THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said thousands of COVID-impacted small businesses will be relieved by the Australian Banking Association’s (ABA) loan deferral extension announced today.

The ABA said banks would extend deferred loans for small businesses that are still struggling for an extra four months, potentially helping as many as 800,000 borrowers with deferred loans worth an estimated $260 billion.

The initiative has been agreed to by APRA and ASIC, which have made a collective effort to support those facing financial hardship as a result of the pandemic.

“Small business owners who have been worried about how they will repay their loans come September, will be breathing a huge sigh of relief today,” Ms Carnell said.

“I would encourage small businesses who are experiencing financial difficulties, to call their banks now to make the necessary arrangements.

“With hundreds of small businesses now facing another devastating six weeks of lockdown in parts of Victoria, it’s clear that this is not over and the path to recovery will be prolonged.

“Small businesses are going to need further support, such as the loan deferral extensions announced today," Ms Carnell said.

“As we navigate this unprecedented crisis, it’s encouraging to see our banks are taking this proactive and flexible approach.

“We want to see as many small businesses survive this difficult time as possible. The ABA announcement today is an important piece of that puzzle.”

www.asbfeo.gov.au

ends

AUSTRALIA  must ramp up migration incentives for high net worth people to attract top Hong Kong wealth seeking to leave the jurisdiction amidst tensions, according to Atlas Advisors.

Executive chairman of Atlas Advisors Australia, Guy Hedley said many high net worth individuals in Hong Kong were turning to investor migration programs around the world to seek a new path in life.

Reopening Australia’s Business Innovation and Investment Program (BIIP) is critical to attract Hong Kong’s most wealthy investors, he said. 

“Appetite for investment and migration in Australia from Hong Kong’s highest net worth individuals is ramping up,” Mr Hedley said. 

“Australia must maintain a globally competitive migration program if it’s going to attract Hong Kong’s most wealthy investor migrants while also offering a safe haven to citizens in need.”

Reopening the BIIP could offset the economic impact of significant recent falls in migration and bring in additional capital at a time when the Australian economy particularly needs.

“High net worth migrants from Hong Kong could bring long-term economic benefits to Australia,” Mr Hedley said. 

“Importantly, their commitments under the complying investment framework go towards local tax-generating enterprises startups and emerging companies that increase employment, innovation and market opportunities. 

“It will also help to build stronger international business networks and partnerships that enhance building Australia’s competitiveness.”

The Australian Government’s current review of the BIIP was an important opportunity for reform to enhance the economic and social outcomes of the program for the national economy.

“The BIIP should be revamped to give priority to higher net worth migrant applicants to Significant Investor Visa, Investor Visa and Premium Investor Visa,” Mr Hedley said.

“Reopening current applications could unlock around $100 million in urgently needed funds.”

ends

FOLLOWING a six-month investigation, the Tax Practitioners Board (TPB) terminated the registration of Victoria-based The Associates Vic Pty Ltd, trading as Brown Baldwin and Associates (BBA), and imposed the maximum five-year ban.

During the investigation the TPB found BBA:

• maintained two sets of financial accounts, one set for bank purposes and another for taxation purposes. This had led to misleading information being given to the Commissioner of Taxation and credit/finance companies;
• failed to meet its outstanding taxation obligations on several occasions;
•  did not supervise its staff sufficiently to ensure that they were acting competently;
• assisted some of its clients to set up companies for the purpose of avoiding payment of debts and tax.

Additionally, the TPB found that BBA’s directors, Andrew Locantro, Biren Shah and Rajinder Narula were responsible for the misconduct of BBA and had provided misleading information to the TPB.

Speaking about the case, Chair of the TPB, Ian Klug said, "Brown Baldwin and Associates have consistently and flagrantly ignored the standards required to be a tax practitioner.

"As a result of our investigation we concluded that the public could have no confidence that either the company or its directors will perform the functions of a registered tax agent either competently or with integrity," Mr Klug said.

"Where tax practitioners deliberately choose to jeopardise the high levels of trust that the community, and the law, expects of the industry, we will act with the harshest possible penalties."

The public are encouraged to make a complaint to the TPB if they feel a registered tax practitioner is not providing services to an appropriate standard. Complaints can be made at tpb.gov.au/complaints

About the Tax Practitioners Board

The Tax Practitioners Board regulates tax practitioners in order to protect consumers. The TPB aims to assure the community that tax practitioners meet appropriate standards of professional and ethical conduct. Twitter @TPB_gov_au, Facebook, LinkedIn.

ends

HOW CAN Australia define and improve its sovereign manufacturing capability to ensure national resilience during unplanned events such as the global pandemic?

This is one of the questions to be addressed by the next public hearing of the Joint Standing Committee on Foreign Affairs Defence and Trade’s inquiry into the implications of the pandemic for Australia’s defence, trade and international relations.

Witnesses from the Advanced Manufacturing Growth Centre and Ethical Clothing Australia will talk about manufacturing resilience, the importance of strong local supply chains and how businesses can collaborate for improved results.

Committee chair Senator David Fawcett said, "Knowing what it is the nation needs our industry to be able to provide at short notice and ensuring the capability for flexible and innovative adaptation in the manufacturing sector is one of the precursors to successful crisis response".

"This inquiry will explore not only how to ensure Australia’s manufacturing sector is resilient to a crisis, but also the opportunities the pandemic provides for improving collaboration and productivity into the future," Senator Fawcett said.

Jens Goennemann, the managing director of AMGC, will discuss the organisation's submission and describe AMGC’s COVID response. This includes the creation of the Manufacturer Response Register that has been able to connect manufacturing capability with areas of need.

Full terms of reference for the inquiry are on the committee website.

Public hearing details:

Date: Thursday, 9 July 2020
Time: 3pm – 4.30pm AEST
Location: By teleconference

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

ends