Welcome to the March edition of the Tasmanian Business Reporter.
This month you will read about fresh demands from the TCCI for Government action to find a solution to Tasmania's unfunded superannuation liability, which is forecast to cost the state about $430 million a year by 2030.
You will also find details about the $1.43 billion City Deal for Hobart, St.LukesHealth receiving national recognition for a third year running and a recent study finding attracting and retaining skilled staff remains the greatest challenge for Tasmanian small business owners.
MARCH 2019
T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
City Deal sets scene for future
TASMANIA is the only state in the
country with two City Deals, after the
signing of a $1.43 billion package for
Hobart.
Confirmed projects in the deal include
the long-awaited Bridgewater
Bridge replacement and funds to
realise Macquarie Point as a worldclass
science, tourism, culture and
arts hub.
After the runway extension at Hobart
Airport, $82.3 million will be
spent on border services, including
customs, immigration and biosecurity
at the airport to capitalise on Tasmania’s
tourism appeal.
Deal Dollars
• $82.3 million to support direct
International flights at Hobart
Airport
• $450 million to support Antarctic
and Southern Ocean infrastructure
• $130 million to reduce traffic
congestion including a Derwent
ferry service
• $30 million towards affordable
housing supply
• $461 million for Bridgewater
Bridge replacement
Demand
for super
solution
By TOM O’MEARA
PRESSURE is mounting for a solution
to Tasmania’s unfunded superannuation
liability to unlock about
$430 million extra investment in the
state annually.
The Tasmanian Chamber of Commerce
and Industry and respected
economist Saul Eslake are demanding
action.
TCCI Chief Executive Officer Michael
Bailey said it was time for the
Government to tackle “the elephant
in the room”.
“Premier Will Hodgman and
Treasurer Peter Gutwein have done a
great job in getting our state’s books
back into balance, now is the time to
take the next step,” Mr Bailey said.
“This year, about $300 million
will be spent out of the budget paying
superannuation to retired public
servants.
“This is forecast to rise to about
$430 million a year by 2030 as
more public servants on the scheme
(which closed to new entrants in
1999) retire. It won’t be totally extinguished
until about 2070.
“In this day and age it is absurd
that the Government is paying the
equivalent of an extra 3000 nurses,
teachers and police to retired public
servants.”
In 2016, a Legislative Council
inquiry examining the issue found
that there were 9261 former public
servants receiving an average
annual gross pension payment of
$31,302.
The inquiry made no substantive
recommendations on how to deal
with the issue.
Continued Page 2
How TCCI
Membership
Benefits your
business
JOIN TODAY
FROM AS LITTLE AS $399
Funded by Business Working for Business
1300 559 122
www.tcci.com.au
The Tasmanian Chamber of Commerce
and Industry is an independent membership
organisation funded by Tasmanian businesses.
TCCI provides valuable support to its members through
advocacy and a range of programs and services including:
• Customised membership to achieve
your business objectives
• Training and workforce development
• Workplace relations advice and solutions
• Networking and promotion
• Workplace health and safety
• Networking and promotion
• Training and workforce development
• Events
SOUTH
Industry House
309 Liverpool Street
Hobart 7000
NORTH
The Old Post Office
68-72 Cameron Street
Launceston 7250
T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
2 Tasmanian Business Reporter - MARCH 2019
NEWS
Tassie contracts let StLukes wins awards trifecta
Local jobs
in the wind
GOLDWIND has appointed
Crisp Bros &
Haywards for a major
tower supply contract for
its $300 million Cattle
Hill Wind Farm.
Twenty per cent of
the tower components
required for the 48 turbines
at the Central Highlands
development will
be manufactured by the
Haywards team in an $8
million deal.
Goldwind Managing
Director John Titchen
said a number of Tasmanian
project partners
were working to make
the construction of the
wind farm possible.
Hazell Bros is undertaking
the full civil and
electrical works for the
project while Gradco is
completing over $10 million
of road upgrades in
T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
e dition
Tasmanian Business Reporter can now be delivered directly to your inbox. With our 30,000-strong monthly print
readership, our new up-to-date digital distribution will keep Tasmanians abreast of the all latest in local business
news. From this month we will distribute electronic editions of the Tasmanian Business Reporter as we go to print.
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T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
Tasmania’s business newspaper is published monthly by the
Tasmanian Chamber of Commerce and Industry. It is distributed
to businesses in Tasmania as well as key decision-makers.
Circulation: 12,000
BUSINESS
Haywards has won an $8m contract to build
towers for Goldwind.
the region to facilitate the
development.
“Alongside our major
project partners are many
local subcontractors and
suppliers that are critical
to the construction of
the project,” Mr Titchen
said.
Haywards has also
been engaged by Hazell
Bros for a $4 million
contract to assist with
the production of tower
foundations for the turbines.
Construction of
Cattle Hill Wind Farm
started in mid-2018 and
is expected to be fully
operational in late 2019.
Progress was temporarily
halted by the Central
Highlands bushfires
in January.
About 120 staff are
back working on site,
with up to 150 expected
during peak construction.
Managing Editor: Tom 2O’Meara
0418 135 822
Editor: Becher Townshend
0418 370 661
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Gil Sellars 0448 901 371
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BUSINESS
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TASMANIA’S
St.LukesHealth has
been named Australia’s
number one private
health insurer for
customer satisfaction
at the Roy Morgan
Awards.
It’s the third
consecutive year the
not-for-profit health
fund has claimed the
title.
CEO Paul Lupo
said the fund was
committed to its
promise to help
members stay healthy,
get well, live better and
deliver peace of mind.
“We are extremely
humbled that our
members have
acknowledged the
service and products
we deliver as the best
in Australia,” Mr Lupo
said.
