Dr Henry's tax review

On Sunday 2 May 2010, the Australian Government released the Australia's Future Taxation System Review Report (the Report). It also released its response to the Report, titled Stronger, Fairer, Simpler - a Tax Plan for our Future. Papers are at www.futuretax.gov.au.

The Report serves as a comprehensive guide to the Australian taxation system as it encompasses the three levels of government and the three main sources of taxation in Australia: capital, consumption and labour. This is consistent with the Review having been established as a 'roots and branch' one, although the GST base and rate are not included (these were specifically excluded from the Terms of Reference establishing the Review).

The Report sets out directions for the future of Australia's tax and transfer system, covering all major types of taxation levied in Australia (other than the GST). These include: personal taxation (including person income tax); land tax; superannuation and retirement incomes; taxation of not-for-profits; user charging; housing affordability; road transport taxes; payroll tax; non-renewable resources tax; and local government.

The Report contains 138 recommendations based fundamentally on maximising '4 efficient and robust tax bases' - personal income; business income; private consumption; economic rents (including land). In turn, the recommendations are aimed at advancing the 3P's (population, productivity and participation) especially the latter two.

Overall, the Report finds that there are fundamentally sound aspects of the current system but that "Australia has too many taxes and too many complicated ways of delivering multiple objectives through the tax system" (p.11 overview document).

Making the taxation and transfer system less complex, and enhancing the experience of taxpayers with the taxation and transfer system, are key themes throughout the Report.

Of note: the Report finds that the most inefficient taxes are levied predominantly by the states.

The Budget is on Tuesday. ALGA's website will be updated to reflect relevant announcements.

More infrastructure examples needed by ALGA

The Berrigan Shire Council's new Sports ground Function Centre is an example of community infrastructure, which has been funded with part of the $1 billion Regional and Local Community Infrastructure Program (RLCIP). This example was provided to ALGA for inclusion in its infrastructure booklet that ALGA is compiling (details in last paragraph).

The Berrigan Shire's centre (pictured, before and after) will provide much needed social and recreational facilities to the region. Anthony Albanese, Minister for Infrastructure and Local Government, said that the Rudd Labor Government provided $457,000 to the Berrigan Shire Council for the project. The Council contributed another $160,000 and the community raised $109,000 - this in a time of severe drought. In addition, the community provided much in-kind support for the project, including demolition of the existing facility and assistance with materials and some labour. The project involved the construction of dedicated netball change rooms and a number of function rooms at the Berrigan Sports Ground for use by the local football, netball, cricket and pony clubs and the Berrigan Agricultural and Horticultural Society.

Previous facilities were totally inadequate. Holding functions for up to 300 people is now feasible. The new facility is inviting, light, comfortable and roomy. It is popular with the user sporting groups and the other members of the community, who use the facility on a weekly basis.

The Council considers that this project delivered excellent value-for-money and has provided an asset that will deliver a long term return for the community. It is a great example of how the RLCIP program has markedly improved the local community facilities.

More 'before and after' photos and descriptions of community infrastructure are needed for the booklet ALGA is producing. The booklet aims to provide positive examples under the Regional and Local Infrastructure Program, which will be used as a lobbying tool and to help lock in further funding. So far, we have heard from councils in WA, NSW, SA and Tasmania. There has been no response from councils in Qld, NT and Victoria. ALGA asks that State and Territory Associations that have not done so put out a call for information to councils through emails and State and Territory association newsletters. Details of projects are available here. For further information please contact Amanda Lynch at amanda.lynch@alga.asn.au or on 0419 123862.

National Broadband Network Implementation Study released

On 6 May 2010 the Australian Government released the National Broadband Network Implementation Study. The Implementation Study examines the Government's coverage, commerciality and competition objectives as well as the detailed operating arrangements of NBN Co Limited, its ownership and structure, ways to attract private sector investment and longer term privatisation.

The Study is a comprehensive report of over 500 pages and 84 recommendations. The Government is currently considering the Implementation Study and its recommendations and invites interested parties to provide comments or submissions on the Implementation Study and its recommendations. Comments can be provided via the NBN Implementation Study wiki, via email to NBNImplementationStudy@dbcde.gov.au or by post to NBN Implementation Study, GPO Box 2154, Canberra ACT, 2601. It may not be possible to consider comments received after 27 May 2010.

On the NBN Implementation Study wiki you can make comments on each recommendation as a registered user or anonymously. Please read the instructions on the wiki home page before making a comment.

