Taylor, Howarth and Smith – JMR – The Coalition Powers Up The Consumer Data Right

The Hon Angus Taylor MP Shadow Treasurer 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 Thursday, 15 August 2024 THE COALITION POWERS-UP THE CONSUMER DATA RIGHT In the Senate today, the Coalition ensured the passage of key legislation to expand the functionality of the Consumer Data Right (CDR), an important cost of living and competition initiative. During the first week back from Parliament’s winter recess, the only legislation passed has been because of a Coalition motion forcing it. It took 20 long months of languishing in Parliament and the Coalition’s intervention to pass the Bill, leaving many to wonder whether the Assistant Treasurer had forgotten about his own legislation. Even when Labor’s own legislation has unanimous support, they are still unable to pass it. The Assistant Treasurer is a single-issue minister, with little interest in Australia’s digital economy or financial services sector. Stephen Jones’ myopic approach leaves colleagues to make their own duplicative announcements, like “One-Click Energy Switch”, which is a use case CDR action initiation was built for. Labor’s neglect of the CDR has left the banks, energy providers and the broader CDR ecosystem in regulatory limbo. On 3 July 2024, Senator Gallagher said regarding the Bill: “I’m not sure if there’s going to be an amendment moved… I’ve been advised there is some further work to do, and that makes debating this not possible… that work will need to be done, and it will need to be brought back after the winter recess.” On the same day, Treasurer Jim Chalmers said: “We will work methodically through those sorts of issues in a legislative sense, but also working with the various stakeholders to see if we can get it right.” No further work was done. No amendment was moved. Stakeholders were left in the dark. Labor’s management of its legislation is a farce, and it has taken the Coalition’s intervention to mop up their mess. The Albanese Government’s silence and mismanagement of the CDR has caused uncertainty about its future. The Coalition supports a proportionate regulatory approach when the Government considers its next steps, particularly for smaller and regional banks, to ensure the CDR’s future rollout can continue with certainty and in a sustainable way. The Coalition remains open to sensible changes that could be brought forward to the Consumer Data Right to ensure appropriate phasing and proportionality, with certainty and accountability about forward work timelines. This is why the Coalition has called for and supported the development of a Financial Services Regulatory Grid – another promised initiative which has stalled without explanation under Labor. ENDS. Background: The Consumer Data Right gives consumers and small businesses more control over their data by enabling them to access and share their data with accredited third parties to access better deals on everyday products and services. The Consumer Data Right has already been rolled out to banking and energy, with non-bank lending to follow as the third sector.

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Taylor, Howarth & Smith – Jmr – The Coalition Will Stop Labor’s Attacks On Local Accountants And Bookkeepers

