THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell has welcomed the Federal Government’s latest commitment to cutting red tape and is looking forward to working closely with the deregulation taskforce on its key priorities.

“Small businesses and family enterprises are crying out for less red tape and unnecessary regulation, so they can get on with the job of growing their business,” Ms Carnell said.

“The government’s efforts to bring down the barriers to business investment and boost productivity are commendable.

“While we support the intentions of the deregulation taskforce in principle, understanding the detail of these proposals to ensure there are no unintended adverse consequences, is vital.

“It’s also critical the government consults widely as part of the deregulation process, which my office is looking forward to playing an active role in, to ensure the government engages fully with small business.

“Of particular interest is the taskforce’s agenda in dealing with the degree of regulatory complexity, the length of time for approvals and duplication across levels of government," Ms Carnell said.

“This has the potential to be a game-changer for Australia’s small businesses and family enterprises.

“We are working with the government to achieve these positive outcomes for the benefit of Australia’s 2.3 million small businesses.”

www.asbfeo.gov.au

ends

SMALL BUSINESS couriers in the gig economy, like Uber Eats and Deliveroo, can now access the Victorian Small Business Commission (VSBC) to help resolve their disputes. 

Under new amendments to the Owner Drivers and Forestry Contractors Act 2005 passed in Parliament yesterday, the definition of ‘freight broker’ has been changed to make sure contractors employed through third party platforms like Uber Eats are covered.

The change responds to a government review that found many hirers and brokers to be in breach of the Act. For example, many weren’t providing cost schedules and contracts, leaving owner drivers exposed to safety, income and business risks. 

Commissioner Judy O’Connell has backed the change to the dispute resolution process, and our new role in providing further supports for disputes can’t be resolved through mediation. 

“This new support is significant because it means gig economy small business couriers who are in dispute can come to us for determinations that are binding, keeping their disputes out of the court system,” Commissioner O’Connell said.

In 2018–19 the VSBC received 23 applications for small business driver disputes, about 85 percent of which were successfully resolved. Where disputes couldn’t be resolved, this was because the parties couldn’t reach an agreement or the business contracting the service refused to take part in mediation.

“In a lot of instances, it’s just not worthwhile taking these matters to court because of the high costs involved – costs that are prohibitive for many small businesses,” Commissioner O’Connell said. 

“This important change means small business couriers will have access to a low cost, confidential and binding dispute resolution process that will let them resolve their disputes quickly so they can get back to business.”

The VSBC will start providing these new supports in May 2020. For more information about how gig economy small business couriers can access these services, visit the VSBC’s website.

The Victorian Small Business Commission is an independent government agency that advocates on issues affecting small business, educates people in small business about their rights and responsibilities, and helps them to avoid or resolve disputes. 

ends

POLITICAL advertising on social and traditional media is being investigated by the Joint Standing Committee on Electoral Matters as part of its inquiry into the 2019 Federal election.

Committee Chair, Senator James McGrath, said social media has blurred the lines of what is and isn’t political advertising.

"It was clear in the 2019 election that Australians were inundated with a huge volume of political advertising on all platforms. But perhaps of more concern is the rise in political disinformation from ambiguous sources online," Senator McGrath said.

"Smart phones and social media have changed how Australians publish and access information. Digital platforms are taking over traditional media – but the regulatory framework hasn’t kept up."

"Electoral integrity is crucial for a healthy democracy. We need to hear from people with solid ideas on how we can keep our electoral processes strong."

Anybody can make a submission that address the terms of reference. Submissions attract protection under the Parliamentary Privileges Act 1997.

Submissions close on September 20 and the Committee expects to hold public hearings later this year.

People wishing to make a submission can call the secretariat for advice or visit aph.gov.au/em for more information.

ends

THE REGULATORY system for tax and financial advisers needs significant simplification, according to the Financial Services Council (FSC).

The FSC made this call in a submission, released today, to an independent review of the Tax Practitioner’s Board and Tax Agents Service Act 2009. 

FSC CEO Sally Loane said the FSC recommended a single regulatory regime for advisers who provide both tax and financial advice, replacing the current regime with overlapping and duplicated registration.

“The FSC’s preferred approach would mean advisers adhere to one code of ethics, and are overseen by one code monitoring body that helps deliver the protections consumers expect and that advisers are obliged to adhere to,” Ms Loane said. 

“Ongoing changes to the regulatory environment for financial advisers, including new professional and education standards are transforming financial advisers into a profession in line with other professions such as accounting and law. 

“These changes present a timely opportunity to integrate Tax (Financial) Advisers (TFAs) into the regulatory framework for financial advisers," Ms Loane said.

This reform would bring TFAs into a single regulatory regime under the Financial Adviser Standards Ethics Authority (FASEA) reducing unnecessary costs and bringing greater clarity to consumers and advisers. Advisers would continue to be bound by other regulations including privacy and anti-money laundering laws.

“This reform would not mean a decline in the standards for TFAs – the FSC’s proposal would just remove unnecessary regulatory duplication and overlap. It would also mirror the approach for lawyers who do not need to register with the TPB given their existing strong regulatory structures,” Ms Loane said.

“The FSC’s recommended approach means consumers would not have to engage with the TPB for the tax component of the advice they receive as well as the Code Monitoring Body for financial advice.

“Ensuring a simplified regulatory regime that reduces regulatory overlap and is easier for customers to navigate is thoroughly consistent with the recommendations of the Hayne Royal Commission,” Ms Loane said.

The FSC considers the TPB and FASEA should continue to have open dialogue as these new standards are implemented and to develop a single regime for financial advisers. 

Full copy of the FSC submission: https://fsc.org.au/resources/1844-fsc-submission-tpb-review-2019-discussion-paper/file

ends