For more information, see the statement by the Minister for Broadband, Communications and the Digital Economy, Senator Stephen Conroy and the Minister for Finance and Deregulation, Lindsay Tanner at Media release: Landmark study confirms NBN vision is achievable and affordable.

Both this week and next mark important milestones on the journey to the federal election later this year.

Last week, the Australian Government released the long-anticipated report into Australia's Future Taxation System, led by Dr Henry, as well as its initial response to the report. The response was quite limited in that it accepted only a few of the 138 recommendations contained in Dr Henry's report and ruled out a further 27 of the recommendations. However, the Government has said that these are only the initial steps in a 'ten year' tax reform agenda and that we can expect to hear more about the Government's thinking in the coming months.

Overall, local government can be pleased that a number of the Henry findings and recommendations take up many of the points ALGA had highlighted in its two submissions to the review, including the importance of local government in the community, the effectiveness and efficiency of local government rates based on property, the appropriateness of user charging in certain instances and the broad acknowledgement that local government faces a considerable asset management task in relation to local roads.

Two of Dr Henry's recommendations related directly to local government and one - recommendation 120 - is particularly noteworthy: 'local government should be given a substantial degree of autonomy to set the tax rate applicable to property within their municipality'. This is clearly a message intended for the NSW and the NT governments that their state imposed rate capping is not efficient, is unfair and should be abolished. We at ALGA couldn't agree more.

Although not limited to just local government, a number of other recommendations were relevant to councils such as those on road user charges, planning, developer contributions and centralised revenue collection. ALGA will continue to monitor these areas closely.

The other key event, happening next week, is of course the announcement of the 2010/11 Federal Budget. We'll be watching with interest to see whether the Government will reveal more of its thinking on possible reforms to the tax and transfer system and exactly what it means by a 'no-frills' Budget (as it was described by the Treasurer, Wayne Swan this week).

We will know on Tuesday night whether the Government will invest further in local government to ensure growing community needs and local expectations can be met. ALGA would like to see further support for the Regional and Local Community Infrastructure Fund which is due to expire on 30 June 2010 and which has only just begun to scratch the surface in assisting councils with the considerable asset renewal task we face - estimated in 2006 by Price Waterhouse Coopers as totaling $14.5 billion.

As we move closer towards the federal election, things are starting to get interesting.

Cr Geoff Lake
ALGA President

Briefs

Healthy Communities Initiative Quality Framework

The Workshop consultation phase of the development of a Quality Framework for the Healthy Communities Initiative (HCI) has been successfully completed. This process led to substantial change to the Interim Quality Framework/Principles/Standards.

The resultant Healthy Communities Quality Framework is comprised of three parts.

1. Local Government Area (LGA) Principles
2. Service Provider Registration
3. Program Assessment

Resources developed to support the Framework can be accessed here.

A Workshop Consultation Report - Executive Summary is also available on the Communio website. Participants of the workshop consultation process and any interested HCI stakeholders are invited to review and comment on the resultant Framework and resources that have been developed to support the Framework.

Access to a feedback survey is available here.

This link will remain open for your feedback and input until midnight 14 May 2010.

Please follow prompts as outlined on the survey. A progress bar will be displayed at the top of each survey page. The progress bar works based on the number of pages answered. It is not based upon the number of questions answered. Respondents can come back at any time to edit or finish an incomplete survey, however, the link must be accessed using the same computer.

Heart Foundation Walking groups for fun and fitness

Take the first step to fun and fitness today with Heart Foundation Walking. When was the last time you really noticed your local area? The park just a few blocks up the road that you've only ever seen from the car; the new stores being added to the shopping centre or even the local plant and wildlife as the seasons change.

Walking is a fun and easy way to rediscover your neighbourhood with the added benefits of improving your health and fitness. Walking for just 30 minutes a day can provide a range of health benefits including maintaining a healthy weight, increased bone strength, feeling happier and even better quality sleep.

Heart Foundation Walking groups are free and a fun way to start a regular walking habit and meet people in your local area. Many people join for the health benefits, but most stay on for the new friendships and the enjoyment of being out in the community.

Walking is as easy as having a comfortable pair of shoes, opening the front door, and off you go!

Take the first step today, visit www.heartfoundation.org.au/walking or telephone 1300 36 27 87 (for the cost of a local call) to join a walking group in your area.

