2013 Federal Election Policy Analysis

CCIQ over recent years has gone to significant lengths to portray and action itself as a balanced and representative organisation and in particular throughout this election campaign has promoted and protected the interests of Queensland businesses in a bipartisan manner. The Economy ALP Coalition CCIQ Comments Fiscal and Budget Strategy

The Government’s medium-term fiscal strategy is to: • deliver a budget surplus of $4.2 billion in 2016-17 • achieve budget surpluses, on average, over the

medium term; • keep taxation as a share of GDP, on average,

below the level for 2007-08 (23.7 per cent); and • improve the Government’s net financial worth

over the medium term. Record in Government: • Promise of surplus repeatedly not met • Maintained low debt levels by international

standards. • All three major ratings agencies - Fitch, Standard

and Poors and Moody's - have given Australia's Government a AAA credit rating.

• Net debt will peak at 13 per cent next financial year and drop to 12 per cent by 2016-17.

The Coalition is committed to a "sustainable surplus over the medium term" by "living within our means". The Coalition has committed to • Get the budget back under control and has

promised to start paying off debt. It has also called for no further increase to the $300 billion debt limit;

• Establish a Commission of Audit to identify savings and efficiencies in all areas of government,

• End government waste and ensure better value- for-money in government programmes so that Australia no longer needs to keep borrowing money to prop up its Budget; and

• Start reducing government debt so the government won’t need to spend $7 billion a year on wasted interest payments.

Announced $31.6 billion in savings including: • Abolition of MRRT Tax Packages $5 billion • Abolition of Carbon Tax Packages $7.5billion • Commonwealth Jobs Cuts 12,000 jobs $5.2 b

CCIQ supports the notion of a “sustainable” government. This includes a prudent and balanced approach to budget and fiscal management. We believe the Federal Government should demonstrate the same budget discipline exercised by businesses and accordingly we support a strategy which includes reducing government spending and debt and a return to a budget surplus over the medium to longer term.

Productivity No specific ‘productivity’ commitments announced. The ALP have addressed the need to support productivity growth through their ‘Plan for Australian Jobs: The Australian Government's Industry and Innovation Statement’. Refer to Jobs and Employment analysis below.

No specific ‘productivity’ commitments announced. The Coalition have addressed the need to support productivity growth through their ‘Plan to Boost Productivity and Reduce Regulation’. This measure includes a targeted red tape reduction and regulatory reform agenda to address the rising cost of running/owning a business in Australia. Refer to Red Tape analysis below.

CCIQ believes that a number of factors have led to a decline in productivity over recent years including the rising cost of doing business, direct and indirect wage costs and restrictive and costly regulation which all divert resources away from innovation and investment. CCIQ considers that the Coalition policy does address some of the underlying factors contributing to declining productivity growth. CCIQ does not consider that the ALP Policy acknowledges the extent to which the cost base of businesses affect business productivity, in that it inhibits the flexibility and financial capability of business to embrace reforms and introduce productivity enhancing measures. Further, and importantly, CCIQ does not consider that the policy demonstrates a genuine or concrete commitment to reducing regulatory costs.

Jobs and Employment $1 billion for "A Plan for Australian Jobs", to support companies to win more work at home and overseas and to help small and medium business grow.

The Coalition has promised to generate one million new jobs over the next five years (1.7 per cent a year) and two million new jobs over the next decade (1.6 per cent increase per year).

The next Federal Government has a vital role in building and sustaining the economy. However businesses see the responsibility of Government as creating an environment which is conducive to

The Plan includes: • Establishment of up to 10 'Industry Innovation

Precincts' at a cost of $238million • Requirement for proponents of all major projects

with capital expenditure greater than $300million to prepare/submit an 'Australian Industry Participation Plan’ (AIP) which details how they intend to involve local firms; this extends beyond existing requirements for Government funded project to all 'independent private projects'

• Requirement for large project proponents with captial expenditure greater than $2billion to employ 'Australian Industry Opportunity Officers' within their procurement teams to manage/ensure local firms are involved in the project

• Establishment of Industry Participation Authority to oversee and administer the extension of AIPs to all major projects

• $30million to establish a new Enterprise Solutions Program to support Australian SMEs to bid more competitively for Government tenders

• establishment of an online 'Industry Innovation Network' - a portal intended to connect industry with researchers and support identification of innovation opportunities

Record in Government: • Australia has one of the lowest unemployment

rates in the developed world. • 900,000 jobs have been created since the ALP

came to power in 2007.

The Coalition has also committed to establish a target to achieve an annual growth rate in the number of small businesses of 1.5 per cent (or equivalent of a net 30,000 new small businesses each year). Measures to support these commitments include: • Commitment to build a 5-Pillar Economy –

Manufacturing Innovation, Advanced Services, Agriculture Exports, Education and Research and Mining and Resources

• Establish a new Prime Minister’s Business Advisory Council.

