CPA AUSTRALIA'S 2020-21 Federal Budget submission proposes the government implement a suite of both short and longer-term fiscal measures that will help to stimulate the economy.

Both official and private sector data points to 2020 being another challenging year for Australia. Preliminary results from the organisation’s Asia-Pacific Small Business Survey also supports this view, with 40 percent of Australian small business respondents expecting the economy to contract in 2020.

Australia is also facing challenges such as ever-increasing international competition and an ageing population, as well as the recent bushfires, the ongoing drought and the potential economic risks associated with the spread of coronavirus, warned CPA Australia.

Recommendations by the CPA include the Federal Government:

• increases its spending on repairs, maintenance and preservation of public assets, especially in areas impacted by recent fires and drought;
• fund a business advice voucher system for bushfire affected businesses of $1,000 per business;
• introduces a broad-based investment allowance for businesses;
• removes many of the government fees imposed on small business;
• funds a holistic review of the regulatory frameworks for financial advice to ensure regulation is fit for purpose and to reduce overlaps and costs;
• introduces a 40 percent savings income discount for individuals and non-business-related net interest income and net residential rental income;
• funds the development of educational material and other programs to assist small business build their digital capability, management skills and understanding of overseas markets, and delivered by professional advisers;
• funds programs that encourage those new to business to seek professional advice. Options include the government giving new businesses a voucher that can be redeemed for professional advice from, for example, a registered tax agent;
• makes the current instant asset write-off a permanent feature of the tax system;
• develops policies that further encourage the development and deployment of technologies that will play a role in combatting global warming. This should cover several policy areas including education, energy and science.

"We believe that these recommendations will assist Australian business weather the current economic challenges and help maintain the long-term sustainability of Australia’s public finances," a CPA spokesperson said.

CPA Australia’s full submission can be accessed here.

About CPA Australia

CPA Australia is one of the world's largest accounting bodies, with more than165,000 members working in more than 100 countries and regions and supported by 19 offices globally. 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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FUND manager Atlas Advisors Australia is urging the Australian Government to recognise the long-term benefits of foreign investors to the Australian economy by increasing incentives under the Significant Investor Visa scheme.

It comes as the February 14 deadline approaches for public consultation on the Business Innovation and Investment Program: Getting a better deal for Australia, including the settings for Investor visas and Significant Investor visas.

Executive chairman of Atlas Advisors Australia, Guy Hedley said the fund manager entirely supported the review and the Federal Government’s objectives to maximise the opportunities and benefits to Australia from the program. 

“The Significant Investor Visa program has brought in billions to the Australian economy, assisting the growth of Australian companies and startups, creating employment opportunities and increasing our exports,” Mr Hedley said.

“However the hard figures do not account for the longer-term economic and other benefits of the scheme.”

Mr Hedley said the economic impact of the SIV scheme was currently measured only across the four-year investment period of the visa. 

“This does not account for the impact super wealthy migrants have on the Australian economy for the years after they obtain permanent residency,” Mr Hedley said.

“These new migrants not only pour billions of dollars into our economy, they also bring skills, expertise and experience that is assisting Australia to enhance its competitiveness in global trade and build better links with international markets. These effects last for generations.”

Aside from the SIV investment requirements, many applicants make additional investments to improve their knowledge of the business environment and build stronger connections to Australian communities.

“They also donate to charities to help people in need in and to help us better protect our environment,” Mr Hedley said.

With more than $1.7 billion of funds under management, Atlas Advisors Australia manages the investments of many of the highest net worth Chinese investors into Australia.]

Mr Hedley urged the Australian Government to remain committed to the SIV program and to strengthen incentives for applicants.

“The Federal Government’s recognition of the value and contribution that our new migrants make is critical to encouraging ongoing investment in Australia.”

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AUSTRALIA'S four major banks will appear before the House of Representatives Standing Committee on Economics at public hearings in Sydney on Friday, June 12 and Canberra on Friday, June 26, 2020.

The chair of the committee, Tim Wilson MP, said, "These hearings are an important mechanism for the Parliament to publicly scrutinise and hold Australia’s four major banks to account."

"The committee’s scrutiny will include examining the four major banks’ progress in implementing the recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

"Recent revelations about Westpac’s shocking compliance failings in relation to its transaction reporting system have again shaken the community’s trust in financial institutions.

"Given these failings and the widespread misconduct identified by the Hayne Royal Commission, it is important that the banks and other entities are held publically accountable. This will help to ensure Australia’s financial sector implements the critical reforms needed to regain the community’s trust," Mr Wilson said.

The committee has already extended its scrutiny beyond the four major banks to smaller banks and the superannuation sector. The insurance and financial advice sectors will also be scrutinised at future hearings.

Public hearing details

Day 1
Date: Friday 12 June 2020
Time: 9.15am to 4.15pm

Location: Macquarie Room, NSW Parliament House, 6 Macquarie St, Sydney

9.15am to 12.15pm: Westpac
1.15pm to 4.15pm: National Australia Bank

Day 2

Date: Friday 26 June 2020
Time: 9.15am to 4.15pm

Location: Main Committee Room, Parliament House, Canberra

9.15am to 12.15pm:  Commonwealth Bank of Australia
1.15pm to 4.15 pm ANZ Bank

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

THE House of Representatives Standing Committee on Economics will scrutinise the insurance sector over two days of hearings in Sydney onApril 28 and 29, 2020, as part of its ongoing review of the four major banks and other financial institutions.

Public hearing details:

Dates: Tuesday, 28 April and Wednesday, 29 April 2020

Time: 9.15am to 5pm (both days)

Location: Jubilee Room, NSW Parliament, Sydney

The hearing will be broadcast (audio only) at aph.gov.au/live.