Business News Releases

Goal posts move in right direction for small business

THE Institute of Public Accountants (IPA) has commended the Government’s move for small business to gain access to most tax concessions by moving the small business threshold from $2 million to $10m.

“Moving the small business threshold goal post is long overdue and while it doesn’t apply to small business capital gains tax concessions, many small businesses will appreciate having access to the suite of small business concessions (eg lower company tax rate, $20K instant asset write off),” said IPA chief executive officer, Andrew Conway.

“The small business threshold has not been indexed since it was introduced so an uplift is warranted but it is a pleasant surprise for it to be raised to $10m as announced in last year’s budget.

“This means that small businesses with a turnover of up to $10m will now have certainty on tax concessions that will be applied for this current financial year as they apply from 1 July 2016. 

“Entities with a turnover of up to $10m are more likely to generate greater economic benefits as they are generally employing entities, compared to the 61 percent of entities with a turnover below $2m which do not employ staff.

“This is a great result for small businesses considering that the measures had stalled in the Senate until the last sitting day before the Federal budget,” said Mr Conway.

publicaccountants.org.au

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Implementation is critical: Committee supports Future Submarine Treaties with caveats

TODAY, the Joint Standing Committee on Treaties tabled its report on two treaties with France that will work to support the Future Submarine Program.

Framework Agreement concerning Cooperation on the Future Submarine Program

The Agreement provides the international legal framework for the Government’s Future Submarine Program. The Agreement provides for the transfer of French Government-owned information relating to the design, build, operation and sustainment of the Future Submarine to the Australian Government.

It also notes the importance of Australia’s efforts to maximise Australian industry involvement in the design, build and maintenance of the Future Submarine and provides opportunities for Australian and French industry cooperation in the project.

Committee Chair, Stuart Robert MP said the Future Submarine Program is a $50 billion investment in Australia’s submarine capability and represents the largest defence acquisition in Australia’s history.

“The Committee strongly supports the proposed Agreement however, it is merely the first step in ensuring Australia’s national interests in the FSP are protected and maximised. The proposed Agreement provides a solid starting point to overcome some of the critical and costly issues that have been experienced in other defence acquisition projects.

“The Committee, as a result, recommends that the Parliament proceed with binding treaty action. However, the Committee makes recommendations to Government that will ensure the implementation of the Agreement maximises Australian interests in this important program," Mr Robert said.

Agreement regarding the Exchange and Protection of Classified Information

The Report also presents the Committee’s review of an agreement with France for the exchange and protection of classified information.

 “As with previous classified information exchange agreements, the Committee’s review seeks to ensure that Australian classified information provided to France, or a French contractor, is handled appropriately, is sufficiently protected and is accessed only by those duly authorised,”

“The Committee expresses its concern that Australia’s chosen contractor for the Future Submarine Program, DCNS, did not have sufficient processes to prevent the unauthorised access of classified information on another project, the submarine fleet for the Indian Government. The Committee understands DCNS has rectified this. Further, the Committee recommends the Government bring forward as a matter of urgency its work program to enable continuous vetting, namely connecting state and federal law enforcement with the vetting agency”. Mr Robert said.

The Committee’s report is available from its website.

The Chair and Deputy Chair will speak to the report in the House of Representatives when parliament resumes in May.

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MUA warns historic peace on the docks under threat within Patrick’s Terminal

THE Maritime Union of Australia warns Qube Logistics is threatening the newly-struck national peace on the docks by opening a small, effectively non-unionised container yard within Patrick’s Port Botany Terminal.

Less than five months ago, the MUA and Patrick Stevedores celebrated a win for all, after union members nationally voted more than 95 percent in favour of a new four-year workplace agreement.

Dubbed the “best deal on the docks in many years” it delivered stability and marked a new beginning between old foes, the MUA and Patrick’s, as well as its workforce.

But MUA Deputy National Secretary Will Tracey said that was now under serious threat.

“Why would Qube want to jeopardise future contracts at this commercially sensitive time by starting a dispute at this small container yard, when it is has just invested around $1 billion in Patrick’s and is seeking new business for its Moorebank Logistics Park?” Tracey said.

“Qube is already on the back foot trying to make up business in highly competitive market after Patrick’s lost its lucrative A3 shipping contract to DP World and Hutchison last year.”

In its half-yearly report released in February this year, Qube acknowledged the need to: “mitigate the loss of the A3 consortium contract which Patrick was unsuccessful at retaining and has reduced Patrick’s earnings from November 2016 onwards.”

The empty container park, fenced off inside the Patrick’s Terminal, was recently sub-leased to Qube. The container company told the MUA in February this year, the site was not part of the Patrick business, and therefore not covered by the MUA workplace agreement.

Despite 260 MUA members working at Patrick’s Port Botany Terminal, no MUA member has been employed inside the fenced-off area.

MUA Sydney Branch Secretary Paul McAleer said the recently signed Enterprise Agreement (EA) had secured a number of positive outcomes for the membership after several years of industrial recalcitrance on the part of the employer.