• The Coalition will introduce a Job Commitment Bonus of $2,500 for Australians aged 18-30 who are on Newstart or Youth Allowance if they get a job and remain off welfare for a continuous period of 12 months. They will receive a further $4,000 if they remain in a job and off welfare for a continuous period of 24 months.

• The Coalition will offer incentives to relocate to take up a job, and offer financial assistance of up to $6,000 for long-term jobseekers if they move to a regional area to take a job, or $3,000 if they move to a metropolitan area.

economic growth. CCIQ believes it is imperative that Government as part of this election commits to and demonstrates that maintaining an environment where business can grow, compete and employ is its key priority. In regards to the ALP policy: CCIQ welcomes the intent of the package however we believe it fails to address many of the fundamental issues affecting industry competitiveness and innovation. In particular the extension of the requirements for Industry Participation plans and creation of the Industry Participation Authority represent additional red tape and bureaucracy, will be administratively complex and costly to administer and may in practice act as a further disincentive to private firms to invest in new ventures and infrastructure.

Reducing Government Costs on Business ALP Coalition CCIQ Comments Personal income tax Record in Government:

• The ALP announced personal income tax cuts as part of the Carbon price (clean energy future household assistance package). The first tranche was delivered in 2012 but the second, which was to be delivered in 2015-16 has been delayed.

The Coalition has announced it will keep the first round of tax cuts delivered as part of the carbon compensation package. Any consideration of further income tax cuts will wait until the budget is in surplus.

Company tax

Record in Government: • The ALP promised a cut in company tax from 30

per cent to 28 per cent as part of the mining tax package. However it failed to deliver this outcome changing the 28% rate to 29% and eventually abandoning the commitment altogether.

The Coalition has promised a company tax cut of 1.5% from July 1 2015 and has estimated the cut will cost $5 billion over the forward estimates and benefit 750,000 businesses.

The contribution of corporate income tax to total tax revenue in Australia is higher than for most OECD countries. The share of corporate tax revenues to GDP is the fourth highest in the OECD. And Australia’s statutory rate is above the OECD average(24%) and is the tenth highest in the OECD. We are currently at a competitive disadvantage that has to be addressed. The drop in the company tax

rate was previously promised by the current Federal Government but was dishonoured as part of the May 2012 Federal Budget much to the disappointment of the business community. Accordingly CCIQ strongly supports the Coalition announcement and is hopeful this represents an initial step towards further corporate tax rate cuts.

Instant Asset Write-Off Small Business Investment Boost The ALP will temporarily increase the instant asset write off to provide an upfront tax deduction for small businesses when they buy equipment and assets worth up to $10,000. This will be a time limited/capped increase to the existing $6500 instant asset write off scheme and will only be available to small business from 8 September 2013 to 30 June 2015; it will be available to businesses with an annual turnover of less than $2 million. The instant asset write off will remain at $6,500 from 1 July 2015. This measure will cost $200 million over the forward estimates

Consistent with the commitment to scrap the MRRT, the coalition have indicated they will discontinue a number of tax offsets which had been funded by the expected revenue from the MRRT including: • Instant asset write off (saving $2.9 billion) • Tax loss carry back measure (saving $900

million) • Accelerated depreciation for motor vehicles

The instant asset write-off measures went some way to reducing the tax burden and improving cash flow for small business. However CCIQ are equally supportive of commitments to scrap the MRRT which Queensland businesses firmly believe had a negative impact on business confidence and resource sector investment over recent years.

Minerals Resource Rent Tax (MRRT)

The ALP remains committed to the tax in its present form.

The Coalition has announced it will scrap the MRRT. However in doing so will discontinue the following policies/tax concessions of the current government: • Instant asset write off (saving $2.9 billion) • Tax loss carry back measure (saving $900

million) • Accelerated depreciation for motor vehicles

CCIQ has long-stated its opposition to the Federal Government’s Mining Tax. Queensland businesses recognise that the economic fortunes of the resources sector and the State’s business community are intertwined. What impacts on the resources sector impacts on all of us within Queensland.

Carbon tax The ALP has announced it will bring forward the switch from a fixed ‘carbon tax’ price to a floating price ‘emissions trading scheme’ from July 2015 to July 2014.It will be linked to the EU price which has collapsed over recent 12-18 months and is expected to average approximately $6 per tonne in 2014. This is expected to deliver cost savings for industry consumers who will not face the fixed price of $24.15 per tonne/permit.

