Littleproud, Taylor & Smith – JMR – Grocery competition go slow an indictment on a distracted government

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THE HON DAVID LITTLEPROUD MP Leader of the Nationals Shadow Minister for Agriculture Member for Maranoa THE HON ANGUS TAYLOR MP Shadow Treasurer Member for Hume SENATOR DEAN SMITH Shadow Assistant Minister for Competition, Charities and Treasury Senator for Western Australia MEDIA RELEASE Monday, 23 September 2024 GROCERY COMPETITION GO SLOW AN INDICTMENT ON A DISTRACTED GOVERNMENT Today’s delayed release of draft legislation to reform the Food & Grocery Code – more than three months after the government’s hand picked reviewer recommended it – shows that Labor has been distracted and divided on the cost of living. The panicked release of today’s draft legislation – which is unlikely to be legislated before the next election – is a clear demonstration of a government that is always on the backfoot. Australian families are paying the price for Labor’s failure on inflation and on competition policy. Since Labor came to office, prices have increased 10.2% and real wages have fallen by 3.3%. It is clear that the announcement of legal action against Coles and Woolworths by the ACCC should concern all Australian consumers. While it is important legal processes be allowed to run to their conclusion, the allegations if true are a damning indictment on a market sector that Australian families and farmers rely to act in good faith. In June, the Coalition announced a comprehensive package to deal with anti-competitive behaviour in the supermarket sector introducing: a Supermarket Commissioner, who will act as an impartial confidential avenue for farmers and suppliers infringement notices $2 million for contraventions of the code; and divestiture powers to address serious allegations of land banking, anti-competitive discounting, and unfairly passing costs onto suppliers Shadow Treasurer Angus Taylor said the Albanese Labor Government has been missing in action when it comes to the cost of living. “Labor has lost control of inflation, lost control of the economy, and lost control of its own legislative agenda. “The Coalition has been calling for stronger competition laws in our supermarket sector since the election, yet Labor has failed to act – delaying the Food & Grocery Code review and having now failed to implement its recommendations after three months. The Coalition is committed to delivering competition policy which supports consumers and smaller businesses, not lobbyists and big corporations.” Leader of the Nationals David Littleproud said the announcement today by the Prime Minister was too little too late and that there are Australians tonight who won’t eat because this government has been too slow to act. “The proposed code changes don’t come into effect until April 2025 and don’t go far enough with infringement notice penalties of just $187,700 compared to the Coalition’s $2 million. “The cost of living crisis is now not next year. “If this is the best the Prime Minister can do then he doesn’t understand the pain families and farmers are feeling now.” Shadow Assistant Minister for Competition Senator Dean Smith said only the Coalition has a genuine competition reform agenda. “Competitive markets benefit everyone by ensuring lower prices, creating more employment opportunities, and fostering innovation. “The Coalition’s policy for stronger penalties for anti-competitive behaviour will align Australia with our major trading partners, ensuring Australians get a fairer go.”   ENDS.

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Not-for-profits given a voice on ATO rule changes

