The Rudd Government: overview of business policies one year review
November 2008
Message from the CEO This month marks the first anniversary of the Rudd Labor Government. The Rudd Government’s first year has certainly been a surprising one in terms of economic activity. Prime Minister Rudd entered The Lodge with an economy straining against the walls of capacity, unemployment at 30-year lows and interest rates and inflation on the rise. A year later, due to international economic volatility, we have interest rates and inflation in retreat, pressure is building on unemployment and confidence is on the slide. In a period of economic uncertainty it is more important than ever that a government deliver on its commitments. This document is designed to give business operators an idea of how the Federal Government is tracking in relation to its election platform particularly its business-related policies. You will find that many policies in this document have been advocated by the NSW Business Chamber and those have been identified. However, like all relationships there are some areas on which we disagree with the Federal Government - industrial relations reform is one of those areas. All of the Rudd Government’s business-related policies that were articulated by the Federal Labor Party in the lead up to the last election have been included in this document, regardless of whether those policies are advocated for by NSW Business Chamber. Whether we support a policy or not, it nevertheless will affect business operators in NSW and it is important that you be aware of the status of that policy. On the whole, the Rudd Government has delivered or is delivering on its election commitments. Many policies will take several years to roll out in full or for the effects to be felt but nevertheless, the Federal Government is off to a strong start. An area of disappointment for the NSW Business Chamber is the failure to appoint a Minister for FederalState Relations and drive reform of our Federation. 2008 was a great opportunity for Australia to look at the fundamentals of our Federation and move towards fixing the dysfunction and duplication that costs around $9 billion a year. This year was historic with both “wall-to-wall” Labor governments and no scheduled state and federal elections. Both of these events were ended by the Western Australian election. Now, approaching the end of the year, it would appear that a constitutional convention free of the political realities of elections has passed and a great opportunity to reform the Federation will be missed. I hope this document is of value in providing you with an insight into how the Federal Government is tracking in delivering its business policies. Yours sincerely
Kevin MacDonald Managing Director & CEO, NSW Business Chamber
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Tax Policy
Status
Support tax cuts outlined in the 2007-08 Budget (for financial years 2008-09 and 2009-10)* Defer tax cuts for individuals earning over $180,000 per year and provide an education tax refund for families receiving Family Tax Benefit A
Flatten income tax rate by reducing the number of personal income tax rates from four to three by 2013-14.
Small Business Red tape Policy
Status
Establish a Small Business Advisory Council to review Regulatory Impact Statements*
Simplify BAS for small business by introducing BAS Easy, reducing time taken to do GST bookkeeping by up to 85%*
Adopt a “one-in, one-out” policy for government regulation – proposals for new business regulations must be accompanied by proposals to remove other regulations*
Harmonise business regulations – providing incentives for governments to reduce regulation affecting small business*
Cut red-tape in financial services – introduce a standard disclosure form for financial service advisers, reducing the paperwork from as much as 100 pages to just 3 or 4 pages*
*Policy position publicly advocated or supported by NSW Business Chamber
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Trade practices Policy
Status
Strengthen the Trade Practices Act to protect small business from predatory practices*
Introduce criminal sanctions for cartel conduct (eg bid rigging, market sharing, output restrictions and price fixing)
Superannuation Policy
Status
Establish a superannuation clearing house – establish a privately contracted clearing house to handle administration of superannuation within business.
Keep superannuation levy at 9%*
Corporate debtors Policy
Status
Improve small business cash flow by making sure government and large corporate debtors pay bills on time. Small business will be able to charge debtors interest on bills not paid within 30 days*
Australia as a financial hub Policy
Status
Halve the withholding tax on distributions from Australian managed funds to nonresidents from 30% to 15% from 1 July 2008
*Policy position publicly advocated or supported by NSW Business Chamber
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Skills Policy
Status
Create Skills Australia, an independent statutory body to advise on fixing the nation’s skills crisis*
Fund an additional 450,000 skilled training places over the next four years*
Ensure that 90% of these places lead to a higher qualification
Establish a $2.5 billion dollar program to build a new, or upgrade existing, trades facilities in schools
Implement a National Early Years Workforce Strategy to improve recruitment and retention in child care services
Innovation Policy
Status
Create Industry Innovation Councils to foster ongoing partnerships across the value chain in key sectors and develop a long-term approach to boosting productivity
Establish a $200 million Enterprise Connect network aimed at connecting businesses to new ideas and technologies
Create an Innovative Regions Centre to provide hands-on support to small medium seized companies, boost local economies and create new jobs in areas that are experiencing adjustment pressures
*Policy position publicly advocated or supported by NSW Business Chamber
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Infrastructure Policy
Status
Create Infrastructure Australia*
Appoint a Federal Minister for Infrastructure*
Create a Major Cities Program, to invest in projects to help improve and expand urban infrastructure Create a Major Cities Program, to invest in projects to help improve and expand urban infrastructure**
Provide $2.4 billion to upgrade the Pacific Highway*
Widen the F5 from Ingleburn to Campbelltown
Provide $300 million for approvals and planning for M4 East from North Strathfield to CBD**
Provide $150 million for approvals and planning the link from the F3 to the Sydney Orbital**
Provide $100 million towards the duplication of the Great Western Highway from the M4 at Penrith to Katoomba Implement a rail freight program for Sydney – including work on a dedicated freight rail track from North Strathfield to Gosford; the Moorebank intermodal terminal, a third track between Epping and Hornsby, freight refuge at Broadmeadow and freight loops at Woy Woy** *Policy position publicly advocated or supported by NSW Business Chamber **Policy position publicly advocated or supported by Sydney Chamber of Commerce
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Climate Change Policy
Status
Ratify the Kyoto Protocol
Create a national carbon trading scheme by 2010
Set a carbon emissions reduction target of 60% by 2050
Establish a $60 million climate change adaptation plan to help farmers maximise climate change opportunities
Provide $500 million to fund development of clean coal technologies*
Support new solar institute and geothermal research and development
Establish a $75 million grants program for Australian manufacturers to reduce carbon footprint. Grants will be provided between $10,000 and $500,000 to small and medium sized companies.
