Latest news with #BusinessWeekend
Sky News AU
19-07-2025
- Business
- Sky News AU
AUSTRAC broadens scope of anti-money laundering crackdown to target billions of dollars of drug money investment
Australia's financial crimes agency is cracking down on the billions of dollars of drug money laundered throughout the economy as it broadens the scope of its interrogations. Join to watch the full interview behind the crackdown on Business Weekend from 11am AEST. The Australian Transaction Reports and Analysis Centre (AUSTRAC) on Thursday revealed it is looking at how real estate agents, lawyers, conveyancers, accountants and other professions can prevent money laundering. It marks a shift for AUSTRAC which typically looks into the finance sector. 'AUSTRAC will look at risk and behaviour at an industry and sector level rather than focussing solely on individual entities,' AUSTRAC CEO Brendan Thomas said. The department's deputy chief executive Katie Miller joined Sky News Business Editor Ross Greenwood where the question of how Australian criminals were laundering drug money arose. 'One number that rolls in my head … is the consumption of, for example, cocaine (and) illicit drugs in Australia is around $14 billion worth per year,' Greenwood said. 'That money has to be laundered because much of it is in cash. Same thing would go for the illegal tobacco trade. 'This is all money that becomes much more difficult to launder as a result of the actions that you will take against the gate keepers to much of the cash that might otherwise engage or find its way to legitimate business.' Ms Miller said the financial crimes agency had broadened the scope of its concern to further crackdown on money laundering practices. 'This is about trying to close those gaps that money launderers can exploit,' she said on Business Weekend. 'Money laundering is organised crime. They look for every opportunity where they can hide their money (and) where they transfer their money. 'This is a constant game of just trying to fill those gaps, lift up the standards so that we just make it harder for criminals to hide the illicit proceeds of their crime.' Greenwood on Thursday said the new efforts by AUSTRAC puts pressure on professionals, such as lawyers and real estate agents, to know where their clients' money is coming from. They will need to have proof of where the money originates before spending large sums of cash into something like property. 'A lot of the money that comes through the cocaine trail ends up in houses in very affluent suburbs in Australia,' Greenwood said. Ms Miller said by expanding the scope of AUSTRAC's view, it was cracking down on criminals that use professional services to access the financial sector. The agency will particularly focusing on cash-heavy businesses and crypto ATMs, which AUSTRAC previously revealed it was cracking down on. 'We're still seeing very high risks of money laundering in that sector and the industry does need to lift its standards and start managing those risks a lot better than is currently happening,' Ms Miller said. AUSTRAC in the past fined Westpac $1.3b, Commonwealth Bank $700m and is poised to fine Star Entertainment Group about $300m for money laundering practices.
Sky News AU
07-07-2025
- Business
- Sky News AU
Star Entertainment Group to fork out more than $36m if Brisbane Queen's Wharf sale to Hong Kong investors collapses
Star Entertainment Group could be forced to pay almost $37 million if a deal to sell its Brisbane venue fails as negotiations for the newly built casino and hotel complex continue. The casino operator last week told shareholders the pair of Hong Kong investors, Chow Tai Fook Enterprises and Far East Consortium, have threatened to ditch the agreement. Each of the investors own 25 per cent of the Queen's Wharf venue respectively and have looked at purchase the remaining half. An April 30 deadline to sign the deal, which gave Star $53m in cash and consolidated the company's Queensland operations to the Gold Coast, was never met. The Hong Kong investors on June 30 notified Star of its intention to exit the deal which was set to come into effect on Monday. Star on Monday told shareholders both parties have extended the deadline for the deal's termination date until July 31. If a deal is not struck by the deadline, Star will have to repay a $10m cash injection from the Hong Kong investors and reimburse them $26.5m for previous contributions made towards the Brisbane venue. The cash will need to be repaid within 30 days from July 7 while Star will have 60 days to repay the $26.5m if the deal falls through. The failure of the Brisbane casino sale could be devastating for Star as the project has debts of about $1.6b. Star selling the Queen's Wharf complex inspired US gaming giant Bally's Corporation to lob a takeover offer at the casino operator earlier this year. The American company has been critical of the sale and told Sky News' Business Weekend it wanted to keep all of Star's assets. 'We want to keep everything together rather than strip it apart,' Bally's CEO Robertson Reeves said in April. 'We think that things tend to operate better if they're one larger organisation where you can actually generate benefits for each of the properties one by one by making one tweak in one place.' Despite receiving the $300m takeover bid from Bally's alongside local publican Bruce Mathieson, Star still faces crippling financial woes. It awaits a massive fine from financial crime watchdog AUSTRAC that could be upwards of $400m over historical misconduct and faces further regulatory measures aimed at stamping out money laundering. It has received $58m from the sale of its Sydney casino's event centre and another $133m from the Bally's-Mathieson takeover. Star was on the brink of administration earlier this year and was forced into a trading halt after it missed the deadline for its financial results for the first half of the 2025 financial year.