The Coalition has promised to scrap the carbon price in its first term. The Coalition has announced it will keep the tax and pension benefits which formed the bulk of the compensation package in the Carbon Price scheme. But will discontinue the existing $5.1 billion business compensation measures/programs including instant asset write off, jobs and competitiveness program, and the industry assistance and clean energy technology programs.

CCIQ remains fundamentally opposed to either an ETS or a price on carbon because of the effects on the global competitiveness of Australian produced goods and services. It is CCIQs position that such measures should only exist following international commitment and the implementation of equivalent measures by Australia’s major international competitors. Queensland businesses believe direct assistance to provide alternatives to the CPM that addresses climate change but at the same time sure up economic competitiveness is a better policy option.

Fringe Benefits Tax Reforms to fringe benefits tax (FBT) exemptions including: • ensuring the tax concessions for living-away-from-home allowances and benefits can only be used for the expenses of people who are legitimately maintaining a second home in addition to their actual home in Australia, for a maximum period of 12 months; • removing the concessional FBT treatment for ‘in-house’ fringe benefits that are accessed by way of a

The Coalition will reverse Labor’s change to fringe benefit tax on motor vehicles.

Queensland businesses are very disappointed over the industry impact of the proposed change to the tax treatment of cars. It is bad outcome for the leasing companies; for the Australian car manufacturing industry; for the car yards; for the businesses who provide vehicles as part of their employee packages; and for the individuals who have voluntarily had a nova ted lease.

salary sacrifice arrangement; FBT exemption for car fringe benefits The ALP will limit the FBT exemption to actual business use rather than including personal use (eefectively removing FBT exemption for car leases) The reform will apply to all new commitments for car fringe benefits entered into after 16 July 2013 and will take effect from 1 April 2014, after which only the operating cost method will be allowed. This measure, announced on 16 July 2013, is expected to provide net savings of $1.8 billion over the forward estimates.

Excise on Tobacco Increasing rate of excise and excise-equivalent customs duty on tobacco and tobacco-related products under a staged process, with a 12.5 per cent increase to occur on 1 December 2013 and further 12.5 per cent increases on 1 September 2014, 1 September 2015 and 1 September 2016.

Have accepted revenue measure. CCIQ supports the increase in excise on the basis of it acting as a deterrent to the take up of smoking. The nexus between business taxes and the proportion of the health budget devoted to treating those individuals stemming from tobacco usage is substantial.

Bank Levy Announced the introduced a Bank Levy of 0.05 per cent to be placed on all deposits below $250,000 to fund the establishment of a dedicated Financial Stability Fund. Has a net positive impact on the budget of $733 million over the forward estimates, from 1 January 2016.

Have accepted revenue measure.

Tax Reform The Government has committed to providing the ATO with an additional $99 million over four years to address the levels of unpaid tax and superannuation in the community. This measure will return $45 million in superannuation to Australian workers and is expected to improve the underlying cash balance by $827 million over the forward estimates.

The Coalition will commit to a significant tax reform agenda to be delivered within the first term.

CCIQ believes Australia needs a tax system that supports the growth of the economy. Australia’s competitiveness should be enhanced by the tax system not disadvantaged. The situation whereby 117 of Australia’s 127 taxes and charges raise only 10% of overall taxation revenue is massively inefficient. This is acting as a significant brake on our economy and our international competitiveness. The objectives of tax reform should be to reduce the overall burden of tax, eliminate economically damaging taxes, provide the states with financial sovereignty and generate greater incentives for business to grow and employ. CCIQ sees a massive opportunity flowing from a commitment by the Federal Coalition to finish the tax reform process and ensure all States have sufficient revenue raising capacity. CCIQ urges all parties across Australia to commit to this outcome.

Reduce Government Red Tape on Business ALP Coalition CCIQ Comments Red Tape Red Tape Reduction measures announced by the ALP

include: • Businesses with a GST turnover under $20

million a year will be allowed to lodge their Business Activity Statement (BAS) once a year from 1 July 2014.

• The Government will extend the free small

business superannuation clearing house to businesses with less than 100 employees from 1 July 2014 (currently only available to business with less than 20 employees). This free service helps small businesses to save on time and paperwork by enabling them to pay their employees' superannuation to a single location in just one simple electronic transaction.

• Businesses with fewer than 20 employees will

have the choice to refer administration/processing responsibilities for the Paid Parental Leave (PPL) scheme and have Centrelink make PPL payments to their employees whilst they are on parental leave. This will slash red tape and compliance costs for small businesses. Those small businesses that wish to stay connected with their staff will still be able to opt-in if that meets their needs.

The Coalition commit to cutting red tape costs to business by $1 billion each year. To achieve this target: • The Coalition will give every government

agency/department an annual target for red tape cost reductions and link public service bonuses to these targets;

• Make it mandatory for every cabinet submission to contain a regulation impact statement to quantify compliance costs imposed and matching compliance cost cuts;

• Every year publish a Deregulation report; allocate responsibility for deregulation to the Department of Prime Minister and Cabinet.