“Members continue
to invite us to partner
with them in their
health journey, with
membership of the
fund continuing to
To see your business here, call Kerri on 0419 750 267 or email kerri@thetrustedmediaco.com
Demand for super solution
From Page 1
Mr Bailey said that if
a solution was agreed on,
the forecast recurrent expenditure
could be better
invested in infrastructure
and essential services
like health.
As Treasurer in the
Groom Government, former
Premier Tony Rundle
had the foresight to
set up a fund in the 1990s
to cover this cost.
“On Mr Rundle’s original
plan, by 2017 this
fund would have funded
the superannuation costs
from outside the budget,”
Mr Bailey said.
“Unfortunately, those
funds were spent by Premiers
David Bartlett and
Lara Giddings during the
Global Financial Crisis,
leaving us in the situation
we are today.”
The cost could be par-
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Head of customer care and delivery Helen Cowley, left, head of brand
and communications Grayson Genders, vice-chair Mel Lukianenko
and communications and member engagement coordinator Rochelle
Galloway.
grow steadily.
“As private health
insurance customers
are increasingly look
tially offset by the sale of
non-key assets, he said.
“In the past, it has been
accepted wisdom that assets
should only be sold
if the money is going to
be reinvested into new,
productive infrastructure,”
Mr Bailey said.
“However, given the
recurrent cost to the budget,
and the 50 year tail,
there is a very good argument
to be made that sale
funds should be set aside
to help offset the cost to
the budget of the superannuation
liability.
“For example, the sale
of non-core assets like
the Motor Accident Insurance
Board wouldn’t
cover all of the cost, but
if the proceeds were invested
in a similar way to
the one-off Mersey Hospital
sale funds, the funds
could be drawn down
Your Partner
in Print.
www.footandplaysted.com.au
Now incorporating
THE CRAFT LIVES ON.
around for a better
deal, they are finding
that St.LukesHealth,
as a member-centric,
over a period of, say, 10
years and offset against
the annual super bill.
“This would reduce the
annual drain on the budget
for the next decade.”
Mr Bailey said all options
needed researching,
with one more radical
option being legislation
to retrospectively cap entitlements
under the defined
benefit scheme.
“The Government’s superannuation
liability is
the biggest threat to the
future prosperity of the
state, it’s time a solution
was found and finally acted
upon,” Mr Bailey said.
Mr Eslake raised similar
concerns in his 2018
Tasmania Report in December,
saying the issue
was a significant blemish
on Tasmania’s strong financial
scorecard.
“For several decades
not-for-profit fund is
proving to be the right
fit for their health care
needs.”
the unfunded super liability
will continue to
represent a constraint
on Tasmanian Governments
flexibility and a
source of risk to future
budgets,” Mr Eslake
said.
“In particular it means
that present and future
Tasmanian Governments
have less scope
than the governments of
other states and territories
for borrowing even
at the present relatively
low interest rates in order
to fund worthwhile
infrastructure investments.”
Tasmania’s liability is
the biggest in Australia
and is the reason why
Tasmania doesn’t have a
AAA rating, which forces
the state to pay higher
interest rates on borrowings.
T A S M A N I A’ S L E A D I N G B U S I N E S S P U B L I C A T I O N . C I R C U L A T I O N 12,000 M O N T H LY
Tasmanian Business Reporter - MARCH 2019 3
NEWS
Small businesses face staff challenge
Skilled workers wanted
ATTRACTING and retaining
skilled staff and filling apprentice
and qualified tradespeople
positions remains the greatest
challenge for the state’s small
business owners.
That’s the key finding of
a new study by Tasmanian
Leaders’ Alumni.
Graduates of the leadership
program recently surveyed
more than 130 businesses representing
a variety of sectors
including agriculture, hospitality,
tourism and retail.
A summary of conversations
have been released in a
document titled: What stops
us? Small business: overcoming
obstacles and seizing opportunities.
Businesses reported exciting
opportunities existed in the
growth in tourism numbers to
the state, online sales growth
and leveraging the development
of trusted brands and opportunities
internationally.
The highlight for small
business owners and operators
included forming bonds and
being part of a local community,
flexibility of lifestyle and
family life and creating strong
and real relationships through
the business.
One of the most significant
challenges identified by small
businesses surveyed was
skilled staff and apprentice attraction
and retention.
Building resilience and
wellbeing was deemed important
to guard against the
ups and downs of operating a
small business.
The significance of research
and planning as well
as accessing support outside
the business sector were also
highlighted.
Government assistance for
small business should include
support through finance and
education and incentives to
employ people, respondents
said.
“The aim of this document
is to inform future work supporting
small business in Tasmania
as well as feedback to
the small businesses surveyed
as part of the Thinkbank process,”
general manager Angela
Driver said.
“Thinkbanks are held annually
with a select number
of Tasmanian Leaders alumni
to address a topical issue for
Tasmania and are designed
and conducted to give those
involved practical ideas and
tools to develop their organisations
and more widely the
state.”
The report is available on
the Tasmanian Leaders’ website.
Silos eatery
judged top
newcomer
Grain of the Silos food director, chef and TV personality
Massimo Mele.
LAUNCESTON’S Grain
of the Silos restaurant
at Peppers Silo Hotel
has won Gault&Millau
Australia’s New Restaurant
of the Year award.
Peppers Silo Hotel
General Manager,
Paul Seaman said the
independent award,
presented in Sydney in
early February, recognised
the restaurant team’s
ability to create a dining
space and menu unlike
any other.
Grain of the Silos
opened in June 2018 as
part of the $25 million
redevelopment of the old
Kings Wharf silos into a
boutique hotel.
