Coles doesn’t want customers in its new “dark” store……

The New Daily / Thursday, June 30 2016 / By Anthony Colangelo

Supermarket giant Coles has opened its first online-only “dark store” in inner-city Melbourne with plans to expand into other population-dense areas.

Coles boss John Durkan told Wesfarmers’ annual strategy briefing on June 22 that his chain wanted more of the stores, which barred all shopping public and only contained dedicated staff picking and delivering stock to online consumers.

The opening came after Woolworths launched a similar store in Sydney in 2014.

An online consumer behaviour expert warned that any widespread move to “dark stores” (called such because of their dimmer lights) would alienate at least 50% of shoppers.

“If you look at shoppers in supermarkets, half will be ones who like to touch their products and the other half won’t,” Central Queensland University online shopping expert Dr En Li told The New Daily.
The push to online stores is an attempt by Coles to capitalise on an apparent thirst for online grocery shopping, Fairfax Media reported last week.
The new “dark store” is in the Melbourne suburb of Richmond.
Coles’ Online arm was “profitable, but not ragingly profitable”, according to Durkan.
The Richmond “dark store” serves a 5km radius in inner-city Melbourne.
He said the “only way I could see it working” would be for the stores to service high-density areas, Fairfax reported.
The Woolworths version in Mascot in Sydney serviced an area from The Spit in north Sydney to Maroubra and Bankstown.
Analysis of British “dark stores” by AT Kearny in 2013 found they can be three times more efficient than traditional supermarkets.
In a traditional supermarket, staff must negotiate trolleys around customers, check out queues and promotional set ups to gather goods for online orders, the report found. In contrast, “dark stores” are laid out for optimal efficiency.
Coles’ announcement comes just weeks after The New Daily revealed global e-commerce giant Amazon was planning to launch its online grocery service AmazonFresh in Australia by 2017 or early 2018.
Coles online only ‘divisive’
CQU online shopping expert Dr Li did not expect the trend to eradicate physical stores, but said it was a potentially profitable tactic for supermarkets.
“Some product categories are not that online friendly,” Dr Li told The New Daily.
“For example, if you consider products you need to touch and feel for its quality, those kind of products are less online shopping friendly.
“If you look at shoppers in supermarkets, half will be ones who like to touch their products and the other half won’t.
“So this kind of online shopping would not suit all customers.”
But for the estimated 50% of customers who do not want to touch or smell products, the “dark store” concept could be lucrative.
“The convenience factor for people in high density areas with a lot of traffic will be high though,” Dr Li said.
“Consumers value ease of processing quite highly. When it is easier to get a product, consumers’ opinion of a brand will increase.”
 Anthony Colangelo is a reporter for The New Daily, where this article was first published. 

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Beware the ‘you owe the ATO’ scam…….

Madeline McDonald | 28th Jun 2016 (The Morning Bulletin)

 

 

Madeline McDonald | 28th Jun 2016 (The Morning Bulletin)

Narelle got the scare of her life when she heard the phone message. WHEN Rockhampton resident Narelle checked her phone messages on Tuesday morning she was told that there was a warrant out for her arrest and that she owed $47,000 to the Australian Taxation Office.

The local 66-year-old is one of the latest Australians to fall victim to a tax-related phone scam where people are claiming to be from the ATO. According to the ATO website, scammers have been claiming people owe large amounts of money to the taxation department due to "fraudulent false tax information."

See top four most common scams below

Narelle, whose surname has been withheld, said she couldn't believe the message she received on her phone and is glad she realised it was a scam before she handed over any money.

"I rang the number back and the person I spoke to asked if I was aware I had intentionally fraudulently given false information to the taxation office from 2003 to 2013," she said.

"I was then told they had sent me a letter a few weeks ago and a reminder recently in the mail that I owed $47,000 to the taxation department and that I had to pay it into the Australian security commission."

Narelle was told police from her local police station would be on her doorstep if she didn't pay the money in a certain amount of time.

"He told me my bank accounts would be ceased and my pension would be closed and then asked me what bank I would be sending this money from," she said.

"That's when I clicked that this was a scam and I put the phone down and called the taxation office. I had done my tax through a registered tax agent and I only finished work last year so I knew my tax was up to date and the phone call wasn't right but it was still quite scary to go through.