• Require Parliament to spend two days a year removing legislation and regulations to help ease the burden on small businesses

Red Tape Reduction measures announced by the Coalition include: • streamline environmental approvals through a

State-based one-stop shop environmental approval process

• allow small business to send one payment directly to the Australian Taxation Office for superannuation and then the Australian Taxation Office will do the rest

• give employers the option of ‘opting in’ to managing the administration of Paid Parental Leave to their employees This will relieve small businesses of their role as paymaster of the government’s inadequate Paid Parental Leave scheme

Red tape is easily one of the most significant issues for Queensland businesses. Inappropriate and inefficient regulation is a major constraint on business growth, productivity and investment and is reducing Queensland’s competitiveness at a time when our economy is combating global and economic challenges. CCIQ strongly believes the next Federal Government must improve the efficiency of regulation, both by removing unnecessary and duplicative areas of red tape and simplifying regulation to make it easier for business to comply.

PAYG The Federal Government introduced legislation to require all large entities in the Pay As You Go (PAYG) installment system to make their installments monthly, instead of quarterly. This change will be implemented in three stages. Companies that meet or exceed a $1 billion annual turnover threshold will migrate to the new system from 1 January 2014. Companies that meet or exceed annual turnover thresholds of $100 million or $20 million will migrate from 1 January 2015, and 1 January 2016, respectively.

No specific commitments announced in this area. Increasing the frequency of installments would create an additional compliance burden. CCIQ expresses concern over the potential impact of the changes on business cash flow. A shift in payment timing requires businesses to fund tax payments prior to the collection of cash from debtors; and that from a liquidity perspective, this could reduce otherwise available capital which could be used for investment

Industry Specific Red Tape

No specific commitments announced in this area. • Under the ‘Policy for Aviation’, the coalition will conduct an external review of aviation safety regulation to identify opportunities for efficiency and streamlining;

• Under the ‘Policy for a Competitive Agriculture Sector’, the coalition have committed to reform the agriculture and veterinary chemicals legislation to improve efficiencies and reduce cost/red tape associated with chemical registration and management

• Under the ‘Policy for a More Competitive and Sustainable Fisheries Sector’ reduce the regulatory burden on recreational fishers, commercial fishers and down-stream processors including streamlining AQIS regulatory audits, establish mutual recognition of commercial and regulatory audits under food safety programs, harmonise conditions of compliance with environmental regulations for aquaculture and recognising recreational fishing licences between states

CCIQ is supportive of the need to address the rising cost and burden of red tape at a Commonwealth level.

Small Business Competition and Contract Laws

No specific commitments announced in this area. Reviewing competition laws and policy A Coalition Government will conduct, for the first time in two decades, a root and branch review of competition laws and policy and deliver more competitive markets. Extending unfair contract protection to small business The coalition have committed to extending unfair contract protection currently available to consumers, to small businesses; to ensure that big and small businesses get a ‘fair-go’ and do the right thing by each other in their respective marketplaces, delivering real and lasting benefits to consumers.

CCIQ is supportive of measures to review the national framework of competition laws. CCIQ notes that Queensland businesses have expressed frustration at the level of duplication and inconsistency stemming from the existing of national and state based competition and consumer protection laws.

Industry and Regional Development ALP Coalition CCIQ Comments

Industry Development and Assistance

Assistance Package for Car Manufacturing The ALP will provide $200million assistance package for Australia’s car manufacturing industry; and outlined plans to ensure that Commonwealth fleet buyers purchase Australian made cars (a ‘buy Australian’ policy that mandates a 100 per cent Australian-made target for new passenger vehicles added to the Commonwealth fleet) New Car Plan For The 2020s

The Coalitions Manufacturing Policy Framework A Coalition Government will: • Appoint a Minister for Trade and Investment

whose central responsibility will be to attract trade and increase inwards investment into Australia.

• Build the manufacturing export base by progressively restoring funding to Export Market Development Grants starting with an initial $50

CCIQ supports measures to diversify the economy and support the growth and development of current and emerging industries. The coalition has demonstrated a balanced approach to supporting economic and industry diversification across a broad range of industry sectors. Their industry policies target specific issues raised by businesses in respect to

Labor will expand Government support for the industry providing $300 million per year on an ongoing basis through to 2020. This equates to an additional $500 million from 2016 to 2020 – and this will be locked in by legislation, to ensure investment certainty. As part of the New Car Plan for the 2020s, the Rudd Labor Government also commits to: • Provide support to Motor Vehicle Producers

(MVP), and the automotive supply chain including component producers and service providers.

