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Loss carry back scheme would boost otherwise profitable businesses

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said formerly profitable small businesses impacted by the COVID crisis would get a much-needed cash flow boost if loss carry-back tax provisions were re-introduced.

The Ombudsman’s comments follow media reports the Federal Government is considering an OECD recommendation to implement a loss carry-back provision for usually profitable businesses that will report a loss this year due to the pandemic-induced economic downturn.

“This is a tax initiative that would result in tangible benefits for small businesses that would have otherwise been profitable if not for harsh trading restrictions and lockdowns,” Ms Carnell said.

“It effectively allows a small business that has paid tax on profits in previous years to claim back that tax offset a loss in the current year.

“This has been adopted by other countries such as the US, Japan, New Zealand, Germany and Belgium and was previously introduced for a short time by the Gillard Government.

“When it was first introduced in 2012, the Institute of Public Accountants (IPA) said the loss carry-back measure would benefit 110,000 Australian businesses.

“Unfortunately the provision was scrapped in 2013 with the repeal of the Mineral Resource Rent Tax, despite being recommended by the Henry Tax Review.

“While we haven’t seen the detail on this proposal as yet, the OECD is recommending Australia introduce the loss carry-back provision to mitigate the damage inflicted on businesses that were previously profitable," Ms Carnell said.

“Generally speaking, the Federal Government has an opportunity to implement tax reforms now that will support the small business sector grow and hire to restart the economy.

“Our COVID-19 Recovery Plan outlines a number of additional recommendations to build economic confidence, including a range of taxation reforms.”

www.asbfeo.gov.au

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Beyond Blue small business mental health initiative a life-saver: Ombudsman

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell has praised Beyond Blue for its latest initiative to support the mental health of small business owners.

Beyond Blue has launched a free online training course to help small business advisers provide mental health support to small business owners impacted by the COVID crisis.

“Beyond Blue, with the help of partners Xero and Go1, is once again taking a lead role in supporting the small business community at a time when they need it most,” Ms Carnell said.

“There has never been a tougher time to be in business and the psychological distress caused by this pandemic cannot be underestimated.

“Given small business loans are often secured against the family home, the stakes are incredibly high and that is understandably taking a huge toll on small business owners’ mental health.

“Beyond Blue is responding to the needs of small businesses, by providing evidence-based training to trusted advisers – who small business owners often turn to in times of crisis.

“Equally small business advisers are in a good position to notice if their client is struggling to cope," Ms Carnell said.

“This free online course offers small business advisers information about what signs to look out for, how to start a conversation with a client they’re worried about and how to connect small business owners to appropriate support. This practical support can save lives.

“It equips advisers with the tools and confidence they need to play a crucial support role that goes beyond financial advice.

“I thank Xero and Go1 for their commitment to supporting the small business community in a holistic way.”

The free Mental wellbeing: support yourself and small business course can be accessed by all Australian small business advisers via Beyond Blue’s Heads Up website.

The Beyond Blue Support Service is available via phone 24/7 on 1300 22 4636 or via beyondblue.org.au/get-support. The new Coronavirus Mental Wellbeing Service is available 24/7 at coronavirus.beyondblue.org.au. Its dedicated phone line, staffed by mental health professionals briefed on the pandemic response, is now open on 1800 512 348.

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Targeted Sanctions Inquiry to hear from business and industry peak bodies

AN INQUIRY into whether Australia should adopt 'Magnitsky-style’ laws will hear from the Export Council of Australia and the Australian Industry Group at a teleconference round table this week.

The inquiry, run by the Joint Standing Committee on Foreign Affairs, Defence and Trade, Human Rights Sub-committee will be led by Sub-Committee Chair Kevin Andrews MP, who said the Sub-Committee was looking forward to the opportunity to speak with representatives of Australian business and industry to hear their perspective on the possible adoption of new Targeted Sanctions legislation.

More information about this inquiry, including submissions received by the Committee to date, is available on the Committee’s website.

Public hearing details

Date: Thursday 1 October 2020
Time: 1pm – 2.30pm
Location: Via teleconference

The hearings will be streamed at aph.gov.au/live.

