IMPROVING health and nutrition in Australia’s neighbourhood is the subject of the first report of the inquiry into the role of development partnerships in agriculture and agribusiness in promoting prosperity, reducing poverty and enhancing stability in the Indo-Pacific region released by the Joint Standing Committee on Foreign Affairs, Defence and Trade (JSCFADT).

The chair of the JSCFADT’s Foreign Affairs and Aid Sub-Committee, Dr Sharman Stone MP, said a major focus for the inquiry has been the so-called ‘double burden’ of malnutrition.

“This is when there is a coexistence of both under and overnutrition – which has a high cost to Indo-Pacific countries. Undernutrition is one of the largest causes of child mortality in children under five years. Stunting in children, which can be a sign of inadequate nutrition can cause irreversible developmental problems. Overnutrition and obesity on the other hand can cause non-communicable diseases such as diabetes and coronary disease,” Dr Stone said.

Undernutrition is a severe problem for some of Australia’s nearest neighbours with child stunting rates high, for example in Timor-Leste and Papua New Guinea. At the same time globally, of the top ten countries with the highest rates of overweight and obese adults, nine are Pacific island nations.

“The double burden of malnutrition in the Indo-Pacific region, especially in Pacific Island countries threatens the health of individuals, and the growth of regional economies,” Dr Stone said. “The scale of these problems and the tragic outcomes cannot be underestimated. The high rates of diabetic related amputations in some of these Pacific countries is not only a tragedy for individuals it’s also placing pressure on already stretched health services,” Dr Stone said.

The importance of local agriculture, the promotion of local cuisines and the role women can play in achieving better dietary outcomes for their families are some of the issues explored in the report as possible means to combat this health crisis and improve the nutritional health of our neighbours.

The report makes a range of recommendations to address the double burden of malnutrition, looming as a malnutrition crisis. In particular it needs promoting though a more co-ordinated and targeted approach by all stakeholders in the region.

The full report, information about the inquiry, including copies of submissions and public hearing transcripts, can be found on the committee’s website at www.aph.gov.au/jfadt.

THERE is more good news for small business in the Federal Budget, says the Institute of Public Accountants (IPA).

“Last year’s Budget delivered some steps in the right direction with tax cuts and asset write-offs and this year, the Government has kept to their word when it comes to supporting the most critical sector of our economy,” said IPA chief executive, Andrew Conway.

“A further reduction in the income tax rate for small business (from 28.5 percent to 27.5 percent for 2016-17) combined with an increase in the eligibility turnover from $2 million to $10 million for incorporated businesses will be well received by an additional 90,000 small businesses.

“They will also be eligible for other small business tax concessions (including the $20,000 instant asset write-off). 

“Unincorporated small businesses won't completely miss out. The benefits will be extended by increasing the eligibility turnover threshold from $2 million to $5 million pa, and increasing the discount to 8 percent (and 16 percent over the next decade). Disappointingly, the $1,000 cap pa remains. 

“Addressing the bracket creep issue is also a positive with changes for those earning between $80,001 and $180,000 being extended to $87,000; this is good news for both individuals and unincorporated small business owners. 

“We acknowledge that the Government is relying on the "growth dividend" from these measures to reduce the budget deficit. Until then, we are walking on a tight rope," said Mr Conway. 

publicaccountants.org.au

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NATIONAL retail spending saw a 3.6 percent growth (year-on-year) in March 2016, according to the Australian Bureau of Statistics (ABS), with household goods standing out with a 5.8 percent increase (year-on-year).

The ARA believes this reported figure can be attributed to television shows like My Kitchen Rules encouraging consumers to purchase new household products demonstrated by these programs.

ARA Executive Director Russell Zimmerman said the soft sales figures are a sign that the retail sector is still facing challenges. With the pending Federal election also weighing on sales and confidence creating uncertainty business and consumers are looking for real economic leadership.

Peak retail industry body the Australian Retailers Association (ARA) said the seasonally adjusted monthly retail trade figures (month-on-month) reported today by the ABS. Year-on-year retail sales sit at 3.6 percent, highlighting soft retail sales growth in a number of categories.

The boost from the RBA interest rate cut along with Federal Budget tax cuts are what the Doctor ordered to boost consumer and business confidence.

“Overall, the sales figures in March illustrate that consumers are still holding on to their purse strings and discretionary spending remains tight with there being little doubt an extended Indian Summer has impacted on department store sales with deflation hitting food sales," Mr Zimmerman said.

"Year on year figures provide the most accurate measure of the sector’s performance and are the figures used by most retail businesses in their own reporting. March 2016 sales showed a 0.4 percent increase over February 2016 (month on month).