"The ATO told me I was being scammed and to call the police which I did and they put me through to the scammers hotline who said they had received a lot of calls about this particular scam. It's very concerning to think what would happen if these people got onto someone in their 80s who have some money and are still doing their tax return and aren't computer literate, they could easily believe this."

According to the Australian Competition and Consumer Commission's Targeting Scams Report, $85 million was reported lost as a result of scams to the ACCC's Scamwatch in 2015 with 105,200 complaints.

The ATO encourages anyone who thinks they have been scammed or to verify recent communication to call 1800 008 540.

TOP FOUR MOST COMMON SCAMS: 

Foreign Lottery Scam

The foreign lottery scam is one of the most common types of email scams, in which you receive what looks like an official email from a foreign lottery corporation offering a congratulatory announcement, and may include the supposed amount of money you've "won."

PayPal or Online Credit Card/Banking Scam

At first, you will receive an email that appears to be from PayPal with a warning message such as, "Act now, or your account will be deactivated," or "Security breach on your account."

This can cause you to panic, open the email, click the link, and log in to your account.

Survey Scam

Unless you've specifically requested to be on a survey mailing list, what you're getting is nothing but spam. When you click on the link to take the survey, malicious spyware or malware is installed on your computer.

Once this occurs, cybercriminals can spy on every move you make on your computer, collecting passwords, bank account information, and more.

Mystery Shopper Scam

The secret shopper scam has several different variations. This common work-from-home scam attempts to suck you in with an email featuring a subject line promising you a large income, simply by working as a mystery shopper. You need no experience or education, and you can make up to $200 to $300 a day.

FRAUD FACTS:

What other scams are on the move in Australia?

Fraudsters pose as legitimate internet service providers to offer bogus tech support.

Scams offering fake gift cards or vouchers in return for disclosing credit card and other personal information.

Individuals identifying themselves as DSS officers offering a government grant. The callers seek personal information including bank details, passport and licence numbers.

Scammers impersonate genuine charities and ask for donations.

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Is international retail giant Steinhoff International looking to buy Big W and sites from Masters?
 

Retail - Dominic Powell / Monday, June 27 2016

Australian retail markets could soon have another big player in their midst, with rumours that South African retail group Steinhoff International is seeking to acquire Big W are accurate.

According to Inside Retail, the chief executive of Steinhoff International, Markus Jooste, has been in Australia recently to talk with Big W owner Woolworths about a potential purchase.

The acquisition could also include a number of Woolworths’ Masters home improvement sites, which falls in line with the speculation that Steinhoff may be looking to pick up Masters sites for its home improvement brand POCO.

POCO has been referred to as “the Aldi of the home-hardware scene”, selling low cost furniture and household items.

An acquisition of this size would firmly establish Steinhoff International as a big player in Australian retail.

The group already has an impressive portfolio of well-known stores, including Freedom Furniture and Snooze.

The acquisition of Pepkor Group in 2014 added Harris Scarfe and Best & Less to Steinhoff’s Australian investments.

The group owns over 6500 stores worldwide, with 477 of them being located in Australia, and has annual sales of nearly $17 billion.

Sean Sands, managing director of ACRS at Monash Business School, told Inside Retail a quick rebrand may not be what Steinhoff will look to do.

“They may consider developing a hub and spoke store network feeding off larger distribution stores and tailoring smaller store formats to local communities in terms of range/offer,” Sands said.

“Steinhoff obviously see opportunity in the local market; I am excited to see what they do and how they compete.”

David Gordon, retail expert and business advisor at LZR Partners, told SmartCompany Steinhoff is an “important player already” in the Australian market.

“I think what they’re doing is trying to utilise their international supply chain, which is much non-apparel consumables,” Gordon says.

“Pepkor, who they acquired, is fashion apparel, if you put the two together you have a very comprehensive sourcing capability.”

Gordon says that this supply chain might mean that some Australian businesses could be overlooked if Steinhoff goes ahead with its POCO expansion.

“They will use their international supply chain, they may not need Australian wholesalers,” he says.

“Also, a lot of Bunning’s suppliers would not be wanting to repeat what happened with Masters, they picked their sides and the Masters side was the wrong one.”

Brian Walker, chief executive of the Retail Doctor Group, says any possible acquisition would have implications for Woolworths.

“Woolworths needs to work out what Big W mean for them strategically, should they sell it to Steinhoff and focus on supermarket retailing?” Walker says.