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 18 September 2024   NOT-FOR-PROFITS GIVEN A VOICE ON ATO RULE CHANGES In a win for Australian not-for-profit organisations, a Senate inquiry will scrutinise the Albanese Government’s bungled implementation of new tax requirements. A motion introduced by Senator Dean Smith on behalf of the Coalition passed the Senate unopposed today. The Senate Economics References Committee will hold a public hearing into how ATO reporting obligations are impacting more than 155,000 non-charitable not-for-profit groups. Under the rules, they must lodge returns with the ATO to continuing their eligibility for income tax exemptions. These not-for-profits are often small organisations like sporting clubs or Landcare groups. Their focus is on delivering services and support to their local communities, and they have limited capacity to deal with regulatory burdens. They are facing confusion and frustration because of Labor’s mismanagement of these reporting requirements, causing many to consider either registering as a charity to guarantee their tax exemption or cease their activities altogether. Stakeholders have described a chaotic rollout process, characterised by vagueness and poor communication. Landcare Victoria’s Claire Hetzel is quoted in the Institute of Community Directors newsletter as saying that there is “confusion around what the definition of a charity is”. Ms Hetzel observed many groups are struggling to get their ABN details corrected to meet the new requirements, while others have received conflicting information from the ATO. The inquiry provides a long overdue forum for not-for-profits to share more of these experiences, as well as calling representatives of the ATO and other Government agencies. It is due to report on its findings by 31 October. Comments attributable to Senator Dean Smith: “This motion is the result of growing concerns raised with me by anxious, sometimes angry, not-for-profits across Australia.” “­The Coalition recognises how flawed Labor’s implementation of these reporting requirements has been – and how it is sapping the energy and motivation of organisations whose communities rely on them. “Running a not-for-profit should be encouraged by ensuring administrative obligations are straightforward and well managed by Government – and this is currently having the opposite effect. “I look forward to working with colleagues and stakeholders to explore how to deliver better outcomes for the not-for-profits sector.” ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Opinion Piece – The West Australian – We’re worse off than in GFC

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA OPINION PIECE – THE WEST AUSTRALIAN 18 September 2024 WE’RE WORSE OFF THAN IN GFC Remember 2008? It was the year the iPhone was first released in Australia, the ABC first aired Q&A, and Federal Parliament heard its first welcome to country. It was also the peak of the Global Financial Crisis, the year that Lehman Brothers infamously collapsed, and a time of worldwide economic uncertainty. Australia was not immune to the shockwaves of that crisis – characterised by business closures, layoffs, and crippling financial pressure on households. For many, Labor’s current cost-of-living crisis and our stagnating economy will bring back memories of that time nearly two decades ago. But what if I told you that, across many metrics, Australians are actually worse off today than they were during the GFC? These statistics will surprise you. GDP growth was at 2.9 per cent in 2008, this year it is at one per cent – the slowest rate of growth since the 1990s recession. The average household’s saving ratio was at 2.8 per cent. Today it is just 0.9 per cent. In 2008, amidst one of the worst financial meltdowns the world has ever seen, household debt as a share of income was 164 per cent. In 2024 it is 20 per cent higher, at 185 per cent. Perhaps the most alarming comparison is the number of business insolvencies. Last financial year 1,000 WA businesses failed, victims of Labor’s tandem cost-of-living and cost-of-doing business crises. Today’s figures are double what they were in 2008. That’s right, there have been twice as many insolvencies in WA this year than at the height of the GFC. It’s on a more modest scale at a national level, but still concerning, with 10,000 businesses insolvencies in 2008 compared to 11,000 this year. Even the best spin doctor on Treasurer Jim Chalmers’ team could only argue that these national figures are about equal. Imagine being ‘on par with GFC levels’ as a best-case economic scenario. That’s where Jim Chalmers and Labor find themselves now – and unfortunately they’re taking Australians with them. These statistics uncover a damning reality for the Albanese Labor Government: Australians are, across multiple measures, doing worse than they were during the peak of the Global Financial Crisis. They’re keeping less of what they earn, they’re in greater debt, and they’re working in and trying to run businesses that are struggling to stay afloat. This isn’t because Australians can’t manage their money, they can. It’s because Labor can’t manage the nation’s money. And Australians are struggling to make ends meet in an economy held in a vice-like grip by Labor’s sticky, homegrown inflation. This reality appears to be unnerving the Treasurer, who has started resorting to personal attacks against Peter Dutton, attempting to shift blame to Reserve Bank of Australia Governor Michelle Bullock, and generally deflecting responsibility for Australia’s economic woes. It’s quite an unravelling from a man who came into the job as a self-confident economic philosophiser, publishing essays about how he was going to “transform” Australian capitalism. If he pulled his head out of the clouds, Jim Chalmers would see that this Government’s policies have indeed transformed our economy – just not for the better. The sad result of Labor’s economic mismanagement is that we have lost our status as the “lucky country”. We were once the exception to the rule, the envy of the world, weathering economic storms from commodity price shocks to Asia-Pacific regional disruptions, even the GFC. In fact, whilst Australia’s economy took a hit in 2008, it was still ahead of most developed economies by almost any measure. Successive Budget surpluses delivered during the Howard years, and key reforms like the GST, paved the way for Australia to avoid a recession during the GFC – one of the only nations to do so. As then RBA Governor Glenn Stevens said at the time, “there would be very few countries, if any, which would not envy Australia’s fiscal position”. Now, Australia is the exception for all the wrong reasons. Our inflation rate is higher than all the G7 nations, including the UK, USA, Germany, Japan, Italy, Canada and France. Our rate of economic growth is lower than the average of the world’s advanced economies and we are experiencing a per capita recession. Worst of all, the gap between our savings ratios and that of other developed economies has widened to a chasm – the average Australian household is saving 3 per cent less than those in the US, 10 per cent less than the UK, and nearly 15 per cent less than the EU. Australians deserve better. For decades, we have come to expect a certain way of life. Now Labor and its fiscal incompetence are risking it, failing to meet the high standard we rightly expect of an Australian Government. So it’s no surprise that the latest Essential polling data shows 52 per cent of Australians think the country is headed in the wrong direction, and other polls this month have recorded a majority two-party preferred preference for the Coalition. Despite their best efforts, the public knows that the buck stops with the Treasurer and the Albanese Government. Fifty-one pre cent of voters believe the Government is primarily responsible for getting a lid on inflation – with only 27 per cent blaming the RBA. It has failed to deliver on its promises, failed to manage the economy, and sent our nation in the wrong direction. It’s time to get the economy and the country back on track – and only a Coalition government will do it.