Australian Walking Track Grading System

Hanut Singh Dodd works for the Department of Sustainability and Environment in Victoria. He has been working with land management agencies in every Australian State and Territory, with state tourism authorities and with bushwalking groups to develop the Australian Walking Track Grading System.

All the State and Territory park agencies are currently considering adopting the grading system. Several Local Government Authorities and tourism authorities have also expressed interest in adopting the grading system, which is designed to enable walkers to confidently predict how difficult a walk is going to be. It will provide information about eight key elements: the actual distance the walker will cover; the actual gradient the walker will experience; the quality of track; the quality of track markings; the level of walking track experience required to safely complete the walk; the presence or absence of steps; the time taken to complete the walk; and a symbol denoting the grade of difficulty.

The Department of Sustainability and Environment is currently planning a large scale communications strategy to promote the Australian Walking Track Grading System. If any readers are interested, Hanut would be happy to demonstrate and discuss the Australian Walking Track Grading System. He would also be grateful if anyone could suggest other groups he could contact about it.

His contact details are:
Hanut Singh Dodd
Walking Trails Classification and Improvement Project
PO Box 500
East Melbourne VIC 3002
Ph. (03) 9637 8957

Government investment in tourism

The Minister for Tourism, Martin Ferguson AM MP, launched almost $400,000 in tourism funding for two national projects. A National Tourism Planning Code will be developed along with business events management software to track business events performance across the country. Minister Ferguson announced $227,000 in Australian Government funding for projects associated with the TQUAL Grants program. Additionally, Minister Ferguson welcomed the investment of a further $173,000 by the Tourism and Transport Forum (TTF).

The funding will assist TTF to develop and distribute the National Tourism Planning Code, which will provide a best practice guide for planning and approval authorities and give investors a standard frame of reference for planning approvals. TTF also received a grant that will enable them to deliver a system that tracks the performance data from business events. This will give the sector a better understanding of supply and demand in the industry.

Minister Ferguson said: "This has been a good week for the tourism industry with the announcement of the Government's new tax plan. Ninety-three per cent of tourism businesses are small businesses that will get a head start on a lower company tax rate of 28 per cent from 2012-13 and will be able to immediately write off capital assets with a value up to $5000."

Addressing the Tourism and Transport Forum's National Hotel & Tourism Industry Policy Summit in Sydney, Minister Ferguson also outlined measures to improve the industry's resilience by encouraging investment in hotels and airports.

Minister Ferguson spoke about removing barriers to investment in accommodation, quoting Access Economics, which estimates that every dollar invested in a new hotel will deliver triple the value in flow-on benefits. He reminded us that tourism is a $41 billion industry and employs almost half a million Australians. It is Australia's largest services export and contributes 3.6 percent to GDP.

Greens welcome carbon tax support from ALP MPs

The Greens today welcomed reports that five Labor MPs are asking Prime Minister Rudd to embrace a carbon tax. The fastest and most effective way to do this would be to adopt the Greens' proposal for a levy on the biggest polluters, developed from Professor Garnaut's recommendations and supported by economists, unions, the environment movement and 72% of voters. "The Greens' carbon levy proposal is on the table and we stand ready to work with the government to get it through the parliament before the election so Australia can get cracking with climate action," said Australian Greens Deputy Leader, Senator Christine Milne.

Australia's first Paid Parental Leave scheme - casual workers to benefit

Casual workers should be winners from the Rudd Government's Paid Parental Leave scheme. To help seasonal, contract and casual workers access Paid Parental Leave, parents who are not employed at the time of the birth of their child but have satisfied the work test will be eligible. Many seasonal, contract and casual workers may not be in regular work and may not be in work immediately before the birth of their child. We also know from our extensive consultations that women in physically demanding jobs, such as casual retail and hospitality workers, cannot always continue to work in the later stages of their pregnancy.

International Riverfoundation

One week to go to the 2010 Riverprize submissions date. To nominate, please go to the Riverprize page at www.riverfoundation.org.au and download application and email or post with supporting documents.

The International Riverfoundation fosters, promotes and encourages the restoration, protection and sustainable management of the world's rivers, lakes and wetlands to improve the health of these precious resources and the communities dependent upon them.

International Riverfoundation is involved in a number of activities, including identifying and rewarding best practice in river management; informing, empowering and building capacity of river managers worldwide, and educating and inspiring governments, companies and communities around the world to protect our river systems for future generations.

