blog

Queensland and Australia needs a tax system that supports the growth of the economy

Tue, 21 May 2013 14:44:32 +1000

Queensland’s economy has become more dynamic, efficient and productive over recent decades. Yet our country’s tax system has not kept up with these changes.

The situation whereby 115 of Australia’s 125 taxes and charges raise only 10% of overall taxation revenue is massively inefficient. This lunacy is acting as a significant brake on the economy and our international competitiveness.

A structural review across the taxation system is a necessary step for the Australian economy to continue growing.

CCIQ believes that a complete review of all Commonwealth, State and Local Government taxes is long overdue including the GST.

For example when the GST was introduced all State Governments committed themselves to review the need for inefficient stamp duties yet many duties still remain that are acting to inhibit economic growth.

All Australian taxes including the GST must be reviewed in detail with extensive public consultation with the aim of eliminating those that are detrimental to the competitiveness of businesses in Queensland and Australia.

There is no question that if Australia was to start afresh in designing its taxation system then taxes such as Payroll tax and the suite of stamp duties on business transactions would not be implemented.

CCIQ has for a period of time had a number of aspiration tax goals that it would like to see achieved. However we have always recognised the realities of the State Government’s finances and any means to address these recommendations has not historically been realistic.

CCIQ believes that the opportunity to seriously consider these recommendations is now before us. CCIQ wishes to see four recommendations primarily implemented:

The complete phasing out of payroll tax.
Stamp duty on business transactions be eliminated.
Remaining business tax thresholds be indexed annually.
The compliance and paperwork burden on all businesses be reduced.

The objectives of structural reform should be to reduce the overall burden of tax, eliminate economically damaging taxes, and generate greater incentives for business to enhance their international competitiveness.

Industry recognises that tax reform needs to be affordable.

Queensland’s tax system needs equity, efficiency, simplicity, transparency as well as adequacy.

Fundamentally taxes imposed on business need to reflect the economic imperative of Australia remaining internationally competitive and encouraging job growth and investment.

CCIQ sees a massive opportunity flowing from Coalitions commitment to finish the tax reform process and ensure all States have ample revenue.

Consideration of the Good and Services tax as part of this process makes common sense.

Queensland small business set to reap rewards from action plan

Thu, 16 May 2013 11:37:52 +1000

The Chamber of Commerce and Industry Queensland (CCIQ) has today welcomed the State Government’s Queensland Small Business Strategy and Action Plan.

Small business is the backbone of the Queensland economy employing half of the State’s workforce and comprising 96% of all businesses.

However moving beyond the headline statistics they are more importantly the heart of our suburbs, towns and cities and directly determine the vibrancy of their surrounding communities.

This is why CCIQ is committed to assisting the State Government in finding solutions that create and foster opportunities for small business success.

In November last year, CCIQ had the opportunity to provide feedback to the State Government on the draft strategy.

The final document reflects the State Government’s ongoing commitment to improve the business operating environment for Queensland small businesses.

Queensland must strive towards reducing the barriers of operating a business and we must strive towards having the most competitive business operating environment in Australia.

The Queensland Small Business Strategy and Action Plan clearly articulates the State Government’s vision for all Queensland small businesses and outlines the priorities that will assist in creating and realising this vision, including:

Lowering unemployment;
Making it easier to do business;
Increasing opportunities;
Strengthening government-business engagement; and
Maximising business potential.

CCIQ commends the Government on their swift action since coming to office, to implement objectives that aim to address business costs and red tape.

The Small Business Strategy and Action Plan is an important step in assessing what Queensland’s current economic strategy lacks to allow conditions for business success.

As the peak business and industry association in Queensland, CCIQ is already working with the State Government on a number of issues to assist in achieving these goals including membership of the Small Business Advisory Council, assisting the Office of Best Practice Regulation on the Red Tape Reduction strategy and partnering with the State Government to promote the Buy Locally campaign.

CCIQ is committed to continuing to work collaboratively with the State Government and other stakeholders to ensure the ongoing success of small business in Queensland.

By encouraging growth, prosperity and resilience, Queensland is building a business operating environment that will attract and retain investment and lead to positive economic and social outcomes that will span Queensland in its entirety.

Everyone benefits from a strong economy.

The Queensland business community is pleased to be afforded due recognition by this Strategy and Action Plan.

*Image Caption - CCIQ CEO Stephen Tait, Jann Stuckey MP, Minister for Tourism, Major Events, Small Business and the Commonwealth Games, and CCIQ General Manager for Advocacy, Nick Behrens

Business disappointed by budget that fails to build confidence

Tue, 14 May 2013 21:08:05 +1000

CCIQ views tonight’s Federal Budget as a deficit exit strategy, lacking in detail, transparency, accountability and with little inspiration for Queensland businesses.

It is right to not sprint back to being in surplus. After all if we are too aggressive we will unintentionally hurt economic growth.

However CCIQ firmly believes we have not seen enough commitment to achieve a sensible reduction in government expenditure.

In addition, budgetary savings which are really tax increases, coupled with increased tax compliance will do little to build business confidence. It is only business confidence that will deliver jobs and growth, which is what this budget claims, yet fails to provide.

An embedded structural deficit is clearly evident in the 2012-13 and the 2013-14 financial years. Under this Federal Government we have had a failure to deliver a single budget surplus with a return to surplus now as far away as 2016-17 if the Federal Government is to again be believed.

A failure to prudently rein in spending in prior budgets now leaves Federal Labor having accumulated $212 billion in debt across six years. We appreciate that it has been a challenging global environment to forecast government revenues however this deficit is born out of a lack of restraint in expenditure.

Whilst we applaud commitments such as National Health Reform, Gonski and the National Disability Insurance Scheme we do not believe these should be funded by debt. These should be funded through a root-and-branch review of whole government spending.

The Government’s fiscal strategy needs to outline a better, more detailed and credible pathway back to surplus. On its present course the Federal Government will leave the budget deep in deficit for years.