• Provide support through a co-investment program for automotive production, plant and equipment, tooling, innovation and design and engineering services.

• Have a specific legislative objective of integrating the automotive supply chain into local and global non-automotive markets.

million boost. • Establish a $50 million Manufacturing Transition

Fund to provide assistance to industries as they transition to new areas of manufacturing growth.

• Implement industry specific Strategic Growth Action Agendas that bring industry and government together to develop long term plans for growth and viability.

Coalition’s Policy for Aviation The Coalition will invest $6 million to boost the productivity, safety and competitiveness of the aviation sector including: • revitalise the General Aviation Action Agenda

including establishing a formal Aviation Industry Consultative Council to meet with/advise the Minister;

• conduct an external review of aviation safety and regulation in Australia to provide a long-term framework for the future of aviation safety regulation in Australia;

• ensure the Australian Transport Safety Bureau is adequately resourced and reform the structure of the Civil Aviation Safety Authority;

• focus on the better utilisation of Australian airspace, including tasking Airservices Australia with fast-tracking technological and navigational improvements at airports and pursuing methods to decrease aircraft noise for communities;

• enhance aviation skills, training and development by undertaking a study into skills shortages in the broader aviation industry.

To support Regional Aviation growth the Coalition will: • invest an additional $3.5 million to support

regional aviation by introducing a new targeted En Route Rebate Scheme for regional commercial airline carriers to support low volume and new routes to small and remote communities.

Policy for a Competitive Agriculture Sector The Coalition will support the growth and development of the agriculture sector through the following initiatives: • commission the development of a White Paper

on Agriculture setting out clear, well-defined strategies and targets for investment and jobs growth in the agriculture sector;

• provide $100 million in additional funding for Rural Research and Development Corporations

CCIQ expressed significant concern

• provide $15 million to support export growth through rebates to small exporters for Export Certification registration costs;

• provide $20 million to strengthen biosecurity and quarantine capabilities

• reform the agriculture and veterinary chemicals legislation to improve efficiencies and reduce cost/red tape associated with chemical registration and management

• establish an industry advisory council to meet with the minister at least twice yearly and engage with the sector to support agribusiness profitability.

Policy for a More Competitive and Sustainable Fisheries Sector The Coalition will support the competitiveness and sustainability of the fisheries sector through the following commitments: • take immediate action to restructure the Marine

Bioregional Planning Process • immediately suspend and review the

Commonwealth Marine Management Plans and appoint a scientific panel to review the proposed boundaries of the Commonwealth Marine Reserves and consult directly with industry and communities on necessary reforms;

• reduce the regulatory burden on recreational fishers, commercial fishers and down-stream processors including streamlining AQIS regulatory audits, establish mutual recognition of commercial and regulatory audits under food safety programs, harmonise conditions of compliance with environmental regulations for aquaculture and recognising recreational fishing licences between states.

• work with industry to develop a national aquaculture strategy

Regional Development The ALP has a three-point strategy to develop and diversify the economy of Northern Australia. The Plan for Northern Australia will: • Create a Northern Special Economic Zone

focussing on the Northern Territory to attract new Australian and foreign investment through simplifying investment rules, streamlining regulation and application processes for major projects, and introducing new tax incentives with the objective of reducing the company tax rate for Northern Territory based companies in five years.

• Develop twenty-year growth plans for the

Plan for Developing Northern Australia The Coalition will produce a White Paper on the development of Northern Australia within 12 months of the election. In particular the White Paper will consider how best to: • develop a food bowl, including premium produce,

which could help to double Australia’s agricultural output;

• grow the tourist economy in Northern Australia to 2 million international tourists annually; and

• build an energy export industry worth $150 billion to the economy.

CCIQ believes that a well-defined and timely policy for promoting the development of Northern Australia has been long needed.

regional hubs of Darwin, Cairns, Townsville and Mackay. These plans will target key industry sectors and include strategies for increasing trade, investment and employment in these regional centres.

The White Paper on developing Northern Australia will consider policy options including: • An audit and to act on unnecessary bureaucracy,

green and red tape. • Looking to build on existing key urban zones such

as Cairns and Townsville with the aim of substantially increasing the population in these areas.

• Targeting relocation incentives and personal and business tax incentives.

• Tasking Infrastructure Australia to conduct a comprehensive audit of Northern Australia’s infrastructure and to devise a 15 year rolling priority list of projects

• Relocating relevant components of Federal departments and Commonwealth agencies, such as CSIRO and AQIS, to key urban zones in Northern Australia.

National Stronger Regions Fund An incoming Coalition Government will establish a National Stronger Regions Fund to help communities struggling with high unemployment. The fund will invest $200 million each year in local capital works projects to improve local communities. From 2015, councils and community groups will be able to apply for grants between $20,000 and $10 million, to meet half the cost of community building projects. Disadvantaged regions with a higher than average unemployment rate will receive priority for funds.

