Business News Releases

Australia will choke without tax overhaul - IPA

AUSTRALIA risks choking and the current tax system is not doing us any favours; in fact it is holding us back, says the Institute of Public Accountants (IPA).

“Australia’s current tax system inhibits growth and stifles entrepreneurialism and innovation,” said IPA chief executive officer, Andrew Conway.

“Do we want a tax system which continues to tax effort or a system that taxes consumption?  It is the IPA’s view that the latter should be pursued if Australia is to arrest its productivity decline and make the tax system competitive again.

“Tax reform represents one of the strongest levers the Government has at its disposal to revive productivity, competitiveness and growth.

“Australia faces dual challenges of the need to ensure fiscal sustainability and boost productivity growth to sustain growth in living standards.

“Moving to growth supporting taxes is essential to sustain Australia’s economic momentum and to meet all current and future spending needs.

“Consumption taxes such as the GST represent one of the most efficient and sustainable tax bases available and yet Australia’s GST base remains relatively narrow and covers 47 per cent of private consumption.

“We can’t keep relying on bracket creep but it will be inevitable without a change in the tax mix,” said Mr Conway.

The IPA’s submission to Treasury on the Tax Discussion Paper can be viewed at: www.publicaccountants.org.au/resources/news-and-media/submissions/tax-discussion-paper

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Weak trade figures and excessive wage increases causing concern - ARA

 

THE Australian Retailers Association (ARA) said monthly retail trade figures reported today by the ABS were relatively unchanged (0.0 percent) following a 0.3 percent rise in March 2015.

ARA Executive Director Russell Zimmerman said although today’s monthly figures were modest, year on year growth for April is looking strong at 4.1 percent.

“In seasonally adjusted terms there were rises in cafes, restaurants and takeaway food services (0.8 percent) and clothing, footwear and personal accessory retailing (1.3 percent). 

“These rises are to be expected when you take into account Autumn’s cold weather which had well and truly settled in during the month of April, prompting many Australians to start building their winter wardrobes and turn to their local restaurants and takeaway services for comfort food.

“In seasonally adjusted terms there were rises in Victoria (0.5 percent), the Australian Capital Territory (0.6 percent), South Australia (0.1 percent) and the Northern Territory (0.1 percent). New South Wales was relatively unchanged (0.0 percent) and Queensland faced a fall (-0.6 percent), as did Tasmania (-0.9 percent) and Western Australia (-0.1 percent). 

"While interest rates are sitting at an all time low and the recently released Federal Budget delivered some good news for business, unfortunately there is still a lot of support needed to ensure the success of the retail industry into the future.

“The ARA also has strong concerns following the Fair Work Commission’s decision this week to increase the National Minimum Wage to $656.92 per week, or $17.29 per hour.

"The ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector, so we are obviously concerned about the adverse effects this decision will have on retailers. The retail industry simply cannot keep up with excessive wage increases,” Mr Zimmerman said. 

MONTHLY RETAIL GROWTH (March 2015 – April 2015 seasonally adjusted)

Clothing, footwear and personal accessory retailing (1.3%), Cafes, restaurants and takeaway food services (0.8%), Household goods retailing (0.0%), Food retailing (-0.1%), Other retailing (-1.0%) and Department stores (-0.7%). Total sales (0.0%).

South Australia (0.1%), Australian Capital Territory (0.6%), Victoria (0.5%), New South Wales (0.0%), Western Australia (-0.1%), and Northern Territory (0.1%), Queensland (-0.6%) and Tasmania (-0.9%). Total sales (0.0%).

YEAR-ON-YEAR RETAIL GROWTH (April 2014 – April 2015 seasonally adjusted)

Household goods retailing (8.5%), Clothing, footwear and personal accessory retailing (7.5%), Food retailing (3.5%), Cafes, restaurants and takeaway food services (3.3%), Department stores (1.4%) and Other retailing (0.6%). Total sales (4.1%).

Australian Capital Territory (5.9%), South Australia (5.8%), New South Wales (4.9%), Victoria (4.4%), Western Australia (2.9%), Queensland (2.8%), Tasmania (2.2%) and Northern Territory (-0.7%). Total sales (4.1%).

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 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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Federal Small Business Minister set to open Vodafone National Small Business Summit Start Up

HON. BRUCE BILLSON MP will join the Council of Small Business of Australia (COSBOA) to put the individuals behind small businesses in the spotlight ahead of its annual policy event, the Vodafone National Small Business Summit in July.

The inaugural Summit Start Up will be opened by the Hon Bruce Billson, the Federal Small Business Minister on the evening of Wednesday 15th July; where the community, culture, and diversity of small businesses will be celebrated.

All individual business owners are invited to join the Summit Start Up, to network with their peers, showcase their entrepreneurial force and meet with key leaders and policy influencers and makers.

During the evening, attendees can hear commentary from various sectors – from accountants and gym owners, to mechanics and hairdressers – about what role they play in the community and how this impacts the public’s welfare.

Minister Billson said: “I am delighted to join small business owners and representatives at the inaugural Start Up to COSBOA’s Summit. Our Government knows the hard working women and men of small business really are the engine room of our economy. Small business has been and continues to be an enduring focus and priority for me, both professionally and personally.”

Peter Strong, CEO of COSBOA, added: “Small business is vital to the Australian economy, although we sometimes get caught up discussing the financial impacts of small business; it’s important not to lose sight and be aware of their contributions to communities and the cultural fabric on a daily basis – whether that’s the local cafe owner, who knows you on a first name basis, or local hairdresser, who stays open to work around your calendar.”