The kitchen is led by
head chef Peter Twitchett
and food director and TV
personality Massimo Mele.
“This award win is
testament to the hard work
and passion that has gone
into creating, sustaining
and growing Grain of the
Silos,” Mr Seaman said.
“Our chefs have
met each farmer, each
maker, and each talented
Tasmanian who brings
something extraordinary
to the restaurant’s ever
changing list of dishes.”
Gault&Millau Australia’s
team of qualified
restaurant reviewers
evaluated more than 850
restaurants across all
Australian capital cities
and major regional areas
last year to choose the
best of the best.
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4 Tasmanian Business Reporter - MARCH 2019
THOUGHT LEADERSHIP
www.tcci.com.au
National grid on election agenda
INFRASTRUCTURE
Australia’s inclusion of
Tasmania’s Marinus interconnector
project on
its list is vital for the
state.
Tasmania is poised –
with proper and immediate
funding from both
the Commonwealth and
State Governments – to
play a significant role in
the national electricity
grid.
The next step is the
feasibility study for
Marinus, through the
Australian Renewable
Energy Agency.
The TCCI will be
chasing this, placing this
project and the issue of
Tasmania’s place in the
national grid as a Federal
election issue.
Energy security is becoming
one of the most
important issues for the
whole of Australia.
Last month Adelaide
experienced a record
week of hot weather –
which in turn put enough
pressure on the South
Australian grid to cause
blackouts.
Days later, Victoria experienced
a similar situation
with the heatwave
impacting the grid to the
extent that traffic lights
Michael
Bailey
TCCI Chief Executive
were out and that state’s
residents were told not
to use dishwashers, dryers
and other high energy
use appliances.
What is interesting
about this is, as well
as frustrating from the
point of view of earning
revenue for the entire
state, Tasmania had
more than 400 megawatts
of latent energy it
could not transport over
ABOVE: Taraleah is just one power station to be upgraded in the
Battery of the Nation project. LEFT: A second interconnector, Marinus,
is vital for Tasmania’s economic future.
Basslink, because the
cable was already at full
capacity.
This is just one example
of why the second
interconnector, Marinus,
is so vital – a second cable
capable of carrying
1200MW.
With Marinus, existing
wind power developments
will double
and even more
crucially, the development
of “pumped
hydro” hinges on the
second interconnector
becoming a reality.
Pumped hydro has the
potential to double the
current Tasmanian generation
capacity.
Over the next 10 to
15 years, Hydro Tasmania
has the opportunity
to rollout the pumped
hydro projects which
could add upwards of
2500MW to the grid.
Names like Lake Margaret,
Lake Rosebery,
Lake Murchison, Lake
Cethana, Lake Rowallan,
Great Lake/yingina and
Lake Echo already hold
great history in energy
generation – but there
could be up to 4800MW
of pumped hydro attached
to them.
Factor in that every
600MW will cost $1.5
million to build, there
could be a $900 million
investment on just one of
the sites.
And with that investment
comes jobs – construction
at the sites, improved transport
infrastructure and engineering
of many and varied
disciplines.
With the overall project
time being over a decade
that means future longterm
jobs for Tasmanians
of all ages.
The TCCI is calling on
both sides of politics to
commit to this critical infrastructure
project.
With development lag
times of development –
for example, a full year of
manufacture in a European
factory to make a cable –
we need the commitment
now.
Tasmania can truly become
“The Battery of the
Nation” and the TCCI
will be fighting for that
outcome.
Directors promise to win back trust
THE resignations of
NAB’s chairman and chief
executive in the wake of
the royal commission’s
final report is the first acknowledgment
of the
changes expected in corporate
culture to restore
community faith. As dramatic
as they were, the resignations
were not enough
to make the community
believe this change will
happen.
Poor cultural practices
in institutions have be-
ANGUS ARMOUR, AICD
managing director and
chief executive officer
come entrenched over decades.
Commissioner Kenneth
Hayne’s report is
an important catalyst for
change, and if our institutions
want to regain public
trust, they must respond
positively. As the peak
organisation focused on
building the capability of
Australia’s community of
directors, the people who
must take ultimate responsibility
for corporate
behaviour in this country,
the Australian Institute
of Company Directors
strongly supports positive
change and intends to lead
this process.
While Commissioner
Hayne recognised that
the underlying structure
of our system of boards
and management is sound,
he was critical of the approach
taken in financial
services in three respects:
• a prioritisation of
short-term profit over customer
and stakeholder interests;
• a system of bonuses
and rewards that can
encourage unethical behaviour;
and
• a lack of insight into
corporate culture and
challenge of management.
A recurring theme in
the Hayne report is that
boards and directors need
a significant shift in intensity
in their oversight of
non-financial risk to mitigate
the risk of further
misconduct.
This will require boards
to invest more time and
energy on the key questions
and challenges in
their organisation, without
involving themselves in
the day-to-day management
of the organisation.
While the AICD
strongly endorses Commissioner
Hayne’s view
that directors consider the
interests of all stakeholders
when acting in the
best interests of the company,
evidence before the
Commission rightly has
the community questioning
whether this occurs in
practice.
That requires working
with all stakeholders in
the pursuit of long-term
value creation.
Market participants,
including institutional investors,
need to be prepared
to shift their focus
from purely short-term financial
metrics that have,
on occasion, resulted in
perverse outcomes.
• This article first appeared in
The Australian, 18/02/2019.
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Tasmanian Business Reporter - MARCH 2019 5
THOUGHT LEADERSHIP
www.tcci.com.au
Fanfare for future proofing
I FOUND myself standing
an inch taller on
February 17 when the
new Toll vessel – Tasmanian
Achiever II –
was officially named in
Burnie.
