THE Institute of Public Accountants (IPA) has welcomed the corporate regulator’s small business strategy 2017-20.

“It is very pleasing that ASIC is placing due attention on small business through its small business strategy with the focus on "assist, engage, protect," said IPA chief executive officer, Andrew Conway.

“In particular, we support and encourage the effort to engage by promoting and supporting greater financial capability of small business owners. 

“During our Small Business White Paper roadshow across Australia, the need for greater financial literacy by small business owners has emerged as a constant theme. 

“The IPA also encourages assisting small business by promoting an understanding of compliance obligations. 

“Small business cannot always do this alone and we encourage small business owners to consider using public accountants and other advisers to assist in meeting their compliance obligations. 

“We also support ASIC's actions as a regulator to protect small business through its activities to level the playing field by investigating and taking action against those who are not doing the right thing. 

“As a promoter and key advocate of small business, the IPA believes that we all have a part to play in building and strengthening the small business sector, said Mr Conway. 

The IPA is currently developing the second edition of the Small Business White Paper which puts forward recommendations to boost small business productivity and prosperity.

publicaccountants.org.au

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CAFES, shops and salons in the Sunnybank area of Brisbane can expect a visit from the Australian Taxation Office (ATO) in September as part of efforts to tackle the cash economy.

Assistant Commissioner Tom Wheeler said that while most small businesses now take electronic payments, accepting cash is still common.

“When businesses advertise as ‘cash-only’, it raises a red flag about whether those businesses are accurately reporting all their income, and meeting their obligations as an employer,” Mr Wheeler said.

“Over the next 12 months, ATO staff will be visiting businesses across the country. We are focusing on businesses that typically have high cash transactions or only take cash, such as restaurants, cafes, pubs, hairdressers, beauty salons and home-based businesses, along with other local retailers.”  

Mr Wheeler said that after the visits the ATO will assess if some businesses need assistance in understanding and meeting their obligations.

“These visits are an extension of our ongoing focus on protecting honest businesses and supporting those that need extra help to get their tax right,” Mr Wheeler said.   

“If a business is behind in their lodgments or their record keeping isn’t quite up to scratch, we will give them some support to get back on track. Other businesses may be investigated because we’re concerned they’re deliberately doing the wrong thing.”

Mr Wheeler said the ATO is reminding taxpayers that running a cash-only business doesn’t mean they’re invisible to the ATO.

“We receive data on businesses that take electronic payments, so we can identify those that don’t. This means we can investigate further to make sure they are meeting their tax and super obligations,” Mr Wheeler said.

“In 2015–2016 the ATO raised over $208 million in tax and penalties from its cash and hidden economy compliance activities.”

“We urge all businesses to report all their income and meet all their obligations as an employer. Our increased use of data and analytics mean that sooner or later, we will catch up with those businesses seeking to avoid their obligations. The cash economy just doesn’t pay.”

For more information, visit ato.gov.au/protectinghonestbusiness

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MELBOURNE-BASED start-ups are being given the chance to share in $80 million in financial support and connect their ideas with the world, after the opening of a new incubation space in the CBD.

The City of Melbourne has partnered with the Jiangsu-Suzhou Science and Technology Town, RMIT University, the University of Melbourne, Victorian Government and Australia China Association of Scientists and Entrepreneurs (ACASE) to open the Jiangsu-Victoria Innovation Centre at 51 Queen Street.

The Innovation Centre, run by ACASE, will provide Melbourne based startups with access to coaching, market information and entrepreneurial guidance, linking their ideas with universities, research institutes and the Chinese based Suzhou accelerator space to expand their reach into Asia.

Suzhou High-Tech Venture Capital Group is providing up to $80 million in financial support to run the centre, facilitate access to angel investment and fund project development over three years.

Acting Lord Mayor Arron Wood said the centre is the first of its kind in Melbourne and will feed into our booming startup sector.

“This Jiangsu-Victoria Innovation Centre will nurture the next generation of innovators and entrepreneurs to go on to great things,” Cr Wood said.

“The incubation space will provide expert business development guidance and the potential to export ideas to the world.

“Melbourne is now home to 170 co-working spaces, which is one measure of a healthy startup community. The recent launch of our Startup Action Plan shows we're serious about playing our role. Add to this the Jiangsu-Victoria Innovation Centre and it makes for exciting times for new and innovative businesses and business models.”

Chair of the City of Melbourne’s Prosperous City portfolio Councillor Kevin Louey said Council’s vital contacts in China helped get the Innovation Centre off the ground.

“For many years the City of Melbourne has worked tirelessly to help connect our businesses to the largest economy in the world,” Cr Louey said.

“This Innovation Centre is the culmination of many months of work between the Suzhou-Jiangsu governments, the City of Melbourne, ACASE, and two of Australia’s biggest universities in RMIT and University of Melbourne.”

The first cohort of startups to occupy the space will be selected from the ACASE Sunan Cup competition winners earlier this year.

The startups range from “intelligent clothing” to smart electronic stethoscopes, smart alarms and third-party brain MRI imaging.

Victorian innovation minister Philip Dalidakis said the announcement was another positive step for Victoria as the state continues to develop as Australia’s technology hub.

“We’re already seeing plenty of brilliant startups emerge in our state and I have no doubt that this centre will help more startups turn bright ideas into thriving businesses.”

www.melbourne.vic.gov.au

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TODAY the Turnbull Government and Naval Group Australia confirmed that 126 local businesses to date have been pre-qualified as eligible to take part in the supply chain for the $50 billion Future Submarine Program.

Over the last 12 months, these businesses have been thoroughly assessed and deemed as capable of delivering the quality products, parts or services needed to deliver this vital project.

Minister for Defence Industry, Christopher Pyne MP, said that this clearly shows the Government is setting a cracking pace in ensuring maximum Australian industry involvement, generating jobs and driving economic growth across the country in this flagship program.

“These Australian businesses that have passed the rigorous screening process are now able to bid for Future Submarine tenders for parts such as batteries, motors, pumps and many others as they are announced,” Mr Pyne said.   

“The Future Submarine program will create 2800 jobs, but also many more thousands in the supply chain across the country in businesses such as these.

“This is just the beginning for Australian businesses becoming eligible to take part in this and our other naval shipbuilding projects.

“The Government fully expects many hundreds of Australians businesses to be part of the supply chain of our locally built Future Submarines, Future Frigates, Offshore Patrol Vessels and Pacific Patrol Boats,” he said.   

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