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – RBA figures confirm east coast mortgage stress

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 16 September 2024 RBA FIGURES CONFIRM EAST COAST MORTGAGE STRESS Ballooning property prices, combined with 13 interest rate rises since Federal Labor came to power, have resulted in a significant increase in mortgage holders falling behind on their repayments. Senator Dean Smith recently obtained exclusive mortgage arrears figures from the Reserve Bank of Australia. They reveal the extent to which Australians across the nation are struggling through the Albanese Government cost of living crisis – with more and more households unable to cover their expenses. Australia’s most populous states, New South Wales and Victoria, are among the worst affected. In fact, Victoria tops the list of Australian states with the biggest share of borrowers in 90 days arrears at 0.67%, which is an 81% increase in the last year. New South Wales was the third highest at 0.57%, increasing 83% in 12 months – an ever faster rate than Victoria. The complete figures for all Australian states are: Share of borrowers in 90-day arrears (%)   NSW   VIC   QLD  WA    SA   TAS 2023 0.31  0.37  0.29  0.43  0.33  0.29 2024 0.57  0.67  0.47  0.62  0.54  0.50 Source: RBA   New South Wales and Victoria are home to eight of the top localities in Australia with the highest level of mortgage stress, including Tullamarine (17.9%) and Merrylands/Guildford (15.9%). These widespread levels of financial pressure are also underlined by the latest housing affordability figures from the Real Estate Institute of Australia, which reveal that about half the average family income in the two states is needed to meet loan repayments. The impact is compounded by the fact that 63% of fixed loans in New South Wales, and 64% in Victoria, are set to expire this year. It means borrowers that took advantage of low interest rates during the pandemic, with no anticipation of the interest rate increases triggered by Labor’s economic mismanagement, are now on the cusp of a significant financial burden. Add to this marked housing price inflation, where the median price of a house in Sydney has jumped to $1.4 million, while in Melbourne it is nearly $1 million. These factors are combining to create a perfect storm for homeowners – and potential buyers. It is the reality for Australians under the Albanese Government. Quotes attributable to Senator Dean Smith: “This data from the RBA shows that a bad situation is getting even worse on Labor’s watch.” “There are thousands of homeowners who cannot keep up with higher mortgage repayments on top of other cost of living expenses.” “The numbers in Victoria are especially concerning, but it’s the rate of increase in both Victoria and New South Wales – more than 80% in year – that indicates how serious this is getting and how quickly its occurring.” This is the direct result of the Albanese Government’s failure to curb homegrown inflation, leaving the RBA to do the heavy lifting, as well as the stagnating economic growth, housing shortage and other policy failures we’ve come to expect from Labor.” ENDS

