The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) has proposed key policies for the 2017-18 Federal Budget to kick-start small businesses growth, create more jobs and promote more transparent and fairer relationships with banks and big businesses.

THE Australian Small Business and Family Enterprise Ombudsman (ASBFEO) is disappointed with the Australian Bankers Association’s (ABA) response to the inquiry into small business loans.

ASBFEO Kate Carnell said the ABA’s decision not to accept the ASBFEO's definition of a small business loan as any loan under $5million is disappointing.

The ABA released its response to the ASBFEO Inquiry into Small Business Loans on Friday.

Ms Carnell said: “The ABA's very restrictive definition would mean that any business with more than 20 employees would not be deemed a small business under the banking code of practice.

“Equally restrictive and unworkable is their approach to their $3million loan limit. The ABA is saying that any business that has aggregate loans above $3million, including loans with ALL financial institutions and including ALL associated entities, will not be treated as a small business.

“This would mean that all loans taken out by directors of the business and their partners would be aggregated to determine if a loan taken out by the small business would be able to access the removal of non-financial default clauses and the other recommendations of the ASBFEO Report.”

Ms Carnell said this would exclude a very large number of small businesses and make a nonsense of the ABA’s claim that its response will cover 95 percent of business customers.

“I will be asking the ABA how they came up with this figure,” she said.

“The ABA talks about ‘covenant light’ loan contracts with small businesses - ASBFEO recommended that ALL non-financial default clauses should go except for situations where the small business breaks the law or goes into liquidation.”

Ms Carnell said the Commonwealth Bank’s undertaking last week was a better response than the ABA’s feeble effort.

“We think the ABA should go and talk with the Commonwealth Bank to consider its approach and go back to the drawing board.”

Ms Carnell noted the range of undertakings given by the ABA, including working with ASIC to implement a new Code of Banking Practice in line with the Khoury Report.

“We welcome the ABA’s undertaking that it will work on a new Code of Banking Practice this year with the aim of publishing it by the end of this year. We will closely monitor its progress,” she said.

www.asbfeo.gov.au

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THE Queensland Resources Council (QRC) welcomes the state government’s proposal to increase base load power in North Queensland with the potential expansion of Burdekin Falls Dam.

QRC Chief Executive Ian Macfarlane said all options need to be on the table to secure the state’s future energy mix.
 
“The establishment of a small hydroelectric power station at the state’s largest dam will add much needed supply into the east coast electricity market,” Mr Macfarlane said.

Mr Macfarlane also urged the Queensland Government to consider the development of the Tully Millstream Hydro project to provide even more base load power in North Queensland.
 
“Once again Queensland is setting an example for southern states on how to run a balanced energy policy by considering all options - coal, gas, renewables – to deliver affordable, reliable energy,” Mr Macfarlane said.

“But if we are to be agnostic in terms of the sources of energy the government should also support the addition of a modern high efficiency, low emission (HELE) power plant in Townsville, using some of the highest quality, low emission coal in the world right here in Queensland.
 
“If this region is to generate jobs and develop to its full potential it must have its own stable power generation including both hydroelectricity and coal-fired power supply,” Mr Macfarlane said.
 
The state government's Burdekin plan is to generate up to 150 gigawatt hours, lift the dam’s capacity and is seeking federal funding for the project through the Northern Australia Infrastructure Facility (NAIF).

“The federal government has plenty of business cases for new Queensland infrastructure with Burdekin Falls Dam and the proposal for new gas pipelines from the Bowen and Galilee Basins,” Mr Macfarlane said.

www.qrc.org.au

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THE Australian Retailers Association (ARA) opposes any delay in implementing GST to low-value imports and strongly supports the Government in closing the Low Value Threshold (LVT) loophole for the purchase of offshore tangible goods under $1000.

Executive Director of the ARA, Russell Zimmerman said any delay to low-value GST legislation will result in a number of job losses throughout the industry.

“The retail industry is already operating in a tough environment and any delay to this much-needed legislation will significantly affect employers and employees working in this sector,” Mr Zimmerman said.

“Levelling this unfair playing field for retailers is an area that both the industry and unions strongly agree on, and collectively support.”

The ARA firmly believes that the proposed GST collecting system is the best model at this point and should not be postponed.

“This legislation should be implemented as soon as possible, as we already know that overseas retailers have the capability of charging similar taxes online in Australia,” Mr Zimmerman said.

“These big global players already collect GST for digital products, therefore we want to see these retailers register and collect GST as of July 1 this year."

The ARA called on the Senate Crossbench to pass this GST at the Senate Economics Legislation hearings last Friday 21 April, and pushed for overseas retailers to immediately start collecting this tax from low-value imports.

“It is unreasonable for global retailers like eBay, who currently don’t pay any tax in Australia, not to register and collect the GST,” Mr Zimmerman said.

The ARA have been working with the Federal and State Governments to reduce the low-value threshold and provide a level playing field for Australian retailers.

“This legislation for low-value imports was first introduced in 2011 by then Assistant Treasurer, Bill Shorten, and has been supported by both parties,” Mr Zimmerman said.

“Therefore, there should not be any issue in adhering to the agreed implementation date of 1 July 2017.”

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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