The Riverfoundation is financed by donations given by concerned individuals, companies and governments. its work being restricted only by the amount of funds it can raise. From the Danube River in Europe to the Mekong River in South-East Asia and the Murray-Darling Basin in Australia, International Riverfoundation (IRF) is working in partnerships around the world to drive the protection and restoration of the world's rivers, lakes and wetlands.

Its key objectives are knowledge brokering, rewarding and championing those who are making significant achievements in sustainable river management and protection, and building capacity of river managers worldwide.

Public Comment sought on End User Premises and Greenfields NBN draft papers

Communications Alliance, the peak body for the Australian communications industry, today released for comment three draft papers addressing the National Broadband Network's rollout to End User Premises and greenfields estates.

Draft National Broadband Network
End User Premises Handbook

Draft National Broadband Network
Fibre To The Premises Planning - Express Conduit

Draft National Broadband Network
Fibre Ready Distribution Networks

The draft NBN End User Premises Handbook describes the architecture and installation practices for equipment used in the end customers' premises for the delivery of NBN services. It provides a common architecture and language for further planning between the communications industry, construction industry, NBN Co, government and regulators. The Draft Release 2 NBN End User Premises Handbook builds on the Release 1 Handbook published in March 2010. It has been updated to include:

• Wireless and satellite access in addition to fixed access network technologies, point-to-multipoint Passive Optical Network and point-to-point Active Ethernet;
• New sections on distribution and installation practices; and
• Guidance on testing and service diagnostic arrangements.

The draft FTTP Planning - Express Conduit defines provides a guide when planning telecommunications infrastructure in greenfields areas for the installation of new main conduits feeding one or multiple development(s) and/or the interconnection of their conduits with those of another carrier.

The draft Fibre Ready Distribution Networks paper outlines the issues associated with distribution networks, and in particular with the physical plant used for the housing of network cables.

PUBLIC COMMENT PERIOD CLOSES AT 5.00 P.M. AEST ON FRIDAY 21 MAY 2010.

Copies of this document can be obtained from our website or here.

It is proposed that all submissions will be made publicly available on the Communications Alliance website and shared with the Early Stage Deployments working group members. If you prefer your submission to be posted on the website as "anonymous" then please make this clear.

Location of Forums on NBN End User Principles

ATUG has advised ALGA that Forums on NBN End User Principles will be held in

• Adelaide - 12 May
• Brisbane - 14 May

and that updates are planned for

• Newcastle - 3 June
• Sydney - 16 June
• Melbourne - 18 June

Registration for the Adelaide and Brisbane forums is at Register here and pre-registration for the planned updates can be made by emailing brenda.johnston@atug.org.au

The Forums are chaired by Katherine Sainty of Sainty Law and supported by Maddocks.

Reserve Bank lifts interest rates to 4.5 per cent

The Reserve Bank of Australia delivered homeowners the sixth interest rate rise in eight months today, as the domestic economy remained one of the best performing in the world, the Australian reported on Tuesday. The central bank's decision to increase the official cash rate by 25 basis points to 4.5 per cent came just one week before the Rudd government releases its election-year budget.

Retail banks are now expected to follow suit and pass on the increase to borrowers. The expectation of a May rate rise had jumped after official data showed a 20 per cent surge in house prices in the past year, the fastest pace recorded by the bureau since the series began in 2002. The national rise in house prices for the quarter was 4.8 per cent.

Melbourne topped the house-price growth, with a 6.7 per cent rise over the quarter, followed by Sydney, with an increase of 5.3 per cent. Markets are cooler in other state capitals, with rises of between 2 per cent in Brisbane and 3.5 per cent in Perth.

Give our mayors a mandate

Compulsory voting must be introduced for local councils, reports Daniel Wills in The Advertiser 29 April, in order to ensure that mayors have a clear mandate to make major decisions.

SA Local Government Association president, Felicity-ann Lewis, said that council voter numbers were so low it was impossible for mayors to know they had the backing of most of the community. Less than one-third of eligible voters participated in council elections in 2006.

Association policy supports the voluntary system. Ms Lewis said that some councils feared compulsory voting would lead to more party-political influence. She said it was important to ensure consistency on state, federal and local government regulations. The current arrangement gave the impression that local government was "not important". Queensland, NSW and Victoria have compulsory council voting.

Local Government Association president, Geoff Lake, said: "It's a mistake for people to not see local government as important. Most people pay bills in excess of $1,000 to their councils every year, and the effect that local government has on their lives is quite considerable."

