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Make your vote count for small business

THE Council of Small Business of Australia (COSBOA) is urging Small Business owners and their employees to be aware of the consequences of their vote at the Federal Election this weekend, Saturday 2 July 2016, with some policies having the potential to have far reaching effects on small business.

Paul Nielsen, Chairman of COSBOA emphasised the importance of voters understanding the policies they are supporting rather than focusing on the politicians.

“Every vote counts. Small Business owners and employees need to be aware of the policies they’re supporting when they place their vote this weekend, especially when it comes to policies that don’t just affect the economy, but our entire country’s cultural fabric.

“Each party has policies that impact smaller private or family owned businesses, and these impacts may be felt for the next 20 years, so it’s imperative people understand what they are really voting for,” says Mr. Nielsen.

COSBOA outlines the top three core initiatives to be aware of:

Strengthen competitions laws by enacting the Effects Test

To allow small businesses to prosper and grow, in turn driving the economy and job creation, there must be a level playing field, which prevents big companies from dominating the market. The so called changes to Competition Policy, specifically Section 46 of the Competition and Consumer Act – The Effects Test - needs to be enacted as soon as possible, to hold big business accountable when they deliberately misuse their market power.

“Without the Effects Test there’s little to stop big businesses becoming bigger, and smaller businesses fewer, which is detrimental to Australia and to consumer choice,” says Mr. Nielsen.

Extend benefits for businesses with turnover under $2M to $10M

Currently a small business is defined as an entity with an aggregated turnover of less than $2 million, but this needs to change, says COSBOA.

“This $2 million figure was relevant ten years ago but not today. A business which was turning over $2 million then, could now be turning over $4 - $5 million, but grown minimally – thus it is still a small business, which requires Government encouragement for future growth,” says Mr. Nielsen.

Increasing the threshold would help some 870,000 businesses, who employ around five million Australians.

To see small businesses thrive, the Government of the day needs to support them by tax rate cuts from 28.5% to 27.5% and allow instant write-offs of many expenses, especially when setting up a new business.

“By cutting red tape and making it easier for small businesses to operate, billions of dollars per year could be saved,” says Mr. Nielsen.

Abolish the Road Safety Remuneration Tribunal

The Road Safety Remuneration Tribunal needs to abolished says Mr. Nielsen.

“With this tribunal in place, many truck owner/drivers would be driven out of business. The initiative would lock them into union determined freight charges that now only apply to major trucking companies,” he says. Ultimately freight costs will increase for all businesses.

Since the 2013 Election, COSBOA has been instrumental to the growth of small business across Australia, shaping policies and lobbying Government. Some of the highlights achieved, include the appointment of the Small Business and Family Enterprise Ombudsman, stronger protections for small businesses against unfair contact terms, $1.1 billion package of incentives to help businesses of the future get off the ground and the cutting of ‘red tape’ to make business operation easier.

“Small businesses are the backbone of the economy and are a part of our daily lives.  When voting on Saturday, we want Small Business owners and their employees to make an informed decision and COSBOA is dedicated to making the facts unambiguous without the politics,” Mr. Nielsen concluded.

For more information visit http://www.cosboa.org.au/election-2016/

From 6 – 8 July, the Council of Small Business of Australia (COSBOA) will host its premier policy event for small business representatives, government and industry leaders in Brisbane – the Vodafone National Small Business Summit. The Summit will ensure that the voice of small business is heard and safeguard this community of more than 3 million small businesses, making sure the needs of small business people are front and centre.

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Industry calls on QR to accept umpire’s final decision

THE Queensland Resources Council (QRC), has called on Queensland Rail (QR) to accept the Queensland Competition Authority’s final decision on QR’s Draft Access Undertaking.

The decision rejects QR’s proposal and requires it to submit a new document by 16 August.

'QR needs to accept the umpire’s decision, move on from the regulatory process and get back to the core business of improving the performance and long-term utilisation of its railways as soon as possible,’ said QRC's Chief Executive Michael Roche.

‘QR’s approach to this process has resulted in four years of delay and uncertainty, which has in turn undermined investment confidence in Queensland and seriously eroded the attractiveness of investing in the Darling Downs region.’