A Fairer Workplace Relations System ALP Coalition CCIQ Comments Workplace Relations

Record in Government: • Labor's policy is to maintain the Fair Work Act. It

has rejected the majority of changes sought by employers to the FW Act.

• Earlier this year the Government made significant changes to the Act, amending it in the following areas: − Extended the right to request flexible

working arrangements to a broader range of employees;

− Expanded parental leave rights; − Introduced a mandatory requirement for

employers to consult with employees on roster changes;

The Coalition have indicated they will ‘retain but improve the Fair Work Act’. This entails commitments to: • Initiate a genuine and independent review of the

Fair Work laws to be conducted by the Productivity Commission and which will consider how the laws can be improved.

• The Coalition will provide practical and useful help for small business workplaces to address concerns regarding the complexity of the FWA, lack of business resources/time and cost of legal expert advice. This will include a number of initiatives and help small business improve their

Queensland businesses have resoundingly told us CCIQ that they want a workplace relations framework that meets the needs of their contemporary workplaces and positively contributes to their productivity, sustainability and competitiveness. Queensland businesses are calling on the next Federal Government to address a range of concerns, including a lack of flexible working arrangements, penalty rates, industrial action and union involvement in the workplace, and unfair dismissal and general protections claims. The Federal Opposition has to some extent recognised in their policy announcements on

− Enshrined penalty rates in legislation; − Further expanded union entry rights; and − Gave the Fair Work Commission jurisdiction

to hear and determine workplace bullying disputes.

understanding of the Fair Work laws • The Coalition have also indicated they will

provide potential immunity from Fair Work Ombudsman pecuniary penalty prosecutions for a small business employer if it pays or applies the wrong employment conditions, provided the error was not deliberate and the employer had previously sought Fair Work Ombudsman advice and help on the same issue.

• The Coalition will remove the ability to restrict the use of Individual Flexibility Arrangements in enterprise agreements to allow workers and a business to agree on conditions that are suitable to their individual needs; but will retain the ‘Better Off Overall Test’ to provide ongoing protection to the rights/entitlements of employees. A Coalition Government will not reintroduce AWA’s.

• Coalition Government will ensure that protected industrial action can only happen if the Fair Work Commission is satisfied that there have been genuine and meaningful talks between workers and business at the workplace; and that the claims made by both parties are sensible and realistic.

• There is scope for further changes depending on the recommendations of a Productivity Commission Inquiry, although it says it will put any proposed amendment to the voters at the next election.

workplace relations that Australia 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. Changes they have flagged around individual flexibility arrangements, union entry and getting rid of minimum engagement periods are a welcome start. The commitment to have a Productivity Commission review of workplace relations policy in 2015, is possibly 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. This is clearly timed such that they will be in a position to take recommendations and proposed amendments to the next election in 2016/17.

Superannuation Record in Government: • The ALP are committed to increasing the

mandatory superannuation guarantee from 9 to 12% over six years on an incremental basis (as announced in 2011)

• The ALP will tax income earned on superannuation above $100,000 at a 15 per cent rate.

• It will also increase the cap on superannuation contributions to $35,000 a year for older workers. But the changes will not be legislated before the election.

The Coalition have indicated they will delay the scheduled incremental rises in the superannuation guarantee charge from 9-12 per cent for two years.

They have also committed to scrapping the low income superannuation contribution scheme because it was to be funded by the MRRT.

Employer superannuation payments increase from 9 per cent of payroll to 12 per cent in seven stages between 2013/14 and 2019/20 and creates an additional $4 billion superannuation liability per year for Queensland employers. CCIQ believe the Federal Government must encourage people to take more responsibility for their own retirement rather than place further mandatory demands on employers. Ideally CCIQ would like to see the Coalition outright oppose the increase

Paid Parental Leave Record in Government: • The ALP introduced a Paid Parental Leave

Scheme in 2011. The scheme provides a baby's primary carer with the minimum wage, currently $606.50 a week before tax, for a maximum of 18 weeks. The scheme costs $1.4 billion annually.

The Coalition have committed to introducing a new Paid Parental Leave Scheme with the following features: • Entitled working mothers to take 26 weeks of

leave at full replacement wage, up to a maximum of $75,000 a year. Estimated to cost $4.5 billion and would be funded by a 1.5 per cent levy on companies with

CCIQ supports a wholly Federal Government funded scheme operating on a national basis. Accordingly CCIQ opposes the Coalition scheme on the basis that it is partly funded by business and considered by the business community as being unaffordable.

