CHIEF Executive Mark Stone said small business is a priority for VECCI.

Leading up to the 2013 federal election, VECCI, as part of the united chamber movement led by ACCI, ran the “Small Business. Too Big to Ignore” campaign in support of small business.

"The campaign highlighted the fact that there are over 2 million small businesses in Australia, employing more than 7 million Australians, which need government support, including through tax relief, to grow jobs and remain competitive," Mr Stone said.

"Small business policy interests were further reinforced by VECCI during our 2014 state election campaign, “Taking Care of Business”.

"This week’s federal budget, handed down by the Hon. Joe Hockey MP, Treasurer of Australia, acknowledged the importance of small business, with new measures to lower costs, stimulate investment and grow jobs."

Mr Stone said these included:

• The 1.5 percentage point corporate tax cut for small businesses with an annual turnover of less than $2 million.
• The 5 per cent tax discount up to $1,000 a year for unincorporated small businesses with an annual turnover of less than $2 million.
• An expansion in accelerated depreciation rules providing an immediate tax deduction for assets costing less than $20,000, for small businesses with an annual turnover of $2 million or less.
• A new regulatory regime for crowd sourced equity funding to help provide finance for innovative business ideas. 

"These measures were all welcomed by small business," Mr Stone said.

"In his budgetary response, the Hon. Bill Shorten MP, Leader of the Opposition, similarly acknowledged the vital role small business plays in the economy with the announcement of strong plans to reduce small business costs and spur investment."

The ALP’s plans include:

• Cutting the small business corporate tax rate to 25 per cent.
• Committing $500 million to a smart investment fund to invest in early-stage companies.
• Establishing a StartUp Finance partial loan guarantee scheme to provide capital to entrepreneurs.   

The measures to lower business costs and improve access to finance announced in the budget, and those proposed in the ALP’s budget response, are consistent with the recommendations contained in VECCI’s Small Business Taskforce report: “Small business. Big opportunities”.

"The attention both sides of politics are now giving small business is refreshing and overdue," Mr Stone said. "VECCI commends the Federal Government for its initiatives and the Federal Opposition for its alternate plans to support small business.

"We seek an equally strong commitment from governments at all levels to put small business first and do what they can to support small business success."

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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THE implications of selling uranium to India will be the focus of a public hearing in Melbourne on Monday.

Strategic analysts, church and environment groups will give evidence to Parliament’s Joint Treaties Committee, which is focusing on the costs and benefits of the Government’s proposed agreement to sell uranium to India.

The Government believes the agreement maintains Australia’s strong commitment to nuclear nonproliferation and disarmament and will improve the lives of ordinary Indians by reducing energy poverty in that country.

The agreement has attracted criticism from some nuclear non-proliferation specialists because India is not party to the Nuclear Non-Proliferation Treaty and has been subject to external and internal criticism for its nuclear safety record.

Committee Chair, Wyatt Roy MP, emphasised that this is a complex matter.

“The Committee will be undertaking a diligent and comprehensive look at the proposal to make sure all the issues are fully explored and considered,” Mr Roy said.

Public Hearing: Monday 18 May, Meeting Room G3, 55 St Andrews Place
Commonwealth Parliamentary Offices, Melbourne

9.30am – 10.30am Uniting Church of Australia, Justice and International Mission
11.30am – 12.30pm Mr Crispin Rovere, private citizen
1.30pm – 2.30pm Australian Conservation Foundation
2.10pm – 3.30pm Friends of the Earth
3.30 pm - Close

The hearings will be broadcast through www.aph.gov.au/live
Copies of the treaties and submissions received can be found at
http://www.aph.gov.au/Parliamentary_Business/Committees/Joint/Treaties
Alternatively, interested parties may email This email address is being protected from spambots. You need JavaScript enabled to view it. or phone
(02) 6277 4002

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THE Australian Parliament’s newly appointed Trade and Investment Growth Committee today commenced its inquiry into the business experience in utilising Australia’s existing free trade agreements (FTAs) including New Zealand, Singapore, Thailand, the United States, Chile, the Association of Southeast Asian Nations (along with New Zealand) and Malaysia.