“Woolworths also used locational strategies when it came to Big W, placing them next to their supermarkets. An acquisition by Steinhoff could damage their supermarket sales if customers choose to shop at Steinhoff’s stores.”

Walker says Steinhoff’s acquisition of the Masters sites would be a sensible alternative strategy, saying the group already understands the furniture market due to their ownership of Freedom Furniture.

“In the furniture market, the margins are slim and it is ultra-competitive,” he says.

“Masters will provide the sites, but as the majority of them are in regional Australia, Steinhoff may struggle to grow the business.”

SmartCompany contacted Steinhoff International and Woolworths but did not receive a response prior to publication.

The President of the Emerald Chamber of Commerce, Mr. Victor Cominos expressed concern because Woolworths operate a Big W store in Emerald and had also acquired a site with the intention of establishing a Masters store.

“The big question remains, what does the future hold for the Masters site in Emerald”, said Mr. Cominos.  

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Veda Advantage investigated for selling personal financial information to marketing companies

By Pat McGrath 26/05/2016

Australia's privacy watchdog is investigating whether credit reporting giant Veda Advantage has broken the law by selling sensitive personal financial information to marketing companies.

Key points:

•Veda maintains database of credit histories of 20 million people in Australia, New Zealand

•Victorian woman "received mail from lenders" after refinancing mortgage, complained to OAIC

•Veda to reply to OAIC questions this week

Under the Privacy Act, it is illegal for credit reporting agencies to share the contents of consumers' personal credit reports for marketing purposes.

Veda, which was bought by the US credit reporting giant Equifax for $2.5 billion earlier this year, maintains a database of the credit histories of 20 million people in Australia and New Zealand.

Every time a consumer applies for a loan, credit card or utility service, or they default on a debt, Veda enters a record on their permanent credit report.

The Office of the Australian Information Commissioner (OAIC) opened an investigation into Veda's data marketing subsidiary Inivio last month, after a complaint by Victorian woman Kylie Miller.

Ms Miller said she began receiving offers of credit from various lenders the mail last year shortly after refinancing her mortgage.

After investigating how the lenders obtained her name and address, Ms Miller said she discovered they had been sent an alert by Inivio.

"Inivio … actually sells all your personal information to finance companies and other interested parties through these commercial arrangements, such as the one that they presumably had with ANZ and the other finance companies that I was getting mail from," she told 7.30.

Ms Miller complained to the OAIC last year, and the commissioner has since confirmed it is investigating the case.

"Ms Miller is of the view that she has never given her consent for any of her personal information to be collected or shared by or with third parties by Veda," the OAIC said in a letter to Veda, obtained by 7.30.

"If the information supplied by Ms Miller is correct, Veda may not have met the requirements of … the Act by using or disclosing her personal and/or credit information for the purpose of direct marketing.

"Did Veda disclose Ms Miller's credit information and/or personal information to any third party? Please be specific.

"Did Veda disclose Ms Miller's credit reporting information to ANZ as alleged? If yes, how was this disclosure authorised under section 20G [of the Privacy Act]?"

Veda declined an interview and would not comment specifically about Ms Miller's case.

"In regard to our Inivio marketing services, information is used within the constraints of the Privacy Act, from sources as permitted under the Australian Privacy Principles, or where consent has been provided by the individual, either directly or through a third party, to be contacted with offers," the company said in a statement.

"Individuals may opt out of receiving marketing communications at any time."

Australia's Privacy Commissioner Timothy Pilgrim said the law around credit reporting was clear.

"There are strict provisions that restrict those organisations from being able to use that info for direct marketing purposes. It's just not allowed under the Privacy Act," Mr Pilgrim said.

Veda is due to reply to the OAIC's questions this week.

http://www.abc.net.au/7.30/content/2015/s4469350.htm

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Jail needed to protect consumers from scam artists, government told

Patrick Hatch - June 3, 2016

New laws that ban "unfair" business practices and could send repeat rip-off artists to jail are needed to end Australia's status as a shyster's paradise, consumer advocates say.

The Consumer Action Law Centre has used a major federal review of consumer law to call for new measures it says would bring Australia into line with nations such as the United States and Britain.

Belle Gibson as scammer faces $1m fine for fake cancer claims

Belle Gibson's global health scam gave thousands hope in a cure for terminal brain cancer. Now, after her public exposure, she is being fined more than $1 million for her actions.