The Hon Angus Taylor MP Shadow Treasurer 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 13 August 2024 THE COALITION WILL STOP LABOR’S ATTACKS ON LOCAL ACCOUNTANTS AND BOOKKEEPERS The Coalition will seek to disallow the Albanese Labor Government’s latest move to burden tax practitioners with unnecessary and unrealistic red tape. The new obligations are far-reaching, poorly drafted and potentially impossible for thousands of small tax practitioners to comply with. This will drive up costs for Australians and small businesses who rely on and trust tax professionals to help manage their financial affairs. These clients are individuals and small businesses like young professionals, retirees and tradies – the impacts could span millions of Australians, during a cost-of-living crisis. Labor’s obsession with piling on red tape creates a compliance burden that is ultimately passed on through additional costs to clients. These impacts are why adequate consultation, good communication and quantification of regulatory impact are so important. The Albanese Government has failed all three tests with this chaotic process and left thousands of local accountants and bookkeepers reeling. Labor’s “Tax Agent Services (Code of Professional Conduct) Determination 2024” is beset with a barrage of problems: Minimal or no consultation. Unrealistic commencement timeframes and no regulator guidance. Retrospectivity, with a requirement to consider matters as far back as 1 July 2022. A disproportionate impact on small practices and sole practitioners. A new requirement to report to clients on any matter that could significantly influence a decision of a client to engage with them, which could include health and mental health issues. A new requirement to report to clients about ongoing investigations before there has been an outcome. Inconsistent obligations, including a duty to ‘dob in’ clients despite an existing obligation not to disclose confidential client information without the client’s permission. This disastrous process is a sign of things to come under a Labor-Greens minority government. The Assistant Treasurer’s promises to back financial services professionals fell apart as soon as he cut a deal with the Greens to legislate Labor’s broken promise to raise taxes from franking credits. Shadow Treasurer Angus Taylor said only a Coalition Government will put an end to Labor’s war on financial services professionals. “A strong economy with thriving small businesses, informed consumers, higher home ownership, and better retirement outcomes require strong advice networks. Yet Labor is layering red tape upon red tape on finance professionals that just drive up costs for consumers. “This isn’t the right approach in a cost-of-living and cost-of-doing-business crisis. Local accountants and bookkeepers have been blindsided by this new red tape yet Labor has refused to listen to community feedback. “Australian families and small businesses are paying the price of Labor’s failure to manage the economy and failure to listen.” Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said these attacks from the Assistant Treasurer are nothing new. “Rushed and botched regulation with a lack of meaningful consultation has come to be expected from this Government. “Financial advisers learned this after the Assistant Treasurer’s failure to live up to his promises on advice reform. Now the Assistant Treasurer isn’t just failing to cut red tape, he is creating even more of it for tax practitioners. “This pile of new red tape is unwarranted – local accountants and bookkeepers are already highly regulated and some of the most trusted professionals in our community.” Shadow Assistant Minister for Competition, Charities, and Treasury Senator Dean Smith said smaller tax practitioners’ need for regulatory certainty, proportionality and guidance have been completely ignored by the Government. “The Assistant Treasurer rushed this regulation through without warning on the last sitting day before Parliament’s six-week winter recess, leaving Australia’s 71,000 registered tax practitioners to play catch-up.” “Now they have assessed the potential burden, they are rightly calling for it to be withdrawn or disallowed.” “The Coalition calls on all crossbench Senators to support the disallowance and reverse the regulatory burden and uncertainties that will fall on accountants, bookkeepers, and other financial professionals at a time when they can least afford it.” 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. In response to pressure from industry and the Coalition, the Assistant Treasurer revised the original 1 August 2024 commencement date to 1 January 2025 for firms with 101 employees or more and 1 July 2025 for firms with 100 employees or less. These. The Joint Bodies again wrote to the Assistant Treasurer on 9 August 2024 to advise that the changes to the implementation dates have not alleviated their concerns with the Determination and the significant compliance burdens and uncertainties on small tax professional businesses. These key stakeholders are still calling for it to be withdrawn or disallowed. The new legislative power used by the Assistant Treasurer to make the Determination was part of a TLAB Bill passed in late 2023 as part of a deal with the Greens. Senator Barbara Pocock announced at the time that the Greens had secured the relevant amendments, and the Determination would follow. ENDS.

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Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Over 1,000 Businesses Insolvent in WA’s Last Financial Year

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 9 August 2024 OVER 1,000 BUSINESSES INSOLVENT IN WA’S LAST FINANCIAL YEAR The latest figures produced by The Australian Securities and Investments Commission (ASIC) reveal that more than 1,000 businesses in WA were insolvent by the end of June 2024. According to Senator Dean Smith, the ASIC data shows that 1,079 companies during the last financial year entered insolvency:  nearly double the figures two years ago. “The cumulative impact of thirteen-interest rate rises over the past two years is now having a devastating impact on many businesses throughout Western Australia as underlined by these shocking figures.” “During the June quarter alone, there were 308 companies entering insolvency or one every seven hours.” “The ASIC figures show that during this quarter two sectors accounted for around one in three of all insolvencies in WA – Construction (20%) and Accommodation & Food (14%).” Senator Smith added that small businesses, in particular, were being hit hard by the triple whammy of rising costs due to inflation, whilst also having to service higher interest rate payments, while at the same time consumers were becoming more fragile because of the cost-of-living crisis. “Small businesses account for 97% of all businesses in Western Australia with many families operating on small margins.” “They are very sensitive to even a small cut back in consumer spending.” “The impact of the cost-of-living crisis on consumers is underlined by the collapse in household savings with the latest official figures showing the ratio of household savings is now the lowest in 16 years at just 0.9%.” “Unfortunately, many small businesses in WA are teetering on the edge of financial oblivion due to the growing cost of living crisis.” “They are at the coal face of this cost-of-living crisis and unless the crisis ends soon the number of business insolvencies in WA could explode over the coming year,” he said. “Labor’s inflation debacle has now caused a cost-of-doing-business crisis in WA.” “Anthony Albanese has failed to tackle inflation and now small-medium sized businesses are being forced to close their doors and lay off staff.” ENDS

