,636
Another of Clive Palmer's companies that made significant donations to his own party and to the Liberal and National parties, despite reporting consecutive losses to the ASX.

Village Roadshow Limited — $5,022,263
The company made large payments to both the Labor and Liberal parties while lobbying for a crackdown on digital piracy.

Pratt Holdings — $4,609,733
Linked to Melbourne's well-connected Pratt family who made their fortune with Visy Industries, a paper, packaging and recycling company.

The most generous industries over the 17-year period were:

The property industry — $64,099,161
Financial and insurance industries — $37,078,539
Pharmaceutical/health — $12,625,078

In terms of total donations, the most generous individuals were:

Lord Michael Ashcroft — $1,772,938
A conservative UK businessman who has donated to the Liberal Party in Australia.

Graeme Wood — $1,680,795
A digital entrepreneur and environmentalist who has donated to The Greens.

Henry Ray Gillham — $1,035,900
A Queensland grazier who stood as a candidate for the Citizens Electoral Council in the 2004 federal election, but forgot to fill in his own ballot paper correctly. His donations were all to the CEC……

The searchable database Democracy 4 Sale was established in 2002 and was expanded this year. It now contains all donation receipts reported to the AEC since 1998 and includes donations which were declared by the donor but not the party.

In 2011 Australia had a Labor government and in 2016 it has a Liberal-Nationals Coalition government - see the difference


What a difference the philosophy a political party espouses makes to the physical and social environment in which they govern.

THEN……

The Australian Federal Parliament was interrupted by a group of protesters shouting 'no carbon tax' during Question Time on 11 October 2011.



This is what the Parliament House looked like after that incident – barricade free.

Photograph by Tracy Best, Saturday 24 October 2011

NOW…..

The Australian Federal Parliament was interrupted by a group of protesters shouting 
'close the camps ' during Question Time on 30 November 2016.


This is what Parliament House looked like after that incident.

A security guard patrols the lawns at Parliament House.
Photo: Andrew Meares, The Sydney Morning Herald 1 December 2016

Security ‘pen’ for journalists. Photo tweeted by James Massola, 2 December 2016

Wednesday 14 December 2016

By 2050 over 10 million customers will own distributed resources like solar, storage, home energy management systems and electric vehicles which can supply enough power to national grid to achieve zero emissions


CSIRO & Electricity Network, excerpts, from media releases, 6 December 2016:



A landmark report finds Australian energy consumers do not have to sacrifice security of supply or affordability to achieve a low emissions future, if action is taken now.

The two-year analysis by CSIRO and Energy Networks Australia has produced a comprehensive plan to keep the lights on, bills affordable and decarbonise electricity.

As Australian Governments meet to discuss energy security, the Electricity Network Transformation Roadmap confirms reliable supply can be maintained during Australia’s transition to a more decentralised, clean electricity system.

Energy Networks Australia Chief Executive Officer, John Bradley, said Australian families would be better off by $414 per year on average under the Roadmap’s suite of measures.

“The Roadmap would transform Australia’s electricity system, enabling more choice and control for millions of customers while saving over $100 billion by 2050,” Mr Bradley said.

“If we act now, the grid will be more secure and resilient, despite high growth in large scale renewables and two-thirds of small customers taking up solar and storage by 2050.”

CSIRO Chief Economist Energy, Paul Graham, said a key Roadmap finding was that $16 billion in network expenditure could be saved by 2050 if the grid buys support services from customers with onsite resources.

“Under the Roadmap, traditional network investments can be avoided where it costs less to ‘orchestrate’ distributed resources in the right place at the right time and this saves money for all grid users.

“By 2050, over 10 million customers will own distributed resources like solar, storage, home energy management systems and electric vehicles which they can use to sell grid support services worth $2.5 billion per year.

Mr Bradley said the Roadmap would require collaborative action by grid operators, governments and other parties.

“Grid operators can act directly on many parts of the Roadmap including transforming their customer relationships, service innovation, smart grid operations and developing new incentives for customers,” Mr Bradley said.

“However, a better energy future will need clear market signals. A key objective of the 2017 review of carbon policy must be securing a stable and enduring framework which will reduce the cost and uncertainty of decarbonisation.

“Australian electricity customers want an electricity future which avoids more frequent blackouts and bill shock while addressing global warming – this is their Roadmap,” Mr Bradley said.

Media contact and for a copy of the report:
Fiona Hamann, Hamann Communication (02)4573 2284/0415 191 659 fiona_hamann@hamanncommunication.com

The Roadmap Key Concept Report

Based on two years work and extensive consultation the Roadmap identifies the complex challenges facing Australia’s electricity system in the face of diversified energy supply and identifies a strategy for the future, as well as a deliverable plan to achieve it.