"We're seeing that particularly predatory businesses are pretty easy to establish in Australia and get away with," Consumer Action chief executive Gerard Brody said.

Mr Brody said financial penalties alone were not enough to stop some scammers. Provisions in NSW law allowing for jail time after repeated consumer law violations needed to be expanded nationally, he said.

Consumer advocates say financial penalties are not enough to protect the public.

Consumer advocates say financial penalties are not enough to protect the public. 

Breaching consumer law can result in 14 years' jail in Canada, five years in Japan and two years in the UK.

"We think that having the risk of prison time would be a key way to focus the mind of directors or managers of companies that seek to repeatedly take advantage of vulnerable consumers," Mr Brody said.

In its submission to the legal review, Consumer Action also calls for laws to move their focus from "unconscionable conduct" to outlawing businesses that are inherently unfair and exploitative.

It highlights hair loss clinics and so-called "debt management" firms as businesses that could be investigated if unfair trading laws were introduced.

"We think that 'unfair' is a much clearer notion than 'unconscionable conduct', and it's something that's been introduced and implied in the UK and Europe and the United Sates – they all have prohibitions against unfair business practices," Mr Brody said.

"Our law for too long has focused on transparency … [but] even people with high levels of literacy don't always read the terms of a contract.

"We need to move away from that philosophy around disclosure to be one more around fairness and safety."

Consumer Action's submission to the review also calls for a ban on unsolicited sales, such as door-to-door sales and cold-calling, and for the establishment of a Retail Ombudsman to resolve small disputes between businesses and their customers.  

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Negative gearing wind backs could deliver $5.3bn a year

Tuesday, 26 April 2016 07:18  - Written by The Conversation Contributor - Grattan Institute 

Tax reform to target Australia’s distorting capital gains tax and negative gearing regimes could net the government A$5.3 billion in tax revenue per year, according to a new report from the Grattan Institute.

The report recommends reducing the capital gains tax discount for individuals and trusts to 25%, and phasing in limits to negative gearing over 10 years.

“The case for reform is extremely strong and we do not think that this is likely to lead to a material crash in the housing market,” said the report’s author John Daley.

Daley and report co-author Danielle Wood have modelled the impact of their recommendation on house prices, rents and the rate of new housing development, estimating house prices would be 2% lower than otherwise.

Under their suggested tax changes people would no longer be able to write off losses from passive investments like housing against unrelated wage income.

“The only developed country we have found that lets you deduct the costs of interest and allows you to deduct it from your labour income apart from us is New Zealand,” Daley said.

Curtin Law School Associate Professor Helen Hodgson said the proposals were well balanced, based on sound evidence, and would improve the efficiency and fairness of the tax system.

She said the challenge was to claw back concessions without creating further distortions. “In that respect the Grattan Institute recommendations go further than those proposed by the Australian Labor Party.

“The ALP proposals allow existing negatively geared properties to remain deductible. This would have a lock in effect similar to the pre-CGT exemption from capital gains tax. Borrowers would be reluctant to sell their property and reinvest in other, potentially more productive, forms of investment.

The Labor Party proposal would reduce the capital gains tax discount to 25% and restrict negative gearing to new properties only.

Daley said this approach was likely to create a new distortion in the housing market.

“Essentially those new houses will be higher priced than the older houses and so you’ll get a distortion as investors disproportionately show up to the auctions for new housing and owner-occupiers disproportionately show up to the auctions for old housing. I’m not sure why we’d want to encourage that.”

Prime Minister Malcolm Turnbull has argued Labor’s proposal would deliver “massive shocks” to the residential housing market, removing all investors. Finance Minister Mathias Cormann has said it would drive down the value of established properties, and push up the cost of rental accommodation.

But Daley said given new housing supply was significantly restricted by planning rules rather than inadequate returns, it was unlikely there would be any material impact on supply or rents.

“As Commonwealth Bank CEO Ian Narev, who sits on a loan book of $400 billion has said, what keeps him awake at night is interest rates and unemployment rates, not negative gearing.”

Data from the Australia Tax Office shows negative gearing is more popular among taxpayers on higher incomes, and the Grattan Institute argues it largely benefits the wealthy.

Taxable income is income after deductions, including rental loss deductions.