A sausage sizzle and
face painting marquee
on the wet deck mixed
with the sounds of a
brass band set the scene
for familiar faces (and
their families) of the Tasmanian
logistics scene
to witness the successful
launch of a bottle of
Tassie bubbles and shatter
into a million pieces
– successfully ticking off
the “good luck” superstition.
Prime Minister Scott
Morrison and Premier
Will Hodgman, along
with mayors, chairmen,
captains and other titles
mixed with all on board
and sang the national anthem
with pride.
It was one of those moments
when the industry
comes together to pay
homage to a moment in
time that showcases just
how important the ship-
Brett
Charlton
Agility Logistics
ping and logistics world
is and how the commitment
to prepare for the
future is being invested
in heavily by those that
cater for the growth in
trade.
Adding about 46 per
cent additional capacity
to the Toll service, there
is no question that these
new vessels (the Tasmanian
Achiever II and the
Victorian Reliance II)
will go a long way to “future
proof” Tasmania.
Coupled with the
Searoad’s investment
of last year and another
new vessel to come as
well as the new TT Line
vessels in coming years
the question of capacity
should be a moot issue
for a few years at least
– in fact, if we are complaining
about capacity
in 10 years’ time then we
are having a great growth
problem to consider.
Again acknowledging
the great work going into
the securing of the freight
task for Tasmania – over
coffees and whiskies
around the state, the conversation
invariably turns
to pricing.
The costs of Australian
wages (crew and terminal)
along with investment
returns ($172m of
new vessel) will need to
be recovered and constant
increases in costs in fuel
mixed with infrastructure
surcharges etcetera,
will be the narrative by
the commercial arm of
the carriers across Bass
Strait.
However, prices for
airfares drops when there
are spare seats. It will be
an interesting year for Tasmania
and I am confident
whatever the questionable
outstandings are, the bottom
line is that Tasmania
is in a better place with
two shiny new green ships
going across the 369kms
of H2O and salt that is our
natural moat protecting us
from the congested highways
of the big island.
TOP: The new Toll vessel Tasmanian
Achiever II.
ABOVE: PM Scott Morrison visits the
bridge of the vessel during it’s naming
function in Buirnie .
Action plan for market access help
THE Australian Government
has launched an
action plan to help primary
producers and other
businesses tackle trade
barriers around market
access, to help them get
their goods into international
markets faster.
Just like we do in Australia,
international governments
have the right
to protect their country’s
biosecurity and environment
but excessive protection
and delays without
reason are extremely
frustrating to our exporters.
Non-tariff barriers are
being addressed under
the action plan with the
establishment of a ded-
Sally
Chandler
Tradestart Adviser
icated website - www.
tradebarriers.dfat.gov.au
– with an in-built function
to report trade barriers.
I am very pleased to
advise I have had my first
success using the website.
A client’s market access
problem with China,
which had been going on
for many months, was
addressed and fixed. The
client now has market
access for that particular
product which will allow
the export of many millions
of dollars’ worth of
the product over the next
few years.
It’s a fantastic outcome
which shows the
new plan and website do
work.
Naturally, some issues
will take longer than others
to fix and some may
be very hard to solve.
Australia has 22 Agricultural
Counsellors
employed in selected
countries who work with
those importing countries
to remove technical
barriers to trade.
Our technical experts
and trade officials in both
Australia and offshore
can only work as fast as
the importing country allows
progress to occur,
but the additional assistance
and focus of the action
plan which supports
closer collaboration between
government and
industry is extremely
welcome.
For international trade and investment assistance contact the
TCCI’s TradeStart Adviser, Sally Chandler, at sally.chandler@
tcci.com.au or phone 1300 559 122.
6 Tasmanian Business Reporter - MARCH 2019
THOUGHT LEADERSHIP
www.tcci.com.au
Our health is worth insuring
Paul
Lupo
CEO, StLukesHealth
IN Australia, we have
come to expect that we
can access health treatment
straight away.
However, sometimes
accessing healthcare
means having to wait for
treatment, especially for
those Australians without
private health insurance.
Each year on April
1, health funds across
Australia release their
new premium rates for
the coming 12 months
and naturally consumers
question whether they
are receiving value for
money through their private
health insurance.
And it is a hard decision
to make. The true
cost of maintaining your
health is not simple to
calculate as you cannot
foresee the need for, and
the potential cost of treatment.
For example, a simple
hip replacement could
cost you $30,000.
In comparison, if you
have comprehensive car
THE end of 2018 and the
start of 2019 saw a number
of legislative changes
in the realm of employment
law, including but
not limited to –
• a further decision
regarding the case of
Workpac Pty Ltd v Skene
[2018] FCAFC 131.
In light of the potential
“double dipping” that
may have resulted from
this case where a casual
employee successfully
argued they were a permanent
employee the
Government has chosen
to step in.
The concern from employers
here was that an
employee could potentially
receive the casual
loading as well as the
benefits of permanent
employment.
The Government says
they will introduce regulations
that make it clear
that this “double dipping”
cannot be claimed.
• From October 1,
2018 all regular casual
employees covered
by Modern Awards will
have the right to request
that their employment
be converted to perma-
insurance and you decide
to change to third-party
insurance you know your
potential loss is limited
to the cost of replacing
your car.
According to Private
Healthcare Australia’s
Annual High Claims
2018 Report, private
health insurers paid
more than 17,000 claims
with benefits exceeding
$10,000 for people aged
under 30.
The highest claim for a
private health insurance
member under 30 was for
a 16-year-old male with
gastrointestinal bleeding
with a cost of $221,195.