Queensland focus

Queensland’s business community heads to the federal election with the country exposed by a weak fiscal position. Queensland business will understandably be disappointed with this budget.

Unfortunately only modest commitments to the upgrade of the Gateway Motorway and Cross River Rail leaves Queensland underinvested in terms of our State’s infrastructure requirements compared to other states.

There was a strong case for significant additional funding to be announced for the Toowoomba Second Range Crossing and Bruce Highway upgrade based on the significant impact these will have national productivity and economic growth. CCIQ believes that the federal government has not yet met their responsibility to Queensland's infrastructure requirements.

CCIQ will continue to advocate for a strong investment from future federal governments for improvements to Queensland’s essential infrastructure.

This budget demonstrates a lack of fiscal leadership.

Access to finance, removal of red tape and improved infrastructure key to Gold Coast business growth

Tue, 14 May 2013 11:11:03 +1000

CCIQ have returned to the Gold Coast with the key findings from the Regional Roadshow Business Breakfast in 2012 that have formed the basis of the Gold Coast Business Priorities Report.

The report highlights the key issues faced by businesses on the Gold Coast and will form CCIQ’s advocacy agenda in the coming months to ensure the voices of small business on the Gold Coast are heard at the highest levels of Government.

The following were identified as the key priorities for Gold Coast businesses:

Enabling local business access to finance to help reinvigorate the Gold Coast economy;
Cutting red tape by eliminating unnecessary regulation and stemming the flow of new regulation;
Highlighting the benefits of satellite business districts across the region and encouraging the adoption of developing industrial centres as places of business;
The importance of key infrastructure to ensure the continued growth and expansion of the Gold Coast region;
Harnessing emerging industries and reinvigorating existing and traditional industries;
Getting local businesses involved in big projects on the Gold Coast;
Adopting an innovative approach to productivity issues;
Creating a positive business and investment culture in the region that serves to place the Gold Coast in a positive economic position into the future.

There were also issues raised on the Gold Coast that were of concern to businesses right across Queensland. These included:

Industrial relations
Wage and penalty rates
Workplace health and safety
WorkCover premiums and experiences
Payroll tax and stamp duties
Business taxation
Electricity prices
Local opportunities and procurement

General Manager of Advocacy, Nick Behrens said that when you put all these issues together, it was no wonder that businesses on the Gold Coast were doing it tough, but there are signs of recovery too.

“CCIQ wants to place small businesses and regional communities’ front and centre in our plan for the future of Queensland’s economy. CCIQ’s Business Priorities Report not only outlines the issues that local businesses told us were important, but will form the basis of CCIQ Advocacy activities in the coming months.”

“With an ever-changing economic climate, new and emerging industries and new pressures on businesses, the launch of CCIQ’s Business Priorities Report provides a timely opportunity to discuss further opportunities to renew employment and investment opportunities to secure an even more competitive and sustainable future for the region,” Nick Behrens said.

CCIQ has made commitments across each of the Gold Coast regional business priorities to ensure that the business issues gain attention from government and decision makers and also to ensure that many of these issues can be addressed and resolved.

CCIQ’s Gold Coast Regional Business Priorities Report underpin CCIQ’s advocacy platform and are the catalyst to enacting positive change for business in Queensland. Most importantly, they address regional issues and are the vehicle for CCIQ’s voice for change by directing meetings with local, state and federal government representatives and policy submissions.

CCIQ calls on the Federal Government to deliver a deficit exit strategy

Mon, 13 May 2013 14:28:41 +1000

CCIQ is calling on the Federal Government tomorrow night to deliver a deficit exit strategy achieved through a sensible reduction in government expenditure as opposed to increased taxes.

Restoring the budget position to surplus is the principal economic challenge confronting Australia and was caused through a lack of discipline in expenditure and unsurprisingly the solution can only come from a reduction in expenditure.

Balancing the budget must avoid unnecessary austerity

The question however is how hard do we push to restore a surplus?

Too aggressively and we will unintentionally hurt economic growth;
Too softly will see a failure to prudently rein in spending.

This has been the case in prior budgets and leaves Australia with a conundrum.

There is real tension that exists this year compared to others in that we must strive towards surplus but at the same time the budget must buoy economic growth and too much austerity can have a negative impact on the economy.

The fact that this is an election budget must be a very distant priority for the Federal Government.

The worsening budget position highlights Australia is in a much more difficult position than the government has consistently described. From a business perspective it creates considerable uncertainty with the strong likelihood of tax hikes to support an embedded deficit.

Increased taxation is not the answer

CCIQ strongly warns again tax increases tomorrow night. Sudden changes in taxation arrangements executed without consultation serves to dramatically undermine business confidence and willingness to invest in the Australian economy.

The Carbon Pricing Mechanism, Mineral Resources Rent Tax, Flood Levy and abandoned Company Tax cuts are all timely reminders of how increased taxation undermines business confidence and economic performance harming jobs and prosperity.

CCIQ believes getting the Federal Budget back into surplus and paying down debt are essential goals but not through revenue measures that will send the economy into recession.

Review Federal Government spending to fund long term social programs

We need a root-and-branch review of spending and a more rigorous approach to the evaluation of government programs such as NBN, Clean Energy Initiative, National Health Reform, Gonski and even the National Disability Insurance Scheme.

These large, long-term calls on the budget are only doable if savings can be found elsewhere across government.

On its present course the Federal Government will leave the budget mired deep in deficit for years possibly decades to come if we do nothing tomorrow night.

The Government’s fiscal strategy needs to outline a clear, detailed and credible pathway back to surplus. Tomorrow night’s Federal Budget must embark upon a solution that does not leave Australia saddled with debt for generations.

Balancing the Budget is the main game but it does not have to happen immediately, but let us be clear we need a solid road map driven by expenditure reductions.