Reforming the system would result in more funds instead flowing into equities, businesses and bank deposits.

“The current regime pushes people into property, it encourages them into much higher leverage than they would have otherwise, and that increases the volatility of the housing market and the vulnerability of the financial system,” Daley said.

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The Economy - May 30, 2016

Real estate most profitable industry in the country

Move over mining, new data from the ABS shows that 'property operators and real estate services' was Australia's most profitable industry in 2014-15.

Real estate was the stand-out performer when the Australian Bureau of Statistics released 2014-15 Australian industry sector performance data last Friday.

The data shows the size, importance, and performance of 19 Australian industries, which can be broken down into 96 sub-sectors.

This more-fine tuned data shows that 'property operators and real estate services' recorded a profit margin for the year of 49.8%, the highest profit margin of all sub-sectors. The category includes real estate agents and managers of residential, commercial, and agricultural property, according to the ABS.

While oil and gas extraction recorded the highest capital expenditure for the year at $59.3 million, property operators and real estate services recorded the next highest capital expenditure with $36.0 billion.

Craig James, chief economist CommSec, said, "The results are notable because it is clear that the 'baton pass' from mining to the property sector is happening across two sectors that are similar in size and importance."

 James said that real estate can be seen as having greater flow-on benefits to the economy than mining.

"Arguably, the multiplier effects from the property sector are broader and more significant than the mining sector," he said.

The President of the Emerald Chamber of Commerce, Mr. Victor Cominos said that he believed that the current and future Federal Government’s economic policy is going to put a dampener on the Real Estate Industry.

“The proposed changes whereby every sale of over 2 million dollars will require an Australian Tax Office certificate to avoid withholding tax is going to reduce the number of properties that will be available on the market”.  

Mr. Cominos said, “In time through the change of regulations the Federal Government will involve the ATO in every sale of property no matter how low the sale price.

“Without the ATO certificate the buyer will be required to lodge 10 percent of the purchase price with the ATO, why would the seller be a party to such a immoral transaction”, said Mr. Cominos.

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Supreme Court backs landlord in accommodation stoush.........

Property Observer Staff Reporter | 10 June 2016

The Supreme Court of Victoria has ruled in favour of St Kilda landlord, Catherine Swan, who was seeking to overturn a state ruling that a tenant was not in breach of their lease by offering the use of an entire property for a short-term rental.

Honourable Justice Clyde Elliott Croft said the original move by Swan to evict tenants was valid and she should be granted possession of the apartment.

Ms Swan rented her two-bedroom apartment to tenants in August 2015 and later found a spare bedroom in the apartment had been made available for rent on through Airbnb.

Justice Croft said by entering into the Airbnb agreement, they were sub-letting the apartment.

"I am of the opinion that the particular Airbnb agreement in issue in this appeal, for occupation of the whole of the apartment, constitutes a lease," he said.

Justice Croft ordered the tenants be evicted and possession of the two bedroom apartment be returned to Ms Swan.

Outside court she said the ruling gives landlords confidence that the persons they lease the property to are the persons who will be living there.

"We can't just be leasing out our properties and not knowing what's going on in them," she said, adding she wanted leases to be written differently in the future so that 'house sharing' is explicitly barred.

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Man charged with theft after moving into home he didn’t actually buy

Sarah Larimer - May 8, 2016 - Washington Post

When the woman found the home for sale online, she told her boyfriend, Gregory Harris, that she liked it, according to court documents.

Harris, who had told the woman he was a millionaire, later told her that he would buy it.

Harris did take down the “for sale” signs from the property in Indiana, authorities think. But he never actually completed the sale of the home — he just made an offer.

Harris, 48, now faces burglary and theft charges, according to court records. A message left with his attorney was not immediately returned.

Harris’s girlfriend told authorities that the couple began dating in January, and he had made claims of wealth, according to a probable cause affidavit. He gave her a BMW SUV, she told police – a vehicle that authorities learned had been reported as stolen.

After Harris told the woman that he was buying the home, he sent her a text message in mid-April, saying “he had closed and she could start moving in,” the affidavit states.
“He then took pictures of himself in the home and sent them to her,” it continues.

The woman brought over some of her belongings and the couple was discussing the changed locks when police appeared on the property, according to the documents.