Councils recognised for innovative cultural projects

Seventeen councils have been rewarded for innovative and inspiring cultural activities at the 2010 Local Government Cultural Awards ceremony held at NSW Parliament last week.

Among the winning entries was a coastal village walking event, a comprehensive theatre upgrade and an exhibition of a series of historical photographs of Aboriginals produced in partnership with their descendents.

Orange City Council won the People's Choice Award for the Wiradjuri Language and Culture in Orange project.

The winner is chosen by the public and the award is calculated as a percentage of each Council's population so everybody has an equal chance to win. President of the Local Government Association, Cr Genia McCaffery emphasised councils' commitment to promoting arts and culture within the community.

"Councils recognise that cultural activities and projects give our communities a strong sense of identity and help define their character and create cohesion - be it through art, music, performance, festivals or other live events," she said. "The Cultural Awards are a fantastic opportunity to not only showcase all of these outstanding projects, but also recognise the hard work and dedication of council staff."

President of the Shires Association, Cr Bruce Miller, said he was pleased with the number of rural and regional councils who put forward a submission this year.

Tobacco tax

According to the Cancer Council of Australia and the National Heart Foundation of Australia, this country's future cancer and cardiovascular disease burden will be dramatically reduced as a result of the Government's decision to increase tobacco tax by 25 per cent.

Cancer Council CEO, Professor Ian Olver, and the CEO of the National Heart Foundation, Dr Lyn Roberts, said the tax increase in addition to the planned introduction of plain packaging for tobacco products made today "a historic day for preventative health policy in Australia".

"The best way to reduce the disease burden caused by smoking, particularly among socially disadvantaged people, is to increase the price of tobacco products," Professor Olver said. "An increase in excise of 25 per cent should prompt more than 100,000 Australian adults to quit smoking and prevent 25,000 children from becoming addicted to nicotine. That translates to saving thousands of Australians from a premature cancer death."

Dr Roberts said that until today's announcement, Australia had fallen behind international best practice in tobacco control, particularly in the area of taxation as a proven policy lever to reduce tobacco harm, and that now Australia was back at the forefront of global tobacco control policy.

Professor Olver and Dr Roberts said the commitment to increase tobacco tax and introduce plain tobacco packaging showed the Government was serious about disease prevention as a pillar of health system reform.

Bushfire arson prevention handbook

Research in practice handbook # 11
Developed as part of a four year project by the Australian Institute of Criminology (funded by the Bushfire Cooperative Research Centre), this handbook is a resource for local organisations, particularly fire agencies and the police, when developing community-based bushfire and bushfire arson (BFA) prevention strategies. The handbook draws on current crime prevention knowledge about the factors that lead to bushfire arson and highlights information that is important when evaluating activities or project.

The publication can be found on the website.

National Road Safety Strategy

Australia has a strong road safety record. Despite a substantial growth in population and vehicle usage over the last four decades, the national road fatality rate has fallen from 3,798 deaths in 1970 to 1,507 in 2009.

This improvement has been achieved through a combination of tougher laws, improved vehicle technology, road design and improved driver education. Nevertheless, road crashes exact a heavy toll on the community in terms of lives lost, serious injuries and suffering of families, friends and the community, so we must continually strive to improve road safety results.

The current ten year National Road Safety Strategy is coming to an end. Australian Transport Council Ministers considered approaches that have worked in individual states and territories and longer-term strategic directions for the next National Road Safety Strategy to cover 2011 to 2020, including some of the more challenging options for action to address the major crash types and problem areas such as speeding and measures to assist younger drivers.

The need for activity in these areas was reinforced to Ministers by a representative of the National Road Safety Council who attended the Ministers' discussions for this item. ATC Ministers recognised the significant contribution the National Road Safety Council is making in developing a new strategy and engaging with the community on this important issue.

Heavy vehicle charges

Ministers welcomed the road transport industry's acceptance that heavy vehicles should pay their fair share of road maintenance and infrastructure costs incurred by governments for the wear they cause on the nation's roads. From 2010, ATC has approved a technical modification to the heavy vehicle charges annual adjustment formula applied to registration charges and the road user charge to ensure that it avoids over or under-recovery of road costs due to changes in road use (including fleet mix). This will result in the 2010 adjustment being 4.2% from 1 July 2010, or as soon as possible thereafter depending on the regulatory timetables in the separate jurisdictions. The National Transport Commission will provide the result of future annual adjustment calculations to ATC members no later than 31 January each year.