Create a $90 million Green Building Fund to help business implement cost-saving energy efficiency measures in commercial buildings.
Provide a clean energy export strategy to help Australian businesses take a larger slice of the renewable energy market.
Establish a Green Car Innovation Fund to develop and build fuel efficient vehicles in Australia.
*Policy position publicly advocated or supported by NSW Business Chamber
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Industrial relations Policy
Status
Scrap WorkChoices and establish a new national workplace relations system based on co-operation with the States 10 National Employment Standards including hours of work, paternal leave, public holidays, long service leave, personal, carers, compassionate leave and annual leave, flexible work for parents, fair work information statements, termination of employment and redundancy*
Parental Leave Standard, allowing each parent an entitlement to separate periods of up to 12 months’ unpaid parental leave to be taken*.
Awards will be simplified
Workplace Authority, Workplace Ombudsman, Australian Fair Pay Commission, Australian Industrial Relations Commission and Australian Building and Construction Commission will be abolished and replaced with Fair Work Australia Abolition of Australian Workplace Agreements to be replaced with a focus on collective agreements or common law contracts
Maintain existing rules on right of entry for union officials*
Maintain existing rules on secondary boycotts and industrial action*
Unfair dismissal Policy
Status
Create a “fair dismissal” regime in which an employee can only make an unfair dismissal claim after one year employed in a business with less than 15 employees. For businesses with more than 15 people, employees are exempt for six months *Policy position publicly advocated or supported by NSW Business Chamber
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Workplace health and safety Policy
Status
Re-negotiate a Memorandum of Understanding with the States to ensure Comcare and state based authorities work co-operatively to protect all workers regardless of where they work and irrespective of their coverage by State or Federal jurisdictions
Partner with state and territory governments to harmonise OH&S regulations within five years*
Seek greater national alignment of workers compensation premium processes and procedures
High-speed national broadband network Policy
Status
Invest up to $4.7 billion with the private sector, over five years, to connect 98% of all Australians to high speed broadband
Childcare Policy
Status
Childcare tax rebate will be increased from 30% to 50%. Cap lifted to $7,500 per child and paid quarterly from 1 July 2008
Federal-State relations Policy
Status
Appoint a Minister for Federal-State Relations*
*Policy position publicly advocated or supported by NSW Business Chamber
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Defence procurement Policy
Status
Encourage as much of the defence budget as possible is spent in Australia by emphasising preference for Australian content
Require tenderers to develop detailed strategies for involving Australian industry to the greatest extent possible
Introduce new reporting obligations on Defence to include in its Annual Report a specific section outlining Australian involvement in major equipment acquisition projects
Implement new systems to provide better access for Australia’s small and medium enterprises to information on “minor” capability projects*
Formalise assessment processes in the DMO for “unsolicited” capability proposals that are submitted by industry
Housing affordability Policy
Status
Introduce Low Tax First Home Saver Accounts to assist aspiring first home buyers save a larger deposit** Create a housing affordability fund which will increase housing supply by providing money for local infrastructure
Create a national rental affordability scheme – providing tax incentives to investors to increase the supply of new affordable rental properties**
Increase supply of surplus Commonwealth land to be freed for housing development or community infrastructure
**Policy position publicly advocated or supported by Sydney Chamber of Commerce
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Prices Policy
Status
Strengthen the role of the Australian Competition and Consumer Commission (ACCC) to monitor supermarket prices
ACCC to conduct a National Grocery Pricing Inquiry
Appoint a Petrol Commissioner within the ACCC to monitor and investigate price collusion and gouging
Procurement Policy
Status
Undertake an external audit of Commonwealth procurement policies – seeking to simplify Commonwealth procurement requirements and encouraging greater small business participation in Commonwealth tenders*
*Policy position publicly advocated or supported by NSW Business Chamber
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