In announcing the inquiry, the Chair of the Committee, Mr Ken O’Dowd MP said, "Australia is the world’s 12th largest economy with its major trading partners being China, Japan, and the United States. Australia has a number of long-standing FTAs with other countries including with ASEAN-New Zealand, Chile, Malaysia, United States, Singapore, and Thailand. These FTAs provide an important opportunity for Australia to boost its trade with these countries and benefit the future growth of Australian business."

The committee will examine the opportunities and challenges faced by Australian business arising from Australia’s existing FTAs with a view to identifying how Australia might best benefit from the recent and proposed North Asia FTAs.

"While FTAs create a framework for increased trade and investment it is important to address any barriers preventing realisation of these benefits and address them in future agreements," Mr O’Dowd said.

The committee was established to examine measures to further boost Australia’s trade and investment performance, including barriers to trade, reduction of red tape, and structural challenges and opportunities for the Australian community. As part of its remit, the committee will focus its examination on the experience of business in using Australia’s existing FTAs.

Written submissions from interested individuals and organisations are invited by COB Friday, 26 June 2015. The preferred method of receiving submissions is by electronic format lodged online using a My Parliament account. Please do not send submissions directly to the committee’s email inbox.

Guidance on preparing a submission is available on the committee’s website at www.aph.gov.au/jsctig

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VECCI Chief Executive Mark Stone has welcomed the Federal Budget, which contained a number of positives for Victorian small business including a reduction in the corporate tax rate, a tax discount for unincorporated businesses, asset right-off relief and support for start-ups.

"These measures will lower costs, improve cash flow and help stimulate new investment and jobs growth," Mr Stone said.

VECCI rated the Budget highlights for business to include: 

Jobs and Small Business Package

- The announced 1.5 percentage point company tax cut (to 28.5 per cent) for incorporated small businesses (with annual turnover of less than $2 million) will assist Victorian small businesses to remain competitive, stimulate new investment and drive jobs growth.

- To ensure support is available for all small businesses, unincorporated small businesses (with annual turnover of less than $2 million) will be eligible for a 5 per cent tax discount up to $1,000 a year.

- All small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000.

- Red tape will be reduced as all small business work-related portable electronic devices are fringe benefits tax free.

- Victorian start-ups will be able to immediately deduct professional costs associated with starting a business. A streamlining of business registration processes will make it easier to start a new business.

- Small businesses will also benefit from a new capital gains tax roll over relief when changing their legal structures and the expansion of tax concessions for employee share schemes. Obstacles to crowd sourced equity funding will also be reduced. 

Jobs

- Job creation more broadly has been spurred by budget measure to help Victoria’s unemployed find and move into work, including:

•      - Stronger support for youth transition to work.
•      - Simplified work experience arrangements and greater flexibility in the operation of wage payment subsidies.
•      - A reinvigoration in the Restart wage subsidy to help business employ older workers. 

Trade

- Victorian exporters looking to leverage opportunities created by recent Free Trade Agreements (FTA) with Japan, China and South Korea will welcome the $25 million commitment to establishing a FTA dashboard. We look forward to further details of this measure. 

- The budget demonstrates responsible economic management. The government has identified $10.9 billion in expenditure savings over the next four years and its fiscal strategy will see the budget deficit fall steadily to $6.9 billion by 2018-19.

- Many of the budget measures are consistent with VECCI Small Business Taskforce’s “Small business. Big opportunities” recommendations to support small business growth. 

- As part of the united chamber movement’s national “Small Business. Too Big to Ignore” campaign prior to the 2013 federal election, we commend the Federal Government’s focus on supporting small business growth and entrepreneurship.

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential business organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au  

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