Despite the high potential
costs of healthcare,
many young Australians
do not see the value in
private health insurance
and live by the belief that
“it won’t happen to me”.
While wage growth
has stagnated and household
debt is at an all-time
high, the rise of buy-now,
pay-later services is tout-
Be aware of changes
Abbey
George
Workplace Relations
nent employment. This
followed the insertion
of a standard casual conversion
clause into 85
Awards on July 5, 2017.
• On December 12,
2018 the Fair Work
ed as an alternative solution
to those requiring urgent
healthcare.
Buy-now, pay-later
schemes are increasingly
being promoted by some
health providers, particularly
optometrists, dentist
and fertility clinics,
meaning that high-value
purchases – or access to
You can contact TCCI on the Helpline on 1300 765 123 or the TCCI on 1300 59 122 or workplacerelations@tcci.com.au
In 2018, St.LukesHealth paid more than $9 million on preventative dental services.
Amendment (Family
and Domestic Violence
Leave) Act 2018 took effect.
This means that the
Fair Work Act 2009 now
also includes a provision
that employees are entitled
to unpaid family
domestic violence leave
as part of the National
Employment Standards
and applies to all employees
from December
12, 2018.
The amendment follows
on from the introduction
of unpaid domestic
violence leave
into Modern Awards in
August 2018.
As it is now also contained
in the National
Employment Standards
this means that even employees
not covered by
a Modern Award will be
able to access the leave.
• In January 2019 the
Fair Work Amendment
(Repeal of Four Yearly
Reviews and other Measures)
Act 2018 (Amending
Act) revised s 188(2)
of the Fair Work Act
2009 which now allows
the Fair Work Commission
discretion to address
“minor technical or procedural
errors” from preventing
the progress of
an Enterprise Agreement
to approval. Previously
any error at all meant the
Enterprise Agreement
concerned could not be
approved.
• February 2019 saw
the Fair Work Ombudsman
commencing its first
legal action involving
the new “reverse onus of
proof” laws which can
into effect on September
15, 2017 via the Fair
Work Amendment (Protecting
Vulnerable Workers)
Act 2017.
This means that if an
employer does not meet
their record-keeping or
pay slip requirements
and can’t give reasonable
justification as to why
this is the case, they will
need to disprove wage
claims made in a Court
(rather than the employee
having to prove an underpayment
took place).
The amendments also
saw an increase in penalties
for “serious contraventions”
of workplace
laws, increased
penalties for breaches of
record-keeping and pay
slip obligations, strengthened
the Fair Work Ombudsman’s
powers to
collect evidence in investigations
and introduced
new penalties for giving
the Fair Work Ombudsman
false or misleading
information or hindering
or obstructing Fair Work
Ombudsman investigations
to name a few.
treatment – can be made
instantly.
Private health insurance
provides peace of
mind that when something
does go wrong, you
will be covered and have
access to care in a timely
manner.
There is a growing
concern that young Australians
without private
health insurance risk
becoming trapped in a
cycle of debt to cover
treatment, whether it be
through credit cards, personal
loans or buy-now,
pay-later programs.
Health insurers offer
general treatment cover,
which provides members
Labourers at highest
risk of injury at work
Craig
Hortle
Workplace Health & Safety
THE Safe Work Australia statistics
for 2016 -17 help organisations
understand what the potential of
serious risk is in their occupation
and industry.
According to the information,
some businesses fall victim to more
injuries than others.
Here is a list of the most common
injury-plagued occupations per one
million man hours worked:
• labourer – 16.5 injuries per 1
million man hours worked;
• community and personal
services workers – 11.1;
• machinery operators and drivers
– 10.8;
• agriculture, forestry and fishing
– 9.5;
• construction – 8.1; and
• manufacturing – 8.0.
If your business or industry is
involved in any of these areas it
would be wise to ensure that you
have a robust workplace health and
with benefit for dental
and optical services.
In a growing number
of cases, insurers provide
“gap-free” options
meaning the member is
left with no out-of-pocket
cost.
In 2018, St.LukesHealth
paid more than $9 million
on preventative den-
tal services on its Super
Extras general treatment
product, with 95 per cent
of members having no
out-of-pocket costs associated
with their care.
Consumers are entitled
to ask their dentist, optometrist,
health insurer
or hospital about any extra
money they may have
to pay for treatment.
This is called informed
financial consent and
will ensure that you do
not receive any financial
surprises.
If you have private
health insurance and are
considering the value of
your product when you
receive your rates notice,
I challenge you to think
hard about the value and
security your cover provides.
If you are not receiving
value and don’t feel your
level of cover is working
for you, speak to your
health insurer and ensure
you are getting a product
that is suitable for your
lifestyle and financial
needs.
Without it, could you
afford to finance a significant
health event or
afford to be incapacitated
for an extended period
while waiting for
treatment in the public
system?
safety management system in place.
This would include having a
system of performing job tasks
safely.
The types of documentation
needed could include:
• safe operating procedures;
• workplace inspection;
• safety audit;
• safe work method statements;
• hazard and risk identification
procedures; and
• training in job tasks and safety.
The time off for serious injury
claims increased by 32 per cent
and the amount paid out for serious
injury claims increased by 39 per
cent.
This occurred while the
frequency of a serious injury per
million man hours fell by 28 per
cent.
This clearly indicates that the
use of a safe system of work is
imperative.
For more information contact Craig Hortle or Janelle Whitehouse at
the TCCI on 1300 559 122 or safety@TCCI.com.au
Tasmanian Business Reporter - MARCH 2019 7
THOUGHT LEADERSHIP
www.tcci.com.au
Super system on the mend
By WAYNE
DAVEY
CEO, Tasplan
Super
OVER the past 12
months there’s been a lot
of focus on the country’s
$2.7 trillion super industry,
with first a Productivity
Commission report
into the sector, followed
by the Final Report of
the Royal Commission
into Misconduct in the
Banking, Superannuation
and Financial Services,
and most recently
some significant legislative
changes.