Balance finances but invest in future proofing Queensland’s infrastructure

Things CCIQ is looking for from the Budget include:

A road map back to surplus. A surplus is achievable and imminent if the government only spends where spending is necessary. A surplus achieved by removing necessary support for the economy is a false saving. In forecasting a budget surplus will the savings measures adversely affect the mainstream economy?
Funding for the Toowoomba Second Range Crossing and Bruce Highway upgrade. These infrastructures are an integral part of Queensland's road network and have a significant impact on national productivity and economic growth. Forming the backbone of our economy, the Bruce Highway and Toowoomba Range Crossing connect the region with Queensland, Australia and the globe and must be funded.

* Forecasted figures

Businesses identify reducing costs as their number one priority

Fri, 10 May 2013 09:59:27 +1000

An exhaustive study of businesses from every state and territory and all sectors of the Australian economy has identified rising costs as the number one issue they want government to focus on.

The Australian Chamber of Commerce and Industry Pre-Election Survey, which canvassed the views of 1700 business of all sizes in March this year, says easing the growing cost of doing business should be the government's number one economic challenge.

Releasing the findings at Parliament House`, ACCI Chief Executive Peter Anderson said:

“Faced with rising costs and a high currency outstripping revenues, action on cost pressures rank number one for 72.4% of business, with daylight between that and the next order of priorities on fixing employment regulation (54.1%) and relieving the tax burden (51.1%).”

“These findings can’t be ignored as they confirm just why the Reserve Bank cut rates this week - to take cost pressure off doing business. Next week’s budget and the next government must respond likewise, without requiring monetary policy to carry the full load.”

“There are especially telling results for small business which comprised 60% of survey respondents and who feel disenfranchised by the political system if 11,000 supporter voices on ACCI’s Small Business Too Big to Ignore campaign is any measure” (toobigtoignore.org.au).

“Tackling the cost challenge requires a whole of government response, starting with economic and regulatory reform that puts private enterprise and the struggling small business sector at the heart of policy making and public investment.”

Other key concerns revealed by the Survey are:

the increase in the superannuation levy (63.0%);
the current level of government spending (61.0%);
cost of red tape and regulatory compliance (60.4%);
tax system complexity (56.5%);
the level of taxation (53.2%);
complying with employment laws (52.1%);
Australia’s overall international competitiveness (48.6%); and
recruiting employees with appropriate skills (48.5%).

Australian businesses rated Company Tax reductions, Personal Income Tax reductions and Carbon Tax abolition as the top-three tax reform priorities for the next Australian Government.

The Survey can be found at www.acci.asn.au.

Small business findings can be found at the ACCI web site or at www.toobigtoignore.org.au.

CCIQ welcomes Coalition announcement on Workplace Relations, but more needs to be done

Thu, 09 May 2013 14:23:33 +1000

CCIQ welcomes the announcement today of the Federal Opposition's workplace relations policy, and in particular the special emphasis placed on small businesses.

The announcement today indicates that the Federal Opposition recognises that it must move away from the inflexibility and overall lack of balance that characterises the current regime, which seeks to protect employees against the worst case of employer - to the detriment of the vast majority who do the right thing by their workers.

However, while there are a number of positive elements to the Coalition's policy announcement CCIQ considers that it does not yet deliver small and medium businesses the tangible change that they have been seeking. These changes represent the preliminary measures and the building blocks in a workplace relations system that fosters sustainable and productive workplaces.

In particular, the commitment by the Leader of the Opposition, Tony Abbott, to have a Productivity Commission review of workplace relations policy in 2015, is simply too far away for many employers for whom the increasing cost of wages and conditions is becoming a heavy burden that puts the continuing viability of their business at risk.

CCIQ is pleased, however, that a number of the proposed changes that Mr Abbott has said that a Coalition government would put in place are those that CCIQ has been calling for in our Workplace Relations Blueprint - A Framework for Modern Businesses.

These measures include:

extending the notice period of Individual Flexibility Arrangements to 90 days;
getting rid of minimum engagement periods for people under 18 years of age;
allowing for non-union greenfields agreements; and
limiting union involvement in the workplace.

While a very strong step in the right direction, today's announcement will not allay all of the concerns and frustrations that small and medium businesses have expressed since the introduction of the Fair Work Act 2009.

More must be done.

This is why CCIQ has provided all federal MPs and senators with a copy of our Workplace Relations Blueprint, which identifies where current workplace relations laws have caused the most difficulties for small and medium businesses, and provides thirteen recommendations that provide a path forward for our federal politicians.

These recommendations encompass important areas that have not yet been properly addressed by either side of the political fence, including:

keeping the minimum wage and modern awards in check;
restoring balance to unfair and unlawful dismissal laws;
placing more responsibility on employees for their superannuation incomes;
bringing back individual statutory contracts (with certain in-built protections) or extending the life of Individual Flexibility Arrangements to one year;
harsher penalties for unlawful industrial action; and
making the Fair Work Commission and Fair Work Ombudsman more fair, efficient and effective in the exercise of their functions.

CCIQ will therefore be seeking further commitments from both the Federal Opposition and the Federal Government in the lead up to the election to implement recommendations of CCIQ's Workplace Relations Blueprint, and show that they understand what matters to small and medium businesses in Queensland and Australia.

Queensland Plan should create environment for long-term economic growth

Thu, 09 May 2013 13:31:22 +1000

The Chamber of Commerce and Industry Queensland (CCIQ) is supportive of the State Government developing a 30 year Queensland Plan.

At its core, Queensland businesses see the responsibility of Government as creating an environment which enables economic growth. This can be done by;

Reducing the barriers for business growth (reduce red tape and unnecessary regulation);
Creating a competitive cost base across the next 30 years;
Investing in key infrastructure that will directly impact business success (including Toowoomba Second Range Crossing and Bruce Highway);
Providing secure and cost effective energy infrastructure and services;
Bridging the digital divide by encouraging full participation by retailers and other industry groups in the digital economy;
Ensuring Queensland employers have access to skilled workforce;
Preparing Queensland for the challenges and opportunities presented by an ageing population;
Building on the four pillar economy to diversify Queensland’s key industry base to reduce reliance on volatile sectors;
Reviewing the nature of Australia’s taxation and distribution regime;

If included within the plan, the recommendations CCIQ are making will ensure that Queensland continues to be competitive locally and globally and positioned to take full advantage of the opportunities brought on by the Asian Century.