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Taylor, Howarth & Smith – JMR – Consumers Losing From Labor’s Failures on Consumer Data Right

Friday, 9 August 2024 CONSUMERS LOSING FROM LABOR’S FAILURES ON CONSUMER DATA RIGHT The Coalition welcome the Assistant Treasurer’s rediscovery of the Consumer Data Right after two years of inaction on this crucial reform. The Consumer Data Right has the potential to be a gamechanger for consumers and competition in Australia, but it needs to be managed right. Under Labor, legislation has sat unpassed in parliament for almost two years, an awareness campaign for consumers has stalled, businesses have been left in limbo without regulatory certainty, and new policy has developed without consideration of how it would interact with a future CDR ecosystem. These failures are of Labor’s making. This is another failure from an Assistant Treasurer who has disappointed in every element of his portfolio, yet stayed in the job because of his factional allegiance to the Prime Minister. Australian consumers are the losers for Stephen Jones’ repeated failures. It is clear from the delays on the Consumer Data Right that Labor’s commitment to competition reform is more about distracting from their role in fuelling inflation than delivering for Australians. The Coalition is committed to making the Consumer Data Right work to boost competition and drive good consumer outcomes. The Coalition will closely scrutinise the next steps outlined by the government and hold Labor accountable for any further delays or cost increases of this crucial reform. The Coalition will continue to work with stakeholders across the whole CDR ecosystem to ensure the roll out is efficient, well phased, and proportionate – particularly for small, regional and rural banks and mutuals. The Coalition is committed to reversing the creeping compliance burden Labor is imposing on Australian businesses. It is essential the Financial Services Regulatory Grid be delivered as a priority, before the end of the year, to help businesses plan and hold regulators accountable for the costs they are passing on to consumers and small businesses. Shadow Treasurer Angus Taylor said this is just another example of Labor’s failed economic management. “It is clear Labor has given up leading the economic debate. Labor has let inflation run out of control and it has botched the roll out of this crucial reform for over two years in office. “This is a crucial competition reform that will deliver real benefits for consumers, but it has sat idle while Labor has spent billions of taxpayers’ money on its own priorities that are just fuelling inflation. “The Coalition is committed to delivering strong competition policy that empowers consumers and small businesses, and we will work in government to ensure the Consumer Data Right delivers on its potential.” Shadow Assistant Treasurer and Shadow Minister for Financial Services Luke Howarth said the Assistant Treasurer provided nothing new today after 14 months of silence on the Consumer Data Right. “Regulatory uncertainty has been the hallmark of the Albanese Government’s financial services policy agenda. “Banks, energy providers, non-bank lenders and other CDR participants have faced a year of regulatory limbo waiting for the Assistant Treasurer to make up his mind. “The Government has failed to explain why it has stalled and neglected this important initiative for so long.” Shadow Assistant Minister for Competition, Charities and Treasury Senator Dean Smith said Labor’s competition agenda is now being driven by the Coalition.   “At a time when lifting productivity is critical to reversing Australia’s declining living standards, Labor’s approach has been characterised by dithering and delay.   “Labor’s go-slow approach to CDR reform has hurt the FinTech industry and disempowered consumers at a time when Australians deserve greater finance technology choices.” ENDS.

