THE Australian Small Business and Family Enterprise Ombudsman Bruce Billson has welcomed the banks’ ongoing efforts to support small businesses impacted by COVID-19 lockdowns.

The Australian Banking Association said banks would defer loan repayments for small businesses affected by lockdowns throughout Australia for three months.

“This is a positive initiative that will help many struggling small businesses stay afloat in these challenging times,” Mr Billson said.

“The banks’ commitment to support small businesses through this period is highly valued and is the kind of a key support element that could be incorporated into an agreed predictable and known national framework of support. 

“Such a framework, involving both government and private sector elements, step up as COVID-inspired economic constraints and introduced, up-levelled or extended that small and family businesses can count on when seeking to navigate these challenging and uncertain times

“I would encourage all small businesses owners who are experiencing financial difficulties to call their banks now to make the necessary arrangements," Mr Billson said.

“Home loan support, including deferrals on a month-by-month basis, is also available to small business customers.

“Banks are promising to support small businesses if they need it - so long as the loan is in good standing with repayments up-to-date or there’s a payment program in place.

“It’s encouraging to see our banks taking this proactive approach and leading by example.

“This consistency from the banks will help small businesses navigate and adapt to periods of uncertainty such as this.”  

www.asbfeo.gov.au

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WITH THE ‘Your Future, Your Super’ superannuation reforms having now come into effect the House Economics Committee will hear from key players in the sector at a public hearing via videoconference on Thursday, July 8, to discuss implementation of the reforms.

The hearing forms part of the committee’s ongoing Review of the Four Major Banks and other Financial Institutions. Appearing will be industry funds, including Australian Super, CBUS, Aware, Prime, Maritime, and TWU Super, as well as the retail funds Fiducian, and Equity Trustees (trustee of Zurich Master Superannuation Fund).

Committee Chair, Tim Wilson MP said, "Thursday’s hearing is an opportunity to scrutinise the superannuation sector’s response to the government’s 'Your Future, Your Super' reforms, which came into effect on July 1.

"It’s important that funds are taking their new obligations seriously, and that trustees are working in the best financial interests of members and being transparent about fund performance. In the highly competitive super field, where member assets have now exceeded $3 trillion, Australians should expect nothing less.

"The committee will also continue to scrutinise the impact of COVID-19 on super, as it has for the past eighteen months. In particular, how is the pandemic outlook affecting the funds’ future investment strategies and how they treat their members," Mr Wilson said.

A full program for the hearing is available on the committee’s website.

Public hearing details

Date: Thursday 8 July 2021
Time: 9.15am to 4.30pm
Location: videoconference

The hearing will be broadcast live at aph.gov.au/live.

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WHILE it is no secret that the shipping industry is exhausted by the unpredictable disruptions that COVID-19 has inflicted, Australian freight companies are now dealing with a new round of hurdles this week.

The Maritime Union of Australia (MUA) has begun a series of work stoppages with Port of Melbourne on strike, and an upcoming strike planned at Sydney International Container Terminals on July 9 set to cause lengthy delays. 

Jackson Meyer, CEO of Verus Global, an international freight forwarding company has been directly affected. 

“The Port of Melbourne strike has resulted in significant shipping delays. Containers are taking double the amount of time to process once they hit our shores, and the impact of the local pressure will affect global markets. The situation is at a critical point with the Christmas end of year peak season only a couple of months away,” Mr Meyer said. 

To add to the frustration, an increasing number of shipping lines are now directing their containers be de-hired directly to nominated stevedore terminals. This inefficient process has been driven by the lack of capacity at empty container depots in Melbourne, creating a considerable degree of stress on fleet operations to maintain delivery integrity, and additional fees charged. 

“The Port of Melbourne strike has pushed container importers pricing up from an already astronomical price, brought on by the global pandemic, to an industry that is very much hurting. The demand is impossible to keep up with, the delays are imminent and will be ongoing, especially with the announcement of a Sydney strike this week,” Mr Meyer said.  

He said the industry has been warned to expect further unforecasted and increased fees. Given the new restrictions and the strict policies placed on local providers, in addition to the historically high freight levels across all global markets, and increase on local charges updated almost daily, importers are unable to retain their original selling prices and will ultimately have to pass on these costs to the customer. 

Low cost industries such as packaging are being hit the hardest, with high volume, low margin goods absorbing the on-costs of the unprecedented climate, with no endgame in sight. Whitegoods and highly sought-after household items during the pandemic, such as furniture, continue to remain strong and in demand.

Large appliances now command a spot rate up to 41 percent of the cargo value, and small appliances command up to 27 percent of the retail value. 

“In the monopoly market of global shipping and with strong alliances, freight rates have become too lucrative to retain previously agreed contract rates on long term deals," 
Mr Meyer said.

"If contracts are not renewed, or have been partially slashed, the importer finds themselves paying up to six times as much as they initially forecasted. It’s clear that we are now at a point where an increasing range of cargo owners quite simply will not be able to sustain their business, at the currently high freight rates, and that’s a major issue for the industry."

About Jackson Meyer 

Award winning entrepreneur and Forbes 30 Under 30 Alumni, Jackson Meyer established Verus Global to bridge the gap between global giants and local small enterprises in Australian logistics, and continues to expand its networks globally. As group CEO and director, Mr Meyer manages teams across 15 global offices, located in Australia, China, Hong Kong and the United Kingdom. At just 25 years of age, Meyer has driven Verus Global to turnover of $130 million in 24 months.

About Verus Global
Established in 2019, Verus Global is an international freight forwarding company that uses cloud-based technology to increase the efficiency and transparency of shipping processes for clients across the globe. Co-founded by group CEO and director of Verus Global, Jackson Meyer, the company is based in Australia as well as operating international offices in China, Hong Kong and the UK. A meteoric rise to success, Verus Global has generated A$74 million in just two years and the company continues to excel in customer satisfaction and business success. www.verus-global.com

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THE Parliament’s Intelligence and Security Committee will hold two days of public hearings on Thursday and Friday, July 8 and 9, as part of its Review of the Security Legislation Amendment (Critical Infrastructure) Bill 2020 and Statutory Review of the Security of Critical Infrastructure Act 2018.

The committee will hear from a selected range of industry, union and expert representatives that have engaged with the committee for its review. Opening statements have been received from some witnesses and can be accessed as supplementary submissions.

Committee Chair, Senator James Paterson said, "It is vital that we hear from the companies and industries affected by the proposed framework under the Bill, to ensure that the serious cyber security risks we face can be met effectively with the lowest possible regulatory burden and cost to consumers."

Further information on the inquiry can be obtained from the Committee’s website.

Public hearings details

Thursday 8 and Friday 9 July 2021
9:30am–5pm (AEST)
Committee Room 2R1, Parliament House, Canberra and via videoconference

Programs for the hearings are available on the committee’s website and the hearing will be broadcast live at aph.gov.au/live.

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