Competitiveness is a major insulator to an uncertain global future. Queensland’s cost base including variables such as energy and utility prices, labour costs, taxation, regulatory and planning regime, industrial relations framework all must be competitive in 30 years’ time. If provided with the right business environment, CCIQ believes that Queensland businesses are creative, innovative and resilient enough to drive the state’s economic growth for the next 30 years and beyond.

CCIQ CEO, Stephen Tait, said, “The Queensland Plan provides the State Government with the opportunity to take feedback from the whole community and to deliver a clear vision and strategy for the State’s future.”

“We believe the development of the Queensland Plan provides the State Government with the opportunity to create an environment for business to flourish and power the state’s economy.”

“By diversifying Queensland’s economy, investing in infrastructure projects, reforming taxation and improving digital capacity, Queensland will remain globally competitive across the next 30 years and beyond.”

To prevent the Queensland Plan becoming a talk fest the process must be underpinned by challenging and achievable goals, which are measurable. To foster community ownership these targets or goals must be in the public domain and subject to regular progress reports.

CCIQ looks forward to working with all stakeholders, including industry, government and the community in progressing these key issues through the development of the 30 year Queensland Plan.

CCIQ launches a 'real' plan for small and medium businesses in Central Queensland

Thu, 09 May 2013 09:45:00 +1000

At a breakfast workshop held in Gladstone this morning, the Chamber of Commerce and Industry Queensland (CCIQ) joined with local business owners and regional stakeholders to unveil the ‘Central Queensland Business Priorities Report’ – the first in a series of regional reports focused solely on regional small and medium business priorities.

Victoria Bradshaw, CCIQ’s Regional Manager for Central Queensland and the Central Coast, said that the Regional Priorities Report was important as local issues specific to the Central Queensland business community was the focus of the report.

“The Regional Priorities Report was developed by and for small businesses in Central Queensland.”

“It reflects the real issues and opportunities that were raised through a series of regional business workshops, business consultation and one-on-one interviews with business owners in late 2012.”

“Whilst many issues and opportunities were identified, eight priority areas really stood out as having a significant impact on the profitability, productivity and growth of small and medium businesses in Central Queensland.”

The regional business priorities for Central Queensland rightly focus on issues such as:

Addressing the overall business operating environment, with reference to issues such as workplace relations laws, workers’ compensation, payroll tax and stamp duties, and federal taxes such as the MRRT and the carbon tax;
Taking a more coordinated and strategic approach to improving and expanding transport infrastructure across the region, and putting a renewed focus on the importance of social infrastructure;
making the FIFO/DIDO phenomenon for Central Queensland businesses;
reducing red tape costs;
industry diversification and refreshing the image of existing industries;
improving access to procurement opportunities;
skills issues such as workforce mobility, skilled migration and retaining skilled workers; and
creating a positive business culture and promoting the business opportunities in the Central Queensland region.

Ms Bradshaw said that CCIQ has made commitments across each of the regional business priorities to ensure that the business issues gain attention from government and decision makers and also to ensure that many of these issues will be addressed and resolved.

“CCIQ wants to place small businesses and regional communities front and centre in our plan for the future of Queensland’s economy. CCIQ’s Business Priorities Report underpins CCIQ’s advocacy platform and is the catalyst to enacting positive change for business in Queensland.”

“Given the recognised importance of small and medium business I would encourage all levels of government to implement the recommendations made to ensure business and the region remains strong,” said Ms Bradshaw.

Copies of CCIQ’s Central Queensland Regional Business Priorities Report will be personally addressed to all regional Mayors, regional State and Federal MPs, Queensland Cabinet Ministers and other important stakeholders over the coming weeks.

Download a copy of the report here

RBA decision whilst welcome will not deliver vitally needed stimulus

Tue, 07 May 2013 15:31:43 +1000

The Chamber of Commerce and Industry Queensland (CCIQ) has welcomed today’s decision by the Reserve Bank of Australia to cut the official interest rate by a quarter of one per cent, saying it was a good decision in the current economic climate.

At its meeting today, the Reserve Bank Board decided to lower the cash rate by 25 basis points to 2.75 per cent.

CCIQ’s recent Pulse Survey of Business Conditions found that business confidence is rising yet prevailing business conditions remain poor.

CCIQ General Manager Advocacy, Nick Behrens, said that the Queensland economy is in need of stimulus and this rate cut will buoy consumer confidence and spending.

Mr Behrens said, “One of largest constraints on business at present is the level of demand and economic activity.”

“Hopefully, today’s Reserve Bank decision will further remove some financial pressure off households and free up discretionary expenditure to deliver a boost in spending across the Queensland business community.”

However lower mortgage payments are increasingly being channelled into debt retirement and savings rather than being spent.

That is interests rate cuts have recently been ineffectual or inelastic in promoting a boost to spending.

This is particularly the case when coupled with the Federal Election.

Time and again Queensland businesses witness consumers go into slow motion and in some instances freeze during elections.

Accordingly the lower rates will deliver some benefit prior to September 14 but will not fully kick in until after the election.

The main beneficiary will be lower Queensland household debt levels with mortgage savings further paying down home loans.

CCIQ launches a 'real' plan for small and medium businesses in Queensland's Central Coast

Tue, 07 May 2013 11:13:23 +1000

At a breakfast workshop held in Mackay this morning, the Chamber of Commerce and Industry Queensland (CCIQ) joined with local business owners and regional stakeholders to unveil the ‘Central Coast Business Priorities Report’ – the first in a series of regional reports focused solely on regional small and medium business priorities.