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Taylor, Howarth & Smith – JMR – Labor Must Not Abandon The Consumer Data Right

The Hon Angus Taylor MP Shadow Treasurer The Hon Luke Howarth MP Shadow Assistant Treasurer Shadow Minister for Financial Services Senator Dean Smith Shadow Assistant Minister for Treasury, Charities, and Competition MEDIA RELEASE 7 August 2024 LABOR MUST NOT ABANDON THE CONSUMER DATA RIGHT The Albanese Labor Government’s silence and inaction on the Consumer Data Right (CDR) is holding back this crucial cost of living relief and competition initiative. After fourteen months of neglecting a key part of his portfolio, Assistant Treasurer Stephen Jones will finally break his silence at an event on Friday billed as his “first public remarks on CDR since June 2023”. If the Assistant Treasurer rolls out more of the same platitudes about doing “the work to get it right” but again refuses to progress any of that work, the Albanese Government has effectively abandoned the CDR and failed the consumers and small businesses who stand to benefit from it. Banks and energy providers have made a significant investment in the CDR – an investment which has the potential to set Australia’s digital economy up for the next century. However, this investment must be coupled with strong leadership from the Government and the support of the responsible minister. Instead, the Albanese Government’s record on the CDR is a litany of stalled or abandoned projects led by a minister who is simply not interested: Expansions to insurance, superannuation and telecommunications have been abandoned. The Government’s own “action initiation” legislation to expand its functionality has languished in Parliament since its introduction in November 2022. The non-bank lending sector has been left in regulatory limbo with rules to expand CDR to include them stalled since August 2023. A promised education campaign to help consumers to easily identify CDR‑enabled providers, products and services never eventuated. The most recent consultations on improving the CDR and phasing out screen scraping have not progressed since August 2023. No new consultations on improving the CDR since August 2023. In his June 2023 speech, the Assistant Treasurer said “right now, you can use your CDR data to get a better deal on your credit card, find a cheaper mortgage, and understand your energy usage” and that “an extensive architecture has been built, designed to expand and scale out.” Fully aware of the benefits CDR can provide, the Labor Government’s failure to prioritise, support and scale it is compounding Australia’s cost of living crisis and sticky, home grown inflation. Shadow Treasurer Angus Taylor said this is just another example that Labor’s competition agenda is more about spin than substance. “With quarterly inflation rising again, it is baffling that the Labor Government isn’t using every lever it can to bring cost of living down. “The Coalition implemented the CDR and since coming into Government, Labor has completely botched the roll out of a program its own Ministers’ described as a ‘game changer.’ “Australian consumers are paying the price for Labor’s lack of leadership.” Shadow Assistant Treasurer and Shadow Minister for Financial Services said Labor’s inaction on CDR is yet another broken promise. “Over the last two years the Albanese Government has pumped the brakes on its rollout and stalled its progress without explanation, creating regulatory uncertainty across the financial services sector. “There is no leadership or plan from the Albanese Government and the ecosystem of innovative businesses supporting the CDR is suffering as a result.” Shadow Assistant Minister for Treasury, Charities, and Competition, Senator Dean Smith said the Government’s delay in enacting CDR Legislation is denying Australian consumers the benefits of enhanced competition in the banking and energy sectors. “The Coalition has forced the CDR back on the legislative agenda, and swift passage of the legislation next week will be a step towards improved competition outcomes for the economy at a time where Australia’s competition landscape is languishing. “Australian consumers are paying a high price for Labor’s inaction and their delay is further proof that this Government fails to understand the levers that will drive improved productivity, bring down cost of living pressures, and improve living standards.” ENDS

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Hume, Smith, Canavan & Kovacic – Media Release – Labor’s spending to fuel inflation crisis for longer