Sky News AU
14-06-2025
- Business
- Sky News AU
Pink Batts disaster invoked over Albanese government's $2.3 billion solar batteries installation scheme
Labor's $2.3 billion bid to cut the price of solar battery installation has sparked fears of another disastrous situation like the Rudd government's Pink Batts scheme where four men died doing installation work. Join to watch the full interview on Business Weekend at 11am (AEST). The Albanese government claims it will cut the price of battery installation by 30 per cent through its major rebate geared at bolstering the nation's renewables shift. It has rekindled memories of Labor's Pink Batts scheme under former prime minister Kevin Rudd's Home Energy Efficiency Program where young, inexperienced installers were not protected and died on the job. A Royal Commission found the deaths of the young men would not have happened if the scheme was properly designed and implemented. Industrias Services Group CEO Daniel Lazarus has invoked the horror scheme just weeks ahead of Labor rolling out the new rebates. 'We've audited thousands and thousands of systems and batteries across the country over the last ... 12 months and I've seen a material amount of these batteries and solar systems, which are either substandard or a small percentage of being unsafe,' Mr Lazarus said on Sky News' Business Weekend. 'Even that small percentage of unsafe systems is big enough to create real worries about what the scheme might do with the tidal wave of what's going to happen around all these installs.' He noted the design of the installation program was currently 'sound' and stressed that he was confident around industry standards, but warned Aussies would take advantage of the huge swath of rebates. 'The problem is with this huge influx of rebate schemes,' Mr Lazarus said. 'What will happen with the inevitable influx that will come within the industry to take advantage and what are they going to do to try and maximise the rebate that they obtain? 'How will they take advantage or at least avoid dodging a lot of these elements that are required to receive the rebate, that being standards?' Despite protocols and standards that arose since the Royal Commission into the Pink Batts scheme, there remains a lack of key inspection mandates across the country, Mr Lazarus cautioned. 'What we're really advocating to industry is around how do you make it such that either all systems, or at least the majority of systems, installed by every installer that's taking advantage of this rebate scheme, is getting physically inspected,' he said. The rebates under the Pink Batts scheme led to the number of businesses in the installation sector rising from 200 to more than 8000. It was originally meant to run for five years but finished after just one year and about 30 per cent of inspected installations in 2010 were found to have faulty craftsmanship or to be unsafe. Mr Lazarus said while there were a few fatalities, alongside less than 100 fires, it would only take a small number of incidents to destroy the whole scheme. 'The last thing that I want to see is a scheme like this which is meant for specific homeowners and the distribution of energy to be called off early,' he said. Labor said it expects to deliver more than one million batteries under its scheme.