The asset manager of the property told investigators that Harris had made an offer on the home, but it was rejected, the probable cause affidavit notes. The $147,000 home, which is no longer on the market, was being sold through CastleRock REO, the New York-based company.

In early April, a realtor visited the property to show it to a potential buyer, but discovered the lockbox was gone and the sale signs were missing, according to the affidavit. Another lockbox was installed, but a second realtor who came to the property a few days later encountered similar problems.

That realtor contacted the asset manager and told her “it appeared that someone had moved into the property, as he could see inside and noticed furniture in the living room,” the documents state.

When Harris and the asset manager exchanged text messages, he told her that he had taken down the yard signs and gotten rid of the lockboxes, she told investigators.

“Harris further stated that he was under the understanding that since he made an offer, that CastleRock had entered into a binding contract to sell him the property,” the affidavit states.

The the asset manager told him that the property was still for sale and “he was going about the purchase the wrong way,” the affidavit notes. But Harris still insisted it was a legal purchase and he was moving in – even sending a picture of his SUV parked in the driveway.

CastleRock REO representatives told IndyStar that although they have had to deal with squatters in the past, they have never encountered anything like the situation with Harris, who they said seemed to feel justified in his actions.

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Queensland Budget 2016: Government advised to take less from super fund

Amy Remeikis - June 14 2016

The state government was advised not to take more than $2 billion from the state's public service superannuation fund just a year before yesterday's state budget locked in a $4 billion transfer.

A 2015 report by the State Actuary said $2 billion was the "maximum" that should be moved from the super fund.

The 2016 Queensland budget will focus on innovation, investment and infrastructure while creating jobs and paying down debt.

Treasurer Curtis Pitt had defended the $4 billion move to shore up the state's balance sheet, saying the government had been advised it could take up to $5 billion from the scheme's surplus but had chosen to be "conservative" and leave a $1 billion buffer.

But documents tabled in Parliament by the Treasurer on Tuesday show the government was advised that repatriating $4 billion would create a 50 per cent probability, using conservative investment return estimates, of the fund going in to deficit.

Using that same metric, a $5 billion repatriation had a 62 per cent probability of producing a deficit in the super fund.

The documents reveal the advice to government changed after the government provided the State Actuary with "greater policy clarity" on how fiscal principles should apply to the management of long term liabilities of the fund.

The 2015 report from the State Actuary, Wayne Cannon, recommended the government only take $2 billion from the scheme.

"Based on my assessment of the current and projected future funding position of the scheme, I believe that a maximum surplus repatriation of $2.0 billion represents an appropriate response to the high level of surplus, maintaining a reasonable capital buffer to protect the funding position against adverse experience," he reported.

"Based on QIC's asset models, this results in the following expected outcomes over the next five years."

In a flurry of correspondence between Under-Treasurer Jim Murphy and Mr Cannon between April and May, the State Actuary was advised that the government wished to "provide greater policy clarity" to how the fiscal principles which set out how it met its long term liabilities.

"The government has determined that in interpreting the fiscal principle; 1 – overfunding of the Government's defined benefit scheme should be minimised; and 2 – the funding of the defined benefit scheme is to be managed in accordance with the spirit of the APRA funding and solvency standards applying to corporate defined benefit schemes".

 APRA is the Australian Prudential Regulation Authority, which guides corporate schemes that tend to be less conservative than how governments manage their own funds.

Using that advice Mr Cannon advised the government, through the Under-Treasurer, that the risks associated with repatriating a maximum of $5 billion would increase the risk the government would be called on to contribute funds "as part of a restoration plan".

"In my view, this risk is greater than it appears on face value as the circumstances in which a deficit arises – ie – adverse investment markets, subdued economy etc – are likely to be ones where the Government is unlikely to have easy access to cash to repair the deficit, either through receipts or borrowings," Mr Cannon warned.

"In effect, there is a 'doubling up' of the risks facing the sponsor.  In order to ensure the ongoing funding of the scheme, it is critical that the Government recognises this issue and stands ready to contribute additional funds should adverse experience occur in future.

"In conclusion the scheme is very well funded and there is scope to repatriate some of the surplus.

"Based on the criteria listed above, a maximum repatriation of $5 billion could be undertaken whilst maintaining consistency with the APRA funding standards, allowing for the contribution suspension and a small buffer against adverse experience."

