Remediation costs for Australia’s scandal plagued wealth mangers could more than double to $6b from current provisions
The modelling from Macquarie analysts is based on a figure of $750,000 remediation cost per advisor, dervived from Westpac’s experience
The biggest upgrades in provisions are expected to be made by AMP, ANZ and IOOF
Do we need proof of the unfair bias in our laws when an indigenous Australian can be jailed for the theft of a Mars Bar and his employer can’t be charged fo underpaying him? (ODT)
“The Fair Work Act contains very hefty civil penalties for wage underpayments. The penalties were increased by up to 20 times last year,” he said. “Therefore, any view that the previous penalties were not tough enough has already been very comprehensively addressed.
“Any civil case relating to back-pay would be put on hold by the Courts until the criminal case is heard and determined. Therefore, workers would be waiting years for back-pay.”
Victorian Attorney-General Jill Hennessy said the existing legal regime has failed to prevent underpayment of workers in low paid industries such as hospitality.
“The new laws will be drafted carefully to address any potential constitutional inconsistency issues,” he said.
For the financial planning industry, 2018 will go down as the year where there was nowhere to hide.
“Just a few bad apples”, the industry had constantly told us as scandal after scandal was revealed, and people’s financial futures were ruined.
The banking royal commission showed that up for what it was — a bald-faced lie.
Thousands of small businesses around Australia have been caught in the alleged scam which involves paying $430 a month to a finance company, under a three-year contract which will cost up to $15,500.
Small business owners like Harvey Levy, who owns lawn mower repair business Help Gardener, were told Viewble and its associated business The Shoppers Network would pay them $430 a month in advertising revenue for displaying the television which showed ads for local businesses.
Mr Trent said he became alarmed when he realised Viewble’s clients thought they were receiving the television for free because they would receive a rebate through advertising.
Australia Institute finds employers get six hours’ free work a week from each employee, while thousands are underemployed
“Companies are often so concerned with appearance and damage control that they are unwilling to engage in the degree of examination required to root out the entrenched causes of trust violations,” the study says. For instance, BP allowed its Texas refinery explosion in 2005 to be followed by the oil spill in the Gulf of Mexico in 2010. News Corp had an employee jailed for phone hacking in 2007, but endured another phone-hacking scandal in 2011.
A landmark study has found a silent underclass of vulnerable Australian workers is owed an estimated billion dollars with almost a third paid $12 per hour or less – almost half of their legal entitlements.
The University of NSW (UNSW) and Univerity of Technology Sydney (UTS) research found that fewer than one in ten migrant workers has taken action to recover unpaid wages, even though they know they are being underpaid. The remaining nine in ten suffered wage theft in silence.
One in five samples of local honey sourced along the eastern seaboard of Australia, including boutique brands, has been found to be fake, deepening the global scandal over the impurity of honey.
The study, which tested five raw samples of honey and 95 local and global-branded honey, found 27 per cent were adulterated. But the big shock was Australian honey. Of the 38 honey samples sourced from supermarkets and markets, 18 per cent, or almost one in five, detected adulteration. The states implicated in the scandal include Victoria, Queensland, NSW and Tasmania.
Australia’s largest consumer credit reporting agency, Equifax, has joined the finance sector’s disgrace list after being hit with a $3.5 million fine for misleading, deceptive and unconscionable conduct following legal action by the Australian Competition and Consumer Commission (ACCC).
This includes asking consumers to pay for their own credit histories, which they have the legal right to obtain for free.
Equifax admitted to breaching Australian Consumer Law when its representatives made false or misleading representations to consumers during phone calls.
When Pay for No Service occurs when government outsources companies and pays them for not educating not findinf employment just simply signing people up. Collecting signitures for payment doing nothing has been common practice that has remained hidden for years but known by the participants involved except those that they were meant to benefit,why? It wasn’t in anyones interest to get busted.(ODT)
The 58-year-old Wodonga woman had just discovered she owed the federal government $36,000 for a tertiary qualification she’d never received. She was also told she had to immediately repay $2000.
This created a perverse incentive for some colleges to enrol as many people as they could, sometimes luring them with laptops and other incentives to sign up to often substandard online courses.
Corporate Fraud and Tax Cuts money for nothing and no ICAC support from the LNP (ODT)
The retail group that owns Rebel Sports, Supercheap Auto and Macpac has admitted to underpaying workers by almost $8 million after incorrectly calculating overtime pay and allowances.
If only concern was given to threats faced by the Individual citizen from both business and the business of cyber crime.We speak of market “freedoms” with little emphasis of “safety” other than “Buyer Beware” were not about to “teach” you the traps witch are increasing daily with data farming. Crime, Punishment are after all a class apart. (ODT)
Unfortunately, with around 3.5 billion internet users globally and well over 10 billion devices in use, cyber security will remain a major headache confronting business and government globally for years to come. For example, over the past year, the size of the global cybercrime economy has grown to more than $2 trillion annually, making it the world’s 13th largest economy by revenue, according to the Into the Web of Profit (Understanding the Growth of the Cybercrime Economy) study recently released by the University of Surrey in the United Kingdom.
Why wasn’t this News Corp headline news(ODT)
In April, following a 10-week trial, Linc Energy Limited was found guilty by a jury of five counts of wilfully and unlawfully causing serious environmental harm at its underground coal gasification plant at Chinchilla in the western Darling Downs.
Linc’s mine at Hopeland was described by Environment Minister Stephen Miles as potentially the biggest environmental disaster in Queensland history. Appropriately, Judge Michael Shanahan handed down a $4.5 million fine — the largest environmental penalty in Qld history, but still well short of the enormous clean-up costs needed.