The Productivity
Commission investigation
into super efficiency
and competitiveness
in the sector found that
overall, Australia’s super
system needs to adapt to
better meet the needs of a
modern workforce and a
growing pool of retirees
who are being harmed
by structural flaws in the
system, particularly the
high rates of unintended
multiple accounts and
underperforming funds.
Worryingly, the report
found about one third of
super accounts (about 10
million) are unintended
multiple accounts which
can erode a typical Australian
worker’s balance
by six per cent or
$51,000 by the time they
reach retirement age.
The majority of these
accounts are opened by
default in the early stages
of a person’s working life
when they’re more likely
to be switching between
jobs or industries.
Perhaps of most concern,
the regressive nature
of these multiple
unintended accounts sees
younger and lower-income
members affected
the most.
Another worrying
trend exposed by the report
is the high instance
of excessive and unwarranted
super fees across
many funds.
While reported fees
have trended down, a raft
of high-fee products remains
entrenched in the
system.
More recently, after almost
a year of hearings
and deliberations, the final
report from the Royal
Commission into Misconduct
in the Banking,
Superannuation and Financial
Services Industry
was released.
Of the 76 separate
recommendations
made by Commissioner
Hayne, a number directly
concerned super.
From a consumer perspective,
some of the key
recommendations relating
to super included:
• banning the hawking
of super and insurance
products;
• that a person should
only have one super
fund;
• banning employer
inducements (to nominate
particular funds as
default funds, or having
employees join a particular
fund);
• ensuring financial
advisers who aren’t independent
disclose this
to clients in a prescribed
format;
• banning grandfathered
commissions
which are attached to
some bank and insurance-owned
super funds;
• The overhaul of bosses’
pay so that incentives
are more aligned to
non-financial risk; and
• an overhaul of the
culture of the regulators.
The good news for
consumers is it hasn’t
...there’s still a lot
more to be done but
it’s encouraging that
real progress is being
made.
just been all talk, and no
action.
In early February,
the Federal Parliament
passed new laws which
gives the Australian Tax
Office greater power to
consolidate inactive and
low-balance accounts.
It also bans exit fees
and imposes a three per
cent fee cap on accounts
with $6000 or less.
While the Government
was unsuccessful in their
attempts to make life insurance
opt-in rather than
opt-out for young people
and low-income earners,
inactive super accounts
will no longer be charged
life insurance fees.
As evidenced by both
the Productivity Commission
and the Royal
Commission, there’s still
a lot more to be done but
it’s encouraging that real
progress is being made in
improving the operation
of Australia’s superannuation
system.
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The trustee of Tasplan Super (ABN 14 602 032 302) is Tasplan Pty Ltd (ABN 13 009 563 062).
AFSL 235391. © 2019 Tasplan Pty Ltd. All rights reserved.
Tasmanian Business Reporter - MARCH 2019 9
Toll’s vote of confidence
NEWS
Jeremy
Rockliff
Infrastructure Minister
THIS month saw the arrival
of Australia’s newest and biggest
cargo ship, the 210-metre
Tasmanian Achiever II, at the
Burnie port.
The 20,000-tonne Tasmanian
Achiever II will increase
Toll’s Bass Strait carrying capacity
by 40 per cent.
This is a massive increase
in capacity, and together with
Searoad’s recent investment
in the SeaRoad Mersey II, this
will allow Tasmanian producers
and businesses to export
more of our highly sought
after products in both the national
and international markets.
This private sector investment
in Bass Strait freight
capacity is also a huge vote
of confidence in the Hodgman
Liberal Government’s
management of our economy
and its job-creating, investment-friendly
policy action.
It is no secret Tasmania has
highly sought after products,
from our premium agricultural
produce, to our raw earth
mining exports.
Both these industries support
thousands of jobs, many
of which are located across regional
Tasmania.
Toll’s investment will also
ensure that Tasmanian businesses
and communities have
another important link for inward
goods for the continued
operation of their businesses.
Toll Group’s investment
recognises the strength of
our economy and export
sector, and the Tasmanian
Achiever II is part of Toll
Group’s $311 million investment
in two new ships
and wharf upgrades to Port
of Burnie and Webb Dock in
Melbourne.
Data from the Australian
Bureau of Statistics on International
Merchandise Exports
shows that Tasmanian
exports during the 2018 calendar
year were the highest
Premier Will Hodgman, left, Toll Group Chairman John Mullen, Prime Minister Scott Morrison and Japan Post First
Executive Officer Taneki Ono at the official naming ceremony for the Tasmanian Achiever II on the Burnie wharf.
since ABS records began.
In the year to December
2018 Tasmania exported
more than $3.78 billion in
goods and produce, an increase
of 14.6 per cent compared
to the previous year.
Leading Tasmanian export
sectors were metal and mining
industries, followed by
our world class agricultural
products.
The Hodgman Liberal
Government will continue to
implement initiatives to create
jobs and boost economic
growth in Tasmania.
We have a target to grow
the farm gate value of the
agricultural sector to $10
billion per annum by 2050,
and targeting a 50 per cent
increase in new mining ventures
over five years.
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10 Tasmanian Business Reporter - MARCH 2019
NEWS
Program a boost for
leaders of the future
TWENTY nine of Tasmania’s
brightest leaders have celebrated
their completion of the
latest Tasmanian Leaders Program.