In late April, Mr Cannon advised the Under-Treasurer of the probabilities of deficit at 30 June 2020, based on repatriation scenarios up to $6 billion.

Based on what the government settled on - $4 billion – there is a 19 per cent chance the scheme will go into deficit – based on the return to the scheme's investment in liberal market conditions – and a 50 per cent chance it will go into deficit on the accounting basis measure, which is more conservative and reflective of a more depressed global market.

Mr Pitt has repeatedly defended the move as following on from advice of the State Actuary and said the government would continue to meet all of its responsibilities, as it is legislatively set out to do.

"I would make the point that this is not actually a superannuation fund," Mr Pitt said on Tuesday.

"This is a cash management by the government. It is about looking at our long term liabilities and of course we want to have those fully funded and that is our fiscal principle.

"But, of course, people must be paid when they leave the defined benefit scheme, last year we had 3500 people leave the scheme – guess what, they all got paid, they all got given their entitlements because that is what the government is legislatively obligated to do. We will continue to do that.

"Any scare campaign being run by the Opposition was proven false last year and they will continue to run it this year and it's not true.

"We will continue looking at what the Actuary tells us, taking his advice and ensuring that we give consideration to what he's asked. We were given the opportunity based on the most recent advice to consider repatriating $5 billion and we have not done that. We have taken $4 billion through this process.

The $34 billion closed fund has been described by Mr Pitt as Australia's only fully funded public servant super scheme, and Mr Pitt said on Tuesday the decision to take $4 billion instead of $5 billion was "conservative".

The Opposition said the move had put the scheme at risk.

"This is the reckless act of a desperate Government that could end up costing every taxpayer in Queensland," shadow Treasurer Scott Emerson said.

"Labor has not accepted the Independent State Actuaries advice and is instead taking twice as much as the Actuary has recommended."

"In his advice to the State Government, the State Actuary said in relation to the risk posed by raiding more than the recommended $2 billion.

"...This raid has substantially weakened the position of the superannuation fund and the State Actuaries advice has confirmed that.

"Despite facing serious fiscal challenges in government, the LNP never contemplated raiding the superannuation entitlements of hardworking Queenslanders."

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Central Queensland firm wins million dollar airport tender ......

 CQ News – 17 Jun 2016

A CENTRAL Queensland business has been awarded a tender to upgrade an airport in the region.

Emerald-based company Activ Civil has been awarded the tender for the upgrade of the Emerald Airport intersection by Central Highlands Regional Council.

Central Highlands' Mayor Kerry Hayes said council were pleased that a local contractor was successful.

'Activ Civil received the maximum five point advantage in our procurement process by being based in the region and employing a 100 per cent local workforce,' he said.

Managing Director of Activ Civil and proud Emerald local Stuart Curtis echoed the mayor's sentiment, 'We are strong believers in council works being done by people in the region, both with local staff and local products. Everything that we can possibly get done locally, we will.

'We are excited to take on this high-profile project and are confident that we will complete it to a high standard, with minimal disruption to airport visitors and staff,' said Mr Curtis.

Upgrading the intersection of Airport Access Road and Gregory Highway was a requirement for the Queensland Government to approve the redevelopment of Emerald Airport.

The $1.25 million project will involve widening of the highway, adding a new turning lane, extension of the existing turning lane and an overall upgrade of the intersection.

'Work is due to begin in early July. Only minor delays are anticipated and where possible, work will be undertaken outside of peak airport times,' concluded Cr Hayes.

The President of the Emerald Chamber of Commerce, Victor Cominos welcomed the decision to award the tender to Stuart Curtis and Activ Civil.

Mr. Cominos said, “Over the years the area was developed by the likes of local organisations such as the one headed by Mr. Curtis, we wish him well”.

As these organisations grew they reinvested heavily for the benefit of the local population. “In many centres the people behind these organisations became the true captains of local industry”, said Mr. Cominos.

The Emerald Chamber of Commerce owes is founding in 1965 to some of these people.

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Proposed electricity increased costs are unaffordable.

There is grave concern in regional Queensland that the mooted increased cost of electricity is unstainable.

Small business already hit by the loss of revenue and high costs are not going to be able to pass on to their customers any electricity hikes.

The President of the Emerald Chamber of Commerce, Mr. Victor Cominos said “The decision will effect some 700,000 Queenslanders or about 35 per cent of the population”.

