THE Institute of Public Accountants (IPA) intends to push for radical policy change to improve the small business productivity landscape in Australia through the recommendations contained within its 2018 Australian Small Business White Paper released last week.

The White Paper, produced in partnership with the IPA Deakin SME Research Centre, is heavily focused on Australia’s declining productivity levels and provides policy solutions for the small business sector to help arrest this decline.

“In fact, never before has there been such an assembly of informed academic research, together with practitioner insights, purely focused on small business productivity, growth and prosperity; much needed ingredients for our economic wellbeing and future living standards," said IPA chief executive officer and White Paper co-author, Professor Andrew Conway.

The White Paper encompasses 12 topics: productivity, regulation, taxation, SME financial markets, workplace relations, job creation and job destruction, innovation, competition policy, family firms, internationalisation, mental health, and, digitisation and cybersecurity.

“Our primary message to policy makers is; think big, get out of the way of entrepreneurs, and watch small business truly drive productivity."

IPA's Big Vision recommendations are:

1. Broaden the base and lift the rate of GST (subject to the appropriate equity measures).

2. Cut direct taxes.

3. Undertake a zero-base design of a thoroughly modern taxation system.

4. Reform and simplify the personal income tax scale.

5. Standardise a company tax rate at 25 percent.

6. States and territories to be held accountable to the Intergovernmental Agreement on Tax Reform to eliminate payroll tax and stamp duties. These revenues could be channelled into a state infrastructure fund to grow the economy.

7. Commit an incoming federal government to hold a small business summit within the first six months of assuming office.

8. The Prime Minister should form and chair a small business advisory council to provide direct policy input and options to the government to inform the COAG agenda with a core focus on productivity.

9. The federal Small Business Minister should remain a permanent position in Cabinet, preferably with its own department.

10. The federal government should facilitate small businesses joining global value chains to remain competitive and access global markets.

“Again, we need to ensure that the small business sector that is so vital to the Australian economy and standard of living, is well supported, encouraged and liberated to grow,” Prof. Conway said.

For more detail on the Australian Small Business White Paper go to: https://www.publicaccountants.org.au/news-advocacy/small-business-white-paper

publicaccountants.org.au

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THE Australian Space Agency has formally entered into Memorandums of Understanding (MoUs) with counterpart agencies in Canada and the United Kingdom, as part of the Coalition Government’s plan to launch a vibrant new space industry in Australia.

These MoUs will help all three nations develop their respective space programs and take advantage of the rapidly-expanding global space industry.
 
Minister for Industry, Science and Technology, Karen Andrews MP, welcomed the MoUs, signed overnight by the head of the Australian Space Agency, Megan Clark AC, president of the Canadian Space Agency, Sylvain Laporte, and chief executive of the United Kingdom Space Agency, Graham Turnock.
 
“Forging international partnerships is vital to building Australia’s space industry and ensuring our businesses can compete on the world stage,” Ms Andrews said.
 
“These agreements with counterpart space agencies in Canada and the United Kingdom will increase opportunities to work together and share information, technology and personnel between our nations.
 
“They represent a significant step in Australia’s journey with fellow spacefaring nations, and will help to grow the capability and competitiveness of our domestic space sector.”
 
Dr Clark said the signing of these new strategic agreements reflects the Australian Space Agency’s commitment to boosting international partnerships with government agencies.
 
“These signings provide a further positive contribution that cooperation in space science, research, technology, services, applications and international governance can bring.”
 
“Growing existing relationships with the United Kingdom on the likes of CSIRO’s NovaSar satellite project, Airbus’ Zephyr solar-powered unmanned aircraft and Canada’s cooperation in Earth Observation with Geoscience Australia provides more opportunity to jointly identify projects like these that can be supported and developed in both countries.”
 
The signing of the new MoUs took place at the International Astronautical Congress (IAC) being held this week in Bremen, Germany. The IAC is an annual meeting of international space agencies and industry, and was hosted for the second time in Australia in 2017.
 
As part of the 2018–19 Budget, the Federal Government is investing $41 million over four years to establish and operate Australia’s first-ever national space agency.

