THE Federal Government’s economic response to the coronavirus, or COVID-19, announced today, should provide a strong boost to many households and businesses as they face an uncertain period, according to Australia’s largest accounting body CPA Australia.

CPA Australia spokesperson Paul Drum said COVID-19 continues to present a significant threat not only to human health but also to business and jobs.

“Today’s announcements should alleviate some of those business concerns, especially around cash flow,” Mr Drum said.

CPA Australia’s reaction to today’s fiscal stimulus announcements:

• Cash flow boost for employers – giving employers up to $25,000 should boost cash flow for SMEs at this critical time. Businesses will, however, need to get their BAS statements in to get the credit.
• The short-term extension of the instant asset write off until the end of June will make it more attractive for businesses under $500 million in turnover to invest in expensive plant and equipment. However, three months is a very short period to have such assets used or installed to qualify for the offset.
• Similarly, the introduction of accelerated depreciation will make it more attractive for businesses under $500 million in turnover to invest. However, unlike the instant asset write off extension, this measure will be in place until June 30, 2021 and the value of the eligible asset is uncapped, meaning it could be very useful in encouraging investment in the post-crisis recovery.
• The 50 percent wage subsidy for apprentices and trainees for small businesses should minimise job losses for this group of people.
• The $750 support payment to certain households will provide a timely boost to spending.

“We encourage those recipients of monies as part of this package to spend it at Australian businesses," Mr Drum said. “With the crisis evolving quickly, this may not be the last time the government will need to consider stimulus measures."

About CPA Australia

CPA Australia is one of the world's largest accounting bodies, with more than 165,000 members working in 100 countries and regions and supported by 19 offices globally. Our core services to members include education, training, technical support and advocacy. Employees and members work together with local and international bodies to represent the views and concerns of the profession to governments, regulators, industries, academia and the community.

www.cpaaustralia.com.au

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SENTRIENT has made available an online course, for free, to create awareness for infection prevention and control for all staff in Australian workplaces including employees, contractors and volunteers.

The 15-minute online course for infection prevention and control is a free resource to support small and medium businesses and larger organisations across all industry sectors and for people located in Australia and overseas. It provides an awareness of basic hygiene and how to prevent and control the spread of infection in the workplace.

Sentrient managing director, Gavin Altus, said that social media can often present misinformation about outbreaks of viruses and that employers have a responsibility to reinforce good health and safety practises in the workplace when it comes to situations that pose a risk for infection.

“The content of the course is simple to navigate, easy to understand and provides links to credible resources such as the World Health Organisation, UNICEF, Australian Government Department of Health and Smartraveller, and it is relatable to people from all Australian workplaces," Mr Altus said.

“The online course can be downloaded by an employer and rolled out via their existing learning management system within just minutes, making it really easy for employers to do the right thing and to help protect their people and their clients.”

Sentrient support hundreds of small and medium businesses and larger organisations in Australia with various compliance related content, mainly in the area of behavioural compliance. They are advocates for employers creating safe, inclusive and respectful workplaces.

After numerous requests for support with training on infection prevention and control, Sentrient felt they should go beyond supporting their own client base and instead create a resource that could be used by many.

Click here to find out more information about the infection prevention and control course and for further information contact Sentrient.

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THE Australian Parliament’s Tax and Revenue Committee has launched an inquiry into the Commissioner of Taxation Annual Report 2018-19.

As Australia’s principal revenue collection body, the annual report is a key mechanism for the ATO’s accountability to the Government and the Australian community. The 2018-19 annual report is the most recently tabled annual report from the Commissioner of Taxation.

Jason Falinski, Chair of the Committee, said, "This inquiry provides an opportunity for the committee to continue ongoing monitoring of the operations of the Australian Taxation Office and its interaction with the Australian community."

Submissions from interested individuals and organisations are invited by Friday, 17 April 2020. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account.

Further information about the inquiry including the terms of reference is available on the Committee’s website.

Public hearing details

Public hearings for the inquiry will be held in due course and notified through the Committee’s website.

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THE Morrison Government’s arrangement to store Australia’s emergency fuel reserves in the United States is nothing more than an accounting trick that will do nothing to ensure the country’s resilience to a global crisis that disrupts fuel supplies, the Maritime Union of Australia has warned.

Energy Minister Angus Taylor announced the signing of an agreement to allow Australia to lease storage space in the US Strategic Petroleum Reserve, using that oil stored on the other side of the world to technically meet the International Energy Agency’s minimum 90-day fuel stockholding obligation.

The arrangement has provided no details of how that oil stockpile would assist Australia in a genuine crisis, how long it would take to bring to Australia, or how it would be transported when there are no Australian-owned oil tankers.

MUA Assistant National Secretary Ian Bray said the IEA requirement for minimum fuel reserves — which Australia has been in breach of since 2012 — were about ensuring adequate reserves were available to address potential shipping disruptions caused by military conflicts, economic crisis, or natural disasters.

“More than 90 percent of Australia’s fuel is imported, all on foreign tankers, yet in recent years the country has regularly had just a few weeks of fuel available, putting the economy at risk of grinding to a halt if any major incident cut those supplies,” Mr Bray said.

“To claim that storing Australian-owned oil in the US Strategic Petroleum Reserve will somehow solve this is fanciful, especially as the Morrison Government has provided no information on how it would transport those fuel supplies during a crisis.

“This agreement with the US is nothing more than an accounting trick that aims to placate the International Energy Agency while doing absolutely nothing to deliver fuel security for Australia.”

Mr Bray said the Morrison Government should take advantage of a collapse in global oil prices to construct a domestic fuel reserve, ensuring the products needed for transport, aviation and industry were on Australian soil and ready to use during any future crisis.

“The US has had a Strategic Petroleum Reserve for decades, which they consider a critical asset for their energy and national security,” he said.

“Rather than look to accounting tricks, the Morrison Government should emulate that model and construct a domestic fuel reserve that ensures adequate supplies of fuel are always available to address potential shipping disruptions caused by military conflicts, economic crisis, or natural disasters.

“Given it takes a supply chain of approximately 60 full-time fuel import tankers to supply petrol, diesel and jet fuel to Australia, and Australia has no ownership or control of any part of that supply chain, the Australian Government should also look to develop a strategic fleet that includes Australian-owned oil tankers to ensure supplies can continue during times of crisis.

“Given the short timeframes involved during the kind of emergencies where fuel supplies might be threatened, the Morrison Government’s solution of storing emergency fuel halfway around the world is not only fanciful, its recklessness puts the Australian economy at genuine risk.

“With the growing coronavirus pandemic already causing problems with supply, and businesses and households facing shortages of some products, it would be in the national interest if fuel wasn’t added to that list.

“A cut to fuel supplies wouldn’t just impact the transport sector, it would jeopardise our national food security and devastate local manufacturing, including some pharmaceuticals.”