Mr. Cominos believes that some 620,000 residents will see their bills increased by 0.6 per cent under the determination.

As usual drought-stricken farmers and other small business customers, can expect a 9.3 per cent annual increase, which equates to about $16 a month.

Every time there is any energy increase whether it is gas, petroleum or electricity, the cost which quite often cannot be passed on to consumers, results in some business closures.

An increase in costs will lead to the decrease in the growth of the Queensland economy.

It will also hurt the low income earners and welfare recipients who are already struggling.

Mr. Cominos said “The proposed increase was deplorable and that he expected it to disadvantage Queensland’s economy and in particular those in small business and domestic users”.

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When A Successful Auction Bidder Renegs On Signing

by Tim O’Dwyer M.A., LL.B
Solicitor and Consumer Advocate

From time to time some consumer advocates suggest to successful auction bidders, who might have a sudden change of mind, that they should refuse to sign anything and walk away. This is dangerous advice because in most parts of Australia auctioneers may lawfully sign a sale contract on behalf of a reluctant buyer (and hesitant vendor). (See “Winning Auction Bidders Beware“). Even if no signed post-auction contract, a successful bidder who walks away may still wind up defending a damages suit – as happened to experienced property investor Jack Singh.

On 11th June Singh was the only genuine bidder at the auction of the Rossmoyne (Western Australia) home of Jim and Jenny Flynn. He  placed a bid of $3.6 million. With the reserve price of $3.9 million not reached, auctioneer Mark Mahon told those present he would seek the owners’ instructions whether the property could be sold at the price of the last bid. He soon returned to advise the property was on the market and that, if there were no more bids, it would be sold. He re-opened the bidding, received no other bids, called the price three times and knocked the property down to Singh.

After congratulating Singh and his wife Mahon invited them into the home to sign the contract. As they walked into the home, he asked if they had their chequebook. Mrs Singh tapped her handbag and said, “Yes, we’ve come prepared.” Once inside Singh asked if the vendors would accept a 60 day settlement. No, replied Mahon who explained that the auction terms provided for settlement on 12th July. But when Singh was asked to sign the contract, he said he no longer wanted to buy the property. He and his wife then left.

 

Singh ignored later written demands from Flynns’ solicitors, no deposit was paid and no settlement occurred on 12th July. Or at any other time. The property was placed on the market again, did not sell and was subsequently rented out. In due course Singh was sued by Flynns for damages on account of his misleading and deceptive representations with respect to future matters contrary to Section 4 of the Australian Consumer Law. 

 

There were two key aspects to Flynns’ claim: firstly that Singh’s bid was a misleading and deceptive statement as to a future matter and, secondly, that his conduct in allowing the auction to continue without withdrawing his bid, together with his saying and doing nothing to indicate he was not proceeding, misled Flynns and “other persons associated with the auction.” Flynns’ claim relied on the aggregate effect of Singh’s conduct.

 

As to the making of the bid, the judge found no breach of Section 4 because he was satisfied that the bid not only constituted a representation that Singh would comply with the auction conditions to complete the purchase, but also demonstrated an intention to acquire the property with Singh having the financial means to do so. “It was an honest representation,” His Honour concluded before addressing the question of the “post-bid conduct.”

 

“I find that conduct (including silence),” the judge ruled, “to have been misleading and deceptive in any event.”

Singh in the meantime had argued that, at the point when the auctioneer returned and sought other bids, he decided not to proceed with his bid. And when he and his wife went inside the property at the conclusion of the auction, he was ‘confused and shocked’ and thought he was being invited to re-negotiate the price. In these fairly plausible circumstances Singh could, in the judge’s view, still reasonably have been expected to take steps to ensure “his new position” was understood by the auctioneer: “His silence would have misled as to his intentions at that point, or would have misled as to his state of mind at that point as to whether he considered he had acquired the property.”

 

Unfortunately for Flynns the next question was whether their post-auction losses were “because of” Singh’s misconduct. Trouble was, although his bid was genuine and not misleading, Singh’s later mischievous silence caused a loss only of an “opportunity” to restart the auction. As this loss was of “theoretical significance”, Flynns’ claim was dismissed.

(This article first appeared in Australian Property Investor magazine where real names were not used – The case citation is Carter & Anor v Delgrove Holdings Pty Ltd & Anor[2 September2013] FCCA 783].

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