Those who finished the
2018 program say they are
now equipped with refined
skills, new knowledge and
increased motivation and are
ready to enact positive change
for Tasmania.
Places in the annual program
are highly sought after
and only granted to participants
demonstrating a high
degree of potential and passion.
Over 11 months last year,
the 2018 participants came
together monthly to explore
challenges and opportunities
for Tasmania in areas
such as community, business,
economics and government
through seminars, case studies,
field trips and retreats.
The program enhances each
participant’s leadership capacity
while prompting them
to develop a vision for Tasmania’s
future.
“I have felt great privilege
in being selected in a program
that has challenged my
perceptions and given me the
opportunity to become better
educated on issues facing
Tasmania,” said graduating
participant, Donna McDermott
- the acting power station
manager at Hydro Tasmania’s
Tamar Valley Power Station.
“Throughout the year my
confidence levels have increased
and I have learnt to
extend myself, ask questions
and have conversations to
broaden my awareness and
networks.”
Australia Pacific Airports
(Launceston) manager of
planning and development
Ilya Brucksch-Domanski said
the programs had encouraged
greater mindfulness and in-
vigorated his sense of community.
“TLP challenged us to consider
other people’s view.”
TLP 2020 will be open to
new applicants on June 1,
2019.
For more information visit
www.tasmanianleaders.
org.au.
2018 graduates
Cassie Arnold, pitt&sherry
Leigh Arnold, leigharnold.com
Phil Beeston, S. Group
Ilya Brucksch Domanski, Australian
Pacific Airports (Launceston)
Paris Buttfield-Addison, Secret
Lab Pty. Ltd.
Samuel Cairnduff, Tasmanian
Symphony Orchestra
Anne Carey, TasNetworks
Sarah Coulson, Tasmanian
Health Service
Waqas Durrani, Federation of
Ethnic Communities’ Councils
of Australia (FECCA)
Andy Fist, Kooee Snacks
Jenn Heggarty, Tasmanian
Leaders
Alison Hugo, On Your Bike
Tours Launceston
Jason Imms, LIVETILES
Tim Jordan, Degree C
Justin Legg, Lester Franks
David Lenel, pitt&sherry
Chris Love, Big Blue Co Pty
Ltd
Donna McDermott, Hydro
Tasmania
Hannah Moloney, Good Life
Permaculture
Jarred Moore, UTas
Martin Moroni, Private Forests
Tasmania
Kate Owen, Futago
Jess Robbins, Tasmanian Way
Jessie Stanley, Office of the
Coordinator-General
Grace Walsh, Multicultural
Council of Tasmania
Carolyn Watson-Paul, Henry’s
Ginger Beer
Ally White, Department of
Education
Insp. Gary Williams, Tasmania
Police
Absent: Sam Halliday, Department
of Health and Human
Services.
Tasmanian Leaders Program 2018 participants celebrate their graduation.
Awards
seeking
women
miners
THE 2019 Tasmanian Women
in Resources Awards have
been officially launched to
recognise exceptional female
talent in Tasmania’s resources,
mining and manufacturing
businesses.
The annual awards are hosted
by the Tasmanian Minerals
and Energy Council in conjunction
with the AusIMM
Women in Mining Network
Tasmania and include seven
categories across trades, manufacturing,
non-executive,
engineering and professional
services roles.
Two categories also recognise
the importance of gender
diversity champions and
workplace programs in supporting
women to pursue resource
industry careers.
WIMnet Tasmania chairman
Ted Bradshaw acknowledged
the role of the awards
in strengthening female participation
in non-traditional
industries.
“The Tasmanian awards
are now in their sixth year
and they help to showcase the
ambassadors and role models
that can inspire more women
to consider the attractive career
opportunities available to
them in the mining, manufacturing
and resources sectors,”
he said.
A judging panel will announce
this year’s Tasmanian
award category winners at a
ceremony in Hobart on May
30.
Category winners go on to
represent Tasmania in the National
Women in Resources
Awards to be announced in
September.
Selection criteria and entry
information is available
from the TMEC website
at http://tasminerals.com.
au/2019-tasmanian-women-in-resources-awards
Award nominations close
March 31, 2019.
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Tasmanian Business Reporter - MARCH 2019 11
EVENTS
Richard, left, and Rob Clark of Westerway
Raspberry Farm.
Dr Josie Kelman, Derwent Catchment Project,
left, and Veronica Youd of The Shingles
Riverside Cottage.
Leanne Masters of Hug A Horse, left, and Cally
Lyons of Rathmore.
What:
Derwent Valley
Gazette relaunch
Where:
Star & Garter Hotel,
New Norfolk
When:
Tuesday, February 12
2019
Lyons Liberal candidate Jessica Whelan, left, Jonathon
Heather, office of Jane Howlett MLC, Greg Hudson, Lions
Club of New Norfolk and Anthony Edwards, Cancer
Council/Relay for Life.
Derwent Valley Gazette fishing writer Adam
Rice, left, and Rodney Dunn of the Agrarian
Kitchen.
What:
Strong Australia
Network business
luncheon
Where:
Hotel Grand
Chancellor Hobart
Stephen Cahoon of Sense-T, left, Rod Bender
of Norske Skog and Geoff Atkinson of
AusIndustry.
BUSINESS
2
Phil Hudson from the Business Council of Australia,
left, David Speers from Sky News Australia and
Gemma Daley from the Business Council of
Australia.
When:
Thursday,
February 14,
2019
BUSINESS
YOUR QUICK GUIDE TO SERVICES AND PRODUCTS FOR YOUR BUSINESS
HOBART’S BEST RANGE OF
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TCCI CEO Michael Bailey, left, Bob Gordon from
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We specialise in high quality ergonomic chairs,
alternative seating and electronic sit/stand desks.