Victoria Bradshaw, CCIQ’s Regional Manager for the Central Coast and Central Queensland, said that the Regional Priorities Report was important as local issues specific to the Central Coast business community was the focus of the report.

“The Regional Priorities Report was developed by and for small businesses on the Central Coast.”

The regional business priorities for the Central Coast rightly focus on issues such as:

Addressing the overall business operating environment, with reference to issues such as workplace relations laws, workers’ compensation, payroll tax and stamp duties, and federal taxes such as the MRRT and the carbon tax;

Taking a more coordinated and strategic approach to improving and expanding transport infrastructure across the region, and putting a renewed focus on the importance of social infrastructure;

reducing red tape costs;
making the FIFO/DIDO phenomenon for Central Coast businesses;
improving access to procurement opportunities;
industry diversification and refreshing the image of existing industries;
skills issues such as workforce mobility, skilled migration and retaining skilled workers; and
creating a positive business culture and promoting the business opportunities in the Central Coast region.

Copies of CCIQ’s Central Coast Regional Business Priorities Report will be personally addressed to all regional Mayors, regional State and Federal MPs, Queensland Cabinet Ministers and other important stakeholders over the coming weeks.

Download a copy of the report here

Reform Queensland Workers’ Compensation to keep competitive edge

Fri, 03 May 2013 11:51:22 +1000

The drastic drop in workers’ compensation premiums in NSW puts Queensland at immediate risk of losing a competitive edge, says the Queensland Chamber of Commerce and Industry Queensland (CCIQ).

The NSW Government yesterday announced premiums for the scheme would be reduced by an average 7.5 per cent as a result of the recent reforms to the scheme.

While it demonstrates what is achievable when serious reform of the scheme is considered, it also puts Queensland’s position as offering the second lowest premium in the country, at risk.

Currently, Victoria has the lowest premium offering at an average of $1.29 per $100 of wages paid by employers, followed by Queensland with $1.45. Prior to the reform of the scheme, NSW was $1.68; however this will be revised to $1.55 for 2013/14.

With less than a 6.5 per cent difference between NSW and Queensland workers’ compensation premiums, Queensland is at risk of losing its reputation for offering the second lowest premiums if the State Government chooses not to significantly reform the Queensland scheme.

To maintain and promote a competitive business environment, without compromising the financial integrity of the scheme, CCIQ suggested the following in their submission to the Queensland Finance and Administration Committee’s review of the workers’ compensation scheme:

The State Government commit to the introduction of a Whole Person Impairment (WPI) threshold to accessing common law damages and a working party be established to determine the appropriate threshold level (0-15 per cent); When a working party is established, CCIQ would actively support the working party through participation and/or facilitation. The working party should have clear objectives, one of which should be to determine the level of the WPI threshold to accessing common law damages. CCIQ strongly supports a whole person impairment threshold of 15 per cent for common law claims. This figure is consistent with CCIQ’s recommendations in the 2010 workers’ compensation submission and most recently in CCIQ’s Big 3 for Business publication.
Recognition of efforts and investment by employers in workplace health and safety and injury prevention through lower WorkCover premiums;
Increased emphasis on worker accountability;
Strengthening the requirements to prove an injury occurred in the workplace;
Exclusion of ‘journey to and from work’ in claims for workers’ compensation.

CCIQ awaits the Committee’s final report into the operation of Queensland’s Workers’ Compensation Scheme.

Uncertainty, cooling resources sector and consumer spending weakens business performance in March quarter

Fri, 03 May 2013 07:36:47 +1000

The Westpac Group and CCIQ Pulse Survey of Business Conditions for the March Quarter 2013 has confirmed that businesses continue to be positive in their outlook, but are struggling to turn this confidence into results.

CCIQ CEO, Stephen Tait commented, “Businesses have reported that their on-going optimism remains strong however they are struggling to turn weak consumer confidence and uncertainty brought by a long federal election campaign into sales and revenue.”

“In addition their exposure to the ever increasing cost of doing business has led to a further squeezing of their margins and impacted on profitability.

“Again Pulse has highlighted that consumer uncertainty impacts heavily on business performance, and that poor business profitability discourages investment in capital expenditure and a reluctance to expand workforces and employ.”

Overall business confidence in the state and national economies continue to build:

The Pulse Queensland Business Confidence Index rose a further 1 percentage point over the March Quarter to 53.4.
The Pulse National Business Confidence Index rose 2.6 percentage points to 54.8.

However general business conditions contracted over the March quarter, falling 3.6 percentage points to 47.8. Additionally:

Sales and Revenue expectations were not realised over the March quarter with the Pulse Sales and Revenue Index down to 48.9.
The Pulse Profitability Index fell 3.8 percentage points to 41.0
The Pulse employment levels index contracted 1.6 percentage points to 44.1.

“Regionally we have seen successes, with the Sunshine Coast performing well and seeing a marked improvement in overall results. However, this has been tempered by weakening resources and resource adjacent sectors which have impacted on performance of business in Central and Central Coast Queensland.”

Westpac’s State General Manager Retail & Regional Banking Queensland, Michael Wright said, “Since the GFC consumers have focussed on clearing debt, consolidating finances and ensuring that there is a re-balance between borrowings, spending and savings.”

“Since the GFC this has led to a weakening in consumer spending, which has impacted upon the confidence of business.

“However, we are witnessing a slight change in behaviour as consumers are now preparing to increase spend and investment. This is particularly true across property with industry insiders such as Valuers indicating the early stages of a recovery with buyers entering markets and beginning to borrow accordingly.”

Election uncertainty and cautious consumers

The early announcement of the federal election is recognised as the key factor preventing a turnaround in business performance but is also one of the drivers of a positive business outlook.

Businesses and consumers are continuing to act cautiously in their spending due to on-going uncertainty over the political landscape.