The Federal Government is also investing more than $260 million to develop world-leading core satellite infrastructure and technologies, including better GPS for Australian business and regional Australians and improved access to satellite imagery.

The Space Agency’s focus will be on fostering international space partnerships and opening the door for local businesses to compete in the global space economy, helping to drive job growth.
 
More information on the Australian Space Agency is available at space.gov.au.

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THE Australian Securities and Investments Commission (ASIC) is offering assistance for farmers and related businesses suffering financial hardship as result of the current drought.

ASIC is offering relief from various company-related fees that may be payable and providing information about financial counselling services that are available to those affected.

ASIC Commissioner John Price said, "Unfortunately, the current drought is particularly severe, causing financial hardship to many. ASIC is keen to offer whatever assistance we can to ease that burden and ensure that affected people can access resources to assist them during this challenging time."

ASIC may be able to review fees or waive late fees that a company has incurred, or provide alternative payment options for companies affected by the drought and facing financial hardship.

Those wanting fee relief need to include in their application details of their company, a contact person and their current situation. They will also need to provide ASIC with evidence supporting their application.

ASIC also reminded the farming community that free financial counselling is available to people, including farmers and related small businesses, struggling with debt. Details of free financial counsellors are on ASIC’s MoneySmart website and can be downloaded here.

Details of how to apply for fee relief are on ASIC’s website.

Anyone struggling with debt can call the free National Debt Hotline on 1800 007 007.

ASIC has also prepared a guide on how people can help a friend or family member who is facing financial hardship, which is available from ASIC’s MoneySmart website or can be downloaded here.

www.asic.gov.au

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AUSTRALIA’s resources and energy exports are now worth more than a quarter of a trillion dollars, anchored by strong forecasts for Queensland’s major commodities including coal, LNG, bauxite, copper and zinc.

Queensland Resources Council chief executive Ian Macfarlane said the record figure of $252 billion, in the September Resources and Energy Quarterly, was testament to the hard work of the Queensland resources industry.

“Our resources and energy exports have been powering our state and our national economy for the better part of two decades,” Mr Macfarlane said.

“But our success is no accident or just good luck. The huge benefits from the resources sector come through long-term planning, hard work from almost 300,000 Queenslanders, and our ability to attract investment dollars.

“Importantly, these latest figures further debunk the myths spread by those who want to see the entire resources industry shut down.

“No amount of wishful thinking from anti-resources campaigners can erase the numbers that show strong demand for both metallurgical and thermal coal, our LNG and other commodities that form the building blocks of our modern societies, including bauxite, copper and zinc.

“There have been record production volumes at BHP and Anglo American’s metallurgical coal operations. Met coal production is forecast to grow by 11 percent between 2017-18 and 2019-20, driven largely by the resurgence in the Queensland coal sector.

“Metallurgical coal exploration is also on the way back up. We again congratulate the Queensland Government for the release of more than 500 square kilometres for exploration across the Bowen, Surat and Galilee Basins.

“Our region also wants more thermal coal, and Australia is in the ideal position to supply it.

“For example, the report points to 11 coal-fired power plants due to come into operation in Japan over the next two to three years. They have a combined capacity of 4.5GW which is the equivalent of about eight per cent of the generation capacity of Australia’s national electricity market.

“Strong demand for LNG is being met in part through the Queensland coal seam gas industry, which supplies gas for Australian users and delivers export earnings, all the while delivering $387 million in access agreements with Queensland farmers and landholders.

“Queensland’s other powerhouse commodities are also in line for significant growth, notably zinc. Queensland will help drive a 50 percent increase in zinc production through New Century Resources’ newly re-opened Century mine.

“The Queensland resources sector has created 10,000 jobs over the past year – that’s a new job every 40 minutes. The figures released today reinforce why it’s so important we continue to back our resources sector, for the jobs and local investment it creates.

“We look forward to working with the Federal Government on the implementation of recommendations from the Resources 2030 Taskforce to further strengthen our sector.”

www.qrc.org.au

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