The report finds that with a co-ordinated plan in 2050:
  • Customers retain security and reliability essential to lifestyle and employment
  • Networks pay distributed energy resources customers $2.5 billion per annum for grid support services by 2050.
  • Electricity sector achieves zero net emissions by 2050
  • $16 billion in network infrastructure investment is avoided by management of distributed energy resources like solar and batteries
  • Reduction in cumulative total electricity network expenditure of $101 billion by 2050
  • Network charges 30% lower than 2016
  • $414 annual saving in average household electricity bills (compared with roadmap counterfactual, business as usual, pathway)
  • A medium family who cannot take up distributed energy resources is over $600 p.a. better off through removal of cross subsidies.
Residential bill outcomes for selected Australian household types in 2050 under the counterfactual and Roadmap scenarios

CSIRO and Energy Networks Australia have released this concept report, to engage with the diverse electricity industry stakeholders, who to together with networks, will play a key role in helping to deliver a more efficient and affordable electricity future to the customers the system serves.

About the Electricity Network Transformation Roadmap

Australia’s national science agency CSIRO and the peak national body representing gas distribution and electricity transmission and distribution businesses in Australia, Energy Networks Australia have partnered to develop an Electricity Network Transformation Roadmap (the Roadmap). The Roadmap is a two stage process running over approximately two years. For more information go to www.energynetworks.com.au/roadmap


Australia could beat its current international emissions targets and achieve zero net carbon emissions by 2050 according to new analysis from CSIRO and Energy Networks.

The landmark joint study, the Electricity Network Transformation Roadmap, confirms the grid can enable a zero net emissions system by 2050 and sets out measures to achieve it.

CSIRO Chief Economist Energy, Paul Graham, said that the Roadmap shows that it is possible to contribute to global targets to reduce emission while lowering the impact on household bills.

“CSIRO analysis confirms it is possible for the electricity sector to maintain a reliable, stable grid while achieving zero net emissions by 2050, in line with the aspiration of the COP 21 Paris Agreement,” Mr Graham said.

“On the way to a zero net emissions future, Australia’s electricity sector could exceed its share of current national carbon abatement targets, achieving 40% below 2005 levels by 2030.”

Energy system analysis concludes that an integrated set of measures will be required including stable enduring carbon policy frameworks and incentives to enable ‘orchestration’ of millions of distributed energy resources, like storage, electric vehicles and smart homes.

Energy Networks CEO John Bradley said the two-year Roadmap study involving hundreds of stakeholders found a national, integrated plan was needed to enable ambitious long-term abatement in the electricity sector.

“A low cost and secure transition of the electricity system depends on stable, enduring carbon policy and the Roadmap recommends an Emission Intensity scheme for the generation sector be developed by 2020,” Mr Bradley said.

“By contrast, carbon policy which could change dramatically at every election or differs in every state is a recipe for a high cost and less secure electricity service to customers.

“Analysis for the Roadmap indicates technology neutral carbon policy, like an Emission Intensity Scheme, provides least cost abatement and could save customers over $200 per year by 2030.”

Mr Bradley said decarbonisation would require transformational changes in electricity grids.

“Significant abatement is achieved by connecting millions of small scale renewables and our analysis forecasts Australia to have 6 times its current Solar PV capacity in ten years and 16 times current levels by 2050.

“The Roadmap also highlights the key role of transmission networks maintaining system stability in a low carbon future, with high penetrations of variable renewables.”

Mr Graham said the Roadmap analysis confirmed the critical role of thermal plant in balancing variable renewable energy output during the transition but this would need to be replaced over time by low emission solutions like battery storage, pumped hydro, gas fired generation with carbon capture and storage or Power to Gas hydrogen technology.

“Our current analysis points to a zero net emissions future enabled by battery storage and biomass but there is a fierce technology competition underway,” Mr Graham said.

“With so much technology innovation occurring, market frameworks which are technology neutral and allow the best solutions to emerge will deliver lower costs for customers.”

Mr Bradley said the pathway to a zero net emissions future would present significant challenges which were manageable if governments, industry and customer advocates worked together in a national approach.

“During forums involving hundreds of stakeholders, there was immense support for Australia’s electricity system to prepare itself for a zero net emissions future.

“We’re hopeful the Roadmap analysis and proposed measures will support State and Federal Governments consider these issues during the carbon policy review scheduled for 2017.”

The Roadmap Key Concepts Report has been released for external consultation. Feedback has been sought by February 16 and the program will be finalised in March 2017.

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.