At the same time businesses are hopeful that a change of government or a majority government, may lead to an improved business operating environment and improved economic conditions over the medium to longer term.

This however has not been matched by an equal upturn in consumer confidence or spending levels: political uncertainty and concern over job security at the heart of this problem.

Regional analysis

The regional analysis shows little variance away from the overall state-wide trends. Business confidence levels in general remain positive, although in some instances have softened from previous quarter results, whilst actual business performance has not been consistent with the outlook and expectations.

Sunshine Coast and Wide Bay- Burnett is one of the only regions enjoying stronger business conditions, sales and profitability levels.

Anecdotally the region enjoyed an improved local tourism season and there has been significant investment and reconstruction activity across areas affected by recent flood events which provided important flow-on benefits to local businesses.

The Central Queensland and the Central Coast regions have shown significant deterioration across almost all indicators. In particular the Central coast region has seen business activity fall to levels not previously recorded across the history of the Pulse Report (e.g. Sales/Revenue 20.8; and Profitability 26.9).

This is likely to be as a direct result of the easing of the resources boom and a transition of projects from construction to operational stages.

The Far North and North Queensland regions have also shown an overall softening in business conditions, sales/revenue and profitability levels.

Businesses therefore face a mismatch of fortunes: improvements in general business conditions or growth opportunities are continually met with further constraints: more red tape, increasing input costs, more taxes and direct and indirect labour costs.

The coming twelve months marks a critical turning point for Queensland businesses and the economy, a confident outlook will only be sustained if businesses can realise the anticipated improvements in general business conditions and profit levels.

Pulse Report & Webinar

A full copy of the pulse report is available here

CCIQ are holsting a free webinar at noon on Friday 3 May to go through the Westpac Group and CCIQ Pulse Survey of Business Conditions for the March Quarter 2013 findings. Register here

CCIQ urges restraint on 457 changes

Wed, 01 May 2013 15:30:59 +1000

The Chamber of Commerce and Industry Queensland (CCIQ)has urged the Federal Government to rein back on making more changes to the 457 visa program.

In a submission to the House of Representatives Standing Committee Inquiry into Legal and Constitutional Affairs on Friday, CCIQ argued that the current scheme already provides for extremely extensive regulation of its employer users.

We expressed concerns that tightening the regulatory framework would result in further regulatory churn, and would be to the detriment of the majority of employers who use the 457 program in good faith.

This came as the Minister for Immigration, Mr Brendan O’Connor, repeated his claim that enhanced compliance measures are necessary because employers are rorting the system and stated that he believes that there have been over 10,000 incidents over 457 visas being used improperly.

However, the Minister remains unable to provide any hard evidence to support this claim, and CCIQ remains unconvinced that the Federal Government has made the case for the additional measures that it has proposed, which include strengthening existing compliance powers, putting in place stringent labour market testing requirements and raising English language requirements.

Queensland employers tell CCIQ that they want to hire Australians, but skills shortages and labour mobility issues have made this difficult for businesses in certain industries and regional areas.

For those who need a steady supply of labour, becoming a 457 sponsor is often the only choice, particularly for businesses outside of the resources industry for whom ‘fly-in, fly out’ arrangements are not a realistic option.

If the Federal Government does have concerns about employer breaches, it should make better use of the sweeping changes made by the Labor Government in 2009, which placed heavy obligations on sponsors. These included:

Placing a continuing obligation on sponsor employers to meet training expenditure benchmarks for Australian employees;
Ensuring overseas workers receive terms and conditions of employment no less favourable than those for an Australian citizen or permanent resident carrying out the same position;
Ensuring that sponsored workers only work in approved occupations for the term of the visa; and
An obligation to keep records of compliance with employer sponsorship obligations.

The 2009 changes also gave the Department of Immigration and Citizenship significant powers to enforce these obligations and to issue sanctions against those who are doing the wrong thing.

CCIQ considers that the increase in 457 visa holders working in Australia over the last year is a direct result of skills shortages in certain industries, and rather than attacking employers who need to urgently find staff in the short-term, the increased usage of 457 visas should highlight those areas in which training needs to occur so that Australians can fill those jobs in the medium to long term.

CCIQ provided a number of recommendations to the Committee on the overall operation of the 457 program. These included:

Ensuring that employers are aware of their current obligations with respect to training benchmark requirements, and how they can meet these requirements;
Removing requirements for labour market testing for businesses with fewer than 20 employees;
That the Government should undertake consultation on the reintroduction of regional concessions for 457 visas;
That the Federal Government should review processes for developing the Consolidated Sponsored Occupation List and consult with businesses and industry and professional bodies;
Creating a semi-skilled worker category for certain industries and regions;
Ensuring that the Department of Immigration and Citizenship is appropriately resourced to carry out existing monitoring and enforcement functions under the 457 program; and
Ensuring that the 457 visa program does not become politicised and decisions about it made are in response to properly gathered evidence and data.

The Committee’s Inquiry also looked at the current framework and operation of Enterprise Migration Agreements and Regional Migration Agreements (RMAs). With respect to RMAs, CCIQ strongly communicated its view that they have proven too difficult to negotiate, take too long and have done little to instil confidence in the business community at large that they are an appropriate mechanism to facilitate a steady flow of skilled migrants into regional areas where skills shortages persist.

CCIQ looks forward to the release of the Committee’s report in due course.

CCIQ welcomes changes to definition of worker

Wed, 01 May 2013 13:39:36 +1000

The Chamber of Commerce and Industry Queensland (CCIQ) welcomes the announcement by the Queensland Attorney-General to change the definition of ‘worker’ under the Workers’ Compensation and Rehabilitation Act (2003).

The current definition causes confusion amongst employers and workers alike, adding to costs and delays in the workers’ compensation scheme.

Businesses are often caught off guard where a genuine contractor is considered a ‘worker’ for the purposes of workers compensation, however not for taxation or related purposes.

