CPA Australia CEO Geoff Rankin FCPA reports on activities carried out on behalf of members

Standards recognition

The Commonwealth government recently amended the Trade Practices Act to recognise new CPA Australia professional standards schemes in Victoria, South Australia, Western Australia, the Northern Territory, Australian Capital Territory and Queensland. The New South Wales scheme was prescribed in late 2007.

This prescription has the effect of limiting the occupational liability of members of the scheme relating to an action for contravention of section 52 of the Trade Practices Act, in the same way as occupational liability is limited under the relevant state and territory laws of the applicable professional standards Act. CPA Australia notes that the prescription of the new schemes is for a limited period pending a Commonwealth review of professional standards policy.

However, we are committed to working with the government to ensure that the benefits of government prescription are extended to the Victorian, South Australian, Queensland, Northern Territory, Western Australian and ACT schemes for their five-year duration.

Minister interested in small business survey

Recently I met the minister for small business, independent contractors and the service economy, Craig Emerson. The minister requested the meeting to coincide with the release of CPA Australia's Small Business Survey. The topics we discussed included: the 2008 Federal Budget and the lack of support for SMEs to adopt green practices; our contribution to the Productivity Commission inquiry into paid maternity leave; and the membership of two new small business consultative bodies (the Small Business Advisory Committee on Regulation and the Small Business Ministerial Council Working Group on SMEs and Climate Change).

CPA Australia recommendations referenced in CAMAC inquiry

I was pleased to see that the outcomes of the Corporations and Markets Advisory Committee (CAMAC) inquiry are consistent with the stance taken by CPA Australia in its February 2008 submission. CAMAC has released its final report on long-tail liabilities (the treatment of unascertained future personal injury claims). This review conducted by CAMAC stemmed from the September 2004 Report of the Special Commission of Inquiry into the Medical Research and Compensation Foundation (the James Hardie inquiry) and sought to determine whether corporate insolvency and restructuring rules were deficient in not allowing the proper recognition and treatment of yet to be ascertained personal injury claims. The report has confirmed the adequacy, through need for full adherence of accounting rules to measure and disclose this type of emergent liability. CAMAC has, however, recommended that the rules governing share capital reductions and share buy-backs be amended to ensure that a company's ability to pay such claims are not prejudiced. CAMAC also recommended that provision be made for court sanctioning for unascertained future claims in liquidations and that voluntary administration procedures allow for representation of these claimants. However, the committee has not suggested the further step of introducing stricter anti-avoidance provisions similar to those introduced in 2000 to protect employee entitlements.

Climate change

I met with the shadow minister for climate change, environment and urban water, Greg Hunt, and discussed the work CPA Australia has undertaken in the area of business, sustainability and climate change. The meeting was also an opportunity to gain an appreciation of the opposition's current thinking and direction in this key policy area and explore future consultative arrangements with professional bodies and the business community.

Division and branch councils seeking nominations

CPA Australia's divisional and branch directors are seeking nominations for election for divisional and branch councils. Council terms will be from 1 January 2009 to 31 December 2011.

Being on a council is a great opportunity to work on behalf of members in your division or branch.

You will represent the membership at internal and external events, provide support to, and be involved with, the division or branch through the member-liaison activities. Nominations are invited from any Associate, CPA or FCPA member of the division or branch.

In the case of the divisions, the Associate must have voting rights.

The elections apply to all divisions and staffed and unstaffed branches.

If you wish to nominate

Nomination forms are available on request from your divisional or branch director. The completed nomination form and statement needs to be lodged with the director at the location indicated on the nomination form by 5.00 pm on Thursday 18 September 2008 in the place where the notice is to be given.

Where there are more nominations than vacancies, a ballot will be held in October/November 2008. Results will be announced by the relevant division and branch.

2009 divisional and branch AGMs

All CPA Australia members are invited to attend the annual general meeting for their division or branch. Details will be published in the December 2008 and February 2009 editions of INTHEBLACK.


Reference: August 2008, volume 78:07, p. 17