Peter Strong and the Minster will also be joined by Andrew Chanmugam, Vodafone’s General Manager of Business, and Robert Gerrish founder of Flying Solo, home to a community of over 75,000 Australian solo and micro businesses, sharing their advice and learning with owners.

COSBOA is also pleased to announce Westpac is a major sponsor for this year’s Summit. General Manager for Small Business, Julie Rynski, adds: “Small business is the backbone of the Australian economy, and Westpac is excited to be involved in an event celebrating the success of Australia’s small business owners and entrepreneurs.

“As a major sponsor of the inaugural Small Business Summit Start Up, we look forward to advancing the conversation around small business community and culture, which is vital to the continued strength of the small business sector and Australian economy as a whole.”

Tickets for the Small Business Summit Start Up on Wednesday 15th July are $20 per person. Full registration for the Vodafone National Small Business Summit is now also open.

For more information please visit www.nationalsmallbusinesssummit.com.au

 

  1. The Council of Small Business Australia (COSBOA) was founded in 1979 and was incorporated in 1985.
  2. COSBOA is Australia’s peak body exclusively representing the interests of small businesses.
  3. The VODAFONE National Small Business Summit 2015 will be held at Doltone House Jones Bay Wharf, Sydney on 16 and 17 July.
  4. The VODAFONE National Small Business provides the small business sector with the opportunity to discuss and identify relevant issues, promote innovation and generate ideas to stimulate growth within the industry.
  5. For more information about the summit visit: www.nationalsmallbusinesssummit.com.au
  6. For more information on COSBOA visit: http://www.cosboa.org.au/
  7. Interviews with Peter Strong, CEO are available upon request.
  8. Connect through social media channels: 

Facebook: /COSBOA

Twitter: @COSBOA

Hashtag: #NSBS15

LinkedIn: http://www.linkedin.com/company/cosboa

  1. COSBOA is a long-time advocate of small business on issues from taxation and workplace relations, through to competition law and retail tenancy.

The goals of COSBOA are to promote and support the development of small businesses in Australia and the council recognises that it is a national imperative for Australia that the needs of small business are on the national policy agenda.

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Queensland FIFO inquiry must be fair and factual, says AMMA

NATIONAL resource industry employer group, AMMA, has urged a Queensland inquiry into FIFO practices to consult thoroughly with industry before making recommendations that could negatively impact business and employment opportunities in the state.

AMMA’s submission to the Queensland Parliamentary inquiry: fly-in, fly-out and other long distance commuting work practices in regional Queensland is based on feedback from its member companies which rely on FIFO working arrangements for their operations.

“The resource industry has been a major pillar of the Queensland economy and will continue to play a vital role in Australia’s anticipated emergence as the world’s largest exporter of LNG by 2020,” says AMMA executive director, policy and public affairs, Scott Barklamb.

“FIFO work practices have played an important role in developing the state as a resources investment destination. This benefits all Queenslanders through economic growth, royalties and taxes.

“AMMA urges the inquiry to undertake a sensible, considered and consultative approach to work practices which are critical to many resource operations remaining viable.”

Mr Barklamb says resource employers rely on non-residential employees primarily where their operations are remote from communities. He adds that such arrangements often suit both employers and employees, and numerous resource projects would not survive without FIFO.

“For such employers, utilising FIFO is the only way they can source the range of specialised skills they need, and ensure their employees travel safely to and from work,” he says.

“If FIFO was restricted or banned, many of Queensland’s remote mines would close down. This would be devastating for FIFO workers and their families, as well as the flow-on support sectors, and tax and royalty payments that help fund services for the wider Queensland community.”

Mr Barklamb says the inquiry should consider ‘robust data and evidence’ before coming to any conclusions about the economic, social and health impacts of FIFO.

“Australia’s resource employers take the health and wellbeing of their employees very seriously, and provide health services and support programs to FIFO and non-FIFO employees in Queensland,” he adds.

“Resource organisations that utilise FIFO also continue to invest significant capital and in-kind support into the social fabric of regional communities.

“FIFO is vital for our industry, the Queensland economy and the community.  AMMA hopes the inquiry will carefully consider all the facts and consult with industry before making any recommendations that could negatively impact Queensland’s reputation as a resources investment and employment destination.”

www.amma.org.au

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Wage review decision to adversely affect retailers and their employees

THE Australian Retailers Association (ARA) is concerned for the future of the retail industry after the Fair Work Commission has today awarded an unmanageable $16 a week increase in the minimum wage.

From 1 July 2015, the National Minimum Wage will increase to $656.92 per week, or $17.29 per hour.

Executive Director Russell Zimmerman said the ARA advocated before the tribunal a realistic and manageable minimum wage increase of no more than $5.70 per week for the retail sector.

“We are obviously concerned about the effects this decision will have on retailers.

“Retailers and young Australians have been reliant on pay rates to enable retail to bring on low-skilled young staff and increase their skill levels, reducing youth unemployment. Many small to medium enterprise retailers are reliant on a minimum wage workforce, and the announcement today to increase wages during this time of low consumer confidence and low growth will sadly result in further job losses and business closures – a very distressing truth for retailers.

“The minimum wage increase, coupled with weak trade figures and penalty rates, will only cause further damage to retailers who are struggling to keep their heads above water as it is. While interest rates are currently at a record low (with the Reserve Bank of Australia today deciding to keep rates on hold at 2.0 percent) and there is support from the recently released Federal Budget, the retail industry cannot simply keep up with excessive wage increases.

“The ACTU and SDA aren’t about creating jobs and opportunity but they now appear to be on a low productivity/high wages rampage which will only harm retailers and their employees,” Mr Zimmerman said. 

Since 1903, the Australian Retailers Association (ARA) has been the peak industry body representing Australia’s $265 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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