THE LATEST Australian Bureau of Statistics (ABS) Overseas Arrivals and Departures results reveal the month Australia’s tourism industry officially flatlined, with an extraordinary 99.7 percent decrease on April 2019, the largest decrease on record.
 
“This is the beginning of what will be a deep and protracted downturn for our export tourism industry and there is absolutely no end in sight,” Australian Tourism Export Council managing director Peter Shelley said of the figures.
 
“COVID has simply decimated our $45 billion export tourism industry which now faces a very difficult future with many businesses unlikely to last the distance while there is so much uncertainty surrounding the reopening of international borders.
 
“While JobKeeper is a critical part of the business survival package in supporting the retention of valuable staff, the commercial challenge of meeting the costs of fixed overheads over 12 months without revenue will be a bridge too far for many.
 
“It’s devastating to see so many small businesses effectively cut down overnight after years of hard yards carving out a profitable business, with many choosing to walk away because the mountain is simply too big to climb for a second time," Mr Shelley said.
 
“While there is some relief for businesses who can connect to domestic tourists, for many tourism businesses who have built their strength on international visitation, the prognosis is dire.”
 
Mr Shelley said ATEC’s survey of export tourism businesses across Australia suggests half of these tourism businesses will fail if borders are not opened in the coming six months.
 
“Domestic tourism simply won't be enough to plug the $45 billion hole left by our international visitors," he said.
 
“While most Australian’s will look to holiday at home for the foreseeable future, it can't be presumed that those people who had international travel plans for 2020 will reinvest that budget toward a domestic trip.
 
“Consumer confidence, employment insecurity and budget priorities will all be major factors in the spending choices of Australians and travel is likely to be one of the discretionary expenses people choose to do without.
 
“These issues, coupled with the business costs of social distancing, will put many thousands of tourism businesses under enormous strain and many will simply choose not to reopen or will quickly fail.
 
“We can see from the ABS data that Australia’s export tourism industry has been a strong and vibrant contributor to the national economy over many years, bringing wealth to regional communities and providing a significant number of jobs - and all of this benefit has now been destroyed.
 
“The Government’s JobKeeper program has helped to support thousands of tourism businesses to hold on.  We know most of them can remain viable once business returns, but in the meantime they will continue to need support.”

www.tourismdrivesgrowth.com.au

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THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said small businesses should be acknowledged for the critical role they will play in the post-COVID economic recovery on World Micro, Small and Medium Enterprises (MSME) Day tomorrow (June 27, 2020).

Speaking in an International Council for Small Business video marking the UN-declared day, Ms Carnell said the Australian small business sector needs to be supported as it emerges from this global crisis.

“On World MSME Day, it’s important to recognise there has never been a tougher time to be in business,” Ms Carnell said.

“So many small businesses that were viable just a few months ago, are now facing enormous challenges as they try to recover from both the devastating bushfire season we had here in Australia and then this pandemic.

“The latest statistics from the Australian Bureau of Statistics reveal the extent of the pressure small businesses are under right now. Two-thirds of businesses reported a decrease in revenue compared to last year. Of those businesses, roughly three in ten estimate that revenue has fallen by more than 50 percent.

“As we start to see restrictions lifting and many small businesses opening their doors again and ramping up, it is vital small businesses are supported in their efforts to innovate and grow.

“That’s why my office has produced a comprehensive COVID-19 Recovery Plan recommending a suite of reforms to help small businesses survive and thrive in the post-COVID recovery phase,k" Ms Carnell said.

“Our Recovery Plan aims to restart the Australian economy by getting people back to work and building economic confidence – after all, small business is the cornerstone of economic activity – employing more than half of the workforce.

“The recommendations cover a broad range of areas including taxation, access to justice, industrial relations, government procurement and cutting red tape.

“Ultimately the plan provides the framework to build essential support for Australian small businesses which is a good way to get the economy firing on all cylinders again.”

www.asbfeo.gov.au

View Kate Carnell’s World MSME Day video here.

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IN THE FIRST agreement of its kind between the Tax Practitioners Board (TPB) and one of its recognised professional associations, a new Memorandum of Understanding (MoU) has been signed with the Financial Planning Association of Australia (FPA).