SENATOR THE HON JANE HUME SHADOW MINISTER FOR FINANCE CHAIR OF THE COST OF LIVING COMMITTEE SENATOR FOR VICTORIA SENATOR DEAN SMITH SHADOW MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA SENATOR THE HON MATT CANAVAN SENATOR FOR QUEENSLAND SENATOR MARIA KOVACIC SENATOR FOR NEW SOUTH WALES   MEDIA RELEASE Wednesday, 7 August 2024 LABOR’S SPENDING TO FUEL INFLATION CRISIS FOR LONGER Struggling mortgage holders won’t be seeing rate relief any time soon as the Reserve Bank of Australia has said they are looking for ‘softer growth’ in Government spending before it could cut interest rates. The Reserve Bank of Australia (RBA) told the Cost of Living Committee at its hearing in Sydney, that it had almost doubled its forecast of Government spending since Labor’s Budget, increasing from 2.1% to 4%, confirming that Government spending is driving inflation. AMP economist Dr Shane Oliver told the Committee that wages had gone backwards by five per cent, and that the economy was at a risk of recession. He went on to tell the Committee that if Labor’s spending was lower, the RBA would be able to consider cutting rates. Alan Oster, chief economist at NAB, told the Committee that sectors like manufacturing, hospitality, and retail were feeling the pinch of higher interest rates and lower consumer spending most acutely. Both Dr Oliver and Mr Oster described Labor’s spending as “bad timing” and “unhelpful”. Economics professor Richard Holden told the Committee that the Labor Government had delivered three very expansionary Budgets that were “putting upwards pressure on inflation.” He went on to say that the Government’s temporary measures that lowered headline inflation were a ‘trick’ and still added to demand. Judo Bank economist Warren Hogan agreed, and said that the only way to get inflation under control was for the Government to get the policy settings right, including by getting more flexibility into the labour market. The Business Council of Australia (BCA) highlighted the cost of doing business crisis that was also caused by higher inflation, noting record insolvencies experienced in Australia in recent months. Chief Economist Stephen Walters echoed the economists’ comments that a flexible industrial relations system was key to lowering costs and passing on savings to consumers. Chair of the Committee, Senator the Hon Jane Hume said that the Albanese Government is ignoring the warnings of experts and running the Australian economy into the ground. “Instead of showing restraint in their fiscal policy to be in line with the RBA, the Albanese Government has increased spending by $315 billion. That’s not what the RBA wants to see. “The RBA has now pushed out any hope of a rate cut this year, and in fact they even considered lifting rates yesterday. That brings no comfort to Australian households who are struggling to cope with these higher for longer interest rates. “Australians are poorer under Labor, and from the evidence we heard today, it’s clear that there is no end in sight to the financial pain households and businesses are facing right now.” Coalition Senators Smith, Canavan and Kovacic called on the Albanese Government to act on the warnings from the RBA and the economists who gave evidence to the Committee today for the sake of all Australian households and businesses. ENDS.

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Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Labor ignores competition advice, makes regional Australians pay the price

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 31 July 2024 LABOR IGNORES COMPETITION ADVICE, MAKES REGIONAL AUSTRALIANS PAY THE PRICE The collapse of Bonza and now Rex demonstrates Labor has ignored the many warning signs that Australia’s aviation industry needed urgent reform in order to sustain the green shoots of healthier aviation competition. With the announcement of Rex’s insolvency, the Labor Government has now overseen an irreversible backwards step in the competitiveness of Australia’s aviation industry with the effects likely to be felt for years to come. The Australian Consumer and Competition Commission’s (ACCC) most recent domestic monitoring reports into airline competition reveal the entrance of Bonza and Rex to the aviation market were providing consumers greater choice and access to a wider range of routes – including flights to under-serviced regional areas. Rex had distinguished itself as the airline with the lowest cancellation rate, demonstrating its role in improving the competitiveness and consumer experience for air travellers. The May 2024 report noted Rex had a cancellation rate of just 0.8% compared to Qantas at 3.8%, Bonza at 3.5% Virgin Australia at 2.8% and Jetstar at 1.5%. Labor’s failure to act: In February 2024, the ACCC emphasised the importance of supporting these new entrants by urging the Labor Government to adopt a suite of aviation reforms “as soon as possible”. These reforms included measures such as improvements to the Sydney Airport Demand Management Scheme and prioritising competition as an objective for the slot management scheme. These reforms were first publicly canvassed by the ACCC in November 2023. Labor ignored the urgency of these and subsequent calls from the ACCC, and they currently remain unenacted. The failures of Bonza and Rex highlight the lack of required urgency within Labor’s Competition Review process in delivering timely improvements to aviation competition in Australia. A significant rework of Australia’s aviation market is now required if this Government still hopes to deliver productivity and wages growth, lower airfares and deliver more aviation choice. When Labor’s Competition Review was announced in August last year it was tasked with working closely with the Department of Infrastructure, Transport and Regional Development to consider competition issues in Australia’s aviation sector. The Labor Government should immediately demonstrate the level of effort and attention its Competition Taskforce has put into developing a pro-competition agenda for the aviation sector and explain why the Competition Taskforce has been silent to date on publicly announcing its suggested reforms to the aviation industry. Labor’s lack of attention to airline competition issues has failed every Australian airline customer, as well as the 600 employees facing potential job losses, and the hundreds of regional communities, business and community organisations dependent on regional air travel connections. Comments attributable to Senator Dean Smith: Senator Dean Smith, Shadow Assistant Minister for Competition, said “Labor has been asleep at the cockpit, and the collapse of Australia’s third largest airline should be a wakeup call to accelerate its competition review process.” “Since their election, Labor has failed to implement the regulatory reforms necessary to sustain the entry of new airlines and provide enhanced aviation travel.” “The collapse of Bonza and Rex has heralded further concentration of an already over concentrated aviation sector – where 93% of the market is controlled by just two airlines.” “The events of this week demonstrate Labor’s loyalty program is restricted to protecting Australia’s aviation monopoly and not the aviation consumer.” ENDS