QRC's March 2016 submission to the QCA sets out just some of the many extra regulatory steps that have been created by QR’s approach to this process.

Mr Roche said that the cost of this process now runs into many millions of dollars, much of which will be borne by taxpayers, as the ultimate owners of QR – a cost that will be further exacerbated if QR seeks to judicially review the Authority's decision.

‘QRC is calling on QR to bring this process to an end immediately,’ said Mr Roche. 

‘Going forward, we support the review of the QCA Act currently being contemplated by the Government. The QR experience demonstrates the need to improve the Act so that processes are not delayed by, and millions spent on, debates regarding whether the QCA has, or does not have, the power to make reasonable decisions.’

In QRC’s March submission, QRC called on the regulator to make a final decision and we welcome the news that our advice has been heeded. 

‘In February, two Queensland energy GOCs needed a direction from the shareholding Minister to accept a regulator's decision. Now is the time for QR to listen to its customers, accept the reality of the final outcome of a thorough QCA investigation, and immediately confirm its intention to accept the umpire’s decision,’ Mr Roche said.

‘If QR refuses to accept the QCA’s decision, then the responsible Ministers (the Transport Minister and the Treasurer) need to step in and put an end to QR’s intransigence.’

www.qrc.org.au

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Consultation deadline approaching

SMALL BUSINESS owners wanting to contribute to the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) consultation initiative have one more week to put forward their ideas.

ASBFEO chief executive Kate Carnell said small businesses across the country have been weighing-in and having their say throughout the consultation process, which was launched to hear directly from small business people about the specific issues they want the ASBFEO to focus on.

“We started the consultation period in April, and since then, some common themes have certainly emerged as being hand-brakes on the growth of small businesses around Australia, including excessive red tape, broadband speeds and payroll tax,” Ms Carnell said.

“Payment times in particular is an issue that has been consistently raised with me by small business owners, so much so that it will more than likely be the focus of a future ASBFEO inquiry,” she said.

Ms Carnell said feedback from small businesses was being gathered in a range of different ways.

“I’ve been travelling around the country speaking with small businesses directly, while many people have made use of the ASBFEO’s interactive online platform ‘thinkBIGsmallTALK’ to share their ideas,” Ms Carnell said.

“The platform allows users to submit their views and rate the opinions of others, so essentially it’s an online meeting place for the small business community to gather and brainstorm,” she said.

Ms Carnell said that while the official consultation period closes at the end of June, small businesses are encouraged to continue contacting the ASBFEO in the future, with any issues they feel are impacting their operations.

The results of the consultation discussions with the sector will be reflected in an advocacy agenda, which will be released in the coming weeks and will outline the ASBFEO’s focus going forward.

www.asbfeo.gov.au/consultation

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AMMA praises union action 'public interest' test

AMMA, Australia's resource industry employer group believes a new public interest test for future trade union amalgamations will provide critical Australian commercial activities, such as the construction of nationally significant resource projects, with further certainty and safeguards against militant and unlawful union tactics.

“Australia’s resource employers support the Coalition’s commitment to ensure future mergers between unions can only proceed where they are consistent with the public interest,” says AMMA chief executive Steve Knott.

“This will not only correct a glaring omission from the existing legislation and bring unions into line with the rules for corporate mergers, it will also ensure wider community interests are taken into account.

“It doesn’t matter if Australia has 20 unions or 2000 unions, as long as they all respect and abide by our workplace laws.  Unions that honestly and lawfully represent their members and comply with our workplace laws should easily pass such a test if they seek to merge with other unions.”

Although the Coalition’s policy will apply to all registered organisations seeking to amalgamate, AMMA called for a new public interest test following industry and community concerns about a proposed merger between the CFMEU and the MUA.

Concerns related to how two unions with a history of unlawful conduct and ignoring court decisions were looking to further bolster their influence on supply chains and contractor sectors.

In late 2015, the CFMEU’s record of breaking Australia’s workplace laws was lambasted by a Federal Court Judge who asked “has there ever been a worse recidivist in the history of the common law?”