Sky News AU
07-06-2025
- Business
- Sky News AU
Labor left with ‘no choice' but to force super tax after weak GDP figures in March, shadow treasurer Ted O'Brien declares
Labor has been left with 'no choice' but to go after citizens' earnings with its proposed super tax as slow growth plagues the nation and hurts tax revenue, shadow treasurer Ted O'Brien has declared. Join to watch the full interview with Ted O'Brien on Business Weekend at 11am (AEST). The Albanese government's proposal to double the tax rate on funds in super balances above $3m and target unrealised gains could soon be legislated as the Greens' approval is all the bill needs to go through the Senate. It comes as recent GDP figures showed Australia was headed back towards per capita recession territory with growth slumping to just 0.2 per cent in the March quarter. The super tax proposal has faced fierce backlash from the Opposition, economists and leaders in the business community. Mr O'Brien is among those and tore into the Albanese government's fiscal management on Sky News' Business Weekend. 'The only reason they're doing it is they've lost all discipline on fiscal responsibility,' the shadow treasurer said. 'Debt (and) deficits (are) going out of control and they've got no ambition for the Australian economy.' He criticised Treasurer Jim Chalmers who lauded the 0.2 per cent growth, arguing the uncertainty from Donald Trump's trade war meant any growth was a decent outcome. 'We heard it last week from the Treasurer after the national accounts came out. What, 0.2 per cent growth in the quarter? Seriously? Lower than last time!' Mr O'Brien said. 'At a yearly basis it's running at less than half of the long-run average of growth and the Treasurer is happy about that. '(There is) no ambition for growth of the Australian economy and when you have no ambition and you overspend, you have no choice but to go after the earnings, the money of your own citizens. 'That's what this super tax does.' Labor's plan to tax unrealised capital gains has drawn backlash from Aussies concerned about small businesses, farmers and startups as many put assets in their self-managed super funds or use it as a low tax investment vehicle. Wilson Asset Management founder Geoff Wilson said by forcing Aussies to pay taxes on paper gains it will hinder investment in Australia. 'Both Anthony Albanese and Jim Chalmers - and probably most of the government - are gaslighting the Australian people by saying: 'Look, this will only impact a very small percentage of people that pay the additional tax',' Mr Wilson told Sky News. 'That's correct, but what it'll do is actually impact about how $4.2 trillion in superannuation is invested. 'We anticipate that the money will come out of self-managed super funds (SMSF), which is about $1.1 trillion, and billions of that will go into the housing market and push house prices up . ' He cautioned Aussies who use their SMSF as a low tax investment vehicle will be discouraged from funding projects and businesses in the Australian market. 'People won't want to take risk on their superannuation in the self-managed super funds,' Mr Wilson said. 'The angel investors and the startups and the small companies in Australia that find it hard to raise capital, particularly at this point in time - that tap's going to be turned off.'
Sky News AU
01-06-2025
- Business
- Sky News AU
Beach Energy boss Brett Woods slams Victoria's gas policy after Santos CEO Kevin Gallagher likens state to North Korea
Another CEO of a major Australian energy company has torn into the Victorian government's gas policy after the state was compared to North Korea last week. Victoria's handling of gas development and the state government's attitude towards investment came under fire when Santos chief executive Kevin Gallagher lashed out at a conference in Brisbane. 'If I think about Queensland, South Australia, Western Australia – these are very supportive, very development-friendly jurisdictions,' Mr Gallagher said. 'Victoria? North Korea. They're different altogether.' On the sidelines of the same conference, Beach Energy CEO Brett Woods said getting gas projects approved in Victoria had 'been a challenge'. 'Victoria still have had quite a negative policy in terms of what the role of gas is in the state,' Mr Woods said on Sky News' Business Weekend. 'I think the recognition now, with industry shutting down and foreclosures and other things, (is) that they need more gas. 'We're ready to help, we just want to get after our projects so we can move them forward.' Victoria continues to be the most gas-dependent state in the country as the fuel is critical for warming homes and businesses during winter. However, a green energy focus, depleting offshore gas supplies and historical moratorium banning gas exploration, which was lifted in 2022, means Victoria faces looming shortfalls and may have to begin importing liquefied natural gas in the coming years. Mr Woods said red tape and delays meant it took more than 40 approvals to get a single gas well online in Victoria. 'That was challenging. It took considerable time,' he said. 'That really challenges our ability to continue to explore and invest. I think in recent months we've seen positive energy out of Victoria to see more gas, so that's been great. 'But when you have these challenges, it's hard to bring shareholders and boards along to the journey about deploying company capital.' Victoria was formerly a major gas powerhouse and exported the fuel source to NSW and South Australia, however, concerns about the future of gas in the state are now common. The Australian Competition and Consumer Commission earlier this year warned about winter shortfalls in south-eastern states, while the Australian Energy Market Operator (AEMO) projects shortfalls during peak demand from 2028. AEMO also forecasted annual supply gaps from 2029. While some smaller players look for gas onshore, the major players are avoiding this and looking towards more development of offshore gas. ExxonMobil and Woodside have recently approved a $350m investment to launch new drilling projects in the Bass Strait, while ConocoPhillips will spend more than $100m on drilling two exploration wells in the area.