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Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Charities report a wasted opportunity when Australians need it most

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 19 July 2024 CHARITIES REPORT A WASTED OPPORTUNITY WHEN AUSTRALIANS NEED IT MOST Australia’s charity sector is supporting millions of households through the Albanese Government’s cost of living crisis, but it has also been fighting for its life. Battling record demand and skyrocketing overheads on Labor’s watch, it has fought through the last two years unsupported and uncertain. That uncertainty now continues with the release yesterday of the Productivity Commission’s final report, Future foundations for giving. The Report contains a drastic proposal to reshape the Deductible Gift Recipient system in Australia – and the activities of many of the nation’s charities along with it. The result, unless Labor rejects these changes, will be victory for an ideological attack on religious charities in particular. Every bit as concerning, the Report represents no immediate, meaningful pathways to growing charitable donations at a time they are desperately needed. Ideological attack The Productivity Commission itself notes “many participants also expressed significant concerns” regarding the removal of DGR status from entities including religious charities and school building funds. Despite this, it chose to ignore these concerns – the Report features six additional recommendations and one re-worded recommendation to those in the Draft Report, but the proposed DGR reforms are unchanged. Assistant Charities Minister Andrew Leigh might have committed to maintaining the DGR status of school building funds yesterday but, given Labor’s track record of breaking promises, doubt remains. The Report now serves as a blueprint to transition school building funds, including those of thousands of public schools, out of the DGR regime whenever it suits Labor to do so. The Report recommends axing the status of a “basic religious charity” and its associated exemptions – specifically targeted at activities with the “sole purpose of advancing religion”. It prioritises instead charities focused on advocacy, including those driving social and environmental change. Dr Leigh’s silence on the future position of religious charities, among them some of the largest contributing and most trusted in Australia, leaves a noose around their necks. Fails to boost giving Labor’s goal is to double philanthropic giving in Australia by 2030 and a key purpose of the Report – noted in the Treasurer’s direction to the Productivity Commission – was to “increase opportunities for philanthropic giving”. It is debatable if the Report’s recommendations have, or will, achieve either. For a start, very few of its recommendations are specifically aimed at boosting giving. In fact, apart from recommendations removing the minimum donation threshold and coordinating distribution of funds, most are heavily focused on regulatory issues and the future administration of the Australian Charities and Not for Profits Commission. This is red tape over genuine improvement – something laid bare in recent Estimates hearings when Productivity Commission officials confirmed it had not even modelled how these proposed DGR changes would impact levels of giving. Comments attributable to Senator Dean Smith: “As the election approaches, Labor has failed to deliver meaningful reforms to Australia’s philanthropic sector.” “This is especially unacceptable as the sector looks for real leadership at a time when it faces unprecedented challenges. “Many will be forced to accept the work of the Productivity Commission on this as a wasted opportunity. “Despite the widespread concerns raised, the Productivity Commission has pressed ahead and presented Labor with a weapon aimed at some of our major charitable organisations in parts of this Report. “I call on Andrew Leigh to make clear which recommendations will be adopted and which won’t on an urgent basis – but, regardless, we all know this will hang over the heads of the sector and our communities while Labor remains in power. “That fact that the Report does not adequately prioritise growing giving is hugely disappointing and Labor must step in to fill this growing void. “I urge Andrew Leigh not to fall into his usual routine of round tables and studies, and instead focus on actually providing outcomes for the sector. “Labor has some clear choices here – and if they choose ideology over practicality Australians will be the losers yet again.” ENDS