“Overall, the figures may be a reflection of consumer nervousness in discretionary spending due to instability with the Federal election and weak indicators from overseas. The federal election couldn’t come soon enough to restore certainty.

“Retailers are facing significant cost pressure at the moment with this week’s Federal Budget and interest rate cut being a positive, we are also needing the Government and Opposition to step in and increase consumer confidence by showing strong economic leadership and reform as part of their election campaigns,” Mr Zimmerman said.

MONTHLY RETAIL GROWTH (February 2016 – March 2016 seasonally adjusted)

Household goods retailing (0.1%), Other retailing (0.4%), Food retailing (0.6%), Clothing, footwear and personal accessory retailing (1.1%), Cafes, restaurants and takeaway food services (0.0%) and Department stores (-0.5%).

Northern Territory (-0.2%), South Australia (0.2%), Australian Capital Territory (-0.6%), Victoria (0.5%), Tasmania (0.6%), Western Australia (0.7%), New South Wales (0.4%) and Queensland (0.2%). 

YEAR-ON-YEAR RETAIL GROWTH (March 2015 – March 2016 seasonally adjusted)

Household goods retailing (5.8%), Cafes, restaurants and takeaway food services (3.0%), Food retailing (2.9%), Clothing, footwear and personal accessory retailing (5.2%), Other retailing (3.6%) and Department stores (1.7%).

New South Wales (4.9%), South Australia (3.1%), Tasmania (3.8%), Victoria (5.3%), Australian Capital Territory (6.9%), Western Australia (1.2%), Queensland (0.9%) and Northern Territory (1.1%).

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Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $300 billion retail sector, which employs over 1.2 million people. The ARA ensures retail success by informing, protecting, advocating, educating and saving money for its 5,000 independent and national retail members throughout Australia. Visit www.retail.org.au or call 1300 368 041.

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COSBOA praised the budget announcement yesterday, declaring it a win for small businesses of Australia.

CEO for COSBOA, Peter Strong, credited Scott Morrison, Treasurer, and Kelly O’Dwyer, Small Business Minister and Assistant Treasurer saying, "The economy is in now a better position to deal with and  take advantage of change."

Explaining further what the budget means to small business, Mr Strong continued:

"The big ticket item is that the threshold for determining what is considered a small business has been raised to $10 million annual turnover.  This creates a change immediately for government support actions around tax breaks, instant tax write offs and other initiatives.” 

This higher threshold will give more businesses access to the $20,000 instant tax write off announced in last year’s budget.  There is also another tax decrease for these businesses, which means tax has decreased 2.5% in two years.

Mr Strong said, "This is a good message to send to businesses, who want to grow and employ, or start to export and take advantage of the global economy.

"The budget changes and the decisions that were made last year put these businesses in an ideal pool to work with smaller micro businesses to innovate and add value; produce and manufacture goods for domestic and global markets.

“The simplification of the BAS shows a commitment from the government and the ATO to making compliance easier and reflects the fact that the great majority of businesses are honest and transparent in their dealings with government and need less monitoring and better flexibility.” said Mr Strong.

Funding for the Small Business and Family Enterprise Ombudsman (SBFEO), Kate Carnell, has increased from $2m to $6m. 

Mr Strong said, "This is important because Ms Carnell needs to develop the role and gather the information and resources required to aggressively advocate where needed and when needed.”

The last six months also saw significant changes to the Competition Act: the Effects Test.

Peter added, "When implemented, the Effects Test will create more space for innovators to be rewarded for their efforts.

“The creation of fairness in contracts between small business and bigger businesses will provide the fairness necessary for individual stress management and for proper and honest negotiations and contract contents,” said Mr Strong.

The creation of the SBFEO provides the infrastructure and the advocate within the bureaucracy to inform the business community and represent them as necessary. The changes in competition and in contracts cost nothing and the SBFEO is $6m a year.

However, a key issue that has not been addressed in the budget, and COSBOA is hoping it will become a centrepiece of election industry policy, is the reform of the Vocational Education and Training sector. 

Mr Strong said, “To take the greatest advantage of this small business budget and the confidence it will create, we need workers with the right skills, not the skills that make easy money for some greedy RTOs.  For example, those who are unemployed, or workers seeking new careers or to increase their earning potential are the ones who require these skills the most.

“The Youth Pathways outlined in the budget go some way to helping focus on our needs and the needs of the unemployed person, but more needs to be done in VET. We know that it could not be solved in this budget as the problems in that sector are profound and cannot be fixed overnight,” concluded Mr Strong.

For more information on COSBOA, visit www.cosboa.org.au.