“Before the ink was dry on the new EA, with workers looking forward to some industrial certainty for the first time in over two decades, the company has again ambushed the workforce with its attempt to deny stevedores the right to work on site at Port Botany,” McAleer said.

“Patrick did something similar in 2012 when they announced the implementation of automation at Port Botany only two months after the then EA came into operation, despite constant denials during negotiations there were any plans to automate. That decision cost the jobs of over 200 workers with more than 80 being forcibly made redundant.

“Patrick’s attempts to compartmentalise the Port Botany Terminal by putting up flimsy fences to restrict job opportunities for our members is a sneaky, opportunistic plot to de-unionise the terminal, or at the very least to insource cheap labour.

“The attempt to reintroduce manual yard functions after two years of failed automated yard functions is a betrayal of the redundant workforce who built Patrick into a market share leader in Sydney, only to see that disappear in the years since.

“Patrick has used automation as a weapon against their employees that has ruined lives and the reputation of their business. They are more interested in their ideological hatred of workers than investment in the job security of their employees.”

http://www.mua.org.au/

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February retail trade figures prove disappointing

THE Australian Retailers Association (ARA) said the retail trade figures released today by the Australian Bureau of Statistics (ABS) represent a lower than expected growth for the industry with 2.68% total growth year-on-year.

 Although the February retail figures are lower than expected ARA Executive Director, Russell Zimmerman said this moderate growth is disappointing for a number of areas within the retail sector.

“We are starting to see discretionary spend impacted in these figures with the exception of cafes, restaurants and takeaway food services,” Mr Zimmerman said.

Clothing, footwear and personal accessory retailing saw a disappointing increase of 0.85% year-on-year, a distinct drop from last month’s increase of 5.18% year-on-year given the hot weather to throughout the Eastern seaboard.

A consolation to these modest figures is the slow but steady improvement in supermarkets with a 3.78% increase year-on-year as consumers allocate more of their spending on essential food items.

February trade figures remain steady across the board with all states showing a steady growth. New South Wales (3.28%) and South Australia (3.94%) lead the pack with stable year-on-year growth. While Victoria (2.62%), Queensland (2.79%), Tasmania (2.73%), Australian Capital Territory (2.34%), Northern Territory (1.15%) and Western Australia (0.38%) also show a moderate growth for February sales.

“Although we are experiencing a cooling off period in retail sales, we are confident that the reduction in the company tax rate for businesses with an annual turnover of less than $50 million will benefit hundreds of thousands small and medium-sized businesses, their employees and the broader Australian community,” Mr Zimmerman said.

“The only way to broadly grow the economy is to deliver further tax cuts to all sized businesses to grow jobs, bring inbound investment and keep Australian businesses investing in Australia".

MONTHLY RETAIL GROWTH (January 2017– February 2017 seasonally adjusted)

Food retailing (0.3%), Household goods retailing (-0.4%), Clothing, footwear and personal accessory retailing (-2.5%), Department stores (0.8%), Other retailing (0.0%) and Cafes, restaurants and takeaway food services (0.0%). Total sales (0.1%).  

New South Wales (0.4%), Victoria (-0.3%), Queensland (-0.2%), South Australia (0.1%), Western Australia (-0.7%), Tasmania (-0.5%), Northern Territory (0.4%) and Australian Capital Territory (-0.5%).

YEAR-ON-YEAR RETAIL GROWTH (February 2016 – February 2017 seasonally adjusted)

New South Wales (3.28%), Victoria (2.62%), Queensland (2.79%), South Australia (3.94%), Western Australia (0.38%), Tasmania (2.73%), Northern Territory (1.15%) and Australian Capital Territory (2.34%).

Food retailing (3.69%), Household goods retailing (1.12%), Clothing, footwear and personal accessory retailing (0.85%), Department stores (-2.96%), Other retailing (2.21%) and Cafes, restaurants and takeaway food services (5.90%). Total sales (2.68%).  

 

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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New cybersecurity inquiry launched

THE Joint Committee of Public Accounts and Audit has launched an inquiry into Cybersecurity Compliance as part of its examination of Auditor-General reports. The Committee’s inquiry is based on the 2016-17 Auditor-General Report No. 42 Cybersecurity Follow-up Audit.  

Committee Chair, Senator Dean Smith, said that, as Parliament’s joint public administration committee, the JCPAA has an important role in holding Commonwealth agencies to account.

“Cybersecurity is integral to protect Government systems and secure the continued delivery of Government business. Government entities are required to implement mitigation strategies to reduce the risk of cyber intrusions. The Committee is continuing its oversight of entities’ compliance with the mandated strategies with the launch of this Inquiry,” Senator Smith said.

The JCPAA is a central committee of the Parliament and has the power to initiate its own inquiries on the Commonwealth public sector. The Committee examines all reports of the Auditor-General tabled in the Parliament and can inquire into any items, matters or circumstances connected with these reports.

The Committee invites submissions to the inquiry by Thursday 27 April 2017, addressing the terms of reference. Further information about the inquiry can be accessed via the Committee’s website.

Interested members of the public may wish to track the committee via the website

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