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Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – WA household spending in record downturn under Labor

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE 11 July 2024 WA HOUSEHOLD SPENDING IN RECORD DOWNTURN UNDER LABOR Plummeting household spending in Western Australia is the latest indicator of the state’s worsening cost-of-living crisis since the Albanese Government came to power. Australian Bureau of Statistics Data, released at the end of last week, revealed total WA household spending fell in May this year – a -0.3% drop compared to May 2023. It was the first time it had entered negative territory since February 2021, during the economic fallout from the COVID-19 pandemic. The data also highlighted a -3.2% fall in discretionary household spending in the year to May 2024. Despite some smaller decreases in recent months, this May 2024 discretionary spending figure represented the largest fall recorded since June of 2020. This was led in the most part by a sharp contraction in the amount being spent by WA households on clothing (-9.4%), recreation (-6.8%) and hospitality (-4.8%). Transport expenditure was also down, falling 0.5% in the year to May 2024, which was the first negative figure for household spending on transport since February 2021 – once again, at the height of the pandemic. These latest ABS numbers confirmed the extent to which the living standards of Western Australians continue to slide under Labor. Senator Dean Smith, Liberal Senator for WA and a member of the Coalition’s Shadow Economic Team, said the declining total household spending lays bare how tough WA households are doing it on Anthony Albanese and Jim Chalmers’ watch. “These are numbers you cannot talk your way out of – the worst in WA since the pandemic – and reflect real local households experiencing real economic pain,” he said. ‘We’ve seen 12 interest rate rises under Labor and the RBA, which is having to act because Labor won’t, has made clear more are likely.” “When you think of the unprecedented economic challenges of COVID-19, to be experiencing similar downturns as a result of Labor’s home-grown inflation is shocking.” “Until the Albanese Government reins in spending and gets inflation under control, these sorts of figures will become the rule, not the exception, and WA households will pay the price.” ENDS

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Shadow Assistant Minister for Competition, Charities and Treasury – Media Release – Win for charities as Labor forced to commit to IR action

SENATOR DEAN SMITH SHADOW ASSISTANT MINISTER FOR COMPETITION, CHARITIES AND TREASURY SENATOR FOR WESTERN AUSTRALIA MEDIA RELEASE   5 July 2024   WIN FOR CHARITIES AS LABOR FORCED TO COMMIT TO IR ACTION The Australian charity sector is celebrating after a Coalition motion in the Senate put an end to Labor ignoring its concerns. A motion brought by Senator Dean Smith would’ve seen the Standing Committee on Education and Employment probe the harmful impacts of the Fair Work Legislation Amendment (Secure Jobs Better Pay) Act 2022 on the operation of charities and non-profits. But the threat of the public inquiry was enough to force the Albanese Government’s hand. The office of Employment and Workplace Relations Minister Tony Burke providing a written commitment to engage with the sector on the issue only hours before the motion came to a vote. Part of this commitment was then read out by Senator Katie Gallagher in the Senate chamber. Peak bodies, including the Community Council of Australia and its members, have been working closely with the Coalition on this urgent matter. Contrast this with a complete lack of action from Labor and Assistant Charities Minister Andrew Leigh. The sector’s concerns stem from a requirement in Labor’s legislation that staff employed on two consecutive casual contracts must then be employed on a permanent basis. This requirement is incompatible with the funding arrangements for most charities and non-profits, which operates year to year, and would place them in an impossible position moving forward. It comes as Australian charities work in overdrive to meet record demand, supporting communities impacted by the Albanese Government’s dual cost of living and cost of doing business crises. Senator Smith said that it was appalling Labor had refused to genuinely work with the sector until it was forced to. “Labor had made zero meaningful effort to address these very real and very urgent problems with its legislation,” he said. “It’s especially shocking given the sector is currently doing the Government’s heavy lifting for it.” “Fortunately, the power of the Senate is not to be underestimated and the Coalition was able to force Labor to the table.” And Senator Smith made clear that the threat of an inquiry still hangs over Labor’s head. “Andrew Leigh, Tony Burke, Katy Gallagher, are all on notice.” “If this matter isn’t resolved to the satisfaction of the charity and non-profit sector by the time Parliament sits again in August, I will bring the motion again.”   ENDS

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