JMR – Howarth & Smith – Albanese Government Refuses To Ditch Red Tape For Local Accountants And Bookkeepers

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The Hon Luke Howarth MP Shadow Assistant Treasurer Shadow Minister for Financial Services Senator Dean Smith Shadow Assistant Minister for Competition, Charities, and Treasury MEDIA RELEASE 11 September 2024 ALBANESE GOVERNMENT REFUSES TO DITCH RED TAPE FOR LOCAL ACCOUNTANTS AND BOOKKEEPERS The Albanese Labor Government has teamed up with the Greens and Senator David Pocock to block the Coalition’s attempt to throw out onerous new regulations for local accountants, bookkeepers and tax agents. Eight Senate crossbenchers yesterday joined the Coalition to vote in support of a disallowance motion which would have nullified the Tax Agent Services (Code of Professional Conduct) Determination 2024. On the floor of the Senate, the Government capitulated and finally admitted the regulation is defective and significant changes are required. It remains to be seen whether the Assistant Treasurer will deliver on these piecemeal changes or backflip yet again. With these embarrassing, last minute concessions it is now another deal with the Greens that has blown up in the Government’s face. The Government’s approach to consultation, communication and stakeholder management on these regulations has been bizarre and disrespectful. Nine weeks after making this law, the Assistant Treasurer finally started consulting directly with industry stakeholders just hours before it was set to be disallowed. This desperate attempt to salvage the regulations came after Stephen Jones had repeatedly told tax practitioners their serious concerns were unfounded, and the new regulation was ‘modest’. It’s too little, too late and a Coalition Government would entirely reverse these regulations and unwind this attack from Labor and the Greens. Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said this is bad government and the grassroots advocacy campaign from local tax practitioners has been effective and should not stop. “These are small and family businesses who are some of the most trusted members of our community and they should be treated with respect. The Albanese Government has left them distraught and wondering whether they should stay in the profession. 72,000 tax practitioners, many small or individual practices, have been burdened with bad regulation in response to the sins of a few partners at PWC. A local BAS agent in North Lakes is very different to an international tax partner at PWC. These new regulations are unnecessary and will drive up costs for individuals and small businesses who rely on and trust tax professionals to help manage their financial affairs.” Shadow Assistant Minister for Competition, Charities, and Treasury Senator Dean Smith said the Government’s eleventh-hour concessions were a sign of a desperate Government operating in crisis mode. “With the support of eight Senate crossbenchers and the entire tax practitioner community, we have sent a clear message to the Government about these far-reaching and poorly drafted regulations. The ten leading professional associations have come together to repeatedly support the disallowance motion and secure multiple backdowns and concessions from the Government. The Government’s chaotic process has been worst-practice consultation, communication and policymaking and the thousands of local accountants and bookkeepers who have been left reeling deserve better.” Background The Tax Agent Services (Code of Professional Conduct) Determination 2024 (the Determination) is a disallowable instrument made on 2 July 2024 which imposes new obligations on registered tax practitioners. The Determination has received significant criticism from the peak professional accounting and tax practitioner bodies and has been subject of a campaign from accountants, bookkeepers and tax agents to have it withdrawn or disallowed. Chartered Accountants Australia and New Zealand, CPA Australia, Institute of Public Accountants, The Tax Institute, Australian Bookkeepers Association, Institute of Certified Bookkeepers, Institute of Financial Professionals Australia, Financial Advice Association of Australia, NTAA PLUS and SMSF Association (collectively the Joint Bodies) wrote to the Assistant Treasurer on 15 July 2024 to express strong concerns about the construct and implications of the provisions of the determination. The Joint Bodies again wrote to the Assistant Treasurer on 9 August 2024 to advise that proposed changes to the start date had not alleviated their concerns with the Determination and the significant compliance burdens and uncertainties on small tax professional businesses. These stakeholders continued to call for it to be withdrawn or disallowed and took out a full-page advertisement condemning the regulations on 5 September and wrote the Prime Minister. A vote on the disallowance motion, moved by Senator Dean Smith on 10 September, was negatived in a tied 31-31 vote in the Senate. Crossbenchers David Pocock and Lidia Thorpe, Labor and the Greens voted against disallowance. In a one-minute statement on the disallowance motion, the Government admitted further changes and public consultation would be required and sought to delay it. The new legislative power used by the Assistant Treasurer to make the Determination was part of Treasury Laws Amendment (2023 Measures No. 1) Bill 2023 which was passed in late 2023 as part of a deal with the Greens to ensure the passage of Labor’s franking credit reforms. Senator Barbara Pocock announced at the time that the Greens had secured the relevant amendments, and the Determination would follow. ENDS

Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Coalition to pursue Labor in the Senate over Census chaos

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SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 6 September 2024 COALITION TO PURSUE LABOR IN THE SENATE OVER CENSUS CHAOS The Albanese Government’s chaotic mismanagement regarding questions in the upcoming Census, and the internal divisions it is exposing, risk undermining public confidence in the entire Census process. Labor’s unpredictability is also generating needless anxiety for many Australians. Shadow Assistant Minister for Competition, Charities and Treasury Senator Dean Smith intends next week to call on the Government to release all correspondence and other documents between the Australian Bureau of Statistics, responsible Minister Andrew Leigh, the Treasurer and the Prime Minister in relation to Census preparations. In the meantime, Senator Smith has written to ABS Chief Statistician Dr Gruen requesting a briefing from officials that is yet to be confirmed. Major questions remain unanswered, including: What is the status of the testing of new and changed questions on religious affiliation? What is the status of other new questions that were being considered, among them Aboriginal and Torres Strait Islander cultural identity and a question regarding Australians relocating over 12 months – which is important in the context of housing supply? When will details of questions regarding gender, sexual orientation and variations of sex characteristics be released? Is Labor considering reversing the ABS decision in the phase one consultation process not to progress with questions on ethnic identity, additional measure of disability, shared care of children, dwelling occupancy status, household energy use and the impact of impact of natural disasters? Recent events also raise serious concerns about the appropriateness of the Prime Minister, or anybody in the Albanese Government, intervening in the work of an independent statutory authority. Andrew Leigh has failed to provide an explanation for what is occurring and there has been no official correspondence, or even a media statement, justifying Labor’s actions. The Coalition will now use the full powers of the Senate to hold the Government to account over its bungling of this major aspect of Australian life. Quotes attributable to Senator Dean Smith, Shadow Assistant Minister for Competition, Charities and Treasury: “Labor’s confused and nontransparent approach to the 2026 Census has turned up more questions than answers.” “Prime Minister Albanese and his Government have jeopardised public confidence in the Census process and left Australians in the dark about how important questions will be handled.” “Labor’s mismanagement has also shown a lack of sensitivity to those awaiting the status of questions relevant to them – among them Indigenous Australians, members of the LGBTQI community and grandparent carers.” “Any Labor intervention in the work of an independent statutory authority is unacceptable and the Coalition will pursue it in the Senate until it takes its obligations seriously.” ENDS