CCIQ CEO Stephen Tait welcomed the change, and said it would benefit business across the board.

“Queensland businesses have been calling for a uniform definition of ‘worker’ for many years. This decisive action by the State Government will end the uncertainty and give Queensland businesses increasing confidence in the workers compensation system.”

“Some of our members have reported instances where even WorkCover cannot give a directive as to whether an employee is a worker or a contractor. This is clearly an unsatisfactory situation for workers and employees.”

“As one of our key recommendations to the Finance and Administration Committee, CCIQ strongly advocated for the adoption of the ATO definition of ‘worker’ under the Workers’ Compensation and Rehabilitation Act. We are pleased the Government has listened to the Queensland business community on this important issue,” Mr Tait said.

However, there remain significant challenges in improving the Workers’ Compensation scheme in Queensland.

CCIQ’s submission to the Finance and Administration Committee’s Inquiry into Queensland’s Workers’ Compensation scheme also included the following recommendations:

The State Government commit to the introduction of a Whole Person Impairment (WPI) threshold to accessing common law damages and a working party be established to determine the appropriate threshold level (0-15 per cent); When a working party is established, CCIQ would actively support the working party through participation and/or facilitation. The working party should have clear objectives, one of which should be to determine the level of the WPI threshold to accessing common law damages. CCIQ strongly supports a whole person impairment threshold of 15 per cent for common law claims. This figure is consistent with CCIQ’s recommendations in the 2010 workers’ compensation submission and most recently in CCIQ’s Big 3 for Business publication.
Recognition of efforts and investment by employers in workplace health and safety and injury prevention through lower WorkCover premiums;
Increased emphasis on worker accountability;
Strengthening the requirements to prove an injury occurred in the workplace;
Exclusion of ‘journey to and from work’ in claims for workers’ compensation.

CCIQ awaits the Committee’s final report into the operation of Queensland’s Worker’s Compensation Scheme.

Outsourcing presents opportunity for Queensland’s technology businesses

Tue, 30 Apr 2013 15:38:00 +1000

Following today’s Queensland Government Response to and the actual Independent Commission of Audit Final Report, technology businesses in Queensland have received confirmation that they are ideally placed to support service delivery through an outsourced model for State Government ICT and Technology services.

CCIQ Technology Chair, Maree Adshead said, “CCIQ Technology applauds the Queensland Government for exhibiting strong leadership and giving the technology industry some much needed, clear direction.”

“Queensland has a strong, creative and visionary technology community. We are world leaders in software development, systems solutions and information management. Through the outsourcing model announced today we will be able to deliver services to Queensland Government that will benefit all Queenslanders.”

“I have no doubt that the private technology sector can deliver outsourced technology services of superior quality at lower cost. The onus is now on the technology community to back this bold strategy and ensure its success.”

In March CCIQ interviewed 400 businesses to understand their thoughts on privatisation and outsourcing. One area which stood out as appropriate for outsourcing was ICT services, with businesses overwhelmingly supportive of this move.

The announcements under section E7 Information and Communications Technology and E8 Government Procurement of the Queensland Government Response to the Independent Commission of Audit will:

Generate enormous opportunity for the local industry;
Foster greater adoption of local innovation;
Enable the Queensland Government to be a smarter, more efficient consumer of ICT products and services;
Inject activity back into the local economy; and
Remove waste, red tape, delay, duplication and frustration on both sides of the table.

Queensland’s ICT business community will deliver significant public benefit to the taxpayer through higher quality services, greater value for money and better customer service.

Business community views on asset privatisation and outsourcing

Tue, 30 Apr 2013 09:24:27 +1000

CCIQ believes there is merit in exploring the benefits the privatisation and outsourcing however the cautious approach to privatisation that the State Government will announce today is the right one.

In March CCIQ surveyed over 400 Queensland businesses on their views towards asset sales and outsourcing with results supporting the approach announced today by the State Government.

It is important that the State Government give due consideration to all options available to them in the quest for fiscal repair to the State Budget and a return to a AAA credit rating. All options should be on the table, including privatisation.

However, given the views of businesses it is important that the Government be cautious in their approach and educate the community about the advantages and disadvantages of privatising before major assets are put to sale.

BUSINESS SUPPORT FOR PRIVATISATION

Business support for asset sales can be sorted into 3 broad categories. Those that the business community are in favour of include commercial buildings and office space; entertainment and recreation facilities; and management and superannuation funds such as the QIC.

BUSINESS OPPOSITION TO PRIVATISATION

Queensland businesses are currently opposed to the sale of electricity generation and network assets, education facilities, health and community infrastructure and road infrastructure.

This opposition stems from concerns relating to price and service quality outcomes under private ownership.

Furthermore these views are significantly stronger in regional Queensland where there is a real fear about taking public owned monopolies and turning them into private enterprises.

BUSINESS UNDECIDED ON PRIVATISATION

Queensland businesses are currently on the fence when it comes to infrastructure such as airports, seaports and passenger transport.

CONSULTATION, EDUCATION AND REGIONAL REINVESTMENT IS NEEDED

Business feedback reveals each proposed asset sale should go through a public interest test to see what the price and service outcomes will be for the community. If these boxes can be ticked then it should proceed.

One thing though is very clear, through CCIQ’s regional consultation roadshows communities hold the overwhelming view that if assets are sold in the regional communities then the proceeds of those assets should be reinvested in infrastructure in that community.

OUTSOURCING IS A VIABLE OPTION ACCORDING TO BUSINESSES

In relation to outsourcing there is much more support from businesses with two thirds of businesses either supportive or neutral to government use of the private sector to provide government services.

The basis for the support, rests primarily because the private sector is able to deliver significant public benefit through higher quality of services, greater value for money, operational efficiency and better customer service than the state government entities currently provide.

Concern remains however over the extent to which the private sector could guarantee regional coverage and accessibility.

CONCLUSION

Any moves to privatise and outsource need to be accompanied by a plan that will allay business fears of increased costs and poorer service.