TPB chair, Ian Klug said the MoU would facilitate information exchange about matters of mutual interest including compliance with the Tax Agent Services Act 2009 (TASA) and the Code of Professional Conduct.

He said that it sets out a clear and practical framework for engagement, cooperation and proactive information-sharing between the two organisations.

"This is our first finalised MoU with a recognised professional association, but we expect more to come as we continue to work closely with other associations to develop similar agreements," Mr Klug said.

"The purpose of this agreement and the others that will follow, is to make it clear that both organisations are committed to working collaboratively for the betterment of the tax profession," he said.

"It also highlights what information we can legally share about registered tax practitioners who are members of the respective association."

The MOU allows for the exchange of information between the TPB and the FPA on issues including:

•  misconduct by registered tax practitioners
•  intelligence, operational matters and de-identified data trends
•  continuing professional education opportunities.

FPA CEO, Dante De Gori said the FPA was honoured to be the first professional association to enter into an MoU with the TPB.

"The FPA has built a strong and close working relationship with the TPB over the past eight years as tax (financial) advisers have integrated into the TPB and we have seen the benefits of a regulator whose primary focus is on the relationship between a professional and their client," he said.

"The FPA has demonstrated a commitment to enforcing and holding members accountable to professional codes of ethics for over 25 years and we welcome the opportunity to work more closely with the TPB on encouraging professional behaviour for the protection of consumers."

Mr Klug said since starting MoU discussions with the FPA earlier this year, the TPB has received several expressions of interest from other recognised professional associations.

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 and LinkedIn

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A COALITION of workplace health and safety related organisations across Australian and New Zealand, and the ACTU called today for the urgent establishment of a register for approved respirators (aka face masks).

The group describes the presence of non-compliant, fake and faulty disposable masks as an immediate threat to the health and safety of workers.

At the launch of the coalition’s new Guide to Buying P2, or Equivalent, Respirators for use in the Australian & New Zealand Work Environment, Andrew Orfanos, president of the Australian Institute of Occupational Hygienists, said there was an immediate and urgent case for the Federal government to intervene to protect Australians’ health.   

“The situation is out of hand," Mr Orfanos said. "Since the onset of the COVID-19 pandemic our market has been flooded with more than 100 million respirators of different types and standards, and amongst the suitable products are fake, faulty, counterfeit and sub-standard products.

"Australian businesses are rightly confused about which ones are suitable. They need to know what they’re buying, and the government needs to get a handle on this issue” he said.  

Mr Orfanos explained that the guide has been developed to help businesses navigate their way through what is a messy issue, before purchasing face masks. However, he warned, “The guide will help, but it’s not enough. We need national leadership. Fixing the problem is straightforward if the government chooses to act. We need a register and an approval process which is properly regulated".

Naomi Kemp, chair of the Australian Institute of Health and Safety said, “Most people make an assumption that if they find a face mask for sale in Australia, that it has been assessed and met a standard. This is not true. Too many groups are taking advantage of a voluntary system and creating confusion.

"This is bad for the genuine, reputable suppliers, it’s bad for the businesses that purchase the products, and it’s bad for the people who use them,” she said. “Businesses need protection from the risks of using faulty equipment, and workers need protection for their health."

Ms Kemp went on to say that the dangers of unapproved respirators extend beyond the risks of exposure to, and transmission of COVID-19.

“We already had major problems with last season’s bushfires, and we are still seeing cases of black lung and silicosis which cause workplace deaths," she said. "With the flood of new products onto the market, we now have fake and non-conforming face masks potentially being misused in these environments as well.”

Liam O’Brien ACTU assistant secretary said, “The pandemic has focussed attention on masks as an essential piece of protective equipment with huge potential to save lives and prevent transmission. However, it has also made clear that regulation of PPE is grossly inadequate to ensure that the masks that Australian workers are using are up to the task.

“Australian workers, whether they need a mask to protect themselves from COVID-19 or other workplace hazards like silica dust, should be able to rely on a simple set of standards which make it clear which masks are safe to use. Without clear and simple regulation on this issue, Australian workers and the community at large will continue to be put at risk,” he said.

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