Flair Office Furniture has been providing quality, affordable office
furniture to homes and offices throughout the Hobart region
for nearly 15 years. We’re a locally-based, family-run business
specialising in all types of products, so why not visit us today to
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Phone 6234 1127
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To see your business here, call Kerri on 0419 750 267 or email kerri@thetrustedmediaco.com
12 Tasmanian Business Reporter - MARCH 2019
PROPERTY MATTERS
Demand for city office space
Scott Newton
Property Matters with
Knight Frank
Knight Frank Hobart’s office sales and
leasing specialists Hayden Peck and
Richard Steedman give an update on the
Hobart of the office sector in this month’s
feature article.
THE recent release of the
Property Council of Australia’s
Office Market Report
2019 provides further evidence
of Hobart’s thriving
property market.
Recording a vacancy rate
of only 5.9 per cent ranks it
as the third strongest capital
city office market in the
country, behind Melbourne
(3.2 per cent) and Sydney
(4.1 per cent) with all other
markets significantly weaker
with Canberra 11.0 per cent,
Brisbane 13.0 per cent, Adelaide
14.2 per cent, Darwin
17.2 per cent and Perth 18.5
per cent.
Hobart’s CBD office market
vacancy rate of 5.9 per
cent indicates that the market
has tightened considerably in
recent years, down 3 per cent
from 8.9 per cent in 2015 and
is significantly stronger than
the national average of 8.5
per cent.
The A-grade sector is the
tightest, with a vacancy rate
of only 4.9 per cent, B-grade
9.1 per cent, with C- and
D-grade 6.0 per cent and 6.1
per cent respectively.
Hobart’s low office vacancy
rate is a function of three
key factors, being minimal
speculative development;
competing property uses and
increased demand.
Historically, new supply
within Hobart’s market has
been demand driven, with
new office accommodation
The new Parliament Square is indicative of the development of pre-committed office
accommodation in Hobart.
primarily resulting from
pre-commitment by major
tenants with very little speculative
development.
This is in part due to an
economic rental generally
being required to ensure an
appropriate return to the developer.
Improved economic conditions
has resulted in greater
competition within our market
from competing property
uses, in particular from the
tourism/hotel sector.
This has resulted in an increase
in the underlying land
value of key sites within our
city, rendering some older
office buildings and/or their
sites to have a higher and
better use than offices, such
as visitor, residential or student
accommodation.
As a result, a number of
older office buildings have
been demolished or converted
to alternative uses.
This in effect represents a
replenishing of Hobart’s office
market stock.
Strong economic growth
in Tasmania in recent times
has resulted in new demand
for office accommodation
with net absorption, ie increase
in area occupied, recorded
at 1,178sqm for the
year and a total of 6,465sqm
over the past two years.
We have seen a strong increase
in demand from small
businesses new to our market,
with many seeing great
opportunity within our confident
and growing market.
We have also seen new
demand from the education
sector, particularly Registered
Training Organisations
for international students
with a number of organisations
setting up business
in Hobart over the past two
years.
This new education demand
has resulted in associated
services also opening
within the CBD such as immigration
and travel agencies
and other professional
services targeting international
students such as lawyers
and accountants.
With very little new office
market stock, i.e. new buildings,
forecast to come online
in the short to medium term,
and growing demand for Hobart
office accommodation,
this should see a further reduction
in the vacancy rate
which will likely translate
into rental growth.
PROPERTY VIEW
MARCH 2019
HOBART’S STRATEGIC MEGA SITE
103 Melville Street & 159 - 163 Harrington Street, Hobart
For Sale by Expressions of Interest
• Knight Frank has the privilege to
present what will be the largest and
most significant CBD development
site available to the market for the
foreseeable future.
• Situated on the Northern edge of the
CBD only 250 metres from Hobart’s
central retail block, this site represents
an opportunity that is truly unique.
• Proposed zoning change will allow for
45m building height*. (STCA).
• 2 year Leaseback from settlement.
• Land area: 1.179 hectares.
• 2 titles.
• Offering includes 3 heritage terraces.
• Existing main structure 6374sqm*.
• Existing Car Spaces: 120*.
* approx
Outline indicative only
Outline indicative only
Scott Newton 0409 186 261
Hayden Peck 0412 766 395
BRIDGEWATER INDUSTRIAL HUB
16 Crooked Billet Drive, Bridgewater
For Sale by Offer
• Single level Industrial building.
• A good lease in place to 2023 with annual fixed
increases and two (2) ten (10) year options.
• Solid building construction, and in an area with
low vacancy and with easy access, the property
presents a quality investment to hold.
• Total land area of approximately 2265 sqm.
• Lettable area of approximately 474 sqm (including
mezzanine).
• Net rental of $48,458.
• Inspections strictly by appointment.
“STRELLEY FARM”
66 Prosser Road, Richmond
For Sale by Private Treaty
• 170ha of arable, irrigated, Coal River Valley
land over 6 titles.
• Access to SEIS Stage 1 and Stage 2 water.
320 megalitres of storage capacity.
• Highly suitable for horticulture, viticulture,
and intensive cropping.
• Zoned Significant Agriculture; Municipality of
Clarence.
• Bordering the historic village of Richmond
• 5 minutes from Hobart Airport, 20 minutes
to Hobart CBD.
• All improvements are in excellent condition.
Ian Reed 0419 670 501
Ian Reed 0419 670 501
Michael Crisp 0438 597 128
5 Victoria Street, Hobart 54 Cameron Street, Launceston Shop 8, 48-54 Oldaker Street, Devonport
P: 03 6220 6999 P: 03 6333 7888 P: 03 6424 3568
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