THE Council of Small Business Australia (COSBOA) acknowledges the decision by the government to delay the implementation of changes to Section 46 (regarding misuse of market power) of the competition regulations pending a review.

COSBOA also acknowledges the decision to implement other recommendations from the Harper Review of Competition Regulations.

Peter Strong, CEO of COSBOA, stated today, “We are very pleased to see the major recommendations from the Harper Review back in the limelight where they belong.

“It is pertinent that we focus on developing competition in aged care, human services, intellectual property, roads and other key areas. However, it is of course disappointing that several dominant companies have created enough confusion and fear that we have to delay the important changes needed to Section 46.

“The fact is that the biggest companies Australia has ever seen and their union, the Shop Distributive and Allied Employees' Association (SDA), use their influence and resources to control competition policy to the detriment of productivity, retail diversity and innovation,” said Mr Strong.

"When two major companies have such far reaching influence on producers and manufacturers, innovation is stifled. COSBOA knows this and this is why the changes in Section 46 are vital to ensure we do not develop similar damaging domination in other areas, such as aged care.

“Minister for Small Business, The Hon Kelly O’Dwyer has contacted COSBOA and other key groups and industry bodies to set up a series of round tables to discuss the issues of Section 46 and determine the right changes to make. An outcome is anticipated to be achieved by March 2016,” said Mr Strong.

Small business people can be assured that COSBOA will continue to confront those who spread misinformation and false facts, he said.

“We know that the Business Council of Australia and several of its members, particularly WesFarmers, will now, to the detriment of Australia, attempt to ramp up their lobbying and secret manipulations to get their way. Fortunately we have been assured by the government that all discussions will be open and the decisions will be made with competition, innovation and choice in mind as the outcome.

“COSBOA and its members have said for decades that the current state of competition is unfair and the dominant businesses are killing innovation. Ignored for years, we were finally proven right in 2014 when the ACCC successfully prosecuted Coles for unconscionable conduct towards its suppliers. This is why we need to be heard – to ensure the same thing does not ever happen again. Our innovators need space to do their stuff.

“On the day Bruce Billson, the previous Minister for Small Business, has announced his retirement from politics, it is heartening to see one of his ground-breaking initiatives taken forward,” finished Mr Strong.

www.cosboa.org.au

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THE provision of a regular and reliable air service to the Indian Ocean Territories is critical to residents and economic development.

The Australian Government underwrites the current scheduled Virgin Australia air services from Perth to the Indian Ocean Territories (Christmas Island and Cocos (Keeling) Islands.

Witnesses to successive committee inquiries into the Indian Ocean Territories have called for the establishment of regular air services to the north. The IOTs are physically closer to Asia than mainland Australia and many Indian Ocean Territory residents have close family and cultural ties with Asia. Increased air services to the north may also support increased visitor numbers.

Mr Ed Turner spent the 1980s and 1990s involved in air services provision to Christmas Island. This includes the period when the Christmas Island Casino was operational and there were additional services to the north serving casino visitors. Currently the Chief Operating Officer of Air Timor, Mr Turner will discuss the prospects of re-establishing a viable air service to Indonesia.

Committee Chair, Mr Luke Simpkins MP, said “the Committee is interested to learn more about Mr Turner’s proposal, including current impediments and ways to overcome these.”

PUBLIC HEARING 

Monday 23 November 2015

Committee Room 2R2, Parliament House, Canberra

PROGRAM                            

4:00 pm           Chair’s opening statement

4:05 pm           Air Timor (via teleconference)

4:30 pm           Close

All members of the public are welcome to observe proceedings.

The hearing will be webcast at www.aph.gov.au/live

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THE Tax and Revenue Committee today tabled its second report into the 2014 Australian Taxation Office (ATO) Annual Report. This follows the committee’s hearing in September with the Commissioner of Taxation, Chris Jordan.

The report covers a range of issues, including: the Tax Agent Portal, Single Touch Payroll, no-touch tax returns, measuring the tax gap, and tax implications of the sharing economy.

The committee found that changes to the online Tax Agent Portal had led to access difficulties and service outages for tax practitioners, making it harder for them to lodge returns for their clients.

The committee expressed concern that incidents like this affected the relationship between tax practitioners and the ATO.

Tax implications of the sharing economy were a new issue at the hearing. The ATO has established a view on the tax implications of this emerging sector, and has published guidelines to assist taxpayers with compliance.

The committee continued to focus on taxpayer perceptions of fairness in disputes and performance measurement and reporting. The ATO advised they would now report performance indicators on a quarterly basis. The committee viewed this as a positive development which will enable the ATO to better identify slippages in performance standards.

Committee Chair, Mr Bert van Manen MP, said that regular public hearings were an important part of the committee’s work in monitoring a modernising ATO.

“Bringing the ATO, scrutiny bodies and key stakeholders together in a forum like this ensures the ATO can explain the rollout of its change program as well as making sure that the ATO is responsive to the concerns of stakeholders, scrutineers, and accountable to the Parliament,” Mr van Manen said.

The report also listed a number of other key areas that the committee will discuss at its hearing into the 2015 ATO Annual Report, scheduled for early 2016.

The report can be found on the committee’s website: http://www.aph.gov.au/taxrev.

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THE INSTITUTE of Public Accountants (IPA) has renewed its call for its members to think seriously about their future business models.

Delivering the opening address at the IPA’s National Congress on the Gold Coast, IPA chief executive officer, Andrew Conway said that disruption would be ongoing and continue to present many challenges to the profession.

Mr Conway told the hundreds of accountants present that it was time to look to what the future holds.

“With compliance work diminishing, whether it be through ATO automation or the ever moving technology disruption to the profession; along with the need to address the new financial services regime requirements next year; it is timely to take stock of what your future business will look like,” said Mr Conway.

“While there is significant impact on the accounting profession, we are not on our own when it comes to disruption.

“Just consider the impact that Uber is having on the taxi industry and the reshaping of the hotel industry with Airbnb.

“”It will be critical for accountants to not just embrace ongoing change but to also be in a position to drive that change to ensure they can best service their clients who are also experiencing continual disruption.

“With ongoing disruption at various levels, I implore you to consider the impacts of disruption and how you may reshape your business model that best adapts and capitalises on them.” said Mr Conway.

Mr Conway also told the delegates that the IPA was committed to keeping members abreast of change that impacted their businesses and to developing digital resources to support them.

About the Institute of Public Accountants

The IPA, formed in 1923, is one of Australia’s three legally recognised professional accounting bodies.  In late 2014, the IPA acquired the Institute of Financial Accountants in the UK and formed the IPA Group, with more than with more than 35,000 members and students in over 65 countries.  The IPA is a member of the International Federation of Accountants, the Accounting Professional and Ethical Standards Board and the Confederation of Asian and Pacific Accountants.  The IPA was recognised in 2012 as Australia’s most innovative accounting organisation and listed in the top 20 in the 2012 BRW Most Innovative Companies List.  

www.publicaccountants.org.au

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