The ALP have announced reforms to the PPL scheme to allow employers to opt out of being the paymaster for businesses employing less than 20 employees.

taxable incomes in excess of $5 million. • The scheme would be paid and administered by

the Family Assistance Office but will give employers the option of ‘opting in’ to managing the administration of Paid Parental Leave to their employees. If they choose not to be the government’s paymaster, payments will be made directly to the employee.

• The scheme (and the new levy) will commence on July 1, 2015 (to coincide with the commencement of company tax cuts).

Skills and Workforce Development

ALP Coalition CCIQ Comments

Apprenticeships/

Traineeships

Boosting Tools for Trade A re-elected Rudd Labor Government will invest $34.1 million to increase the completion payment under the existing tools for your trade initiative, from $1,500 to $2,000. Under this initiative, the total Tools For Your Trade incentive package will increase from $5,500 to $6,000 over the life of an apprenticeship. The increased Tools For Your Trade payment will commence on 1 July 2014. Funding for this increase will be offset from within existing resources. Record in Government: • The ALP has cut a range of employer incentive

payments for apprenticeship commencement and completions.

• The latest round of cuts, announced in the mini-Budget prior to the election campaign, cut the Australian Apprenticeship incentives program by $224 million over four years.

The Coalition has not indicated whether it would reverse the ALP’s cuts to employer incentive payments.

The Coalition has announced that it will offer interest free Trade Support Loans. Apprentices undertaking a Certificate III or IV qualification on the national skills needs list will be able to obtain financial assistance of up to $20,000 over four years for living expenses and tools through a HECS style loan scheme.

The scheme will be available from 1 July 2014 and will cost $85 million over two years.

The value of work-integrated learning and its role in assisting the transition from school to work is widely accepted. However, the role of apprenticeships and traineeships has been undermined by recent policy decisions by the Federal Government to cut employer incentives and provide support for union-driven wage rate increases that have seen a dramatic drop-off in the number of commencements of non-trades apprenticeships since July 2012, now down to their lowest level since 1999.

This has created significant uncertainty for employers about whether they can commit to a two or four year training contract, with the combination of increasing apprentice wages and the removal of incentives acting as a disincentive to taking on employees in training roles – particularly in light of already soft business confidence levels.

VET/Skills Jobs, Training and Apprenticeship Guarantee Under Federal Labor’s new Job Services Guarantee, workers will receive employment services within two business days of losing their job. There will be access to a career advisory service, not just for jobseekers but for any Australian keen to get career advice. Establish Jobs and Training Boards. A re-elected Rudd Labor Government will establish Jobs and Training Boards in 42 regions around Australia, including the 21 areas where Local Employment Coordinators currently operate. Commencing in 2015, they will build strong links between employers, employment services and skills providers. The first stage of the Boards will be funded with $34.4 million in additional investment to 1 July 2015. From 1 July 2015, the Boards will be funded from within the existing job services funding envelope through savings in administrative costs and from cutting red tape. Step Into Skills initiative The ALP has announced the Step Into Skills initiative. It will provide 8,900 training places to young people between 16-24 offering training in employability skills and language, literacy and numeracy, along with simulated work experience opportunities. It will cost $35 million over three years. Manufacturing Skills Plus The ALP has announced the Manufacturing Skills Plus initiative, which will provide 6,800 training places to help businesses transition from low tech to high tech manufacturing. Trades Training Centres The ALP has announced that it will build 137 new Trades Training Centres, at a cost of $209.8 million. These represent the next installment of the existing Trades Training Centres in Schools program.

The Coalition has not yet made any announcements with respect to VET/skills at this election campaign.

CCIQ supports an employer-focussed VET system that provides the skilled workforce required by business. Ultimately, the VET system must be geared to prepare users for jobs in Queensland’s major, emerging and future industries. We note that state governments have primary responsibility for VET.

CCIQ broadly supports Labor’s commitment to access to a career advisory service, which is broadly consistent with our focus on the importance of continuous re-skilling and up-skilling for employees. However, we would be eager to have more detail about this service.

CCIQ supports the establishment of Jobs and Training Boards, although we note that this builds on the existing LEC program already in place. Again, we would like to see more information on this initiative to ensure that employment services are linked to an employer driven approach.

Skilled Migration Programs

Labor wants to limit the use of foreign worker visas (457 visas) by requiring businesses to carry out labour market testing to find an Australian worker first. Labor’s policy on skilled migration is partly encapsulated by amendments passed to the Migration Act in June this year that significantly altered the subclass 457 visa program.

The Coalition has not yet indicated whether it will fully or partly repeal any of the amendments passed by the Government in June this year with respect to the subclass 457 visa program.