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Review of the Auditor-General Act 1997

THE Joint Committee of Public Accounts and Audit has commenced a review of the Auditor-General Act 1997. The review is being undertaken in accordance with section 8(g) and (h) of the Public Accounts and Audit Act 1951.

As part of the review the Committee will inquire into and report on:

  • the governance framework as it relates to the Auditor-General and the Australian National Audit Office (ANAO), including the independence of the Auditor-General as an Officer of the Parliament and the audit independence of the ANAO, and resourcing arrangements;
  • the Auditor-General’s information gathering powers and confidentiality of information, including with reference to parliamentary privilege and the interaction between the Freedom of Information Act 1982 and the Act;
  • the interaction of the Act and other relevant legislation including the Public Governance, Performance and Accountability Act 1987;
  • the Auditor-General’s capacity to initiate audits into, and examine the performance of all entities in the Australian  Government sector;
  • accessibility and transparency of reports and audit conclusions, including the operation of section 37 of the Act;
  • the Audit Priorities of the Parliament; and
  • the role and appointment of the Independent Auditor.

Lucy Wicks MP, Chair of the Committee, said, "The current 10-year review of the Auditor-General Act will provide an opportunity to gain a greater understanding of how the Auditor-General undertakes his role as an independent officer of the Parliament. The Committee will also examine options for possible areas of reform to support the effective operation of the Australian National Audit Office."

Submissions from interested individuals and organisations are invited by Monday, November 30, 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the review is available on the Committee’s website.

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Australians believe workplaces lack recycling options despite benefits

OVER 40 percent of Australians believe workplaces lack recycling options according to new research commissioned by Planet Ark.

This is despite roughly seven in 10 Australians agreeing recycling at work makes them happy and improves perceptions of employer responsibility.

The research conducted by Pollinate was commissioned as part of Planet Ark’s relaunch of the Business Recycling platform, a free service providing recycling information for Australian businesses since 2010.

“We’re thrilled to be celebrating 10 years of our Business Recycling program, which has made recycling easier for over a million Australian workers over the last decade," Planet Ark CEO Paul Klymenko said.

“By merging the platform with Recycling Near You, Australia’s most comprehensive recycling information service, we are creating a national one-stop-shop for recycling information whether at home or work.”

About one-third of all waste generated in Australia is business waste according to the most recent National Waste Report. Business Recycling enables Australian businesses to address their waste while also developing a competitive edge by improving business reputation and efficiency while reducing unnecessary costs.

NSW Energy and Environment Minister Matt Kean said the program is made possible, thanks to funding under the NSW Government’s Waste Less, Recycle More initiative.

“From Bega to Byron, and Swansea to Silverton the NSW Government is committed to reducing waste right across the State, that is why we are investing more than $800 million in the largest waste and recycling program in the country, to support projects like Planet Ark’s Business Recycling platform, that educate businesses on the benefits of boosting recycling efforts not only for the environment but for productivity too,” Mr Kean said.

The information provided on Business Recycling and Recycling Near You is representative of available recycling services in Australia.

BusinessRecycling.com.au

Key research findings:

  • · 69% of Australians agree that recycling at work makes them happy*
  • · 68% of Australians claim workplace recycling services improve perceptions of employer responsibility*
  • · 62% of Australians claim that recycling at work is easy and convenient*
  • · 43% of Australians claim there aren’t enough recycling options at work*
  • · 39% of Australians claim their employer does not communicate waste and recycling information well*
  • · Over 1 million Australians have used Business Recycling since it was launched, with over 3.2 million page views
  • · Merging Business Recycling and Recycling Near You will result in a further half a million visits per year to the business platform.

* Research conducted by Pollinate. Sample: n=545, working Australians 14-64, Mar’20

 

About Planet Ark 

Planet Ark Environmental Foundation is an Australian not-for-profit organisation with a vision of a world where people live in balance with nature. Established in 1992, it is one of Australia’s leading environmental behaviour change organisations with a focus on working collaboratively and positively. Planet Ark promotes and creates simple, positive environmental actions – for everyone.

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