The mining technique, which Linc practiced at Hopeland, was an extreme form of fracking known as underground coal gasification.
When is Corporate theft deemed a crime. Steal off a Corporation it’s a jailable offense? A Corporation steals off it’s enmployees it’s “hard nosed business” someting is seriously wrong and its systemic because our system allows it to happen. (ODT)
It is what Quadrant is doing with Rockpool Dining Group, which is expanding rapidly, has become heavily indebted and according to former senior management has a ruthless focus on costs and wages.
The downside is the mountains of evidence of systemic issues at Rockpool Dining Group around the underpayment of workers through the heavy use of unpaid overtime.
Over a decade my CBA Super Fund has yeild a total of 25%. There is absolutely nothing about a fund thats annual average has been a loss. The self managed portion of my fund has had a yeild of well over 100% and I’m certainly not a professional. Dear Agony Aunt have I been “ripped off”? (ODT)
Of the 74 funds with MySuper products, the commission found that 20 were underperforming – worth about 4.6m member accounts. Of those 20, nine were retail funds, six industry, three corporate (ie funds set up to cover employees of a company) and two public sector funds.
But that breakdown wrongly suggests the retail and industry sectors are almost equally as bad.
What those numbers hide is that the nine retail funds are among the biggest of their kind and the six poor-performing industry funds are among the smallest.
In reality, most people in dud MySuper funds are in retail funds, and most of the people in retail MySuper funds are in dud funds.
The biggest losers: Productivity Commission finds super funds wanting
Mattel is one of the largest toy-making companies on earth. Turns out it’s one of the biggest manufacturers of income inequality, too.
Last year, the Barbie doll manufacturer paid its CEO nearly 5,000 times as much as its median worker.
Crime Really Does Pay: Telstra’s $10 Million Fine Is $50 Million Less Than What It Stole
Unions will campaign ahead of this year’s state election for the Andrews government to make ‘wage theft’ a crime and punishable by up to 10 years in jail.
The move by the Victorian Trades Hall Council and its Young Workers Centre is part of a growing legislative push in Australia to try to turn the deliberate underpayment of wages into a criminal offence.
The Financial Services Royal Commission has seen evidence that bank directors and executives deliberately put in place policies to ignore the law.
But research suggests the very organisational structure of banks makes it difficult to hold directors and senior executives criminally responsible for systemic misconduct.
A tailor pushing $122 million in home loans, gym owners assessing peoples’ finances, paper envelopes filled with cash bribes, and a bank chief executive revealing his own customers are getting a raw deal.
These trillions are kept out of sight, locked away by the capitalist rulers, and workers are told that cut backs to health care, education and pensions are needed to balance the government budget. The “Paradise Papers” confirm that the capitalist economic system we live under is bankrupt as far as the working class is concerned. It is the workers who create value – surplus value – and the capitalist class skims it off, demonstrating the fact that capitalists are parasites, who are not necessary for human development and production.
The employment department is refusing to reveal the identities of the directors who contributed to a total unpaid wage bill of $1.6bn over 10 years, which was left to taxpayers to pick up.
A new film tells the story of Crossett, Arkansas – a small town dominated by a Koch brothers-owned paper mill, blamed for dumping cancer-causing chemicals
Exclusive: Allegations by Indian customs of huge sums being siphoned off to tax havens from projects are contained in legal documents but denied by company
Victorian public school cleaning contracts are being slashed in a bid to stop staff being routinely underpaid and exploited by rogue operators.
Police investigating London’s Grenfell Tower disaster, in which 80 people were killed in rapidly spreading fire, have sent a letter to survivors and families of victims saying there are “reasonable grounds” to suspect it was a case of corporate manslaughter.
The retirement village industry is crying out for federal oversight.
“I will say straight that we want to sell this sponsorship,” a Domino’s Pizza franchisee blurts down the line in Mandarin.
More 7-Eleven workers are speaking out about the so-called cash back scam, in which employees are forced to hand back part of their pay to franchisees of the convenience chain.
More than 40,000 Nigerians demand action from Shell to clean up oil spills that have devastated communities for decades.
The Australian Securities and Investments Commission has described them as “expensive” and “poor value”.
Multinational companies are perpetrating a multi-billion tax rip-off, writes Martin Feil.
Unlike other insurers you cannot get an insurance quote from Youi online – it must be through a phone interview. That’s where the trouble starts.
An investigation reveals the Government has clawed back more than $41 million in false claims by private employment agencies.
MICHAEL SMITH (7-Eleven Chairman): Well I think you’ve come to the nub of the issue. We were on fire when this happened and we needed to act really quickly. We appointed the panel and we’re very grateful that they came to help us to make that as an issue that we didn’t have to spend…
Until the moment that Fairfax Media and The Huffington Post hit the “publish” button at 10pm on Wednesday, AEST, revealing how the oil industry really works, our investigative team was on tenterhooks.
Secret emails obtained by Fairfax Media reveal the extent of Unaoil’s corrupt influence on the Iraq government.
More Australians have been implicated in the growing scandal over corruption in the oil industry as the FBI joins forces with British and Australian police to investigate revelations of a huge global bribery racket.
Anti-corruption experts in the US and Europe have urged Australia to properly resource and empower its anti-bribery regime as Australia emerges as the “dumping ground” for dirty money from Asia.
A global bribery scheme that implicates leading Western multinationals including Leighton holdings has been exposed by the leak of confidential files in the oil industry.