At this early stage, the Government needs to rightly be cautious as it is today. At the heart of all of the issues surrounding asset privatisation and government outsourcing is awareness.

To get the Queensland business community 100% onside a thorough and honest education campaign is required.

If Queenslanders can fully understand the motives, benefits and drawbacks behind privatisation, they will be more likely to make an informed and right decision on asset sales.

For the above reasons the State Government got the decision right today.

Support for Privatisation of State Assets (% April 2013)

CCIQ provides a real voice for North Queensland.

Wed, 24 Apr 2013 15:54:47 +1000

At a breakfast workshop held in Townsville on Tuesday, the Chamber of Commerce and Industry Queensland (CCIQ) joined with local business owners and regional stakeholders to unveil the ‘North Queensland Business Priorities Report’ – the first in a series of regional reports focused solely on regional small and medium business priorities.

CCIQ Regional Policy Chair, Mark Menkens said that the Regional Priorities Report was important as local issues relevant to NQ businesses was the focus of the report.

“The Regional Priorities Report was developed by and for small businesses in North Queensland.”

“It reflects the real issues and opportunities that were raised through a series of regional business workshops, business consultation and one-on-one interviews with business owners in late 2012.

The regional business priorities for North Queensland (NQ) rightly focus on issues such as improving key infrastructure and connectivity in and across the region, reducing red tape costs, access to finance, promoting NQ as a corporate tourist destination, driving innovation through digital technology, skills issues such as workforce mobility, skilled migration and retaining skilled workers and creating a positive business culture and promoting the business opportunities in the far north region.

Mr Menkens said that CCIQ has made commitments across each of the regional business priorities to ensure that the business issues gain attention from government and decision makers and also to ensure that many of these issues will be addressed and resolved.

“CCIQ wants to place small businesses and regional communities’ front and centre in our plan for the future of Queensland’s economy.

"CCIQ’s Business Priorities Report underpins CCIQ’s advocacy platform and is the catalyst to enacting positive change for business in Queensland.

Copies of CCIQ’s NQ Regional Business Priorities Report will be personally addressed to all regional Mayors, regional State and Federal MPs, Queensland Cabinet Ministers and other important stakeholders over the coming weeks.

The Report can also be downloaded here

Stick to core issues when reforming workers' compensation

Mon, 15 Apr 2013 10:10:04 +1000

With the Finance and Administration Committee’s reporting date fast approaching, the Chamber of Commerce and Industry Queensland (CCIQ) urges the Committee not to lose sight of the big picture when it comes to reforming the State’s workers’ compensation laws.

Queensland businesses do not want a fundamental change to what is in the main a solid performing workers’ compensation scheme. However CCIQ does recommend peripheral changes to restore balance.

CCIQ‟s recommendations as part of this submission include:

The State Government commit to the introduction of a Whole Person Impairment (WPI) threshold to accessing common law damages and a working party be established to determine the appropriate threshold level (0-15 per cent);
When a working party is established, CCIQ would actively support the working party through participation and/or facilitation. The working party should have clear objectives, one of which should be to determine the level of the WPI threshold to accessing common law damages. CCIQ strongly supports a whole person impairment threshold of 15 per cent for common law claims. This figure is consistent with CCIQ’s recommendations in the 2010 workers’ compensation submission and most recently in CCIQ’s Big 3 for Business publication.
Recognition of efforts and investment by employers in workplace health and safety and injury prevention through lower WorkCover premiums;
Increased emphasis on worker accountability;
Strengthening the requirements to prove an injury occurred in the workplace;
Exclusion of ‘journey to and from work’ in claims for workers’ compensation.

These recommendations are the reforms that are important to the Queensland business community. Anything outside of these is a distraction from the core issues that need change.

These recommendations also reflect the importance of ensuring the ongoing integrity of the scheme by maintaining a financially viable framework that protects employers and workers against genuine work-related injuries at affordable and competitive premiums.

This review presents an opportunity to bring the balance of workers’ compensation in Queensland back to the centre.

CCIQ urges the Committee to take a holistic approach to any significant changes to the scheme that will ensure Queensland offers the best workers’ compensation scheme in the country and promotes a competitive business operating environment.

CCIQ launches a real plan for small and medium businesses in Far North Queensland

Thu, 11 Apr 2013 08:16:05 +1000

At a breakfast workshop held in Tinaroo on Wednesday, CCIQ joined with local business owners and regional stakeholders to unveil the ‘Far North Queensland Business Priorities Report’ – the first in a series of regional reports focused solely on regional small and medium business priorities.

CCIQ Regional Policy Chair, Brett Moller said that the Regional Priorities Report was important as local issues relevant to far north Queensland businesses was the focus of the report.

“The Regional Priorities Report was developed by and for small businesses in far north Queensland”

“It reflects the real issues and opportunities that were raised through a series of regional business workshops, business consultation and one-on-one interviews with business owners in late 2012”

The regional business priorities for Far North Queensland rightly focus on issues such as improving transport infrastructure and connectivity in and across the region, reducing red tape costs, small business access to finance, industry diversification and refreshing the image of existing industries, skills issues such as workforce mobility, skilled migration and retaining skilled workers and creating a positive business culture and promoting the business opportunities in the far north region.

Mr Moller said that CCIQ has made commitments across each of the regional business priorities to ensure that the business issues gain attention from government and decision makers and also to ensure that many of these issues will be addressed and resolved.

“CCIQ wants to place small businesses and regional communities’ front and centre in our plan for the future of Queensland’s economy. CCIQ’s Business Priorities Report underpins CCIQ’s advocacy platform and is the catalyst to enacting positive change for business in Queensland.

Copies of CCIQ’s Far North Queensland Regional Business Priorities Report will be personally addressed to all regional Mayors, regional State and Federal MPs, Queensland Cabinet Ministers and other important stakeholders over the coming weeks.

The Report can also be downloaded here