CCIQ supports a flexible, demand-driven skilled migration program that ensures that employers can access skilled migrant workers where they cannot find a suitable employee locally. CCIQ considers that this is particularly important for regional small and medium businesses, who often struggle with meeting their skilled labour needs due to problems around skills shortages and labour mobility in regional Queensland.

CCIQ therefore strongly opposes the amendments passed by Labor with respect to the primary vehicle for temporary skilled migration, subclass 457 visas. These changes make employing a subclass 457 visa holder a much lengthier and more expensive process than it was prior to the introduction of the changes.

CCIQ urges the Coalition to commit to fully repealing Labor’s changes to the subclass 457 visa program.

Transport Infrastructure ALP Coalition CCIQ Comments

Bruce Highway Labor and the Coalition have both promised to help upgrade the flood and accident-prone Bruce Highway, in north Queensland. Labor has pledged $4.1 billion over the next 10 years

The Coalition has pledged $6.7 billion over the same period.

The Bruce Highway is an integral part of Queensland and Australia's road network and has a significant impact on national productivity and the competitiveness of businesses. It is not surprising that this national corridor is identified by all business communities that span its length as the number one infrastructure priority for Queensland. There are now good commitments from both the Federal ALP and Coalition towards the Bruce Highway. Further funding support would not only reduce the road toll by 35% but deliver estimated time savings to both domestic and industry travel that creates a dividend to the economy of up to $30 billion.

Gateway Motorway Labor has pledged $718 million, but the money is conditional on no new tolls being introduced.

The Coalition has pledged $1 billion for the Brisbane project

Toowoomba Second Range Crossing

Labor has not made a commitment to the project. The Coalition has promised to contribute $700m towards the Toowoomba Second Range Crossing.

CCIQ has called for significant Commonwealth funding which will provide Queensland with a safe crossing and a quicker bypass for freight and service transport vehicles and is vital to support the growth of this important region into and beyond 2042. Anticipated benefits are significant including: • Accommodating regional growth; • Reducing travel time; • Improving travel time reliability;

• Reducing crashes; and • Improving freight efficiency and productivity

Brisbane's Cross River Rail

The ALP have committed $715m for Brisbane's Cross River Rail

The Coalition does not support Commonwealth contributing funding for urban rail.

High Speed Rail Infrastructure

The ALP has announced its commitment to construct high speed rail on the east coast of Australia, initially linking Sydney and Melbourne by 2035 as the first stage. A future high speed rail line will connect Sydney and Brisbane (but is considered "stage 2" and has no funding or timeframes identified). High speed rail will be built on a dedicated track, travelling at up to 350 kilometres per hour. Non-stop services between Sydney and Melbourne will take two hours and 44 minutes. During peak periods, up to five non-stop and five regional services will depart every hour in each direction. Stations between Sydney and Melbourne are also proposed for the Southern Highlands, Canberra, Wagga Wagga, Albury Wodonga and Shepparton.

High speed rail is a transport option/solution identified across regional Queensland and is supported by the business community on the basis that improve regional connectivity, support business growth and complement regional tourism industries. Notably the connection between Sydney and Brisbane is not yet planned/ committed. For Queensland this represents a significant issue as the rail would not provide any benefits for business/industry at this point in time, yet would be funded broadly by Australian tax payers.

Broadband Infrastructure The NBN was a major policy commitment of the ALP in the 2010 election. The ALP committed to the roll out of a Fibre to the Premises (FTTP) network reaching all premises nationally by 2021 at a cost of $44.1 billion. They commenced the national rollout in 2011. Note: that the policy to date has been plagued by cost blow-outs and management issues (e.g. asbestos scandal)

The Coalition have committed to delivering a more affordable broadband policy and to a shorter time frame for project rollout/completion (2019 – or two years earlier than the ALP’s 2021 target). Key to this commitment is the completion of a fully transparent cost-benefit analysis of the National Broadband Network to find out the quickest and most cost- efficient way to upgrade broadband to all areas where services are now unavailable or sub- standard.

CCIQ supports the need for major investment/develop in broadband infrastructure across all areas and regional of Queensland. This is key to industry productivity, economic growth and the ability of our industries to capitalise on emerging international market opportunities. There are significant variations in cost, in delivery types, in download and upload speeds, in business opportunities, customer experience and the “future-capacity” of the network, depending on which version of the NBN we continue with. The Coalition’s broadband policy offers a lower-cost network that will provide customers with modest improvements in broadband services in a shorter timeframe. The cost difference between these two alternatives is about $1000 per premises. Labor promises a more future-proof solution which they claim, based on current forecasted growth in speed/connections has the potential to serve Australia beyond 2050. The Coalition’s plan is to utilize existing infrastructure to a greater extent and accordingly the Coalition’s network may require upgrade and further investment in coming years (should demand/connections grow as currently forecasted).