The MUA has similarly forged a reputation for being openly and proudly militant, with its West Australian secretary infamously telling the union’s 2013 national conference that “laws need to be broken, you’re going to get locked up”.

"The resource industry is concerned that an amalgamation between the MUA and the CFMEU would potentially put at risk the stability of the supply chain supporting offshore and onshore resource projects,” Mr Knott says.

“Any coordinated ramping up of the militant industrial tactics of the CFMEU and MUA could jeopardise the timely completion of projects and supply of commodities to overseas buyers, and threaten future investment decisions.

“AMMA is pleased our recommendation for a public interest test has been taken up by the Coalition.

“Coupled with the restoration of the Australian Building and Construction Commission (ABCC) and the extension of its coverage to offshore construction, also championed by AMMA, these measures will provide certainty to investors, industry and the broader Australian community that significant future resource sector projects will not be put at risk by union militancy or unlawfulness.”

In AMMA’s 2016 Election Survey of over 100 resource employers, representing 85,000 employees, 86% believed union amalgamations should be scrutinised against a public interest test. 82% supported the ‘urgent’ restoration of the ABCC.

www.amma.org.au

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Providing a springboard for women-owned businesses

A FAST-TRACK program to support up-and-coming female entrepreneurs is being supported by the City of Sydney as part of its efforts to foster business and boost the local economy.

Springboard Enterprises Australia (SBE) has received $35,000 in City sponsorship for their 2016 Accelerator Program that includes an education and coaching course designed for women entrepreneurs in the early stages of their company’s development. 

Lord Mayor Clover Moore said it was important to support women entrepreneurs, who are underrepresented in areas like emerging and high-growth businesses.

“Too little investment in women-led, high-growth companies impedes our city’s economic growth. So it’s not only a women’s issue, it’s a broader economic issue,” said the Lord Mayor.

“There are plenty of outstanding female entrepreneurs in Australia who could use Springboard’s support to take their business to the next level.

“Our upcoming Tech Startups Action Plan identifies the need to increase the number of female entrepreneurs launching and scaling high-growth businesses as an economic priority.”

The sponsorship falls under the City’s 10-year economic development strategy that aims to enhance the skills of business people and increase their awareness of business opportunities.”

Each year, SBE runs a ‘bootcamp’ for up to 10 companies, designed to accelerate their growth by providing skills and knowledge, coaching, mentorships and connections to local and international venture capitalists, angel and corporate investors.  

Companies selected to take part must:

•    Have a woman in a senior position with a significant equity stake;
•    Demonstrate a qualified and profitable market opportunity;
•    Have a track record of milestone achievement;
•    Have a credible management team or ability to attract one; and
•    Be based in or have significant operations in Australia.

SBE Australia Chair, Topaz Conway, said the City’s shared commitment to entrepreneurs was a key alignment with Springboard Enterprises Australia’s efforts to deliver a world-class program for women. 

“Since 2013, Springboard has worked with 26 women entrepreneurs to scale their businesses. To date, 70 per cent of these companies have now received more than $68 million in investment capital and a third have expanded to US and UK markets.

“Our goal is to help women make high-value contributions to Australia’s economy through innovation and technology.” 

The City has supported the SBE Accelerator Program since its launch in Australia in 2012 as part of the Economic Development Strategy to encourage women entrepreneurs, help strengthen the Sydney economy and support business.

Entrepreneur and Switch Automation co-founder, Deb Noller, completed the SBE Inaugural Accelerator Program in 2013 and last year expanded her businesses to the United States. 

“The Springboard Enterprise Australia Induction Program was perhaps one of the most eye-opening experiences of my personal AND professional life. I will never forget the feedback I received—mostly in the form of learning how to present myself and my company in a confident, clear light,” said Noller.

“Those mentors were invaluable in helping shape our approach to global expansion. We now have more than 7,000 buildings on our platform around the world; 38 employees; and are raising our first big Series A round.

The continued coaching and support means that I can stand in front of any potential customer, my global team and any investor and present our solution to the buildings industry the way that it deserves to be presented.”

Switch Automation is a cloud-based software program that provides a remote energy-management and sustainability reporting for buildings to help business cut costs and run more efficiently. 

For more information, visit sb.co/australia 

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