The CBA Viewpoint report shows that from December 2008 to December 2009, the percentage of 18-24 year olds receiving Centrelink jobless benefits rose 13.6 per cent, while increasing only 7.3 per cent for 25-34 year olds.

“The state of the labour market prompted employers to hoard labour, which impacted upon recruitment” said Commonwealth Bank Chief Economist Michael Blythe. Also “Older workers whose retirement savings had been damaged stopped exiting the workforce,” he said.

Centrelink benefits for 35-44 year olds rose 8 per cent over December 2008-December 2009, while for 45-54 year olds the increase was only 4.1 per cent.

“Lower retirement rates meant fewer jobs were freed up for new, or younger, workers,” Mr Blythe said.

The salaries of older workers fared better through the crisis, as well, with an 8.1 per cent increase in monthly salary payments going to 55-64 year olds, while 18-24 year olds saw the weakest increase of only 2.5 per cent, just above the inflation rate of 2.1 per cent.

Workers aged 25-44 experienced a 4.9 per cent increase in monthly salary payments, not as high as the 5.8 per cent increase enjoyed by 45-54 year olds.

“The fact that older age groups showed greater increases in salary receipts than younger age groups suggests younger workers, with lower levels of skills and experience, may not be able to negotiate pay increases during a period of economic downturn; or that younger workers are more likely than older workers to have their hours reduced.

The data in the report is drawn from a 1.3 million household sample of Commonwealth Bank’s customers along with 2000 interviews.

article excerpts smh.com.au

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Kelly was disqualified following his involvement in two failed companies, Linc Construction Group Pty Ltd (Linc Construction) and AML Construction Pty Ltd. At the time of liquidation, Linc Construction owed $10,691,141 to 199 secured and unsecured creditors and AML Construction owed $42,025,887 to 131 unsecured creditors.

ASIC found that between 2005 and 2008, Kelly, as sole director, company secretary and shareholder of Linc Construction improperly used his position on a number of occasions to gain an advantage for himself or someone else to the detriment of the company.

Further, ASIC found that Kelly permitted both Linc Construction and AML Construction to trade while insolvent incurring debts that they were unable to pay and failing to satisfy their statutory liabilities including superannuation contributions and payments to the Australian Taxation Office and State Revenue Office.

Kelly has the right to appeal.

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The AAT was satisfied with the evidence presented by ASIC that Mr Quinlivan is not fit to be a director. The AAT identified a number of serious concerns, in relation to Mr Quinlivan’s conduct as a director, including:
(a) a failure to keep proper records of intercompany arrangements;
(b) a failure to keep proper accounts;
(c) a failure to select and supervise competent subordinates;
(d) a failure to remain familiar with the affairs of the various companies;
(e) a failure to attend to taxation obligations; and
(f) permitting companies to trade while insolvent.

The AAT found that there was a significant risk that Mr Quinlivan would fail to live up to his commitments as a director and that the public needed to be protected against that possibility.

Background
On 21 November 2008, ASIC disqualified Mr Quinlivan from managing corporations for three years pursuant to section 206F of the Act. Mr Quinlivan was disqualified because of his involvement in fourteen companies that were wound up in insolvency between 2002 and 2007: National Consolidated Investments Pty Ltd, Coastal Administration Services Pty Ltd, Remi Morgan Burns Pty Ltd, Australian Financial Management Corporation Pty Ltd, Consolidated Property Investments Pty Ltd, Manorbase Pty Ltd, First Home Buyer (Aust) Pty Ltd, Ausblue Pty Ltd, Shellston Pty Ltd, Coventry Finance Pty Ltd, Rental Options Pty Ltd, Statefort Pty Ltd, Freedom Mortgages Pty Ltd and Scottsdale Homes No 10 Pty Ltd.

On 27 November 2008, Mr Quinlivan lodged an appeal in the AAT for a review of ASIC’s decision.

Since ASIC’s original decision to disqualify Mr Quinlivan, further evidence came to ASIC’s attention concerning his conduct as a director. In light of this evidence, ASIC asked that the AAT disqualify Mr Quinlivan for a period of five years. ASIC expressed concern that Mr Quinlivan continued to be involved in large scale commercial property developments.

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Mrs Bucello pleaded guilty to the following charges:

• five counts of obtaining property by deception; and
• one count of obtaining a financial advantage by deception.

Mrs Bucello’s bail was extended to 4 May 2010 when she will reappear at the Melbourne County Court for a plea hearing and sentencing.

Background

The six counts of deception involve a sum of $2,531,139 that was invested by five investors between 2004 and 2006. The investors were told that their money would be used to provide bridging finance to other clients of VFBS. The investors were promised between 4% and 5% interest per month on their invested capital.

ASIC’s investigation found that investors were in fact being repaid their own money, as is typical of a ponzi scheme, and the scheme was reliant on new funds being invested to meet the promised interest payments. Those who invested at the very beginning fared much better than the last investor, who received no interest payments.

While some of the victims received interest payments, the capital invested was not repaid, although some of the victims did receive regular monthly interest payments. Ms Bucello used the remaining monies for her own purposes and some was used to meet the financial obligations of VFBS.

The matter was prosecuted by the Commonwealth Director of Public Prosecutions

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The sentence was stayed and bail continued to the 9 April 2010 to assess whether the offender is suitable to serve his sentence by way of home detention or periodic detention.

On 18 December 2009, following an investigation by the Australian Securities and Investments Commission (ASIC), Mr Gordon was convicted of the following charges:

• one charge of dishonest use of position as a director and improper use of approximately $91,000; and
• three charges of fraudulent concealment or removal of property to the value of approximately $285,000.

The Commonwealth Director of Public Prosecutions prosecuted the matter.

Background
ASIC alleged that Whet Investments, an unlisted public company, raised approximately $10.8 million through the issue of redeemable preference shares to retail investors.

On 10 July 2005 Whet Investments was placed into voluntary administration by its directors. A Deed of Company Arrangement was executed on 21 October 2005. Mr Gordon was declared an undischarged bankrupt on 23 January 2007.

In 2005, ASIC took several civil actions against Whet Investments, Mr Gordon and companies associated with him

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